1. First Benchmark Publishing’ Publishing’ss gross margin is 50% of sales. The operating costs of the publishing are estimated at 15% of sales. If the compan is !ithin the "0% ta# bracket$ determine the percent of sales is their profit after ta#es •
&. '1 %
•
B. '0 %
•
(. 1) %
•
*. 1+ %
'. & farmer farmer selling eggs at 50 pesos a do,en gains '0%. If he sells the eggs at the same price after the costs of the eggs rises b 1'.5%$ ho! much !ill be his ne! gain in percent •
&. -.+) %
•
B. -.-5 %
•
(. -.5+ %
•
*. -.1' %
. & feasibilit feasibilit stud sho!s that a fi#ed capital in/estment of P10$000$000 is reuired for a proposed construction firm and an estimated !orking capital of P'$000$000. &nnual depreciation is estimated to be10% of the fi#ed capital capital in/estment. *etermine *etermine the rate of return on the total total in/estment if the annual annual profit is P$500$000. P$500$000. •
&. '+. %
•
B. ').1 %
•
(. 0.1' %
•
*. 0.+ %
". The monthl demand for ice cans being manufactured b 2r. (amus is '00 pieces. 3ith a manual operated guillotine$ the unit cutting cost is P'5.00. &n electricall operated hdraulic guillotine !as offered to 2r. (amus at a price of P'5$000.00 and !hich cuts b 0% the unit cutting cost. *isregarding the cost of mone$ ho! man months !ill 2r. (amus be able to reco/er the cost of the machine if he decides to bu no! •
&. 10 months
•
B. 11 months
•
(. 1' months
•
*. 1 months
5. 4ngr. Trinidad Trinidad loans from a loan firm an amount of P100$000 !ith a rate of simple interest of '0% but the interest !as deducted from the loan at the time the mone !as borro!ed. If at the end of one ear$ she has to pa the full amount a mount of P100$000$ !hat is the actual rate of interest •
&. '.5 %
•
B. '". %
•
(. '5.0 %
•
*. '5.+ %
-. & loan loan of P5$000 is made for a period of 15 months$ at a simple interest rate of 15%$ !hat future amount is due at the end of the loan period •
&. 5$).50
•
B. 5$+.'0
•
(. 5$1'."0
•
*. 5$-)0.1'
. 2r. Bacani borro!ed mone from the bank. e recei/ed from the bank P1$+"' and promised to repa P'$000 at the end of 10 months. *etermine the rate of simple interest. •
&. 1'.1) %
•
B. 1'.0 %
•
(. 11.5" %
•
*. 10.') %
+. & college college freshman borro!ed P'$000 from a bank for his tuition fee and promised to pa the amount for one ear. e recei/ed onl the amount of P1$)'0 after the bank collected the ad/ance interest of P+0.00. 3hat !as the rate of discount •
&. .- %
•
B. ".00 %
•
(. ".15 %
•
*. ".'5 %
). It is the practice of almost all banks in the Philippines that !hen the grant a loan$ the interest for one ear is automaticall deducted from the principal amount upon release of mone to a borro!er. 6et us therefore assume that ou applied for a loan !ith a bank and the P+0$000 !as appro/ed at an interest rate of 1"% of !hich P11$'00 !as deducted and ou !ere gi/en a check of P-+$+00. 7ince ou ha/e to pa the amount of P+0$000 one ear after$ !hat then !ill be the effecti/e interest rate •
&. 1-.0' %
•
B. 1-.'+ %
•
(. 1-.' %
•
*. 1-." %
10. & man in/ested P110$000 P110$000 for 1 das. The net interest after deducting '0% !ithholding ta# is P+)0.-. Find the rate r ate of return annuall annuall.. •
&. 11.50 %
•
B. 11.5 %
•
(. 11.)5 %
•
*. 1'.' %
11. & in/estor !ishes to earn % on his capital after pament of ta#es. If the income from an a/ailable in/estment !ill be ta#ed at an a/erage rate of "'%$ !hat minimum rate of return$ before pament of ta#es$ must the in/estment offer to be 8ustified •
&. 1'.0 %
•
B. 1'." %
•
(. 1'.- %
•
*. 1'.+ %
1'. 2r. 9un :amos !as granted a loan of P'0$000 b his emploer 4#cel First :e/ie! and Training (enter$ Inc. !ith an interest of -% for 1+0 das on the principal collected in ad/ance. The corporation
!ould accept a promissor note for P'0$000 non;interest for 1+0 da s. If discounted at once$ find the proceeds of the note. •
&. P1+$000
•
B. P1+$)00
•
(. P1)$000
•
*. P1)$100
1. 2iss 4/illa borro!ed mone from a bank. 7he recei/es from the bank P1$"0.00 and promised to pa P1$500.00 at the end of ) months. *etermine the corresponding discount rate or often referred to as the
&. 1.15 %
•
B. 1.' %
•
(. 1."- %
•
*. 1. %
1". The e#act simple interest of P5$000 in/ested from 9une '1$ 1))5 to *ecember '5$ 1))5 is P100. 3hat is the rate of interest •
&. .)0 %
•
B. .)' %
•
(. .)5 %
•
*. .)+ %
15. 3hat is the ordinar interest on P1$500.50 for 1+' das at 5.'% •
&. P).01
•
B. P).+'
•
(. P)."5
•
*. P).))
1-. & loan for P50$000 is to be paid in ears at the amount of P-5$000. 3hat is the effecti/e rate of mone •
&. ).01 %
•
B. ).1" %
•
(. ).1 %
•
*. )."1 %
1. 3hat is the effecti/e rate corresponding to 1+% compounded dail Take Take 1 ear is eual to -0 das. •
&. 1).-1 %
•
B. 1)."" %
•
(. 1).1 %
•
*. 1).' %
1+. 3hat rate of interest compounded annuall is the same as the rate of interest of +% compounded uarterl •
&. +.0 %
•
B. +.1' %
•
(. +.1- %
•
*. +.'" %
1). 3hich of these gi/es the lo!est effecti/e rate of interest •
&. 1'.5 % compounded annuall
•
B. 11.)0 % compounded annuall
•
(. 1'.'0 % compounded annuall
•
*. 11.-0 % compounded annuall
'0. &n amount of P1$000 becomes P1$-0+."" after " ears compounded bimonthl. bimonthl. Find the nominal interest. •
&. 11.+) %
•
B. 1'.00 %
•
(. 1'.0+ %
•
*. 1'.' %
'1. o! long !ill it take mone to double itself if in/ested at 5% compounded annuall •
&. 1. ears
•
B. 1". ears
•
(. 1".' ears
•
*. 15. ears
''. B the condition of a !ill$ the sum of P'0$000 is left to a girl to be held in trust fund b her guardian until it amounts to P50$000. 3hen !ill the girl recei/e the mone if fund in/ested at +% compounded uarterl •
&. 11.' ears
•
B. 11."- ears
•
(. 11.5 ears
•
*. 11.+ ears
'. & sum of P1$000 is in/ested no! and left for eight ears$ at !hich time the principal is !ithdra!n. The interest has accrued is left for another eight ears. If the effecti/e annual interest rate is 5%$ !hat !ill be the !ithdra!al amount amount at the end of the 1-th ear •
&. P-).1'
•
B. P00.1'
•
(. P0'.15
•
*. P05."'
'". 2andarin Bank ad/ertises ).5% account that ields ).+"% annuall annuall.. Find ho! often the interest is compounded. •
&. 2onthl
•
B. Bimonthl
•
(. >uarterl
•
*. &nnuall
'5. & student plans to deposit P1$500 in the bank no! and another P$000 for the ne#t ' ears. If he plans to !ithdra! P5$000 three ears from after his last deposit for the purpose of buing shoes$ !hat !ill be the amount of mone left in the bank after one ear of his !ithdra!al 4ffecti/e annual interest rate is 10%. •
&. P1$5").-"
•
B. P1$"5).-"
•
(. P1$"5.)+
•
*. P1$)"5.-"
'-. ?ou ?ou borro! P$500.00 for one ear from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 1+% per ear. o! much lesser ou !ill pa pa b borro!ing the mone from the bank •
&. P -'.""
•
B. P"".55
•
(. P5".--
•
*. P.5-
'. 3hat is the present !orth of t!o P 100 paments at the end of the third ear and fourth ear The annual interest rate is +%. •
&. P 150.5-
•
B. P 15'.++
•
(. P 15.+)
•
*. P 151.0)
'+. & firm borro!s P'$000 for - ears at +%. &t the end of - ears$ it rene!s the loan for the amount due plus P'$000 more for ' ears ears at +%. 3hat is the lump lump sum due •
&. P $'-0."
•
B. P $'+0."
•
(. P $'0."
•
*. P $'50."
'). In ear ,ero$ ou in/est P 10$000.00 in a 15% securit for 5 ears. *uring that time$ the a/erage annual inflation is -%. o! much in terms of ear ,ero pesos !ill be in the account at maturit •
&. P 15$00.0
•
B. P '0$11.5
•
(. P 1+$'+).05
•
*. P 1-$+)'."
0. The institute of 4lectronics and (ommunications 4ngineers of the Philippines @I4(4PA is planning to put up its o!n building. building. T!o T!o proposals proposals being considered considered are &. The construction of the building no! to cost P "00$000 B. The construction of a smaller building no! to cost P00$000 and at the end of 5 ears$ an e#tension to be added to cost P '00$000.
B ho! much is proposal B more economical than proposal & if interest rate is '0% and depreciation to be neglected •
&. P 1)$1''.15
•
B. P 1)$"'.-)
•
(. P 1)$51+.0
•
*. P 1)$-'".")
1. 3hat is the present !orth of a P500 annuit starting at the end of the third ear and continuing to the end of the fourth ear$ if the annual interest rate is 10 % •
&. P '.1
•
B. P 1.1
•
(. P 1".1
•
*. P 1.1
'. 3hat annuit is reuired o/er 1' ears to euate !ith a future amount of P '0$000 &ssume iC -% annuall. •
&. P 1$')0."
•
B. P 1$1+5.5"
•
(. P 1$10."
•
*. P 1$'05."
. & factor operator bought a diesel generator set for P 10$000.00 and agreed to pa the dealer uniform sum at the end of each ear for 5 ears at +% interest compounded annuall$ that the final pament !ill cancel the debt for principal and interest. 3hat is the annual pament •
&. P '$500.5
•
B. P '$5""."5
•
(. P '$5"0.5-
•
*. P '$50".5
". 3hat is the present !orth of a ear annuit paing P $000.00 at the end of each ear$ !ith interest at +% compounded annuall •
&. P $-5".0"
•
B. P $1.')
•
(. P $"'0.+)
•
*. P $5)0.1'
5. & man loans P 1+$"00 from a bank !ith interest at 5% compounded annuall. annuall. e agrees to pa his obligations b paing + eual annual paments$ the first being due at the end of 10 ears. Find the annual paments. •
&. P "$-00.10
•
B. P "$"+)."
•
(. P "$'-.)1
•
*. P "$-.'0
-. & person bus a piece of lot for P 100$000 do!npament and 10 deferred semi;annual paments of P +$000 each$ starting three ears from no!. 3hat is the present /alue of the in/estment if the rate of interest is 1'% compounded semi;annuall •
&. P 1"'$))).0+
•
B. P 1"$10".+)
•
(. P 1"'$1+).-
•
*. P 1"$))).0+
. & oung engineer borro!ed P 10$000 at 1'% interest and paid P '$000 per annum for the last " ears. 3hat does he ha/e to pa at the end of the fifth ear in order to pa off his loan •
&. P -$))).)
•
B. P -$')'.)
•
(. P -$'''.)
•
*. P -$)''.)
+. 2iss (alledo deposited P 1$000$ P 1$500 and P '$000 at the end of the ' nd ear$ rd ear and " th ear$ respecti/el in a sa/ings account !hich earned 10% per annum. o! much is in the account at the end of the "th ear •
&. P "$++0.00
•
B. P "$+'0.00
•
(. P "$+-0.00
•
*. P "$+"0.00
). & P 1$000$000 issue of %$ 15;ear bond !as sold at )5%. 3hat is the rate of interest of this in/estment •
&. .0%
•
B. ."%
•
(. .%
•
*. ".0%
"0. & P 1$ 000$ -% bond pas di/idend semiannuall and !ill be redeemed at 110% on 9une '1$ '0". It is bought on 9une '1$ '1$ '001 to ield "% interest. interest. Find the price of the bond. bond. •
&. P 1$1''.0
•
B. P 1$1"".+1
•
(. P 1$1.+
•
*. P 1$155.0-
"1. & DE2 has a selling price of P "00. If its selling price is e#pected to decline at a rate of 10% per annum due to obsolescence$ !hat !ill be its selling price after 5 ears •
&. P '''.-
•
B. P '1'.)0
•
(. P '-.'0
•
*. P '1.5-
"'. & machine costs of P +$000 and an estimated life of 10 ears !ith a sal/age /alue of P 500. 3hat is its book /alue after + ears ears using straight line method method •
&. P '$000.00
•
B. P '$100.00
•
(. P '$'00.00
•
*. P '$00.00
". &B( (orporation makes it a polic that for an ne! euipment purchased$ the annual depreciation cost should not e#ceed '0% of the first cost at an time !ith no sal/age /alue. *etermine the length of ser/ice life necessar if the depreciation used is the 7?* method. •
&. ears
•
B. + ears
•
(. ) ears
•
*. 10 ears
"". &n asset is purchased for P )$000.00. Its estimated economic life is 10 ears after !hich it !ill be sold for P 1$000.00. Find the depreciation in the first three ears using sum;of;ears digit method •
&. P $').'
•
B. P $)'.'
•
(. P $').'
•
*. P $)'.'
"5. 7hell Philippines$ a multinational compan$ compan$ has a total gross income for a particular ear of P 50$000$000. The ta#able income after taking all deductions e#cept for depletion is P 1+$500$000. 3hat is the allo!able depletion allo!ance for that particular ear Take percentage of gross income for oil as ''%. •
&. P )$5+."1
•
B. P )$''+."5
•
(. P )$'50.00
•
*. P )$0+."5
"-. The 7audi &rabian Eil :efiner de/eloped an oil !ell !hich is estimated to contain 5$000$000 barrels of oil at an initial cost of 50$000$000. 3hat is the depletion charge during the ear !here it produces half million barrels of oil Gse Gnit or Factor method in computing depletion. •
&. 5$000$000.00
•
B. 5$010$000.00
•
(. 5$0'5$000.00
•
*. 5$050$000.00
". & manufacturer produces certain items at a labor cost of P 115 each$ material cost of P - each and /ariable cost of P '.' each. If the item has a unit price of P -00$ ho! man units must be manufactured each month for the manufacturer to break e/en if the monthl o/erhead is P"'+$000 •
&. 1$0
•
B. 1$0
•
(. 1$0"
•
*. 1$05
"+. & manufacturing firm maintains one product assembl line to produce signal generators. 3eekl 3eekl demand for the generators is 5 units. The line operates for hours per da$ 5 das per !eek. 3hat is the ma#imum production time per unit in hours reuired of the line to meet the demand •
&. 1.0 hour per unit
•
B. 1.' hours per unit
•
(. 1." hours per unit
•
*. 1.- hours per unit
"). & telephone s!itchboard 100 pair cable can be made up !ith either enameled !ire or tinned !ire. There !ill be "00 soldered connections. The cost of soldering a connection on the enameled !ire !ill be P 1.-5 on the tinned !ire$ it !ill be P 1.15. & 100; pair cable made up !ith enameled !ire cost P 0.55 per linear foot and those made up of tinned !ire cost P 0.5 per linear foot. *etermine the length of cable run in feet so that the cost of each installation !ould be the same. •
&. 1$000 feet
•
B. 1$0"0 feet
•
(. 1$100 feet
•
*. 1$1'0 feet
50. & leading shoe manufacturer produces a pair of 6ebron 9ames signature shoes at a labor cost of P )00.00 a pair and a material cost of P +00.00 a pair. The fi#ed charges on the business are P 5$000$000 a month and the /ariable costs are P "00.00 a pair. :oalt to 6ebron 9ames is P 1$000 per pair of shoes sold. If the shoes sell at P 5$000 a pair$ ho! man pairs must be produced each month for the manufacturer to break;e/en •
&. '.5)0
•
B. '$-'
•
(. '$1'
•
*. '$+)0
51. 3hat is defines as the analsis and e/aluation of the monetar conseuences b using the theories and principles of economics economics to engineering applications$ applications$ designs and pro8ects •
&. 4conomic &nalsis
•
B. 4ngineering cost analsis
•
(. 4ngineering econom
•
*. *esign cost analsis
5'. 3hat is considered as the standard unit !hich forms the basis of a countr’s domestic mone suppl •
&. 2onetar unit
•
B. (urrenc
•
(. Foreign e#change
•
*. (ash or check
5. 3hat is defined as an tangible economic product that contributes directl or indirectl to the satisfaction of human !ant
•
&. 7er/ices
•
B. Hoods
•
(. (ommodities
•
*. Hoods or commodities
5". 3hat is defined as an tangible economic acti/it that contributes directl or indirectl to the satisfaction of human !ant •
&. 7er/ices
•
B. Hoods
•
(. (ommodities
•
*. Hoods or commodities
55. 3hat are the t!o classifications of goods and ser/ices •
&. 6ocal and imported
•
B. :a! and finished
•
(. (onsumer and producer
•
*. :ead;made and made;to;order
5-. 3hat refers to the goods and ser/ices that are reuired to support human life$ needs and acti/ities •
&. Producer products
•
B. (onsumer products
•
(. 6u#ur
•
*. ecessit
5. 3hat refers to the goods and ser/ices that are desired b human and !ill be acuired onl after all the needs ha/e been satisfied •
&. Producer products
•
B. (onsumer products
•
(. 6u#ur
•
*. ecessit
5+. 3hat refers to the e#change mechanism that brings together the sellers and the buers of a product$ factor of production or financial securit •
&. 2all
•
B. 2arket
•
(. 7tore
•
*. Effice
5). 3hat is considered as the basic consuming or demanding unit of a commodit •
&. 7eller
•
B. 2anufacturer
•
(. Producer
•
*. Buer or consumer
-0. 3hat is defined as an entit !hich makes product$ good or ser/ices a/ailable to buer or consumer in e#change of monetar consideration •
&. 7eller
•
B. 2anufacturer
•
(. Producer
•
*. Buer or consumer
-1. 3hat is a market situation !hereb there is onl onl one buer of an item for !hich there is no goods substitute •
&. 2onopson
•
B. 2onopol
•
(. Eligopol
•
*. Eligopson
-'. 3hat market situation e#ists !here there are fe! sellers and fe! buers •
&. Eligopol
•
B. Eligopson
•
(. Bilateral oligopol
•
*. Bilateral Eligopson
-. 3hat market situation e#ists !here there is onl one buer and onl one seller •
&. 2onopson
•
B. 2onopol
•
(. Bilateral monopson
•
*. Bilateral monopol
-". 3hat is the market situation e#ist !hen there are man buers and man sellers •
&. Perfect competition
•
B. Eligopol
•
(. Eligopson
•
*. 2onopol
-5. If there is onl one seller and man buers$ the market situation is JJJJJJJJ . •
&. *uopson
•
B. Eligopol
•
(. Eligopson
•
*. 2onopol
--. If there are man sellers and fe! buers$ the market situation is JJJJJJJJJ . •
&. *uopson
•
B. Eligopol
•
(. Eligopson
•
*. 2onopol
-. Eligopol e#ists !hen there isKare •
&. Fe! sellers and fe! buers
•
B. Fe! sellers and man buers
•
(. 2an sellers and fe! buers
•
*. Ene seller and fe! buers
-+. *uopson is a market situation !here there isKare •
&. Fe! sellers and fe! buers
•
B. Fe! sellers and man buers
•
(. 2an sellers and fe! buers
•
*. Ene seller and fe! buers
-). *uopol is a market situation !here there isKare •
&. Fe! sellers and fe! buers
•
B. Fe! sellers and man buers
•
(. 2an sellers and fe! buers
•
*. Ene seller and fe! buers
0. 3hat is another term for
&. &tomistic competition
•
B. o;limit competition
•
(. Free;for;all competition
•
*. eterogeneous market
1. 3hat refers to the market situation in !hich an an gi/en product is supplied b a /er large number of /endors and there is no restriction against additional /endors from entering the market •
&. Perfect competition
•
B. Eligopol
•
(. Eligopson
•
*. 2onopol
'. &side from man sellers and man buers$ !hich one is a characteristic of perfect competition •
&. omogeneous product
•
B. Free market entr and e#it
•
(. Perfect information and absence of all economic friction
•
*. &ll of the abo/e
. 3hat is the opposite of perfect competition •
&. 2onopson
•
B. Eligopol
•
(. Eligopson
•
*. 2onopol
". Perfect monopol e#ists onl if
•
&. the single /endor can pre/ent the entr of all other /endors in the market
•
B. the single /endor gets the absolute franchise of the product
•
(. the single /endor is the onl one !ho has the permit to sell
•
*. the single /endor is the onl one !ho has the kno!ledge of the product
5. & JJJJJJ is a market situation !here economies of scale are so significant that cost are onl minimi,ed !hen the entire output of an industr is supplied b a single producer so that the suppl costs are lo!er under monopol that under perfect competition. •
&. Perfect monopol
•
B. Bilateral monopol
•
(. atural monopol
•
*. Erdinar monopol
-. <3hen one of the factors of production is fi#ed in uantit or is difficult to increase$ increasing the other factors of production !ill result in a less than proportionate increase in output=. This statement is kno!n as the •
&. 6a! of diminishing return
•
B. 6a! of suppl
•
(. 6a! of demand
•
*. 6a! of suppl and demand de mand
. 3hat refers to the need$ !ant or desire for a product backed b the mone to purchase it •
&. 7uppl
•
B. *emand
•
(. Product
•
*. Hood
+. 3hat refers to the amount of a product made a/ailable for sale •
&. 7uppl
•
B. *emand
•
(. Product
•
*. Hood
).
