QUIZ NO. 1 in EECON 1
1 in EECON 1
Instructions: Answer the following problems. Write your solutions legibly
on a long-sized newsprint. You are allowed to use a maximum of 10
newsprints for your solutions. BOX your final answers.
1. A man borrows money from a bank which uses a simple discount
rate of 14%. He signs a promissory note promising to pay P 500 per
month at the end of the 4th, 6th, and 7th months, respectively.
Determine the amount he received from the bank.
2. A man wishes to bequeath to his daughter P20,000 ten years from
now. What amount should he invest now if it will earn interest of
8% compounded annually during the first 5 years and 12%
compounded quarterly during the next 5 years?
3. In how many years will the investment to double in value at 5%
simple interest rate?
4. Find the present value, in pesos, of a perpetuity of P 15,000
payable semi-annually if money is worth 8% compounded quarterly.
5. Mr. Juan dela Cruz borrowed P 1000.00 and was able to signed a
promissory note that he would pay P 2032.79 after 4 years. How
much is the nominal rate of interest and the corresponding effective
rate if money is compounded bi-monthly.
6. You need P 4,000 per year for four years to go to college. Your
father invested P 5,000 in a 7% account for your education when
you were born. If you withdraw the P 4,000 at the end of your 17th,
18th, 19th, and 20th years, how much money will be left in the
account at the end of your 21st year?
7. A man bought a house and lot worth P 300,000 in a subdivision in
Metro Manila. The annual amortization for the house and lot is P
34,200. Determine the rate of interest he was charged by the
subdivision owners.
8. The manufacturer of Brand A automobile tires claims that its tire
can save 110 gallons of fuel over 55,000 miles of driving, as
compared to a popular competitor (Brand B). If gasoline costs $4.00
per gallon, how much per mile driven does this tire save the
customer (Brand A versus Brand B)?
Prepared by: Dhynelle B. Muyco, REE, M. Eng.
QUIZ NO. 1 in EECON 1
Instructions: Answer the following problems. Write your solutions legibly
on a long-sized newsprint. You are allowed to use a maximum of 10
newsprints for your solutions. BOX your final answers.
1. A man borrows money from a bank which uses a simple discount
rate of 14%. He signs a promissory note promising to pay P 500 per
month at the end of the 4th, 6th, and 7th months, respectively.
Determine the amount he received from the bank.
2. A man wishes to bequeath to his daughter P20,000 ten years from
now. What amount should he invest now if it will earn interest of
8% compounded annually during the first 5 years and 12%
compounded quarterly during the next 5 years?
3. In how many years will the investment to double in value at 5%
simple interest rate?
4. Find the present value, in pesos, of a perpetuity of P 15,000
payable semi-annually if money is worth 8% compounded quarterly.
5. Mr. Juan dela Cruz borrowed P 1000.00 and was able to signed a
promissory note that he would pay P 2032.79 after 4 years. How
much is the nominal rate of interest and the corresponding effective
rate if money is compounded bi-monthly.
6. You need P 4,000 per year for four years to go to college. Your
father invested P 5,000 in a 7% account for your education when
you were born. If you withdraw the P 4,000 at the end of your 17th,
18th, 19th, and 20th years, how much money will be left in the
account at the end of your 21st year?
7. A man bought a house and lot worth P 300,000 in a subdivision in
Metro Manila. The annual amortization for the house and lot is P
34,200. Determine the rate of interest he was charged by the
subdivision owners.
8. The manufacturer of Brand A automobile tires claims that its tire
can save 110 gallons of fuel over 55,000 miles of driving, as
compared to a popular competitor (Brand B). If gasoline costs $4.00
per gallon, how much per mile driven does this tire save the
customer (Brand A versus Brand B)?
Prepared by: Dhynelle B. Muyco, REE, M. Eng.
QUIZ NO.
Instructions: Answer the following problems. Write your solutions legibly
on a long-sized newsprint. You are allowed to use a maximum of 10
newsprints for your solutions. BOX your final answers.
1. A man borrows money from a bank which uses a simple
discount rate of 14%. He signs a promissory note promising to
pay P 500 per month at the end of the 4th, 6th, and 7th months,
respectively. Determine the amount he received from the bank.
2. A man wishes to bequeath to his daughter P20,000 ten years from
now. What amount should he invest now if it will earn interest of
8% compounded annually during the first 5 years and 12%
compounded quarterly during the next 5 years?
3. In how many years will the investment to double in value at 5%
simple interest rate?
4. Find the present value, in pesos, of a perpetuity of P 15,000
payable semi-annually if money is worth 8% compounded quarterly.
5. Mr. Juan dela Cruz borrowed P 1000.00 and was able to signed a
promissory note that he would pay P 2032.79 after 4 years. How
much is the nominal rate of interest and the corresponding effective
rate if money is compounded bi-monthly.
6. You need P 4,000 per year for four years to go to college. Your
father invested P 5,000 in a 7% account for your education when
you were born. If you withdraw the P 4,000 at the end of your 17th,
18th, 19th, and 20th years, how much money will be left in the
account at the end of your 21st year?
7. A man bought a house and lot worth P 300,000 in a subdivision in
Metro Manila. The annual amortization for the house and lot is P
34,200. Determine the rate of interest he was charged by the
subdivision owners.
8. The manufacturer of Brand A automobile tires claims that its tire
can save 110 gallons of fuel over 55,000 miles of driving, as
compared to a popular competitor (Brand B). If gasoline costs $4.00
per gallon, how much per mile driven does this tire save the
customer (Brand A versus Brand B)?
Prepared by: Dhynelle B. Muyco, REE, M. Eng.
QUIZ NO. 1 in EECON 1
Instructions: Answer the following problems. Write your solutions legibly
on a long-sized newsprint. You are allowed to use a maximum of 10
newsprints for your solutions. BOX your final answers.
1. A man borrows money from a bank which uses a simple
discount rate of 14%. He signs a promissory note promising to
pay P 500 per month at the end of the 4th, 6th, and 7th months,
respectively. Determine the amount he received from the bank.
2. A man wishes to bequeath to his daughter P20,000 ten years from
now. What amount should he invest now if it will earn interest of
8% compounded annually during the first 5 years and 12%
compounded quarterly during the next 5 years?
3. In how many years will the investment to double in value at 5%
simple interest rate?
4. Find the present value, in pesos, of a perpetuity of P 15,000
payable semi-annually if money is worth 8% compounded quarterly.
5. Mr. Juan dela Cruz borrowed P 1000.00 and was able to signed a
promissory note that he would pay P 2032.79 after 4 years. How
much is the nominal rate of interest and the corresponding effective
rate if money is compounded bi-monthly.
6. You need P 4,000 per year for four years to go to college. Your
father invested P 5,000 in a 7% account for your education when
you were born. If you withdraw the P 4,000 at the end of your 17th,
18th, 19th, and 20th years, how much money will be left in the
account at the end of your 21st year?
7. A man bought a house and lot worth P 300,000 in a subdivision in
Metro Manila. The annual amortization for the house and lot is P
34,200. Determine the rate of interest he was charged by the
subdivision owners.
8. The manufacturer of Brand A automobile tires claims that its tire
can save 110 gallons of fuel over 55,000 miles of driving, as
compared to a popular competitor (Brand B). If gasoline costs $4.00
per gallon, how much per mile driven does this tire save the
customer (Brand A versus Brand B)?
Prepared by: Dhynelle B. Muyco, REE, M. Eng.