&. 6a! of diminishing return
•
B. 6a! of suppl
•
(. 6a! of demand
•
*. 6a! of suppl and demand de mand
+0. 3hat do ou call an particular ra! material or primar product such as cloth$ !ool$ flour$ coffee$ etc. •
&. Gtilit
•
B. ecessit
•
(. (ommodit
•
*. 7tock
+1. 3hat is defined as the interest on a load or principal that is based onl on the original amount of the loan or principal •
&. 4ffecti/e rate of interest
•
B. ominal rate of interest
•
(. (ompound interest
•
*. 7imple interest
+'. Gnder ordinar simple interest$ ho! man das in one ear •
&. 00
•
B. -0
•
(. -5
•
*. --
+. Ene banker’s ear is eui/alent to JJJJJJ das. •
&. 00
•
B. -0
•
(. -5
•
*. --
+". 3hat refers to the cumulati/e effect of elapsed time on the mone /alue of an e/ent$ based on the earning po!er of eui/alent in/ested funds capital should or !ill earn •
&. Present !orth factor
•
B. Interest rate
•
(. Time /alue of mone
•
*. ?ield
+5. The difference bet!een the present and future !orth of mone at some time in the future is called JJJJJJ. •
&. *iscount
•
B. *eduction
•
(. Inflation
•
*. *epletion
+-. 3hat refers to the present !orth of the probable future net earnings •
&. Total fair /alue
•
B. Total market /alue
•
(. Hoing concern /alue
•
*. 4arning /alue
+. 3hat refers to the amount of mone paid for the use of borro!ed capital
•
&. Interest
•
B. :ate of interest
•
(. 7imple interest
•
*. Principal
++. 3hat refers to the ratio of the interest pament to the principal for a gi/en unit of time and usuall e#pressed as a percentage of the principal •
&. :eturn of in/estment
•
B. Interest rate
•
(. ?ield
•
*. :ate of return
+). 3hat is defined as the in/estment of loan or principal !hich is based not onl on the original amount of the loan or principal but the amount of loaned or principal plus the pre/ious accumulated interest •
&. 4ffecti/e rate of interest
•
B. ominal rate of interest
•
(. (ompound interest
•
*. 7imple interest
)0. 3hat refers to the cost of borro!ing mone or the amount earned b a unit principal per unit time •
&. ?ield rate
•
B. :ate of return
•
(. :ate of interest
•
*. 4conomic return
)1. & uniform series of pament occurring at eual inter/al of time is called JJJJJJ. •
&. &nnuit
•
B. &morti,a &morti,ation tion
•
(. *epreciation
•
*. Bond
)'. 3hat is the term for an annuit !ith a fi#ed time span •
&. Erdinar annuit
•
B. Perpetuit
•
(. &nnuit certain
•
*. &nnuit due
). 3hat is the tpe of annuit !here the paments are made at the end of each period starting from the first period •
&. Erdinar annuit
•
B. Perpetuit
•
(. &nnuit due
•
*. *eferred annuit
)". 3hat is the tpe of annuit !here the paments are made at the beginning of the each period starting from the first period •
&. Erdinar annuit
•
B. Perpetuit
•
(. &nnuit due
•
*. *eferred annuit
)5. 3hat is the tpe of annuit that does not ha/e a fi#ed time span but continues indefinitel or fore/er •
&. Erdinar annuit
•
B. Perpetuit
•
(. &nnuit due
•
*. *eferred annuit
)-. 3hat is the tpe of annuit !here the first pament does not begin until some later date in the cash flo! •
&. Erdinar annuit
•
B. Perpetuit
•
(. &nnuit due
•
*. *eferred annuit
). 3hich is ET an essential element of an ordinar annuit •
&. The amounts of all paments are eual.
•
B. The paments are made at eual inter/al of time.
•
(. The first pament is made at the beginning of the first period.
•
*. (ompound interest is paid on all amounts a mounts in the annuit.
)+. 3hat is defined as a financial securit note issued b business or corporation and b the go/ernment as a means of borro!ing long;term fund •
&. T;bills
•
B. 7ecurities
•
(. Bond
•
*. Bank notes
)). 3hat refers to the present !orth of all the amount the bondholder !ill recei/e through his possession of the bond •
&. Par /alue of bond
•
B. Face /alue of bond
•
(. :edeemed /alue of bond
•
*. Dalue of bond
100. 3hat is defined as the certificate of indebtedness of corporation usuall for a period not less than 10 ears and guaranteed b a mortgage on certain assets of a corporation •
&. Bond
•
B. T;bills
•
(. 7tock
•
*. Promissor note
Choose the letter of the best answer in each questions.
101. 3hat refers to a document that sho!s proof of legal o!nership of a financial securit •
&. Bond
•
B. Bank note
•
(. (oupon
•
*. (heck
10'. 3hat tpe of bond is issued 8ointl b t!o or more corporations •
&. 2ortgage bond
•
B. 9oint bond
•
(. Tie;up bond
•
*. Trust bond
10. 3hat tpe of bond !hose guarant is in lien on railroad euipment$ such as freight and passenger cars$ locomoti/es$ etc. •
&. :ailroad bond
•
B. 4uipment obligation bond
•
(. 4uipment bond
•
*. 4uipment trust bond
10". & tpe of bond to !hich are attached coupons indicating the interest due and the date !hen such interest is to be paid is called JJJJJJ. •
&. :egistered bond
•
B. (oupon bond
•
(. 2ortgage bond
•
*. (ollateral trust bond
105. 3hat bond !hose securit is a mortgage on certain specified assets of the corporation •
&. :egistered bond
•
B. (ollateral trust bond
•
(. 2ortgage bond
•
*. *ebenture bond
10-. & bond !ithout an securit behind them e#cept a promise to pa b the issuing corporation is called JJJJJJ. •
&. 9oint bond
•
B. *ebenture bond
•
(. Trust bond
•
*. (ommon bond
10. & tpe of bond !here the corporation pledges securities !hich it o!ns such as the stock or bonds of one of its subsidiaries.
•
&. 2ortgage bond
•
B. 9oint bond
•
(. 7ecurit bond
•
*. (ollateral trust bond
10+. 3hat tpe of bond !here the corporation’s o!ner name are recorded and the interest is paid periodicall to the the o!ners !ith their asking asking for it •
&. Preferred bond
•
B. :egistered bond
•
(. Incorporators bond
•
*. (allable bond
10). 3hat tpe of bond !hich can be redeemed before maturit date •
&. Preferred bond
•
B. :egistered bond
•
(. Incorporators bond
•
*. (allable bond
110. 3hat is the feature of some bonds !hereb the issuer can redeem it before it matures •
&. :eturn clause
•
B. (allabilit
•
(. :ecall clause
•
*. (all class
111.. The price at !hich the callable bond !ill be redeemed from the bondholder is called JJJJJJ. 111 •
&. Par /alue
•
B. (all /alue
•
(. Face /alue
•
*. :edemption /alue
11'. 3hat is defined as the reduction or fall of the /alue of an asset due to constant use and passage of time •
&. *epletion
•
B. Inflation
•
(. *epreciation
•
*. *eflation
11. In !hat method of computing depreciation !here it assumes that the loss in /alue is directl proportional to the the age of the euipment or asset asset •
&. 7traight line method
•
B. 7inking fund method
•
(. 7um;of;ear digit method
•
*. *eclining balance method
11". In !hat method of computing depreciation !here it assumes that a sinking fund is established in !hich funds !ill accumulate for replacement purposes •
&. 7traight line method
•
B. 7inking fund method
•
(. 7um;of;ear digit method
•
*. *eclining balance method
115. In !hat method of computing depreciation !here it assumes that the annual cost of depreciation is a fi#ed percentage of the book /alue at the beginning of the ear •
&. 7traight line method
•
B. 7inking fund method
•
(. 7um;of;ear digit method
•
*. *eclining balance method
11-. In 7?* method of computing depreciation$ !hich of the follo!ing is the formula in finding the sum of ears’ digits
•
&.
•
B.
•
(.
•
*.
11. The declining balance method is also kno!n as JJJJJJ. •
&. *ouble percentage method
•
B. (onstant percentage method
•
(. 2odified sinking fund method
•
*. 2odified 7?* method
11+. 3hat tpe of depreciation is due to the reduction in the demand for the function that the euipment or asset !as designed to render •
&. Functional depreciation
•
B. *esign depreciation
•
(. Phsical depreciation
•
*. *emand depreciation
11). 3hat tpe of depreciation is due to the reduction of the phsical abilit of an euipment or asset to produce results •
&. Functional depreciation
•
B. *esign depreciation
•
(. Phsical depreciation
•
*. *emand depreciation
1'0. The functional depreciation is sometimes called JJJJJJ. •
&. *emand depreciation
•
B. &dolescen &dolescence ce
•
(. 6ife depreciation
•
*. Failure depreciation
1'1. 3hat is defined as the reduction of the /alue of certain natural resources such as mines$ oil$ timber$ uarries$ etc. due to the gradual e#traction of its contents •
&. *epletion
•
B. Inflation
•
(. *epreciation
•
*. *eflation
1''. 3hat are the common methods of computing depletion charge charge •
&. :ational method and irrational method
•
B. (onser/ati/e method and con/entional method
•
(. Gnit method and percentage method
•
*. *iscrete method and depletion allo!ance method
1'. Gnder the depletion allo!ance method in computing depreciation$ the depletion charge is eual to either JJJJJJ !hiche/er is smaller. •
&. Fi#ed percentage of gross income or the net ta#able income
•
B. Fi#ed percentage of gross income or 50% of the net ta#able income
•
(. 50% of the fi#ed percentage of gross income or 50% of the net ta#able income
•
*. 50% of the fi#ed percentage of gross income or the net ta#able income
1'". The depletion allo!ance method of computing depletion is commonl kno!n as JJJJJJ. •
&. Gnit method
•
B. Percentage method
•
(. Factor method
•
*. 7inking fund method
1'5. 3hat is another term for
&. Initial cost method
•
B. Percentage method
•
(. Factor method
•
*. 7inking fund method
1'-. Gsing factor method$ the depletion at an gi/en ear is eual to •
&. Initial cost of propert times number of unit sold during the ear di/ided b the total units in propert
•
B. Initial cost of propert di/ided b the number of units sold during the ear
•
(. Initial cost of propert times number of units sold during the ear
•
*. Initial cost of propert di/ided b the total units in propert
1'. 3hat do ou call the after;ta# present !orth of all depreciation effects o/er the depreciation period of the asset •
&. &sset reco/er
•
B. *epreciation reco/er
•
(. Period reco/er
•
*. &fter;ta# reco/er
1'+. & mathematical mathematical e#pression also kno!n as the present /alue of annuit of one is called JJJJJJ. •
&. 6oad factor
•
B. *emand factor
•
(. 7inking fund factor
•
*. Present !orth factor
1'). The amount of propert in !hich a !illing buer to a !illing seller for the propert !hen neither one is under the compulsion to bu nor to sell is called JJJJJJ. •
&. Fair /alue
•
B. 2arket /alue
•
(. Hood !ill /alue
•
*. Book /alue
10. 7al/age /alue is sometimes kno!n as JJJJJJ. •
&. 7crap /alue
•
B. Hoing /alue
•
(. 9unk /alue
•
*. 7econd;hand /alue
11. 3hat refers to the /alue of an asset !hich a disinterested third part$ different different from the buer and seller$ !ill determine in order to establish a price acceptable to both parties •
&. Book /alue
•
B. 2arket /alue
•
(. Fair /alue
•
*. Franchise /alue
1'. 3hat refers to the /alue of an intangible item !hich arises from the e#clusi/e right of a compan to pro/ide a specified product product and ser/ice in a certain region of the countr countr •
&. (ompan /alue
•
B. Hoing /alue
•
(. Hood!ill /alue
•
*. Franchise /alue
1. The first cost to be incurred if the piece of euipment no! in place had been bought for a second hand dealer or some other business is called JJJJJJ. •
&. 2aterial cost
•
B. Fi#ed cost
•
(. First cost
•
*. In;place /alue
1". In computing depreciation of an euipment$ !hich of the f ollo!ing represents the first cost •
&. The original purchase price and freight charges
•
B. Installation e#penses
•
(. Initial ta#es and permit fees
•
*. &ll of the abo/e
15. The process of determining the /alue or !orth of a phsical propert for specific reason is called JJJJJJ. •
&. In/estment
•
B. Daluation
•
(. 4conom
•
*. *epletion
1-. The unreco/ered depreciation !hich results due to poor estimates as to the life of the euipment is called JJJJJJ. •
&. 7unk cost
•
B. 4conomic life
•
(. In;place /alue
•
*. &nnuit
1. 3hat refers to the present !orth of cost associated !ith an asset for an infinite period of time •
&. &nnual cost
•
B. Increment cost
•
(. (apitali,ed cost
•
*. Eperating cost
1+. (apitali,ed cost of a pro8ect is also kno!n as JJJJJJ. •
&. Infinite cost
•
B. 6ife ccle cost
•
(. 6ife cost
•
*. Pro8ect cost
1). 3hat is normall used to compare alternati/es that accomplish the same purpose but ha/e uneual li/es •
&. (apitali,ed cost method
•
B. Present !orth method
•
(. &nnual cost method
•
*. 2&::
1"0. 3hat method is often used in municipal pro8ect e/aluations !here benefits and costs accrue to different segments of the communit
•
&. &nnual cost method
•
B. Benefit;cost ratio
•
(. :ate of return method
•
*. 4G&(
1"1. 3hat refers to an imaginar cost representing !hat !ill not be recei/ed if a particular strateg is re8ected •
&. Epportunit cost
•
B. Hhost cost
•
(. ori,on cost
•
*. ull cost
1"'. 3hat is the main reason !h the sinking fund method of computing depreciation is seldom used in the industr •
&. Gnstable econom
•
B. :ate of interest cannot be e#actl determined
•
(. The initial deprecation is high
•
*. The initial depreciation is lo!
1". 3hat is the factor name of the formula @1LiAM;n •
&. Gniform gradient future !orth
•
B. (apital reco/er
•
(. 7ingle pament present !orth
•
*. 7ingle pament compound amount
1"". 3hat is the factor name of the formula Ni@1LiAMnOKN@@1LiAMnA;1O •
&. Gniform series sinking fund
•
B. (apital reco/er
•
(. 7ingle pament present !orth
•
*. Gniform gradient future !orth
1"5. & form of business organi,ation in !hich a person conducts his business alone and entirel for his o!n profit$ being solel responsible for all its acti/ities and liabilities. •
&. 7ole proprietorship
•
B. 4ntrepreneurship
•
(. Partnership
•
*. (orporation
1"-. Is an artificial being created b b operation of la!$ ha/ing the right of succession and the process$ attributes and properties e#pressl authori,ed b the la! or incident to its e#istence. •
&. (orporation
•
B. Propert
•
(. Partnership
•
*. Ergani,ati Ergani,ation on
1". 3hat is the simplest form of business organi,ation •
&. 7ole proprietorship
•
B. Partnership
•
(. 4nterprise
•
*. (orporation
1"+. *ouble ta#ation is a disad/antage of !hich business organi,ation •
&. 7ole proprietorship
•
B. Partnership
•
(. (orporation
•
*. 4nterprise
1"). In case of bankruptc of a partnership$ •
•
&. The partners are not liable for the liabilities of the partnership B. The partnership assets @e#cluding the partners personal assetsA onl !ill be used to pa the liabilities
•
(. The partners personal assets are attached to the debt of the partnership
•
*. The partners na sell stock to generate additional capital
150. 3hich is true about partnership •
&. It has a perpetual life.
•
B. It !ill be dissol/ed if one of the partners ceases to be connected !ith the partnership.
•
(. It can be handed do!n from one generation of partners to another.
•
*. Its capitali,ation must be eual for each partner.
Choose the letter of the best answer in each questions.
151. 3hich is true about corporation •
&. It is !orse tpe of business organi,ation.
•
B. The minimum number of incorporators to start a corporation is three.
•
(. Its life is dependent on the li/es of the incorporators.
•
*. The stock holders of the corporation are onl liable to the e#tent of their in/estments.
15'. &ggregation &ggregation of indi/iduals formed for the purpose of conducting a business and recogni,ed b la! as a fictitious person is called JJJJJJ. •
&. Partnership
•
B. In/estors
•
(. (orporation
•
*. 7tockholders
15. &n association association of t!o or more persons for the purpose of engaging into a business for profit is called JJJJJJ. •
&. 4ntrepreneursh 4ntrepreneurship ip
•
B. Partnership
•
(. Proprietorship
•
*. (orporation
15". 3hat represents the o!nership of stockholders !ho ha/e a residual claim on the assets of the corporation after all other claims ha/e been settled •
&. &uthori,ed capital stock
•
B. Preferred stock
•
(. Incorporator stock
•
*. (ommon stock
155. 3hat stock represents o!nership and en8os certain preferences than ordinar stock •
&. &uthori,ed stock
•
B. Preferred stock
•
(. Incorporator’s stock
•
*. Presidential stock
15-. The amount of compan’s profit that the board of directors of the corporation decides to distribute to ordinar shareholders is called JJJJJJ. •
&. *i/idend
•
B. :eturn
•
(. 7hare of stock
•
*. 4uit
15. 3hat refers to the residual /alue of a compan’s assets after all outside liabilities @shareholders e#cludedA ha/e been allo!ed for •
&. *i/idend
•
B. 4uit
•
(. :eturn
•
*. Par /alue
15+. 3hat refers to the claim of anone to o!nership •
&. Proprietorship
•
B. &ssets
•
(. 4uit
•
*. 6iabilit
15). (ash mone and credit necessar to establish and operate an enterprise are generall called JJJJJJ. •
&. (apital
•
B. Funds
•
(. &ssets
•
*. 6iabilities
1-0. 3hat represents the share of participation in business organi,ations •
&. Franchise
•
B. Partnership
•
(. 7tock
•
*. (orporation
1-1. The profit deri/ed from a pro8ect or business enterprise !ithout consideration of obligations to financial contributors and claims of others based on profit is kno!n as JJJJJJ. •
&. ?ield
•
B. 4conomic return
•
(. 4arning /alue
•
*. Hain
1-'. JJJJJJ is the element of /alue !hich a business has earned through the fa/orable consideration and patronage of its costumers costumers arising from its !ell kno!n kno!n and !ell conducted conducted policies and operations. operations. •
&. 7tatus compan
•
B. Big income
•
(. no!n o!ners
•
*. Hood!ill
1-. 3hich of the follo!ing is an e#ample of intangible asset •
&. (ash
•
B. In/estment in subsidiar companies
•
(. Furnitures
•
*. Patents
1-". 6ands$ buildings$ plants and machineries are e#ample of !hat t pe of asset •
&. (urrent asset
•
B. Trade in/estment asset
•
(. Fi#ed asset
•
*. Intangible asset
1-5. 3hat refers to the interest rate at !hich the present !ork of the cash flo! on a pro8ect is ,ero of the interest earned b an in/estment •
&. 4conomic return
•
B. ?ield
•
(. :ate of return
•
*. :eturn of in/estment
1--. 3hat is another term for
&. Fi#ed assets
•
B. on;liuid assets
•
(. 6iuid assets
•
*. (cash
1-. 3hat is an accounting term that represents an in/entor account ad8ustment
•
&. (ost of goods sold
•
B. (ost accounting
•
(. 7tandard cost
•
*. E/erhead cost
1-+. 3hat is the change in cost per unit /ariable change called •
&. Dariable cost
•
B. Incremental cost
•
(. Fi#ed cost
•
*. 7upplemental cost
1-). 3hat is used to record historical financial transactions •
&. Bookkeeping sstem
•
B. 6edger sstem
•
(. Balance check
•
*. Heneral 8ournal sstem
10. 3hat is a secondar book of accounts$ the information of !hich is obtained from the 8ournal is called •
&. Balanced sheet
•
B. 6edger
•
(. 3orksheet
•
*. Trial balance
11. The original record of a business transaction is recorded in this book. •
&. 3ork book
•
B. 9ournal
•
(. 6edger
•
*. &ccount book
1'. &ll the proceeds !hich are recei/ed b the business as a result of the sale of goods is called JJJJJJ. •
&. et income
•
B. Hross income
•
(. et re/enue
•
*. Total sales
1. &ll are classified under direct labor e#penses 4Q(4PT one. 3hich one •
&. Inspection cost
•
B. Testing cost
•
(. &ssembl cost
•
*. 7uper/ision cost
1". 3hat is a measure of the a/erage speed !ith !hich accounts recei/able are collected •
&. (urrent ratio
•
B. >uick ratio
•
(. &cid test ratio
•
*. :ecei/able turno/er
15. The ratio of the net income before ta#es to net sales is called JJJJJJ. •
&. (urrent ratio
•
B. In/entor turno/er
•
(. Profit margin ratio
•
*. Price;earnings ratio
1-. 3hat do ou call a one;time credit against ta#es •
&. *ue credit
•
B. Ta# credit
•
(. (redible credit
•
*. :e/enue credit
1. 3hat is used !hen a uick estimate of the doubling time for the in/ested mone is needed •
&. :ule of "+
•
B. :ule of -
•
(. :ule of '"
•
*. :ule of '
1+. 3hat is the increase in the mone /alue of a capital asset is called •
&. Profit
•
B. (apital gain
•
(. (apital e#penditure
•
*. (apital stock
1). 3hat is the reduction in the mone /alue of capital asset is called •
&. (apital e#penditure
•
B. (apital loss
•
(. 6oss
•
*. *eficit
1+0. 3hat refers to the negotiable claim issued b a bank in lien of a term deposit •
&. Time deposit
•
B. Bond
•
(. (apital gain certificate
•
*. (ertificate of deposit
1+1. 3hat denotes in the fall in the e#change rate of one currenc in terms of the others This term is usuall applies to the floating e#change rate. •
&. (urrenc appreciation
•
B. (urrenc depreciation
•
(. (urrenc de/aluation
•
*. (urrenc float
1+'. The deliberate lo!ering of the price of a nation’s currenc currenc in terms of the accepted standard @Hold$ &merican dollar or the British poundA is kno!n as JJJJJJ. •
&. (urrenc appreciation
•
B. (urrenc depreciation
•
(. (urrenc de/aluation
•
*. (urrenc float
1+. 3hat refers to the sa/ing !hich takes place because goods are not a/ailable for consumption rather than consumer reall !ant to sa/e •
&. (ompulsor sa/ing
•
B. (onsumer sa/ing
•
(. Forced sa/ing
•
*. &ll of the abo/e
1+". The flo! back of profit plus depreciation form a gi/en pro8ect is called JJJJJJ. •
&. (apital reco/er
•
B. (ash flo!
•
(. 4conomic return
•
*. 4arning /alue
1+5. &s applied to capitali,ed asset$ the distribution distribution of the initial cost b a periodic changes to operation as in depreciation or the reduction of a debt b either periodic or irregular prearranged programs is called JJJJJJ. •
&. &nnuit
•
B. &morti,a &morti,ation tion
•
(. (apital reco/er
•
*. &nnuit factor
1+-. (apitali,ed cost of an structure or propert is computed b !hich formula •
&. First cost L interest of first cost
•
B. &nnual cost R interest of first cost
•
(. First cost L cost of perpetual maintenance
•
*. First cost L sal/age /alue
1+. The true /alue of interest rate computed b euations for compound interest for a 1 ear period is kno!n as JJJJJJ. •
&. 4#pected return
•
B. ominal interest
•
(. 4ffecti/e interest
•
*. 4conomic return
1++. :eturn on in/estment ratio is the ratio of the
•
&. et income to o!ner’s euit
•
B. 2arket price per share to earnings per share
•
(. (ost of goods sold to a/erage cost of in/entor at hand
•
*. et credit sales to a/erage net recei/able
1+). Hross margin is the ratio of the gross profit to JJJJJJ. •
&. et sale
•
B. E!ner’s euit
•
(. In/entor turno/er
•
*. >uick assets
1)0. 3hat is another term for
&. (urrent ratio
•
B. >uick ratio
•
(. Profit margin ratio
•
*. Price;earnings ratio
1)1. 3hat is a go/ernment bond !hich has an indefinite life rather than a specific maturit •
&. (oupon
•
B. T;bill
•
(. *ebenture
•
*. (onsol
1)'. & form of business firm !hich is o!ned and run b a group of indi/iduals for their mutual benefit is called JJJJJJ. •
&. (ooperati/e
•
B. (orporation
•
(. 4nterprise
•
*. Partnership
1). 3hat is a stock of a product !hich is held b a trade bod or go/ernment as a means of regulating the price of that product •
&. 7tock pile
•
B. oard stock
•
(. Buffer stock
•
*. 3ithheld stock
1)". The abilit to meet debts as the become due is kno!n as JJJJJJ. •
&. 7ol/enc
•
B. 6e/erage
•
(. Insol/enc
•
*. 6iuidit
1)5. The abilit to con/ert assets to cash uickl is kno!n as JJJJJJ.
•
&. 7ol/enc
•
B. 6iuidit
•
(. 6e/erage
•
*. Insol/enc
1)-. 3hat is the basic accounting euation •
&. &ssets C liabilit L o!ner’s euit
•
B. 6iabilit C assets L o!ners’ euit
•
(. E!ner’s euit C assets L liabilit
•
*. E!ner’s euit C liabilit R assets
1). The financial health of the compan is measured in terms of •
&. 6iuidit
•
B. 7ol/enc
•
(. :elati/e risk
•
*. &ll of the abo/e
1)+. 3hat is an inde# of short;term paing abilit •
&. Price;earnings ratio
•
B. (urrent ratio
•
(. Profit margin ratio
•
*. Hross margin
1)). The common ratio is the ratio of •
&. et credit sales to a/erage net recei/able
•
B. (urrent assets to current liabilities
•
(. Hross profit to net sales
•
*. et income to o!ner’s euit
'00. 3hat is defined as the current assets minus in/entories and prepaid e#penses •
&. Profit margin ratio
•
B. Price;earnings ratio
•
(. :eturn of in/estment ratio
•
*. >uick ratio
'01. 3hat is the ratio of the uick assets to current liabilities •
&. Profit margin ratio
•
B. Price;earnings ratio
•
(. :eturn of in/estment ratio
•
*. >uick ratio
'0'. 3hat is a measure of the a/erage speed !ith !hich accounts recei/able are collected
•
&. Profit margin ratio
•
B. :ecei/ables turno/er
•
(. :eturn of in/estment ratio
•
*. &/erage age of recei/ables
'0. :ecei/able turno/er is the ratio of •
&. et credit sales to a/erage net recei/ables
•
B. 2arket price per share to earnings per share
•
(. (ost of goods sold to a/erage cost of in/entor on hand
•
*. (ommon shareholders’ euit to number of outstanding shares
'0". 3hat is the ratio of the net income to o!ner’s euit •
&. Hross margin
•
B. :eturn of in/estment ratio
•
(. Book /alue per share of common stock
•
*. In/entor turno/er
'05. 3hat is the ratio of the market price per share to earnings ear nings per share called •
&. Hross margin
•
B. Price;earnings ratio
•
(. Book /alue per share of common stock
•
*. In/entor turno/er
'0-. 3hat is the profit margin ratio •
&. The ratio of the net income before ta#es to net sales
•
B. The ratio of gross profit to net sales
•
(. The ratio of common shareholders’ euit to the number of outstanding shares
•
*. The ratio of cost goods sold to a/erage cost of in/entor on hand
'0. 3hat is a gross margin •
&. The ratio of net income before ta#es to net sales
•
B. The ratio of gross profit to net sales
•
(. The ratio of common shareholders’ euit to the number of outstanding shares
•
*. The ratio of cost of goods sold to a/erage cost of in/entor on hand
'0+. 3hich of the follo!ing is a book /alue share of common stock •
&. The ratio of net income before ta#es to net sales
•
B. The ratio of gross profit to net sales
•
(. The ratio of common shareholders’ euit to the number of outstanding shares
•
*. The ratio of cost of goods sold to a/erage cost of in/entor on hand
'0). 3hat is an in/entor turno/er •
&. The ratio of net income before ta#es to net sales
•
B. The ratio of gross profit to net sales
•
(. The ratio of common shareholders’ euit to the number of outstanding shares
•
*. The ratio of cost of goods sold to a/erage cost of in/entor on hand
'10. The a/erage age of recei/ables is computed using !hich formula •
&. -5 K recei/able turno/ers
•
B. -5 K a/erage net recei/able
•
(. -5 K in/entor turno/er
•
*. -5 K a/erage cost of in/entor on hand
'11. 3hat is a method of determining !hen the /alue of one alternati/e becomes eual to the /alue of another •
&. 7pecific identification method
•
B. &/erage cost method
•
(. Break;e/en analsis
•
*. Incremental /alue method
'1'. The das suppl of in/entor on hand is calculated using !hich formula •
&. -5 K recei/able turno/ers
•
B. -5 K a/erage net recei/able
•
(. -5 K in/entor turno/er
•
*. -5 K a/erage cost of in/entor on hand
'1. 3hat is defined as the length of time usuall in ears$ for cumulati/e net annual profit to eual the initial in/estment •
&. :eturn of in/estment period
•
B. Turno/er period
•
(. Break;e/en period
•
*. Paback period
'1". 3hat is defined as ratio of its return to its cost •
&. :eturn of an in/estment
•
B. Dalue of an in/estment
•
(. Breake/en point of an in/estment
•
*. Term of an in/estment
'15. 3hich of the follo!ing is an accelerated depreciation method •
&. 7traight line method and sinking fund method
•
B. 7traight line method and double declining balance method
•
(. *ouble declining balance method and 7?* method
•
*. 7?* method and sinking fund method
'1-. 3hat is an accelerated depreciation method •
&. It is one that calculates a depreciation amount greater than a straight line amount
•
B. It is one that calculates a depreciation amount lesser than a straight line amount
•
(. It is one that calculates a depreciation amount eual to straight line amount
•
*. It is one that calculates a depreciation not in an !a related to straight line amount
'1. 3hat refers to the reduction in the le/el of a national income and output usuall accompanied b a fall in the general price le/el •
&. *eflation
•
B. Inflation
•
(. *e/aluation
•
*. *epreciation
'1+. & formal organi,ation organi,ation of producers !ithin an industr forming a perfect collusion purposel formed to increase profit and block ne! comers form the industr is called JJJJJJ. •
&. 2onopol
•
B. (artel
•
(. (orporation
•
*. (ompetitors
'1). The paper currenc issued b the central bank !hich forms part of the countr’s mone suppl is called JJJJJJ. •
&. T;bills
•
B. Bank notes
•
(. (heck
•
*. (oupon
''0. <3hen one of the factors of production is fi#ed in uantit or is difficult to increase$ increasing the other factors of production !ill result in a less than proportionate increase in output=. •
&. 6a! of diminishing return
•
B. 6a! of suppl
•
(. 6a! of demand
•
*. 6a! of suppl and demand de mand
''1. 3hat is the ratio of the market price per share to the earnings per share •
&. In/entor turno/er
•
B. Price;earnings
•
(. Book /alue per share of common stock
•
*. Profit margin
'''. 3hat is the ratio of the net income to o!ner’s euit •
&. :eturn on in/estment
•
B. In/entor turno/er
•
(. Profit margin
•
*. Price;earnings
''. 3hat refers to the ration of the net income before ta#es to net sales
•
&. :ecei/able turno/er
•
B. &cid test ratio
•
(. :eturn on in/estment
•
*. Profit margin
''". 3hat refers to the buing or selling of goods bet!een t!o or more markers in order to take profitable ad/antage ad/antage of an differences in the the prices uoted in these these markets •
&. (artel
•
B. &rbitrag &rbitragee
•
(. Black market
•
*. & priori
''5. The suspension of repament of debt or interest for a specified period of time is called JJJJJJ. •
&. 2oratorium
•
B. 4scro!
•
(. umeraire
•
*. Porcupine
''-. The discount of one unit of principal for one unit of time. •
•
a. :ate discount b. ominal discount
•
c. &ctual discount
•
d. 7ales discount
''. &n annuit !hereb the pament is postponed for a certain period of time is •
•
a. Erdinar annuit b. 7uspended annuit
•
c. *eferred annuit
•
d. &nnuit due
''+. The actual interest earned b a gi/en principal is kno!n as •
•
a. (ompounded interest b. ominal interest
•
c. 7imple interest
•
d. 4ffecti/e interest
''). & bond bond !here the securit behind it are the euipment of the issuing corporation. •
a. *ebenture
•
b. 2ortgage
•
c. (ollateral
•
d. 6ien
'0. (haracteri,ed b a fe! supplies of a productKser/ices that the action b one !ill almost ine/itabl result in the similar action b the other.
•
a. 2onopol
•
b. Eligopol
•
c. (ompetition
•
d. ecessit
'1. It is the !orth of a propert as sho!n on the accounting records. •
•
a. :esale /alue b. Face /alue
•
c. Book /alue
•
d. 3ritten /alue
''. The decrease in the /alue of a propert due to gradual e#traction of its contents. •
•
a. *epreciation b. *epletion
•
c. *e/aluation
•
d. *e/iation
'. It is usuall determined b a disinterested third part to establish a price good enough to both the seller and the buer. bu er. •
•
a. Fair /alue b. 2arket /alue
•
c. (ommon /alue
•
d. 7afe /alue
'". The e#clusi/e right of a compan to pro/ide a specific product or ser/ices in a gi/en region of the countr. •
•
a. Eutlet b. Branch
•
c. 4#tension
•
d. Franchise
'5. It is the sum of the first cost and the present !orth of all costs or replacement$ operation and maintenance. •
•
a. Total cost b. (apitali,ed cost
•
c. Initial cost
•
d. Dariable cost
'-. & certificate of indebtedness of a corporation usuall for a period not less than 10 ears and guaranteed b a mortgage on certain assets of the corporation or its subsidiaries. •
•
a. (ollateral b. Bond
•
c. 2ortgage
•
d. (ontract
'. 3hat the propert is !orth to the o!ner as an operating unit. •
a. Gtilit /alue
•
b. Present /alue
•
c. 7al/age /alue
•
d. :esale /alue
'+. Eccurs !hen a commodit or ser/ice is supplied b a number of /endors and there is nothing to pre/ent additional additional /endors entering the the market. •
•
a. Free market b. Perfect competition
•
c. Epen market
•
d. 6a! of suppl and demand
'). In making econom studies a minimum reuired profit on the in/ested capital is included as a cost. & method called as JJJJJJJJJJ. •
•
a. :ate of return b. &nnual &nnual cost pattern
•
c. Present !orth pattern
•
d. (apital cost
'"0. &nnuit &nnuit is reuired o/er 10 ears to euate to a future amount a mount of P 15$ 000 !ith iC5% •
a. P 1$ 1)'.5
•
b. P 1$ )1'.5
•
c. P 1$ '1).-0
•
d. P 1$ )'1.-5
'"1. & debt of P 1000 is to be paid off in 5 eual earl paments$ pa ments$ each combining an amorti,ation installment and interest at "% on the pre/iousl unpaid balance of the debt. 3hat should be the amount of each pament •
a. P ''0.50
•
b. P ''".-'
•
c. P '"'.-1
•
d. P '''.50
'"'. P 1000 is deposited in a bank at % interest. 3hat is the /alue of the mone after '5 ears$ assuming that nothing !as deposited after the initial deposit •
a. P 5$ '".-
•
b. P 5$ "."
•
c. P 5$ "'."
•
d. P 5$ '0.51
'". 3hat is the interest due on a P 1500 note for " ears and month$ if it bears 1'% ordinar simple interest •
a. P 5-
•
b. P -5
•
c. P -5
•
d. P 5-
'"". & P 1000;bond !hich !ill mature in 10 ears and !ith a bond rate of 10% paable annuall is to be redeemed at P 10"0 at the end of this period. If it is sold no! at P 1$1'0. *etermine the ield at this price. •
a. ".-+ %
•
b. -."+ %
•
c. +.-" %
•
d. +."- %
'"5. & compan sets aside P 00$000 each ear as a fund for e#pansion. If the fund earns )% compounded annuall$ annuall$ determine ho! long !ill it take before a building costing P $ 000$ 000 can be built •
a. ." ears
•
b. ."" ears
•
c. .'0 ears
•
d. .5" ears
'"-. 3hich is ET an essential element of an ordinar annuit •
&. The amounts of all paments are eual.
•
B. The paments are made at eual inter/al of time.
•
(. The first pament is made at the beginning of each period.
•
*. (ompound interest is paid on all amounts a mounts in the annuit.
'". &n amorti,ation amorti,ation of a debt is in a form for m of a gradient series of P5$000 on the first ear$ P"$500 on the second ear$ P"$000 on the third ear$ P$500 on the fourth ear. 3hat is the eui/alent uniform periodic pament if interest is 5% 5% •
&. P"$'+0."
•
B. P"$+.1
•
(. P"$'5).-+
•
*. P"$'5.1'
'"+. & method method of depreciation !hereb the amount to reco/er is spread uniforml o/er the estimated life of the asset in terms of the periods or units of output. •
&. 7traight line method
•
B. 7inking fund method
•
(. *eclining balance method
•
*. 7?* method
'"). 3hich of the follo!ing depreciation methods cannot ha/e a sal/age /alue of ,ero •
&. *eclining balance method
•
B. 7inking fund method
•
(. 7traight line method
•
*. 7?* method
'50. & method of depreciation !here a fi#ed sum of mone is regularl deposited at compound interest in a real or imaginar i maginar fund in order to accumulate an amount a mount eual to the total depreciation of an asset at the end of the asset’s estimated estimated life. •
&. 7traight line method
•
B. 7inking fund method
•
(. *eclining balance method
•
*. 7?* method
'51. & price tag of P1'00 is specified if paid !ithin -0 das but offers a % discount for cash in 0 das. Find the rate of interest. •
&. .11%
•
B. "0.'1%
•
(. +.51%
•
*. ).1%
'5'. It is the practice of almost all bank in the Philippines that !hen the grant a loan$ the interest for 1 ear is automaticall deducted from the principal amount upon release of mone to a borro!er. 6et us therefore assume that ou applied for a loan !ith the bank and the P+0000 !as appro/ed at an interest rate of 1"% of !hich P11'00 !as deducted and ou !ere gi/en ac check of P-++00. 7ince ou ha/e to pa the amount of P+0000 P+0000 one ear after$ !hat !hat then !ill be the effecti/e effecti/e interest rate •
&. 1-.'+%
•
B. 1.0%
•
(. +.51%
•
*. ).1%
'5. 2r. 9. *ela (ru, borro!ed mone from the bank. e recei/ed from the bank P1$"0.00 and promised to pa P1$500.00 P1$500.00 at the end of ) months. *etermine *etermine the simple interest interest rate and the corresponding discount discount rate or often referred to as the
&. 15.)'% S 1.%
•
B. 1'.)5% S 1.%
•
(.1+.'+% S 1.1'%
•
*. 1).'5% S 1.%
'5". & man borro!ed from the bank under a promissor note that he signed in the amount of P'5000.00 for a period of 1ear. 1 ear. e recei/ed onl the amount of P'1$)15.00 after the bank collected the ad/ance interest and an additional amount of P+5.00 for notarial and inspection fees. 3hat !as the rate of interest that the bank collected in ad/ance •
&. 1.-"%
•
B. 1-."%
•
(.1+.%
•
*. 10.'%
'55. aren !as granted a loan of P'0$000 b her emploer e mploer (P2 Industrial Fabricator and (onstruction (orporation !ith an interest at -% for 1+0das on the principal collected in ad/ance. The corporation
!ould accept a promissor note for P'0$000 non;interest for 1+0das. If discounted at once$ find the proceeds in the note. •
&. P1+$+00
•
B. P1+$000
•
(. P1)$000
•
*. P1+$"00
'5-. P"000 is borro!ed for 5das at 1-% per annum simple interest. o! much !ill be due at the end of 5das •
&. P"1+-."
•
B. P"1.
•
(. P51'".5"
•
*. P5-'5."
'5. 2r. Bautista made a mone market placement of P1$000$000 P1$ 000$000 for 0 das at .5% per ear. If !ithholding ta# is '0%$ !hat is the net interest that 2r. Bautista !ill recei/e at the end of the month •
&. P$000
•
B. P-$000
•
(. P"$000
•
*. P5$000
'5+. & bill for motorboat specifies the cost as P1$'00 due at the end of 100das but offers a "% discount for cash in 0das. 3hat is the highest rate$ simple interest at !hich the buer can afford to borro! mone in order to take ad/antage of the discount •
&. 1+."%
•
B. '0.)%
•
(. 1).-%
•
*. '1."%
'5). In buing a computer disk$ the buer !as offered the options of paing P'50 cash at the end of 0das or P'0 at the end of 1'0das. &t !hat rate is the buer paing simple interest if he agree to pa at the end of 1'0das •
&. '%
•
B. '+%
•
(."0%
•
*. '5%
'-0. En 2arch 1$ 1))- 2r. 7armiento obtains a loan of P1500 from 2r. &/ila and signs a note promising to pa the principal and accumulated simple interest at the rate of 5% at the end of 1'0das. En 2a 15$ 1))-$ 2r. &/ila discounts the note at the bank !hose discount rate is -%. 3hat does he recei/e •
&. P'$'01."+
•
B. P1$51.5-
•
(. P1$1'.')
•
*. P)+.'0
'-1. & deposit deposit of P110$000 !as made for 1das. The net interest after deducting '0% !ithholding ta# is P+)0.-. Find the rate r ate of return annuall annuall.. •
&. 1'.'5
•
B. 1'.5
•
(. 11.5
•
*. 11.)5
'-'. If ou borro!ed mone from our friend !ith simple interest of 1'%$ find the present !orth of P50$000 !hich is due at the end of months. •
&. P"-$'00
•
B. P"-$')
•
(. P""$+)
•
*. P"5$+)
'-. & man borro!ed P'000 from a bank and promise to pa the amount for 1ear. e recei/ed onl the amount of P1$)'0 after the bank collected an ad/ance interest of P+0. 3hat !as the rate of discount and the rate of interest that the bank collected in ad/ance •
&. "% S ".1%
•
B. "% S ".1%
•
(. % S .1%
•
*. % S .1%
'-". &n engineer promised to pa P-$000 at the end of )0das. e !as offered a 10% discount if he pas in 0 das. Find the rate of interest. •
&. -".-%
•
B. --.-%
•
(. -5.-%
•
*. -.-%
'-5. & man is reuired to pa P'00 at the end of 1-0 das or P1)0 at the end of "0 das. da s. *etermine the rate of interest. •
&. 1+."%
•
B. 15.+%
•
(. 1).-%
•
*. 1-."%
'--. (ompute the discount if P'000 is discounted for - months at +% simple interest. •
&. P').-
•
B. P-.)'
•
(. P-.')
•
*. P)'.-
'-. The amount of P1'+00 in "ears at 5% compounded uarterl is JJJJJ. •
&. P1"$+5."
•
B. P1-$11.'-
•
(. P15$-1".5)
•
*. P15$+".
'-+. & man borro!s mone from a bank !hich uses a simple discount rate of 1"%. e signs a promissor note promising to pa P500.00 per month at the end of " th$ -th$ and th month respecti/el respecti/el.. *etermine the amount of mone that he recei/ed from the bank. •
&. P1"0.-+
•
B. P110'.
•
(. P1"0.+
•
*. P100.'+
'-). & nominal nominal interest of % compounded continuousl is gi/en on the account. 3hat is the accumulated amount of P10$000 after 10 ears •
&. P1$-10.10
•
B. P1$")+.-0
•
(. P1$500.10
•
*. P1$").1-
'0. B? the condition of a !ill$ the sum of P'000 is left to a girl to be held in trust fund b her guardian until it amount to P50000.00. 3hen !ill the girl recei/e the mone of the fund is in/ested at +% compounded uarterl •
&. .)+ ears
•
B. 11.5 ears
•
(. 10." ears
•
*. 10."5 ears
'1. & man e#pects to recei/e P'5$000 in + ears. o! much is that !orth no! considering interest at +% compounded uarterl •
&. P1$+5).1'
•
B. P1$-5.'
•
(. P1$)5+.
•
*. P1$'-5.+
''. P500$000 !as deposited at an interest of -% compounded uarterl. (ompute the compound interest after " ears and ) months. •
&. P1-$"5.
•
B. P15+$'0.
•
(. P1+$-'.
•
*. P1+$'.
'. If the nominal interest rate is %$ ho! much is P5000 !orth in 10 ears in a continuousl compounded account •
&. P550
•
B. P500
•
(. P-50
•
*. P-50
'". P'00$000 !as deposited for a period of " ears and - months and bears on interest of P+5-").'5. 3hat is the rate of interest if it is compounded uarterl •
&. +%
•
B. %
•
(. -%
•
*. 5%
'5. o! man ears !ill P100$000 earn a compound interest of P50$000 if the interest rate is )% compounded uarterl •
&. .'5 ears
•
B. 5.+- ears
•
(. ".55 ears
•
*. '.11 ears
'-. & certain amount !as deposited 5 ears and ) months ago at an interest of +% compounded uarterl.. If the sum no! is P15$).+5$ ho! much !as the amount deposited uarterl •
&. P'00$000
•
B. P'"0$000
•
(. P1+0$000
•
*. P'-0$000
For Problems 277-279: 3hen compounded Bi;monthl$ P15000 becomes P''$1+.0 after 5ears. '. 3hat is the nominal rate of interest •
&. %
•
B. )%
•
(. +%
•
*. 10%
'+. 3hat is the eui/alent rate if it is compounded uarterl •
&. .0%
•
B. ).0%
•
(. +.0%
•
*. 10.0%
'). 3hat is the effecti/e rate if it is compounded uarterl •
&. .'+%
•
B. ).'+%
•
(. +.'+%
•
*. 10.'+%
'+0. o! !ill it take a mone to double itself if in/ested at 5% compounded annuall •
&. 1'.' ears
•
B. 1".' ears
•
(. 1.' ears
•
*. 15.'ears
'+1. (ompute the effecti/e annual interest rate !hich is eui/alent to 5% nominal annual interest compounded continuousl. •
&. 5.1%
•
B. 5.'-%
•
(. ".)"%
•
*. ".)0%
'+'. Find the time reuired for a sum of mone to triple itself at 5% per annum compounded continuousl. •
&. '1.) ears
•
B. 1+.' ears
•
(. '5." ears
•
*. '.- ears
'+. & man !ishes to ha/e P"0$000 in a certain fund at the end of + ears. o! much should he in/est in a fund that !ill pa -% compounded continuousl continuousl •
&. P'"$51."
•
B. P'+$+-".-
•
(. P-$"'1.""
•
*. P0$"-+."'
'+". If the effecti/e annual interest rate is "%$ compute the eui/alent nominal annual interest compounded continuousl. •
&. .)'%
•
B. .+0%
•
(. ".10%
•
*. ".0)%
'+5. 3hat is the nominal rate of interest compounded continuousl continuousl for 10 ears if the compound amount factor is eual to 1.")+- •
&. %
•
B. 5%
•
(. "%
•
*. -%
'+-. &merican 4#press (orp. charges 1.5% interest per month$ compounded continuousl on the unpaid balance purchases made on this credit card. (ompute the the effecti/e rate of interest. interest. •
&. 1).'%
•
B. '1.'0%
•
(. '0.'5%
•
*. 1).)0%
'+. If the nominal interest is 1'% compounded continuousl$ continuousl$ compute the effecti/e annual rate if interest. •
&. 1'.5%
•
B. 1'."0%
•
(. 11.'-%
•
*. 11.55%
'++. (ompute the difference in the future amount of P500 compounded annuall at nominal rate of 5% and if it is compounded continuousl for 5 ears at the same rate. •
&. P.+
•
B. P5."+
•
(. P".'1
•
*. P-.'5
'+). If the effecti/e rate is '"%$ !hat nominal rate of interest is charged for a continuousl compounded loan •
&. '1.51%
•
B. '.'5%
•
(. ''.5%
•
*. '1.)0%
')0. 3hat is the nominal rate of interest compounded continuousl continuousl for + ears if the present !orth factor is eual to 0.-1++5 •
&. "%
•
B. -%
•
(. 5%
•
*. %
')1. 3hat is the difference of the amount ears from no! for a 10% simple interest and 10% compound interest per ear @P5000 accumulatedA •
&. P155
•
B. same
•
(. P100
•
*. P50
')'. Find the discount if P'$000 is discounted for - months at +% compounded uarterl. •
&. P-.)'
•
B. P.--
•
(. P+0.00
•
*. P+."'
'). If a sum of mone triples in a certain period of time at a gi/en rate interest$ compute the /alue of the single pament present !orth factor. •
&. 0.
•
B. 0.')'
•
(. .000
•
*. 1.)-'
')". If the single pament amount factor for a period of 5 ears is 1.+''. 3hat is the nearest /alue of the interest rate •
&. +%
•
B. 5%
•
*. %
•
*. -%
')5. If the single pament present !orth factor for a period of + ears is eual to 0.5+'01$ compute the nearest /alue of the rate of interest for that period. •
&. -%
•
B. 5%
•
(. %
•
*. +%
')-. If mone is !orth +% compounded uarterl$ uarterl$ compute the single pament amount factor for a period of - ears. •
&. 1.-0+""
•
B. 1.0'"1
•
(. 0.-'1'
•
*. 0.51-'
'). & sum of P1$000 is in/ested no! and left for + ears$ at !hich time the principal is !ithdra!n. The interest has an accrued left for another + ears. If the effecti/e annual interest is 5%$ !hat !ill be the !ithdra!n amount at the end of the 1- th ear •
&. P50."'
•
B. P50."'
•
(. P05."'
•
*. P"'5.0
For problems 298 - 300: (ompute the interest for an amount of P'00$000 for a period of + ears. ')+. If it !as made at a simple interest rate of 1-% . •
&. P'"$000
•
B. P'5-$000
•
(. P'-5$000
•
*. P'"$000
')). If it !as made at 1-% compounded bi;monthl. bi;monthl. •
&. P50$'-.'+
•
B. P"0$'+.01
•
(. P50$-5.)-
•
*. P"5)$)'.""
00. If it !as made at 1-% compounded continuousl. continuousl. •
&. P"''$"-'.-"
•
B. P5'"$'"'."-
•
(. P50$'.'"
•
*. P51)$'.)5
Choose the letter of the best answer in each questions.
01. Find the /alue of #$ @FKP$ #$ -A if FKP compounded uarterl is eual to 1.1222. •
&. %
•
B. 5%
•
(. +%
•
*. -%
0'. Find the /alue of $ @PKF$ -%$ A if PKF compounded bi;monthl is eual to 0.787!. •
&. ears
•
B. 5 ears
•
(. - ears
•
*. " ears
0. Find the rate of interest if compound amount factor compounded bi;monthl for 5 ears is eual to 1."87887. •
&. %
•
B. 5%
•
(. +%
•
*. -%
0". (ompute the nominal rate for a period of - ears for an effecti/e rate of 8.33# if it is compounded continuousl. •
&. %
•
B. 5%
•
(. +%
•
*. -%
05. (ompute the eui/alent compoun$ amount factor if it is compounded continuousl. •
&. 1.-1-0
•
B. 1.'"5'
•
(. 1.'"'+'
•
*. 0.'"'"5
0-. (ompute the equi%alent present worth factor if it is compounded continuousl. •
&. 1.'")"
•
B. 1.'"'"+
•
(. 1.'1"5)
•
*. 0.-1-+
0. & man loan P'000 from the bank. o! long !ould it take in ears for the amount of the loan and interest to eual P'+0 if it !as made at 8# simple interest. •
&. ears
•
B. 5 ears
•
(. + ears
•
*. - ears
0+. & man loan P'000 from the bank. o! long !ould it take in ears if it !as made at +% compoun$e$ quarterl&. •
&. 5.'5 ears
•
B. .'5 ears
•
(. -.'5 ears
•
*. +.'5 ears
0). & man loan P'000 from the bank. o! long !ould it take in ears if it !as made at 8# compounded continuousl. •
&. .1+ ears
•
B. 5.1+ ears
•
(. +.1+ ears
•
*. -.1+ ears
10. &n amount of P1000 becomes P108."" after " &ears compounded bi;monthl. Find the nominal rate of interest$ the effecti/e rate of interest$ and the eui/alent rate of interest if it is compounded uarterl. •
&. 11% S 1'.-'% S 11."'%
•
B. 1'% S 11.0-% S 1'.'"%
•
(. 1'% S 1'.-1-% S 1'.0-%
•
*. 11% S 11.--"% S 11.)%
11. o! long !ould it take our mone to $ouble itself if if it is in/ested at -% simple interest$ compounded semi;uarterl$ and compounded continuousl continuousl •
&. 1'.- rs S 11.' rs S 15.05 rs
•
B. 1+.- rs S 11.- rs S 11.'" rs
•
(. 1-.- rs S 11.- rs S 11.55 rs
•
*. 1.- rs S 10.' rs S 11."5 rs
For problems 312 - 31": &n amount of P50$000 !as in/ested for ears. 1'. (ompute its interest at the end of ears if it is in/ested at 10# simple interest. •
&. P1-$550.00
•
B. P15$000.00
•
(. P1$")'.)"
•
*. P1"$'"'.15
1. (ompute for its compound interest if it is in/ested at 10# compoun$e$ annuall. •
&. P1-$550.00
•
B. P15$000.00
•
(. P1$")'.)"
•
*. P1"$'"'.15
1". (ompute its interest if it is in/ested at 10# compoun$e$ continuousl. •
&. P1-$550.00
•
B. P15$000.00
•
(. P1$")'.)"
•
*. P1"$'"'.15
For Problems 31! - 317: P'00$000 !as deposited for a period of " rs. &nd - months and bears on interest of P+5$-5).'5. 15. 3hat is the nominal rate of interest if it is compounded uarterl •
&. +.00%
•
B. .00%
•
(. +.'"%
•
*. .)-%
1-. 3hat is the actual rate of interest •
&. +.00%
•
B. .00%
•
(. +.'"%
•
*. .)-%
1. 3hat is the eui/alent nominal rate if it is compounded semi;uarterl semi;uarterl •
&. +.00%
•
B. .00%
•
(. +.'"%
•
*. .)-%
1+. 3hat is the /alue of @FKP$ +%$ -A if it is compounded semi;uarterl. •
&. 0.5'"'5"1
•
B. 1."+++-1
•
(. 0.+5--1'
•
*. 1.-1'''-000
1). 3hat is the /alue of @PKF$ -%$ "A if it is compounded bi;monthl. •
&. 0.5'"'5"1
•
B. 1."+++-1
•
(. 0.+5--1'
•
*. 1.-1'''-000
'0. 3hat is the single pament compoun$ amount factor for +% compounded bi;monthl for 5 ears. •
&. 0.5'"'5"1
•
B. 1."+++-1
•
(. 0.+5--1'
•
*. 1.-1'''-000
For Problems '1 ; ' If mone is in/ested at a nominal rate of interest of +% for a period of " ears. '1.A 3hat is the effecti%e rate if it is compounded continuousl •
&. +.%
•
B. ).%
•
(. +.)%
•
*. ).)%
''.A 3hat is the /alue of the compoun$ amount f actor actor if it is compounded continuousl •
&. 1.1'+
•
B. 1."'"'1
•
(. 0.'1"'1'
•
*. 0.1''"1-
'. 3hat is the /alue of the present worth factor if it is compounded continuousl •
&. 1. ''""1
•
B. 0.''""1
•
(. 1.'-"1)
•
*. 0.'-1")
'". If the single pament amount factor for a period of 5 ears is 1.33822$ !hat is the nominal rate of interest •
&. -.00%
•
B. .00%
•
(. -.)'%
•
*. .)'%
'5. 3hat is the effecti%e rate of interest if it is compounded semi;annuall of problem no. '"
•
&. 5.00%
•
B. .'"%
•
(. -.)'%
•
*. -.0)%
'-. 3hat is the equi%alent nominal rate if it is compounded uarterl of problem no. '" •
&. -.1'%
•
B. ".'"%
•
(. 5."%
•
*. 5.+%
'. 2one !as in/ested at #% compounded uarterl. If it takes mone to qua$ruple in 1.5 ears$ find the /alue of #. •
&. -.'%
•
B. +.00%
•
(. 5.)'%
•
*. ).+%
'+.A 3hat is the actual interest rate of problem no. ' •
&. .'"%
•
B. .)'%
•
(. +.'"%
•
*. +.+%
').A 3hat is the eui/alent rate if problem no. ' is compoun$e$ $ail& •
&. .'"%
•
B. .)'%
•
(. +.'"%
•
*. +.+%
For Problems 330 - 332: & businessman businessman loaned P500$000 from a local bank that charges an interest rate of 1'%. 0. o! much is he going to pa at the end of 5 ears if it !as made at 1'% simple interest •
&. P+00$000.00
•
B. P)11$05) P)11$05).'0 .'0
•
(. P+'$'".0)
•
*. P)0$00).'1
1. o! much is he going to pa at the end of 5 ears if it !as made at 1'% compoun$ semiquarterl& •
&. P+00$000.00
•
B. P)11$05) P)11$05).'0 .'0
•
(. P+'$'".0)
•
*. P)0$00).'1
'. o! much is he going to pa at the end of 5 ears if it !as made at 1'% compoun$ continuousl& •
&. P+00$000.00
•
B. P)11$05) P)11$05).'0 .'0
•
(. P+'$'".0)
•
*. P)0$00).'1
. P-0$000 !as deposited at -% compoun$e$ quarterl&$ ta# free for ) ears and months. o! much interest !as earned at the end of the period •
&. P"$'1".'"
•
B. P""$0+-.-0
•
(. P".'"'.'"
•
*. P""$'15.-0
". P100$000 !as placed in a time deposit !hich earned )% compoun$e$ quarterl& ta# free. &fter ho! man ears !ould it be able to earn a total interest of P50$000 •
&. ".5- ears
•
B. ."5 ears
•
(. ".' ears
•
*. .-" ears
5. P'00$000 !as placed in a time deposit at #% compoun$e$ quarterl& and !as free of ta#es. &fter e#actl 5 ears$ the total interest earned !as P1'0$000. 3hat is the /alue of # •
&. ).5%
•
B. -.5%
•
(. +.'1%
•
*. .1'%
-. 3hich of these gi/es the lo!est effecti/e rate of interest •
&. 1'.5% compounded annuall
•
B. 1'.'% compounded uarterl
•
(. 11.)% compounded semi;annuall
•
*. 11.-% compounded monthl
. It takes 20.1! ears to uadruple our mone if it is in/ested at #% compounded semi;annuall. Find the /alue of #. •
&. +%
•
B. %
•
(. -%
•
*. 5%
+. It takes 1.+ ears to treble the mone at the rate of #% compoun$e$ quarterl&. (ompute the /alue of #. •
&. 5%
•
B. %
•
(. -%
•
*. +%
). 2one !as in/ested at #% compoun$e$ quarterl&. If it takes the mone into uadruple in 1.5 ears$ find the /alue of #. •
&. +%
•
B. %
•
(. -%
•
*. 5%
"0. Fifteen ears ago P1$000.00 !as deposited in a bank account$ and toda it is !orth P'.0.00. The bank pas interest semi;annuall semi;annuall.. 3hat !as the the interest rate paid on this this account •
&. ".)%
•
B. 5.0%
•
(. 5.+%
•
*. .+%
"1. ?ou ?ou borro! P$500.00 for one ear from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 1+% per ear. (ompare ho! much mone ou !ill sa/e or lose on the transaction. •
&. pa P155 more if ou borro!ed from the bank
•
B. sa/e P55 b b borro!ing from our friend
•
(. pa P+5 more if ou borro!ed from the bank
•
*. sa/e P)5 b borro!ing from our friend
"'. Find the present !orth of a future pament of P1000$000 to be made in 10 ears !ith an interest of 1'% compounded uarterl uarterl.. •
&. P0$""".""
•
B. P0$-55.-+
•
(. P$000.00
•
*. P0$5"-.01
". &n initial sa/ings sa/ings deposit of P+0$000 in a certain bank earns -% interest per annum compounded monthl.. If the earnings from the deposit are sub8ect to a '0% ta#$ !hat !ould the net /alue of the deposit monthl be after three uarters •
&. P)5$'".)5
•
B. P-+".'"
•
(. P+')+.'+
•
*. P5-'"".5
"". The effecti/e rate of interest of 1"% compounded semi;annuall is •
&. 1".")%
•
B. 1".)"%
•
(. 1".-%
•
*. 1".++%
"5. The amount of P50$000 !as deposited in a bank earning an interest of .5% per annum. *etermine the total amount at the end of 5 ears$ if the principal an$ interest !ere not !ithdra!n during the period. •
&. P1$+1."
•
B. P0$".)0
•
(. P'$"5.'
•
*. P+$5-."
"-. 3hat is the effecti%e rate corresponding to 1+% compounded dail Take Take 1 ear is eual to -0 das. •
&. 1+.5%
•
B. 1+.10%
•
(. 1).)%
•
*. 1).'%
". If P1$000 becomes P1$1'-.") after " ears !hen in/ested at a certain nominal rate of interest compoun$e$ semi-annuall&$ determine the nominal rate and the corresponding effecti/e rate. •
&. .00% and .0'%
•
B. '.0% and '.-%
•
(. ".')% and ".'%
•
*. .)% and .)5%
"+. (on/ert 1'% semi;annuall to compoun$e$ quarterl&. •
&. 1).'%
•
B. 1".-%
•
(. '.5-%
•
*. 11.+%
"). 3hat is the corresponding effecti%e interest rate of 1+% compounded semi;uarterl •
&. 1).'5%
•
B. 1+."-%
•
(. 1)."+%
•
*. 1+.)5%
50.A If P5000 shall accumulate for 10 ears at +% compounded uarterl$ find the compoun$e$ interest at the end of 10 ears. •
&. P-$005.0
•
B. P-$0"0.'0
•
(. P-$000.00
•
*. P-$010.'0
51. & couple borro!ed P"$000 from a lending compan for - ears at 1'%. &t the end of - ears$ it rene!s the loan for the amount a mount due plus P"$000 more for ears at 1'%. 3hat is the lump sum $ue •
&. P1"$+"'."0
•
B. P1'$1-."0
•
(. P1-$1'.0
•
*. P15$+'.-0
5'. o! long @in earsA !ill it take the mone to uadruple if it earns % compoun$e$ semi-annuall& •
&. '-.0 ears
•
B. .15 ears
•
(. "0.0 ears
•
*. '0.15 ears
15. P'00$000 !as deposited on 9an. 1$1)++ at an interest rate of '"% compoun$e$ semi-annuall&. o! much !ould the sum be on 9an. 1$ 1)) •
&. P"'1$10
•
B. P"01$10
•
(. P5'1$10
•
*. P-'1$10
5". If P500$000 is deposited at a rate of 11.'5% compounded monthl$ monthl$ determine the compoun$e$ interest after ears and ) months. •
&. P-)0$+")
•
B. P-+0$-+-
•
(. P-0$'5+
•
*. P--0$5)'
55.A P'00$000 !as deposited at an interest rate of '"% compoun$e$ semi-annuall&. &fter ho! man ears !ill the sum be P-'1$10 •
&. " ears
•
B. 5 ears
•
(. ears
•
*. - ears
5-. & bank is ad/ertising ).5% accounts that ields 9.8"# annuall&. o! often is the interest compounded •
&. monthl
•
B. uarterl
•
(. bi;monthl
•
*. dail
5. & marketing compan established a program to replace the cars of its sales representati/es at the end of e/er 5 ears. If the present price of the appro/ed tpe of car is P5'0$000.00 !ith a resale /alue at the end of 5 ears of -0% its present /alue$ ho! much mone mone must the compan accumulate for 5 ears if inflation annuall& is 10%. :elease /alue !ill also appreciate at 10% earl.
•
&. P1'0$'+).51
•
B. P110$') P110$').' .'
•
(. P1')$+'.+
•
*. P1''$'-5.-)
5+. In ear ,ero$ ou in/est P10$000.00 in a 15% securit for 5 ears. *uring that time$ the a/erage annual inflation is -%. o! much$ in terms of ear ,ero !ill be in the account at maturit& •
&. P15$+-.00
•
B. P1$+'.00
•
(. P15$00.00
•
*. P1-$-5.00
5). & machine has been purchased and installed at a total cost of P1+$000.00. The machine !ill be retired at the end of 5 ears$ at !hich time it is e#pected to ha/e a scrap /alue of P'$000.00 based on current prices. The machine !ill then be replaced !ith an e#act duplicate. The compan plans to establish a reser/e fund to accumulate the capital needed to replace the machine. If an a%era'e annual rate of inflation of % is anticipated$ ho! much capital must be accumulated •
&. P15$00.00
•
B. P1'$+'.00
•
(. P1+$5"+.)
•
*. P15$+-.00
-0. If the inflation rate is -%$ cost of mone is 10%$ !hat interest rate !ill take care of inflation and the cost of mone •
&. 1-.-%
•
B. 1.%
•
(. 15.5%
•
*. 1"."%
-1. & man bought a go/ernment bond !hich cost P1000 and !ill pa P50 interest each ear for '0 ears. The bond !ill mature at the end of '0 ears and he !ill recei/e the original P1000. If there is 2# annual inflation during this period$ !hat rate of return !ill the in/estor recei/e after considering the effect of inflation •
&. '.)"%
•
B. ".'5%
•
(. .1-%
•
*. 5.1-%
-'.A The inflated present !orth of P'000 in t!o ears is eual to P1"1.0. 3hat is the rate of inflation if the interest rate is eual to 10% •
&. -%
•
B. %
•
(. 5%
•
*. "%
-. 1'% rate of interest can take care of the cost of mone and inflation. If the nominal rate of interest is -%$ !hat is the rate of inflation •
&. -.-'%
•
B. .-%
•
(. 5.--%
•
*. ".-"%
-". &n engineer bought an euipment for P500$000. Ether e#penses including installations amounted to P0$000. &t the end of its estimated useful life of 10 ears$ the sal/age /alue !ill be 10% of the first cost. Gsing strai'ht line metho$ of $epreciation$ !hat is the book /alue after 5 ears •
&. P')1$500
•
B. P'"'$'"1
•
(. P'+'$'"'
•
*. P'1"$'"'
-5. & small machine costing P+0$000 has a sal/age /alue of # at the end of its life of 5 ears. The book /alue at the end of the " th ear is P''$"00. 3hat is the /alue of # using the strai'ht line metho$ $epreciation •
&. P-000
•
B. P+000
•
(. P000
•
*. P)000
--. & machine has a sal/age /alue of P1'$000 at the end of its useful life of - ears. The book /alue at the end of 5 ears is P0$+.. Gsing a strai'ht line metho$ of $epreciation(!hat is the first cost of the machine •
&. P1'5$500
•
B. P1'5$000
•
(. P15$500
•
*. P15$000
-. & manufacturing plant !as built at a cost of P52 and is estimated to ha/e a life of '0 ears !ith a sal/age /alue of P12. & certain euipment euipment !orth P50$000 !as installed at a cost of P+0$000 is e#pected to operate economicall for 15 ears !ith a sal%a'e %alue of P!0(000 . *etermine the boo) %alue of the plant and euipment euipment after 10 ears$ use straight straight line depreciation method. method. •
&. P$'50$000
•
B. P"$'50$000
•
(. P$50$000
•
*. P"$500$000
-+. & printing euipment costs P$500 has a life e#pectanc of + ears and has a sal/age /alue of P$500 at the end of its life. The book /alue at the end of # ears is eual to P+$500. Gsing strai'ht line metho$ of $epreciation$ sol/e for the /alue of #. •
&. 5 ears
•
B. - ears
•
(. " ears
•
*. ears
-). The cost of the printing euipment is P500$000 and the cost of handling and installation is P0$000. If the book /alue of the euipment at the end of the rd ear is P'"'$000 and the life of the euipment is assumed to be 5 ears$ determine the sal%a'e %alue of this euipment at the end of 5 ears. •
&. P50$000
•
B. P5$000
•
(. P-0$000
•
*. P-"$000
0. &n engineer bought an euipment for P500$000. e spent an additional amount of P0$000 for installation and other e#penses. The sal/age /alue is 10% of the first cost. If the book /alue at the end of 5 ears !ill be P')1$500 using strai'ht line metho$ of $epreciation$ compute the useful life of the euipment in ears. •
&. 10 ears
•
B. - ears
•
(. + ears
•
*. 15 ears
1. The cost of euipment is P500$000 and the cost of installation is P0$000. If the sal/age /alue is 10% of the cost of euipment at the end of 5 ears$ determine the boo) %alue at the end of the fourth ear. Gse straight line method. •
&. P155$000
•
B. P1"-$000
•
(. P1"0$000
•
*. P1'$-00
For Problems 172-17": The first cost of a machine is P1$+00$000 !ith a sal/age /alue of P00$000 at the end of its life of 5 ears. *etermine the total $epreciation after 3 &ears. '. Gsing 7traight 6ine 2ethod •
&. P+00$000
•
B. P)00$000
•
(. P-00$000
•
*. P00$000
. Gsing 7um of ?ears *igit 2ethod •
&. P1$150$000
•
B. P1$00$000
•
(. P1$'00$000
•
*. P1$50$-00
". Gsing (onstant Percentage 2ethod
•
&. P1$55$0'".'"
•
B. P1$'"-$"''.5
•
(. P1$1+5$-).-
•
*. P1$"'$-'".+"
5. &n asset is purchased for P)$000.00. Its estimated economic life is 10 ears after !hich it !ill be sold for P1$000.00. Find the $epreciation in the first three &ears using straight line method. •
&. P'$500
•
B. P$000
•
(. P'$"00
•
*. P'$000
-. The purchase of a motor for P-000 and a generator for P"000 !ill allo! the compan to produce its o!n energ. energ. The configuration can be assembled for P500. The ser/ice !ill operate for 1-00 hours per ear for 10 ears. The maintenance cost is P00 per ear$ and cost to operate is P0.+5 per hour for fuel and related cost. Gsing straight line depreciation$ !hat is the annual cost for the operation There is a P"00 sal/age /alue for the sstem at the end of 10 ear. •
&. P'$10
•
B. P'$-0
•
(. P'$"+0
•
*. P'$-0
. & machine has an initial cost of P50$00.00 and a sal/age /alue of P10$000.00 after 10 ears. 3hat is the strai'ht line metho$ $epreciation rate as a percentage of the initial cost •
&. 10%
•
B. 1'%
•
(. +%
•
*. )%
+. & machine has an initial cost of P50$00.00 and a sal/age /alue of P10$000.00 after 10 ears. 3hat is the boo) %alue after ! &ears using straight line method depreciation rate •
&. P5$000
•
B. P15$500
•
(. P'5$000
•
*. P0$000
). & machine has a first of P+0$000 and a sal/age of P'$000 at the end of its life of 10 ears. Find the boo) %alue at the end of the - th ear using straight line method of depreciation. •
&. P$'00
•
B. P"$00
•
(. P5$"00
•
*. P'$)00
+0. &n asset is purchased for P)0$000.00. Its estimated life is 10 ears after !hich it !ill be sold for P1$000.00. Find the boo) %alue during the first ear if 7um of the ?ears ?ears *igits@7?*A depreciation depreciation is used. •
&. P$5"5."5
•
B. P5$'"5.)'
•
(. P'$)+0.'"
•
*. P-$'5).)+
+1. & telephone telephone compan purchased a micro!a/e radio euipment for P-2. Freight and installation charges amounted to % of the purchased price. If the euipment shall be depreciated o/er a period of + ears !ith a sal/age /alue of 5%$ determine the depreciation charge during the 5 th ear using the *um of +ear ,i'it etho$. •
&. P5-$-'.+
•
B. P-5'$.
•
(. P)5$)0'.5-
•
*. P+"5$ )5.-
+'. & consortium consortium of international communications companies contracted for the purchase and installation of a fiber optic cable linking t!o ma8or &sian cities at a total cost of P)-02. This amount includes freight and installation charges charges at 10% of the abo/e total contract price. If the cable depreciated o/er a period of 15 ears !ith ,ero sal/age /alue$ !hat is the $epreciation char'e during the +th ear using the sum of ear digits method •
&. P-" 2
•
B. P+0 2
•
(. P' 2
•
*. P- 2
+. & machine cost P$50 has a life of + ears and has a sal/age /alue of P50 at the end of + ears. *etermine its boo) %alue at the end of " ears using sum ears digit method. •
&. P$"-.)0
•
B. P-$5".'1
•
(. P'$')".""
•
*. P5$"55.01
+". & certain euipment costs P$000 has an economic life of n ears and a sal/age /alue P50 at the end of n ears. If the book /alue at the end of " ears is eual to P'1).''$ compute for the economic life of the equipmentusing the sum of ears digit method. •
&. 10 ears
•
B. + ears
•
(. 1- ears
•
*. 11 ears
+5. & compan purchased an asset for P10000 and plans to keep it for '0 ears. If the sal/age /alue is ,ero at the end of the '0 th ear$ !hat is the $epreciation in the third ear Gse sum of ears digit method. •
&. P1000
•
B. P)+
•
(. P+5
•
*. P"
+-. &n euipment euipment costs P000 and has a life of + ears and sal/age /alue of # after + ears. If the book /alue of the euipment at the " th ear is eual to P'1).''$ compute the sal%a'e %alue using the sum of ears digit method. •
&. P5)"
•
B. P50
•
(. P"0
•
*. P')0
+. &B( (orporation makes it polic that for e/er ne! euipment purchased$ the annual depreciation should not e#ceed '0% of the first cost at an time !ithout sal/age /alue. *etermine the len'th of ser%ice if the depreciation used is the 7?* 2ethod. •
&. ) ears
•
B. 1' ears
•
(. 10 ears
•
*. 1) ears
++. & machine ha/ing a certain first cost has a life of 10 ears and a sal/age /alue of -.-% of the first cost at the end of 10 ears. If it has a book /alue of P5+$)1" at the end of the - thear$ ho! much is the first cost of the machine if the constant percentage of $eclinin' %alue is used in the computation for its depreciation.@2atheson’s depreciation.@2atheso n’s 2ethodA •
&. P-00$000
•
B. P100$000
•
(. P00$000
•
*. P)00$000
+). & machine costing P'0$000 is estimated to ha/e a life of 10 ears. If the annual rate of depreciation is '5%$ determine the total $epreciation using a constant percentage of the declining balance method. •
&. P-)$"5".'
•
B. P5'$+'5.
•
(. P"'$'5."5
•
*. P-"$'".
)0. &n earth mo/ing euipment that cost P)0$000 !ill ha/e an estimated sal/age /alue of P1+$000 at the end of + ears. Gsing double;declining double;declining balance method$ compute the boo) %alue and the total depreciation at the end of the 5 thear. •
&. P'1$5."' S P-+$-"'.5+
•
B. P'"$-'."+ S P-5$-.5'
•
(. P15$+0." S P"$1-).--
•
*. P1)$""'.+ S P0$55.''
)1. & certain office euipment has a first cost of P'0$000 and has a sal/age /alue of P1$000 at the end of 10 ears. *etermine the $epreciation at the end of the - th ear using *in)in' fun$ metho$ at % interest. •
&. P10$'0
•
B. P11$-+0
•
(. P1'$"'0
•
*. P)$+"0
)'. &n euipment euipment !hich cost P'00$000 has a useful life of + ears !ith a sal/age /alue of P'5$000 at the end of its useful life. If the depreciation at the first ear is P'1$+5$ !hat method is used in the calculation of $epreciation •
&. 7traight 6ine
•
B. *eclining Balance
•
(. 7inking Fund
•
*. 7um of ?ears *igit
). &n euipment euipment costs P+$000 has an economic life of + ears and sal/age /alue of P"00 at the end of + ears. The first ear depreciation amounts to P1$-++.+). 3hat method is used in the calculation of the $epreciation •
&. 7traight 6ine
•
B. *eclining Balance
•
(. 7inking Fund
•
*. 7um of ?ears *igit
)". The original cost of a certain machine is P150$000 and has an economic life of + ears !ith a sal/age /alue of P)$000 at that time. If the depreciation of the first ear is eual to P""$"5$ !hat method is used in the calculation of the depreciation •
&. 7traight 6ine
•
B. *eclining Balance
•
(. 7inking Fund
•
*. 7um of ?ears *igit
)5. & machine has a first cost of P1"0$000 and a life of + ears !ith a sal/age /alue of P10$000 at the end of its useful life. If the depreciation at the first ear amounts to P5$000$ !hat method is used in the calculation of depreciation •
&. *ouble *eclining Balance
•
B. 7traight 6ine
•
(. *eclining Balance
•
*. 7um of ?ears *igit
)-. & hdraulic machine cost P1+0$000 and has a sal/age /alue of P15$000 at the end of its useful life !hich is 1' ears. If the depreciation at the first ear is P)$+0.1$ !hat method is used in computing the depreciation. &ssume &ssume mone mone is !orth -% annuall. •
&. 7traight 6ine
•
B. *eclining Balance
•
(. 7inking Fund
•
*. 7um of ?ears *igit
). &n euipment euipment costs P"+0$000 and has a sal/age /alue of 10% of its cost at the end of its economic life of 5$000 operating hours. In the first ear$ it !as used for "$000 hours. *etermine its boo) %alue at the end of the first ear. •
&. P"0$-').00
•
B. P"1+$-0.00
•
(. P+0$"'0.00
•
*. P-$"'0.00
)+. &n euipment euipment costs P"+0$000 and has a sal/age /alue of 10% of its cost at the end of its economic life of -$000 operating hours in a period of 5 ears. In the first ear of ser/ice$ it !as used for 1'$000 hours. If at the end of the ' nd ear it !as used for 15$000 hours$ find the $epreciation at the second ear. •
&. P1+0$000
•
B. P1)0$000
•
(. P1-0$000
•
*. P150$000
)). & certain machine cost P"0$000 and has a life of " ears and a sal/age /alue of P5000. The production output output of this machine in units units per ear is 1000 units units for the first ear$ '000 units for the second ear$ 000 units for the third ear$ and "000 units for the fourth ear. If the units produced are in uniform ualit$ !hat is the $epreciation char'e at the end of the fourth ear. •
&. P1"$000
•
B. P15$000
•
(. P1$000
•
*. P1-$000
"00. & lathe machine costs P00$000 brand ne! !ith a sal/age /alue of # pesos. The machine is e#pected to last for '+500 hours in a period of 5 ears. In the first ear of ser/ice it !as used for +000 hours. If the book /alue at the end of of the first ear is P''0$000$ compute compute for the sal%a'e %alue # in pesos. •
&. P15$000
•
B. P1'$000
•
(. P1+$000
•
*. P'0$000
Choose the letter of the best answer in each questions.
"01. It is defined to be the capacit of a commodit to satisf human !ant •
&. ecessit
•
B. Gtilit
•
(. 6u#uries
•
*. *iscount
"0'. It is the stock that has prior to di/idends. It usuall does not bring /oting right to the o!ners and the di/idend is fi#ed and cannot be higher than the specified a mount. •
&. (ommon stock
•
B. Doting Doting stock
•
(. Pretend stock
•
*. on par /alue stock
"0. It is an amount a mount !hich a !illing buer !ill pa to a !illing seller for the propert !here each has eual ad/antage and is under no compulsion to bu or sell. •
&. Book /alue
•
B. 2arket /alue
•
(. Gse /alue
•
*. Fair /alue
"0". JJJJ is the loss of /alue of the euipment !ith use o/er a period of time. It could mean a difference in /alue bet!een a ne! asset and the use asset currentl in a ser/ice. •
&. 6oss
•
B. *epreciation
•
(. 4#tracted
•
*. Hain
"05. &n economic condition condition in !hich there are so fe! suppliers of a particular product that one supplier’s actions significantl affect prices and suppl suppl.. •
&. Eligopol
•
B. 2onopson
•
(. 2onopol
•
*. Perfect competition
"0-. & market !hereb there is onl one buer of an item for !hen there are no goods substitute. •
&. 2onoson
•
B. 2onopol
•
(. Eligopol
•
*. Eligopson
"0. It is the !orth of a propert as recorded in the book of an enterprise. •
&. 7al/age /alue
•
B. Price
•
(. Book /alue
•
*. 7crap /alue
"0+. :eduction in the le/el of nation income and output usuall accompanied b a fall in the general price le/el. •
&. *e/aluation
•
B. *eflation
•
(. Inflation
•
*. *epreciation
"0). & formal organi,ation organi,ation of producers !ithin industr forming a perfect collusion purposel formed to increase profit and block ne! comers from the industr industr.. •
&. (artel
•
B. 2onopol
•
(. (orporation
•
*. (ompetitors
"10. & market situation situation !here there is onl one seller !ith man buer. •
&. 2onopol
•
B. 2onophon
•
(. Eligopol
•
*. Perfect competition
"11. & market situation !here there is one seller and buer. •
&. Bilateral monopol
•
B. 2onopol
•
(. Eligopol
•
*. Bilateral 2onopol
"1'. :eduction in the le/el of national income and output usuall accompanied b a fall in the general price le/el. •
&. *eflation
•
B. Inflation
•
(. *e/aluation
•
*. *epreciation
"1. & series of eual paments made at eual inter/al of time. •
&. &nnuit
•
B. &morti,a &morti,ation tion
•
(. *epreciation
•
*. Bonds
"1". The mone paid for the use of borro!ed capital. •
&. Interest
•
B. &morti,a &morti,ation tion
•
(. &nnuit
•
*. Bonds
"15. The place !here buers and sellers come together. •
&. 2aker
•
B. 7tore
•
(. Bargain center
•
*. Port
"1-. The /alue of the stock as stated on the stocks certificate •
&. 7tock /alue
•
B. Par /alue
•
(. Interest
•
*. 2aturit /alue
"1. & market situation situation in !hich t!o competing buers e#ert controlling influence o/er man sellers. •
&. Bilateral monopol
•
B. Eligopol
•
(. *uopson
•
*. *uopol
"1+. & market situation situation in !hich t!o po!erful groups or organi,ations dominate commerce in one business market or commodit. commodit. •
&. Eligopol
•
B. *uopol
•
(. *uopson
•
*. duopol
"1). The tpe of annuit !here the first pament pa ment is made after se/eral periods$ after the beginning of the pament. •
&. Perpetuit
•
B. Erdinar annuit
•
(. &nnuit due
•
*. *eferred annuit
"'0. The condition in !hich the total income euals the total operating e#penses. •
&. Tall
•
B. Par /alue
•
(. (heck and balance
•
*. Break e/en
"'1. The amount !hich has been spent or capital in/ested !hich for some reasons cannot be retrie/ed. •
&. 7unk cost
•
B. Fi#ed costs
•
(. *epletion cost
•
*. (onstruction cost
"''. &n obligation !ith no condition attach is called •
&. Personal
•
B. Hratuitous
•
(. (oncealed
•
*. Pri/ate
"'. The sum of all the costs necessar to prepare a construction pro8ect for operation. •
&. Eperation costs
•
B. (onstruction cost
•
(. *epletion cost
•
*. Production cost
"'". The amount recei/ed from the sale of an addition unit of a product. •
&. 2arginal cost
•
B. 2arginal re/enue
•
(. 4#tra profit
•
*. Prime cost
"'5. The amount that the propert !ould gi/e if sold for 8unk. •
&. 9unk /alue
•
B. 7al/age /alue
•
(. 7crap /alue
•
*. Book /alue
"'-. The !orth of the propert !hich is eual to the original cost less the amount !hich has been charged to depreciation. •
&. 7crap /alue
•
B. 7al/age /alue
•
(. Book /alue
•
*. 2arket /alue
"'. The sum of the direct labor cost incurred in the factor and the direct material cost of all materials that go into production is called •
&. et cost
•
B. 2aintenance cost
•
(. Prime cost
•
*. Eperating cost
"'+. The difference bet!een the present /alue and the !orth of mone at some time in the future is called •
&. 2arket /alue
•
B. et /alue
•
(. *iscount
•
*. Interest
"'). The addition cost of producing one more unit is •
&. Prime cost
•
B. 2arginal cost
•
(. *ifferential cost
•
*. 7unk cost
"0. & !ritten contract b a debtor to pa final redemption /alue on an indicated date or maturit date and pa a certain sum periodicall. •
&. &nnuit
•
B. Bond
•
(. &morti,a &morti,ation tion
•
*. (ollateral
"1. 4stimated /alue of the propert at the useful life. •
&. 2arket /alue
•
B. Fair /alue
•
(. 7al/age /alue
•
*. Book /alue
"'. *etermination of the actual uantit of the materials on hand as of a gi/en date. •
&. Phsical in/entor
•
B. (ounting principle
•
(. 7tock assessment
•
*. Periodic material update
". This consists of a cash and account recei/able during the ne#t period or an other material !hich !ill be sold. •
&. Fi#ed assets
•
B. *eferred charges
•
(. (urrent asset
•
*. 6iabilit
"". & !rong act that causes in8ur to a person or propert and for !hich allo!s a claim b the in8ured part to reco/er damages. •
&. Fraud
•
B. Tort
•
(. 6ibel
•
*. 7cam
"5. & series of uniform pament o/er an infinite period of time •
&. *epletion
•
B. (apitali,ed cost
•
(. Perpetuit
•
*. Inflation
"-. These are products or ser/ices that are reuired to support human life and acti/ities that !ill be purchased in some!hat some!hat the same uantit e/ent e/ent though the price /aries considerabl considerabl..
•
&. (ommodities
•
B. ecessities
•
(. *emands
•
*. 6u#ur
". The uantit of a certain commodit that is offered for sale at a certain price at a gi/en place and time. •
&. Gtilit
•
B. 7uppl
•
(. 7tocks
•
*. Hoods
"+. It is sometimes called the second hand /alue •
&. 7crap /alue
•
B. 7al/age /alue
•
(. Book /alue
•
*. Par /alue
"). *ecreases in the /alue of a phsical propert due to the passage of time. •
&. *eflation
•
B. *epletion
•
(. *eclination
•
*. *epreciation
""0. &n association of t!o or more indi/iduals for the purpose of engaging business for profit. •
&. 7ingle proprietorship
•
B. Part
•
(. (orporation
•
*. Partnership
""1. The simplest form of business organi,ation !here in the business is o!n entirel b one person. •
&. Partnership
•
B. Proprietorship
•
(. (orporation
•
*. 9oint /enture
""'. Parties !hose consent or signature in a contract is not considered intelligent. •
&. *umm person
•
B. 2inors
•
(. *emented persons
•
*. (on/ict
"". It is defined as the capacit of a commodit to satisf human !ant. •
&. 7atisfaction
•
B. 6u#ur
•
(. ecessit
•
*. Gtilit
""". This occurs in a situation !here a commodit or ser/ice is supplied b a number of /endors and there is nothing to pre/ent additional /endors entering the market. •
&. Perfect competition
•
B. 2onophon
•
(. 2onopol
•
*. (artel
""5. These are products or ser/ices that are desired b b human and !ill be purchased if mone is a/ailable after the reuired necessities ha/e been obtained. •
&. (ommodities
•
B. ecessities
•
(. 6u#uries
•
*. 7upplies
""-. Hrand total of the assets and operational capabilit of a corporation. •
&. &uthori,ed capital
•
B. Paid off capital
•
(. 7ubscribed capital
•
*. In/estment
"". It is !here the original record of a business transaction is recorded. •
&. 6edger
•
B. 7preadsheet
•
(. 9ournal
•
*. 6ogbook
""+. The length of time !hich the propert ma be operated at a profit. •
&. 6ife span
•
B. 4conomic life
•
(. Eperating life
•
*. Profitable life
""). The right and pri/ilege granted to an indi/idual or corporation to do business in a certain region. •
&. Permit
•
B. :oalt
•
(. 6icense
•
*. Franchise
"50. The !orth of an asset as sho!n in the accounting records of an enterprise. •
&. Fair /alue
•
B. Par /alue
•
(. 2arket /alue
•
*. Book /alue
"51. & bookstore bookstore purchased a best;selling book at P'00.00 per cop. &t !hat price should this book be sold so that b gi/ing a '0% discount$ the profit is 0%. •
&. P'00.00
•
B. P00.00
•
(. P"00.00
•
*. P500.00
"5'. & businessman !ishes to earn % on his capital after pament pa ment of ta#es. If the income from an a/ailable in/estment !ill be ta#ed at an a/erage of "'%$ !hat minimum rate of return$ before pament of ta#es$ must the in/estment offer to be 8ustified •
&. 1.0'%
•
B. 1'.0%
•
(. 10.+)%
•
*. 11.0+%
"5. & manufacturing firm maintains one product assembl line to produce signal generators. 3eekl 3eekl demand for the generators is 5 units. The line operates for hours per da$ 5 das per !eek. 3hat is the ma#imum production time per unit in hours reuired of the line to meet the demand •
&. 1 hour
•
B. 1 hour and 10 minutes
•
(. 1 hour and 15 minutes
•
*. 1 hour and 0 minutes
"5". Frod (orporation’s gross gross margin is "5% of sales. Eperating e#penses such as sales and administration are 15% of sales. Frod (orporation is in "0% ta# bracket. 3hat percent of sales is their profit after ta#es •
&. '1%
•
B. '0%
•
(. 1)%
•
*. 1+%
"55. In determining the cost in/ol/ed in fabricating sub;assembl B !ithin a compan$ the follo!ing data ha/e been gathered *irect material ; P0.0 per unit *irect labor ; P0.50 per unit Testing set;up ; P00.00 per set;up It is decided to subcontract the manufacturing of assembl B to an outside compan. For an order of 100 units$ !hat is the cost per unit that is acceptable to the compan •
&. P.+0
•
B. P".00
•
(. P".10
•
*. P".'0
"5-. B selling balut at P5 per do,en$ a /endor gains '0%. The cost of the eggs rises b 1'.5%. If he sells at the same price as before$ find his ne! gain in %. •
&. -.+)%
•
B. -.-%
•
(. -.5+%
•
*. -.1'%
"5. &n euipment euipment installation 8ob in the completion stage can be completed in 50 das of + hourKda !ork$ !ith 50 men !orking. 3ith the contract e#piring in "0 das$ the mechanical engineer contractor decided to add 15 men on the 8ob$ o/ertime not being permitted. If the liuidated damages is P5$000 per da da of dela$ and the men are paid P150 per da$ ho! much mone !ould he sa/e !ith the additional !orkers •
&. P"$"50
•
B. P"$50
•
(. P""$'50
•
*. P""$50
"5+. In a certain department store$ the monthl salar of a saleslad is partl constant and partl /aries as the /alue of her sales for the month. 3hen the /alue of her sales for the month is P10$000.00$ her salar for the month is P)00.00. 3hen her monthl sales go up to P1'$000.00$ her monthl salar goes up to P1$000.00. 3hat must be the /alue of her sales so that her salar for the month !ill be P'$000.00 •
&. P0$000
•
B. P1$000
•
(. P'$000
•
*. P$000
"5). 9o8o bought a second;hand Betama# D(: and then sold it to :ud at a profit of "0%. :ud then sold the D(: to oel at a profit of '0%. If oel paid P'$+5- more than it costs 9o8o$ ho! much did 9o8o pa for the unit •
&. P"$100
•
B. P$)00
•
(. P"$000
•
*. P"$'00
"-0. The selling price of a TD set is double that of its net cost. If the TD set is sold to a customer at a profit of '5% of the net net cost$ ho! much discount discount !as gi/en to the customer customer •
&. .5%
•
B. .)%
•
(. +.'%
•
*. +.5%
"-1. & 2echanical 2echanical 4ngineer !ho !as a!arded a P"50$000 contract to install the machineries of an oil mill failed to finish the !ork on time. &s pro/ided for in the contract$ he has to pa pa a dail penalt eui/alent to one fourth of one per cent per da for the first 10 das and 0.5% per da for the ne#t 10 das and one per cent per da for e/erda thereafter. If the total penalt !as P-0$50.00$ ho! man das !as the completion of the contract delaed •
&. '- das
•
B. ' das
•
(. '+ das
•
*. ') das
"-'. The uarring cost of marble and granite blocks plus deli/er cost to the processing plant each is P'$"00.00 per cubic meter. Processing cost of marble into tile is P'00.00 per suare meter and that of the granite into tiles also is P-00.00 per suare meter. If marble has a net ield of "0 suare meters of tile per cubic meter of block and sells P"00 per suare meter$ and granite gi/es a net ield of 50 suare meters of tiles per cubic meter of block and sells at P1000 per suare meter. (onsidering all other costs to be the same$ the granite is more profitable than the marble b ho! much •
&. P1'$000 per cubic meter
•
B. P1$000 per cubic meter
•
(. P1"$000 per cubic meter
•
*. P15$000 per cubic meter
"-. & man !ould like to in/est P50$000 in go/ernment bonds and stocks that !ill gi/e an o/erall annual return of about 5%. The mone to be in/ested in go/ernment bonds !ill gi/e an annual return of ".5% and the stocks of about -%. The in/estments are in units of P100.00 each. If he desires to keep his stock in/estment to minimum in order to reduce his risk$ determine ho! man stocks should be purchased. •
&. 1-5
•
B. 1--
•
(. 1-
•
*. 1-+
"-". & ''0 D ' hp motor has an efficienc of +0%. If po!er costs P.00 per k!;hr for the first 50 k!;hr$ '.)0 per k!;hr for the second 50 k!;hr$ P'.+0 for the third k!;hr and so on until a minimum of P'.50 per k!;hr is reached. o! much does it cost to run this motor continuousl for das da s •
&. P+00
•
B. P+'0
•
(. P+"0
•
*. P+-0
"-5. &n +;meter concrete road pa/ement 500 meters long is desired to be constructed o/er a !ell; compacted gra/el road$ together !ith the necessar concrete curbs and gutters on both sides. In order to put the subgrade on an e/en le/el grade$ a 500 cubic meters of sand filling is is necessar$ o/er !hich the 10 inch concrete pa/ement !ill be placed &ssume the follo!ing data &. 7and fill$ including rolling and !atering C P100 per cubic meter
B. (oncrete pa/ement$ 10 in thick @labor and materialsA including curing C P''0 per s. 2eter (. (urbs and gutters C P1' per linear meter o! much !ill the pro8ect cost allo!ing 15% for contingenc •
&. P1$'0$000
•
B. P1$'0$500
•
(. P1$'0+$000
•
*. P1$'0+$500
"--. &n electric utilit purchases '$00$000 k!;hr per month of electric energ from ational Po!er (orporation at P'.00 per k!;hr and sells all this to consumers after deducting distribution losses of '0%. &t !hat a/erage rate per k!;hr should this energ be sold to break e/en if the follo!ing are other monthl e#penses in its operation /aes
2.! # of 'ross re%enue
7alaries
P50$000
*epreciation
P'$'50$000
Interest
P00$000
2aintenance
P00$000
2iscellaneous
P'00$0 $00 00
•
&. P".)0
•
B. P5.'0
•
(. P5.)0
•
*. P-.0
"-. &n engineer bidding bidding on the asphalting of km stretch of road is confronted !ith a problem of choosing bet!een t!o possible sites on !hich to set;up the asphalt;mi#ing machine. 7ite &
7ite B
&/erage hauling distance
'.5 km
'.5 km
2onthl rental
P5$000
P-$500
Installing and di dismantling of machine
P'0$000
P10$000
&t *ite $ it !ould be necessar to hire ' flagmen at P150 per !orking da. The 8ob can be completed in ' !eeks !orking - das a !eek. The pro8ect reuires 1-$-0 cubic meter of asphalt mi# per kilometre of road. If the asphalt mi# is to be hauled b a contractor at P"' per cubic meter per km of haul. o! much is site more e#pensi/e than site & •
&. P)")$-"5
•
B. P)-'$101
•
(. P)5-$+0
•
*. P)"$0)0
"-+. & fi#ed capital in/estment of P10$000$000 is reuired for a proposed manufacturing plant and an estimated !orking capital of P'$000$000. &nnual depreciation is estimated to be 10% of the fi#ed capital in/estment. *etermine the rate of return on the total in/estment if the annual profit is P'$500$000. •
&. '+.%
•
B. ')."%
•
(. 0.1'%
•
*. 0.+%
"-). & call to bid !as ad/ertised in the Philippine *ail Inuirer for the construction of a transmission line from a mini;hdroelect mini;hdroelectric ric po!er plant to the substation !hich is 5.05 kilometers a!a. The tanali,ed timber electrical posts must be placed at an inter/al of 50 m. The electrical posts must be 0 feet long$ + inches in diameter at the tip and 1' inches in diameter at the butt. The po!er house is 15 m from the first electric post and the substation is '0 m from the last electric post. (ompute the estimated cost for the pro8ect using the follo!ing data (ost of one tanali,ed timber post 0 feet long is P5$000 including deli/er to the site. 6abourer at P1+0 per da and 5 laborers can dig dig and erect posts per da. da. 4lectrician at P'50 P'50 per da and " electricians electricians can strung !ires complete 150 meters per da. 4lectric !ire cost P".00 per meter. Gse onl 5 laborers and " electricians for the pro8ect and is super/ised b a foreman !hich is paid at P"00 per da. (ontingenc (ontingenc is 10% and profit is '5%. •
&. P"5$+)0.'
•
B. P+1$-)'.00
•
(. P+)$1'0.+0
•
*. P+')$5)'.50
"0. Gpon the retirement after "" ears in go/ernment ser/ice$ 2rs. 7alud &raoarao !as able to get a retirement lump sum of P'$00$000. &s a hedge against inflation$ she decided to use a part of it in/ested in real state at Pagadian (it and the remainder !ere in/ested as follo!s &. 0% in T;bills earning 1'% interest B. 5% in mone market placement earning 1"% (. 5% in blue chip stock earning 1% If her annual earnings from the T; T;bills$ bills$ mone market and stock is P50$000$ o! much did she in/ests in real estate •
&. P'$0)1$-).1'
•
B. P1$)1-$+5+.'"
•
(. P1$+5-$1'0.5
•
*. P1$)0$'".+
"1. The monthl demand for ice cans being manufactured b 2r. &larde is '00 pieces. 3ith a manual operated guillotine$ the unit cuffing cost is P'5.00. &n electricall operated hdraulic guillotine !as offered to 2r. &larde &larde at a price of P'5$000.00 and !hich cuts b 0% the unit cuffing cost. *isregarding the cost of mone$ ho! man months !ill 2r. &larde &larde be able to reco/er the cost of the machine if he decides to bu no! •
&. 10 months
•
B. 11 months
•
(. 1' months
•
*. 1 months
"'. In a ne! gold mining area in 7outhern 6ete the ore contains on the a/erage of ten ounces of gold per ton. *ifferent methods methods of processing are tabulated tabulated as follo!s follo!s Processing 2ethod
(ost per ton
% :eco/er
&
P5$500
)0
B
P'$500
+0
(
P"00
0
If gold can be sold at P"$000 per ounce$ !hich method of processing ield the biggest return •
&. Processing method &
•
B. Processing method B
•
(. Processing method (
•
*. 4ither of the processing methods B or (
". 9:T 2otors 2otors Inc. has been shipping its 7u,uki engines in containers to a/oid the necessar crating of the engines. 9:T 2otors 2otors Inc. !ill pa freight on container load of "0 tons$ regardless of !hether or not the container is completel filled !ith engines. :ecord sho!s that due to engine si,e$ 9:T 2otors 2otors Inc. has shipped onl 0 tons per container container.. Freight of container cost P.00 per kilograms. If the engines are crated so that the can be shipped at the rate of P.50 per hundred kilograms !ith the freight bill computed onl on the actual !eight shipped. The cost of crating !ould be P50 per engine and !ould increase the shipping !eight from 1500 kg to 15'0 kg per engine. o! much more economical shipping the engine in crates than in containers •
&. P-0 per engine
•
B. P-0 per engine
•
(. P-50 per engine
•
*. P-10 per engine
"". & paint manufacturing compan uses a sand mill for fine grinding of paint !ith an output of 100 liters per hour using glass beads as grinding media. 2edia load in the mill is '5 kg costing P'00.00 per kg and is full replenished in ' months time at + hours per da operation$ '5 das a month. & ceramic grinding media is offered to this paint compan$ costing P"00 per kg and needs 0 kg load in the sand mill$ but guarantees an output of 1'0 liters per hour and full replenishment of media in months. If profit on paint reduction is P15 per liter ho! much is a difference in profit bet!een the t!o media •
&. P"-$)00
•
B. P"-'$000
•
(. P"$000
•
*. P")+$'00
"5. If P1000 accumulates to P1500 !hen in/ested at a simple interest for three ears$ !hat is the rate of interest
•
&. 1".1'%
•
B. 15.+)%
•
(. 1-.-%
•
*. 1-.)%
"-. ?ou ?ou loan from a loan firm an amount a mount of P100$000 !ith a rate of simple interest of '0% but the interest !as deducted from the loan at the time the mone !as borro!ed. If at the end of one ear$ ou ha/e to pa the full amount a mount of P100$000$ !hat is the actual rate of interest •
&. '.5%
•
B. '".%
•
(. '5.0%
•
*. '5.+%
". & loan of P5$000 is made for a period of 15 months$ at a simple interest rate of 15%$ !hat future amount is due at the end of the loan period •
&. P5$).50
•
B. P5$+.'0
•
(. P5$1'."0
•
*. P5$-)0.1'
"+. If ou borro!ed mone from our friend !ith simple interest at 1'%$ find the present !orth of P50$000$ !hich is due at the end of months. •
&. P"-$'+.)
•
B. P"$0)+.1'
•
(. P"$+)0.1'
•
*. P"+$0)0.'1
"). 2r. 9. :ees borro!ed mone from the bank. e recei/ed from the bank P1$+"' and promised to repa P'$000 at the end of 10 months. *etermine the rate of simple interest. •
&. 1'.1)%
•
B. 1'.0%
•
(. 11.5"%
•
*. 10.')%
"+0. If ou borro!ed P10$000 from a bank !ith 1+% interest per annum$ !hat is the total amount to be repaid at the end of one ear •
&. P10$)00
•
B. P11$'00
•
(. P11$+00
•
*. P1'$000
"+1. & price tag of P1$'00 is paable in -0 das but if paid !ithin 0 das it !ill ha/e a % discount. Find the rate of interest. •
&. 5."5%
•
B. 5.+)%
•
(. -.1+%
•
*. .11%
"+'. & man borro!ed P'$000 from a bank and promised to pa the amount for one ear. e recei/ed onl the amount of P1$)'0 after the bank collected an ad/ance interest of P+0.00. 3hat !as the rate of discount •
&. .-%
•
B. ".00%
•
(. ".15%
•
*. ".'5%
"+. & man borro!ed P'$000 from a bank and promised to pa the amount for one ear. e recei/ed onl the amount of P1$)'0 after the bank collected an ad/ance interest of P+0.00. 3hat !as the rate of interest that the bank collected in ad/ance •
&. ".00%
•
B. ".0%
•
(. ".1%
•
*. ".'5%
"+". 3hat !ill be the future !orth of mone after 1' months if the sum of P'5$000 is in/ested toda at simple interest rate of 1% per ear •
&. P'5$1-+
•
B. P'5$15
•
(. P'5$1+)
•
*. P'5$'50
"+5. 3hat !ill be the future !orth of mone after 1' months if the sum of P'5$000 is in/ested toda at simple interest rate of 1% per month •
&. P'+$000
•
B. P'+$1-5
•
(. P'+$'+)
•
*. P'+$'50
"+-. "+0 It is the practice of almost all banks in the Philippines that !hen the grant a loan$ the interest for one ear is automaticall deducted from the principal amount upon release of mone to a borro!er. 6et us therefore assume that ou applied for a loan !ith a bank and the P+0$000 !as appro/ed at an interest rate of 1"% of !hich P11$'00 !as deducted and ou !ere gi/en a check of P-+$+00. 7ince ou ha/e to pa the amount a mount of P+0$000 one ear after$ !hat then !ill be the effecti/e interest rate •
&. 1-.0'%
•
B. 1-.'+%
•
(. 1-.'%
•
*. 1-."%
"+. & deposit deposit of P110$000 !as made for 1 das. da s. The net interest after deducting '0% !ithholding ta# is P+)0.-. Find the rate r ate of return annuall annuall..
•
&. 11.50%
•
B. 11.5%
•
(. 11.)5%
•
*. 1'.'%
"++. P5$000 is borro!ed for 5 das at 1-% per annum simple interest. o! much !ill be due at the end of 5 das •
&. P5$0--.-
•
B. P5$1.
•
(. P5$050.00
•
*. P5$1--.-
"+). & businessman !ishes to earn % on his capital after pament pa ment of ta#es. If the income from an a/ailable in/estment !ill be ta#ed at an a/erage rate of "'%$ !hat minimum rate of return$ before pament of ta#es$ must the in/estment offer to be 8ustified •
&. 1'.0%
•
B. 1'."%
•
(. 1'.-%
•
*. 1'.+%
")0. & man borro!ed P'0$000 from a local commercial bank !hich has a simple interest of 1-% but the interest is to be deducted from the loan at the time that the mone !as borro!ed and the loan is paable at the end of one ear. o! much is the actual rate of interest •
&. 1).05%
•
B. 1)."%
•
(. 1).-%
•
*. 1).+%
")1. P"$000 is borro!ed for 5 das at 1-% per annum simple interest. o! much !ill be due at the end of 5 das •
&. P"$0.
•
B. P"$.
•
(. P"$1.
•
*. P"$---.-
")'. &gnes &banilla &banilla !as granted a loan of P'0$000 b b her emploer (P2 Industrial Fabricator and (onstruction (orporation !ith an interest rate of -% for 1+0 das on the principal collected in ad/ance. The corporation !ould accept a promissor note for P'0$000 non;interest for 1+0 das. If discounted at once$ find the proceeds of the note. •
&. P1+$+00
•
B. P1+$)00
•
(. P1)$000
•
*. P1)$100
"). If ou borro! mone from our friend !ith simple interest of 1'%$ find the present !orth of P'0$000 !hich is due at the end of nine months. •
&. P1+$))'.0+
•
B. P1+$+'.1+
•
(. P1+$"+.-'
•
*. P1+$1'0."5
")". & man borro!ed from a bank under a promissor note that he signed in the amount of P'5$000.00 for a period of one ear. e recei/es onl the amount of P'1$)15.00 after the bank collected the ad/ance interest and an additional of P+5.00 for notarial and inspection fees. 3hat !as the rate of interest that the bank collected in ad/ance ad/ance •
&. 1.05%
•
B. 1.''%
•
(. 1."-%
•
*. 1.-"%
")5. 2r. *anilo (onde borro!ed mone from a bank. e recei/ed from the bank P1$"0.00 and promised to pa P1$500.00 at the end of ) months. *etermine rate of simple interest. •
&. 15.)'%
•
B. 15.5%
•
(. 15."5%
•
*. 15.0+%
")-. 2r. 9. *ela (ru, borro!ed mone from a bank. e recei/es from the bank P1$"0.00 and promised to pa P1$500.00 at the end of ) months. *etermine the corresponding discount rate or often referred to as the
&. 1.15%
•
B. 1.'%
•
(. 1."-%
•
*. 1.%
"). &nnie bus bus a tele/ision set from a merchant !ho ask P1$'50.00 at the end of -0 das. &nnie &nnie !ishes to pa immediatel and the merchant offers to compute the cash price on the assumption that mone is !orth +% simple interest. 3hat is the cash price •
&. P1$1'".-
•
B. P1$'.55
•
(. P1$'+).0+
•
*. P1$0'.-
")+. & man borro!ed mone from a loan shark. e recei/es from the loan shark and amount of P1$"'.00 and promised to repa P1$500.00 at the end of uarters. 3hat is the simple interest rate •
&. 15."%
•
B. 15.-)%
•
(. 15.+0%
•
*. 15.)-%
")). *etermine the e#act simple interest on P5$000 in/ested for the period from 9anuar 15$1))- to Ectober 1'$1))-$ if the rate interest is 1+%. •
&. P--".'
•
B. P--".+)
•
(. P--5.'1
•
*. P---.)
500. The e#act simple interest of P5$000 in/ested from 9une '1$1))5 to *ecember '5$1))5 is P100. 3hat is the rate of interest •
&. .)0%
•
B. .)'%
•
(. .)5%
•
*. .)+%
501. En her recent birthda$ &pril &pril ''$ '001$ icole !as gi/en b her mother a certain sum of mone as birthda present. 7he decided decided to in/est the said said amount on '0% e#act simple simple interest. If the account !ill !ill mature on (hristmas da at an amount of P10$000.00$ ho! much did icole recei/e from her mother on her birthda •
&. P+$+0.)'
•
B. P+$+'.5-
•
(. P+$+'.1
•
*. P+$+"5.+
50'. 3hat is the ordinar interest on P1$500.50 for 1+' da s at 5.'% •
&. P).01
•
B. P)."5
•
(. P).+'
•
*. P).))
50. icole has P'0$"00 in cash. 7he in/ested it at % from 2arch 1$ '00- to o/ember 1$ '00- at % interest. o! much is the interest using the Banker’s :ule •
&. P)'.1'
•
B. P)0.+
•
(. P).1'
•
*. P)1.+
50". The amount of P'0$000 !as deposited in a bank earning an interest of -.5% per annum. *etermine the total amount at the end of ears if the principal and interest !ere not !ithdra!n during this period •
&. P0$+)0.''
•
B. P0$)+0.''
•
(. P1$0).
•
*. P1$1).
505. & loan for P50$000 is to be paid in ears at the amount of P-5$000. 3hat is the effecti/e rate of mone •
&. ).01%
•
B. ).1"%
•
(. ).1%
•
*. )."1%
50-. The amount of P50$000 !as deposited in the bank earning an interest of .5% per annum. *etermine the total amount at the end of 5 ears$ if the principal and interest !ere not !ithdra!n during the period. •
&. P1$+1."
•
B. P1$1+."
•
(. P1$+1."
•
*. P1$1+."
50. Find the present !orth of a future pament of P+0$000 to be made in si# ears !ith an interest of 1'% compounded annuall annuall.. •
&. P"0$5"0.")
•
B. P"0$"50.")
•
(. P"0$50.")
•
*. P"0$50.")
50+. 3hat is the effecti/e rate corresponding to 1+% compounded dail Take Take 1 ear is eual to -0 das. •
&. 1).-1%
•
B. 1).""%
•
(. 1).1%
•
*. 1).'%
50). 3hat nominal rate$ compounded semi;annuall$ semi;annuall$ ields the same amount as 1-% compounded uarterl •
&. 1-.0)%
•
B. 1-.'%
•
(. 1-."5%
•
*. 1-.+%
510. 3hat rate of interest compounded annuall is the same as the rate of interest of +% compounded uarterl •
&. +.0%
•
B. +.1'%
•
(. +.1-%
•
*. +.'"%
511. Find the nominal rate$ !hich if con/erted uarterl could be used instead of 1'% compounded semi; annuall.
•
&. 11.+%
•
B. 11.0)%
•
(. 11.-5%
•
*. 11.'5%
51'. 3hich of these gi/es the lo!est effecti/e rate of interest •
&. 1'.5% compounded annuall
•
B. 11.)0% compounded semi;annuall
•
(. 1'.'0% compounded uarterl
•
*. 11.-0% compounded monthl
51. Find the compound amount if P'$500 is in/ested at +% compounded uarterl for 5 ears and months. •
&. P$+-".)5
•
B. P$+"-.5)
•
(. P$++).)5
•
*. P$+"".)5
51". &n amount of P1$000 becomes P1$-0+."" after " ears compounded bimonthl. bimonthl. Find the nominal interest. •
&. 11.+)%
•
B. 1'.00%
•
(. 1'.0+%
•
*. 1'.'%
515. If P5$000 shall accumulate for 10 ears at +% compounded uarterl$ then !hat is the compound interest at the end of 10 ears •
&. P-$0+0."0
•
B. P-$0'0."0
•
(. P-$0"0.'0
•
*. P-$0-0.'0
51-. 3hat is the corresponding effecti/e rate of 1+% compounded semi;uarterl •
&. 1).'"%
•
B. 1)."+%
•
(. 1).+"%
•
*. 1).)'%
51. Find the present !orth of a future pament of P100$000 to be made in 10 ears !ith an interest of 1'% compounded uarterl uarterl.. •
&. P0$555.-+
•
B. P0$-5-.+-
•
(. P0$55-.+-
•
*. P0$-55.-+
51+. In ho! man ears is reuired for P'$000 to increase b P$000 if interest at 1'% compounded semi; annuall •
&. .+- ears
•
B. .-5 ears
•
(. .' ears
•
*. +.1' ears
51). The amount of P150$000 !as deposited in the bank earning an interest of .5% per annum. *etermine the total amount at the end of 5 ears$ if the principal and interest !ere not !ithdra!n during the period. •
&. P'15$""."0
•
B. P'1$5""."0
•
(. P'"$15."0
•
*. P'55."".10
5'0. o! long !ill it take mone to double itself if in/ested at 5% compounded annuall •
&. 1. ears
•
B. 1".' ears
•
(. 1". ears
•
*. 15. ears
5'1. 3hat is the corresponding effecti/e interest rate of 1+% compounded semi;monthl semi;monthl •
&. 1).5%
•
B. 1).+"%
•
(. 1)."+%
•
*. 1).-"%
5''. 3hat is the effecti/e rate of 1"% compounded semi;annuall •
&. 1".")%
•
B. 1".5)%
•
(. 1".-)%
•
*. 1".)%
5'. &t an interest rate of 10% compounded annuall$ ho! much !ill a deposit of P1$500 be in 15 ears •
&. P-$'-5.+
•
B. P-$'5-.+
•
(. P-$5'-.+
•
*. P-$-5'.+
5'". & man e#pects to recei/e P'5$000 in + ears. o! much is that mone !orth no! considering interest at +% compounded co mpounded uarterl •
&. P1$'5-.+
•
B. P1$-55.'+
•
(. P1$-'5.+
•
*. P1$'-5.+
5'5. &bout &bout ho! man ears !ill P100$000 earn a compound interest of P50$000 if the interest rate is )% compounded uarterl •
&. " ears
•
B. 5 ears
•
(. - ears
•
*. ears
5'-. (ompute the eui/alent rate of -% compounded semi;annuall to a rate compounded uarterl. uarterl. •
&. 5.1'%
•
B. 5.)-%
•
(. 5.+%
•
*. -.1'%
5'. 3hat is the amount of P1'$+00 in " ears at 5% compounded uarterl •
&. P15$"-1.5)
•
B. P15$1"-.)5
•
(. P15$-"1.5)
•
*. P15$-1".5)
5'+. B the condition of a !ill$ the sum of P'0$000 is left to a girl to be held in trust fund b b her guardian until it amounts to P50$000. 3hen !ill the girl recei/e the mone if the fund is in/ested at +% compounded uarterl •
&. 11.' ears
•
B. 11."- ears
•
(. 11.5 ears
•
*. 11.+ ears
5'). If P50$000 shall accumulate for 10 ears at "% compounded uarterl$ find the compounded interest at the end of 10 ears. •
&. P'$.'
•
B. P'$""".'
•
(. P'$555.'
•
*. P'$---.'
50. & sum of P1$000 is in/ested no! and left for eight ears$ at !hich time the principal is !ithdra!n. The interest has accrued is left for another eight ears. If the effecti/e annual interest rate is 5%$ !hat !ill be the !ithdra!al amount amount at the end of the 1-th ear. •
&. P-).1'
•
B. P00.1'
•
(. P0'.15
•
*. P05."'
51. P1$500.00 !as deposited in a bank account$ '0 ears ago. To Toda$ da$ it is !orth P$000.00. Interest is paid semi;annuall. semi;annuall. *etermine the interest interest rate paid on this account. account. •
&. '.)%
•
B. .0%
•
(. .'%
•
*. .5%
5'. & merchant puts in his P'$000.00 to a small business for a period of si# ears. 3ith a gi/en interest rate on the in/estment of 15% per ear$ compounded annuall$ annuall$ ho! much !ill he collect at the end of the si#th ear •
&. P"$-'-.1'
•
B. P"$'-'.1'
•
(. P"$+.1'
•
*. P"$""".1'
5. & man borro!ed P100$000 at the interest rate of 1'% per annum$ compounded uarterl. 3hat is the effecti/e rate •
&. 1'.5%
•
B. 1'.55%
•
(. 1'."5%
•
*. 1'.5%
5". 2andarin Bank ad/ertises ).5% account that ields ).+"% annuall. Find ho! often the interest is compounded. •
&. 2onthl
•
B. Bimonthl
•
(. >uarterl
•
*. &nnuall
55. 3hen !ill an amount be tripled !ith an interest of 11.5-% 11.5-% •
&. ) ears
•
B. 10 ears
•
(. 11 ears
•
*. 1' ears
5-. & student plans to deposit P1$500.00 in the bank no! and another P$000.00 for the ne#t ' ears. If he plans to !ithdra! P5$000.00 three ears from after his last deposit for the purpose of buing shoes$ !hat !ill be the amount of mone left in the bank after one ear of his !ithdra!al 4ffecti/e annual interest rate is 10%. •
&. P1$5").-"
•
B. P1$"5).-"
•
(. P1$"5.)+
•
*. P1$)"5.-"
5. o! much must be in/ested on 9anuar 1$ 1))+ in order to accumulate P'$000 on 9anuar 1$ '00 2one is !orth -%. •
&. P1$50)."
•
B. P1$'").-"
•
(. P1$+.)+
•
*. P1$")".5'
5+. & nominal nominal interest of % compounded continuousl is gi/en on the account. 3hat is the accumulated amount of P10$000 after 10 ears •
&. P1$")+.5)
•
B. P1$"+).5)
•
(. P1$+).)+
•
*. P1$")".5'
5). & mechanical engineer !ishes to accumulate a total of P10$000 in a sa/ings account at the end of 10 ears. If the bank pas onl "% compounded uarterl$ uarterl$ !hat should be the initial deposit •
&. P-$1-.5
•
B. P-$-1.5
•
(. P-$1-.5
•
*. P-$1-.5
5"0. Funds are deposited in a sa/ings account at an interest of +% per annum. 3hat is the initial amount that must be deposited to ield a total of P10$000 in 10 ears •
&. P"$1)-.0
•
B. P"$'1.)
•
(. P"$)-.0
•
*. P"$-1.)
5"1. If P500$000 is deposited at a rate of 11.'5% compounded monthl$ determine the compounded interest after ears and ) months. •
&. P-)0$+"+.
•
B. P-0$-51.'
•
(. P-+0$-").5-
•
*. P-+5$+1.'5
5"'. &n interest rate is uoted as being .5% compounded uarterl. 3hat is the effecti/e annual interest rate •
&. .)1%
•
B. .51%
•
(. .1%
•
*. .1%
5". ?ou ?ou borro! P$500.00 for one ear from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 1+% per ear. o! much lesser ou !ill pa pa b borro!ing the mone from the bank
•
&. P5.+)
•
B. P5".--
•
(. P5.+
•
*. P5".)+
5"". & deposit deposit of P1$000 is made in a bank account that pas +% interest compounded co mpounded annuall. annuall. &ppro#imatel ho! much mone !ill be in the account after 10 ears •
&. P'$1+.)
•
B. P'$1"5.+
•
(. P'$1-."5
•
*. P'$15+.)'
5"5. Fifteen ears ago P1$000.00 !as deposited in a bank account$ and toda it is !orth P'$0.00. The bank pas interest semi;annuall semi;annuall.. 3hat !as the the interest rate paid in this this account •
&. 5.'%
•
B. 5.+%
•
(. 5.+"%
•
*. 5.)0%
5"-. P'00$000 !as deposited on 9anuar 1$ 1)++ at an interest rate of '"% compounded semi;annuall. o! much !ould the sum be on 9anuar 1$ 1)) •
&. P-1$-'.+
•
B. P-1'$+)0.-
•
(. P-'1$1-).-"
•
*. P-11 P-11$-'.1+ $-'.1+
5". 3hat is the present !orth of t!o P100 paments at the end of the third ear and fourth ear The annual interest rate is +%. •
&. P150.5-
•
B. P15'.++
•
(. P15.+)
•
*. P151.0)
5"+. (onsider a deposit of P-00.00 to be paid back in one ear b P00.00. 3hat is the rate of interest$ i % per ear compounded annuall such that the net present !orth of the in/estment is positi/e &ssume i 0. •
&. 1-.50%
•
B. 1-.5%
•
(. 1-.%
•
*. 1-.-%
5"). & firm borro!s P'$000 for - ears at + %. &t the end of - ears$ it rene!s the loan for the amount due plus P'$000 more for ' ears at +%. 3hat is the lump sum due •
&. P$'-0."
•
B. P$'+0."
•
(. P$'0."
•
*. P$'50."
550. & machine has been purchased and installed at a total cost of P1+$000.00. The machine !ill retire at the end of 5 ears$ at !hich time it is e#pected to ha/e a scrap /alue of P'$000.00 based on current prices. The machine !ill then be replaced !ith an e#act duplicate. The compan plans to establish a reser/e funds to accumulate the capital needed to replace the machine. If an a/erage annual rate of inflation of % is anticipated$ ho! much capital must be accumulated •
&. P1+$+5".+
•
B. P1+$5"+.+
•
(. P1+$"5+.+
•
*. P1+$+"5$+
551. 3hat is the effecti/e rate corresponding to 1-% compounding dail Take 1 ear C -0 das. •
&. 1.5%
•
B. 1."5%
•
(. 1.55%
•
*. 1.-5%
55'. B the condition of a !ill$ the sum of P'5$000 is left to a girl to be held in a trust fund b her guardian until it amounts to P"5$000. 3hen !ill the girl recei/e the mone if the fund is in/ested at +% compounded uarterl •
&. ."' ears
•
B. .- ears
•
(. .+5 ears
•
*. .)+ ears
55. P'00$000 !as deposited at an interest rate of '"% compounded semi;annuall. semi;annuall. &fter ho! man ears !ill the sum be P-'1$10 •
&. " ears
•
B. 5 ears
•
(. - ears
•
*. ears
55". In ear ,ero$ ou in/est P10$000.00 in a 15% securit for 5 ears. *uring that time$ the a/erage annual inflation is -%. o! much$ in terms of ear ,ero pesos !ill be in the account at maturit •
&. P15$00.0
•
B. P'0$11.5
•
(. P1+$'+).05
•
*. P1-$+)'."
555. & compan in/ests P10$000 toda to be repaid in 5 ears in one lump sum at 1'% compounded annuall.. o! much profit in present da annuall da pesos is reali,ed
•
&. P$5-.')
•
B. P$")+.'0
•
(. P$"0.1'
•
*. P$-'."'
55-. o! long @in nearest earsA !ill it take mone to uadruple if it earns % compounded semi; annuall •
&. '0 ears
•
B. 1+ ears
•
(. '1 ears
•
*. 1) ears
55. o! much should ou put into a 10% sa/ings account in order to ha/e P10$000.00 in fi/e ears •
&. P-$'1-.'1
•
B. P-$'1'.1'
•
(. P-$'1+.'1
•
*. P-$'0).'1
55+. & man e#pects to recei/e P'0$000 in 10 ears. o! much is that mone !orth no! considering interest at -% compounded co mpounded uarterl •
&. P11$0"'.+)
•
B. P11$05.1'
•
(. P11$0'5.'5
•
*. P11$01'.5'
55). P500$000 !as deposited '0.15 ears ago at an interest rate of % compounded semi;annuall. semi;annuall. o! much is the sum no! •
&. P'$000$0.
•
B. P'$000$1--.'+
•
(. P'$001$"50.'
•
*. P'$00'$+'0.1'
5-0. & bank pas one percent interest on sa/ings accounts four times a ear. 3hat is the effecti/e annual interest rate •
&. ".0-%
•
B. ".1'%
•
(. ".1-%
•
*. ".'+%
5-1. &le#ander &le#ander 2ichael o!es P'5$000.00 due in 1 ear and P5$000 due in " ears. e agrees to pa pa P50$000.00 toda and the balance in ' ears. o! much must he pa at the end of t!o ears if mone is !orth 5% compounded semi;annuall •
&. P)$015.'
•
B. P)$0'-.'5
•
(. P)$05-.'1
•
*. P)$0+)K+
5-'. Find the difference bet!een simple interest and compound interest on a sa/ings deposit of P50$000 at 10% per annum for ears. •
&. P1$510
•
B. P1$50
•
(. P1$550
•
*. P1$50
5-. If mone is !orth 5% compounded uarterl$ uarterl$ find the euated time for paing a loan of P150$000 due in 1 ear and P'+0$000 due in ' ears. •
&. 1.5' ears
•
B. 1.-" ears
•
(. 1.-) ears
•
*. 1.' ears
5-". For a loan acuired si# ears ago$ a man paid out the amount of P5$000.00. The interest !as computed at 1+% compounded annuall. o! much !as the borro!ed amount •
&. P'$-.'+
•
B. P'$'+.-
•
(. P'$+'.-
•
*. P'$+'.-
5-5. & couple decided that for e/er child that !ill be born to them the !ill place a deposit in the bank so that on the child’s 1+ th birthda$ the child !ill recei/e the amount of P00$000.00. If the bank !ill pa an interest of 1+% compounded earl$ ho! much deposit !ill the couple ha/e to make on the birth of a child to them •
&. P15$-.1+
•
B. P15$'").1
•
(. P15$''.1-
•
*. P15$"+'.-"
5--. En his -th birthda a bo is left an inheritance. The inheritance !ill be paid in a lump sum of P10$000 on his '1st birthda birthda.. 3hat is the the present /alue of the inheritance inheritance as of the bo’s bo’s - th birthda$ if the interest is compounded annuall &ssume i C "%. •
&. P5$55'.-"
•
B. P5$5").10
•
(. P5$5''.1'
•
*. P5$5+'.-
5-. & man !ho !on P00$000 in a lotter decided to place 50% of his !inning in a trust fund for the college education of his son. If the mone mone !ill earn 1"% per ear compounded uarterl$ uarterl$ ho! much !ill the man ha/e at the end of 10 ears !hen his son !ill be starting his college education •
&. P5)$1'0.1'
•
B. P5)$"5'.1'
•
(. P5)'$).)-
•
*. P5)$+++.)-
5-+. If the sum of P15$000 is deposited in an account earning "% per annum compounded uarterl$ uarterl$ !hat !ill be the deposited amount at the end of 5 ears •
&. P1+$0'.+5
•
B. P1+$"50.+)
•
(. P1+$51'.+
•
*. P1+$-+.')
5-). The Philippine 7ociet of 2echanical 4ngineers is planning to put up its o!n building. T!o proposals being considered considered are a. The construction of the building no! to cost P"00$000. b. The construction of a smaller building no! to cost P00$000 and at the end of 5 ears$ an e#tension to be added to cost P'00$000. P'00$000.
B ho! much is proposal more economical than proposal if interest rate is '0% and depreciation is to be neglected •
&. P1)$1''.15
•
B. P1)$"'.-)
•
(. P1)$51+.0
•
*. P1)$-'".")
50. & credit credit plan charges interest rate of -% compounded monthl. monthl. Find its effecti/e rate. •
&. "'.'1%
•
B. "'.0%
•
(. "'."1%
•
*. "'.5%
51. & master master card compounds monthl and charges an interest of 1.5% per month. 3hat is the effecti/e interest rate per ear •
&. 1).'%
•
B. 1)."5%
•
(. 1).5-%
•
*. 1).-5%
5'. & man e#pects to recei/e P'0$000 in 10 ears. If interest is computed at -% compounded uarterl$ ho! much is it !orth toda •
&. P11$0'5.'5
•
B. P11$05.'5
•
(. P11$0"5.'5
•
*. P11$055.'5
5. 2icrosoft (4E$ billionaire Bill Hates !illed that a sum of '5 million be gi/en to a child but !ill be held in trust b the child’s mother until it amounts to "5 million. If the a mount is in/ested and earns +% compounded uarterl$ uarterl$ !hen !ill the child recei/e the mone •
&. +.11 ears
•
B. .)0 ears
•
(. ."' ears
•
*. .'" ears
5". Find the present /alue of installment paments of P1$000 no!$ P'$000 at the end of the first ear$ P$000 at the end of the second ear$ P"$000 at the end of the third ear and P5$000 at the end of the fourth ear$ if mone is !orth 10% compounded annuall. •
&. P11$"11.10
•
B. P11$50.)+
•
(. P11$-'1.-
•
*. P11$1.+5
55. o! long !ill it take mone to triple itself if in/ested at +% compounded annuall •
&. 1".' ears
•
B. 1".5- ears
•
(. 1".+ ears
•
*. 1".)+ ears
5-. T!o T!o hundred ears ago$ our great$ great$ great grandfather deposited P1 in a sa/ings account. Toda$ the bank notified ou that ou are the sole heir to this account. o! much is the account toda if it earns +% per annum •
&. P"$00'$"50.+
•
B. P"$10'$"05.)0
•
(. P"$++$)").5+
•
*. P"$)0)$'+)."5
5. 3hat is the present !orth of a future pament of P'00$000 to be made in 10 ears !ith an interest of 10% compounded annuall •
&. P-$)01.'1
•
B. P$10+.--
•
(. P+$10).'
•
*. P)$--.'
5+. & deposit deposit of P1$000.00 is made in a bank account that pas +% interest compounded annuall. annuall. o! much mone !ill be in the account after 10 ears •
&. P'$".'1
•
B. P'$15+.)'
•
(. P'$".1'
•
*. P'$"00.1'
5). 3hat nominal rate compounded annuall !ould uadruple the principal in " ears
•
&. "1."'%
•
B. "0.+1%
•
(. "1.)%
•
*. "0."5%
5+0. Fi/e ears ago$ ou paid P"$000 for a residential lot. Toda ou sell it at P50$000. 3hat is our annual rate of appreciation •
&. +.1'%
•
B. +.00%
•
(. .)'%
•
*. +.'%
5+1. 7uppose that P100$000 is in/ested at a certain rate of interest compounded annuall for ' ears. If the accumulated interest at the end of ' ears is P'1$000. Find the rate of interest. •
&. 10.1'%
•
B. 10.00%
•
(. 10.)'%
•
*. 10.'%
5+'. &n in/estment in/estment of P'0$000 !ill be reuired at the end of the ear. The pro8ect !ould terminate at the end of the 5thear and the assets are estimated to ha/e a sal/age /alue of P'5$000 at that time. 3hat is the rate of interest for this pro8ect to break e/en •
&. 5."%
•
B. 5."%
•
(. 5.)1%
•
*. 5.-%
5+. :obin Padilla possesses a promissor note$ due in ' ears hence$ !hose maturit /alue is P$'00. 3hat is the discount /alue of this note$ based on an interest rate of % •
&. P'$)5.00
•
B. P'$)5.00
•
(. P'$5).00
•
*. P'$5).00
5+". 92 borro!ed a certain amount a mount on 9une 1))0 from *9. T!o ears later$ 92 borro!ed again from *9 an amount of P5$000. 92 paid P1$000 on 9une 1)) and discharged his balance b paing pa ing P$500 on 9une 1))5. 3hat !as the amount borro!ed b 92 on 9une 1))0 if the interest is +% compounded annuall •
&. P1$511.-1
•
B. P1$-11.51
•
(. P1$11."1
•
*. P1$+11.1
5+5. *r. Har 7 in/ests P50$000 in a time deposit that ields 10% for his retirement 0 ears from no!. If the inflation rate is 5%$ !hat !ill be the /alue of the account at maturit in terms of toda’s peso. •
&. P'01$-+).)1
•
B. P'01$51.)1
•
(. P'01$"5.)1
•
*. P'01$+-).)1
5+-. First Benchmark Publisher Inc. in/ests P100$000 toda to be repaid in fi/e ears in one lump sum at 1'% compounded annuall. If the rate of inflation is "% compounded annuall$ ho! much profit$ in toda’s pesos$ pesos$ is reali,ed o/er the fi/e;ear period •
&. P""$51'.+)
•
B. P""$-'.10
•
(. P""$+51.-"
•
*. P""$)01.'
5+. & manufacturing manufacturing firm contemplates retiring an e#isting machine at the end of '00'. The ne! machine to replace the e#isting one !ill ha/e an estimated cost of P"00$000. This e#pense !ill be partiall defraed b the the sale of the old machine as scrap scrap for P0$000. To To accumulate accumulate the balance of the reuired capital$ the firm !ill deposit the follo!ing sum in an account earning interest at 5% compounded uarterl P-0$000 at the end of 1))) P-0$000 at the end of '000 P+0$000 at the end of '001 3hat cash disbursement !ill be necessar at the end of '00' to purchase the ne! machine •
&. P155$+)0.1'
•
B. P15$0+5.5-
•
(. P15"$'00.1'
•
*. P15-$)0.+
5++. En 9une 1$ 1))+$ 2s. Brenda 2arcial purchased stock of 7an 2iguel (orporation at a total cost of P1""$000. 7he then recei/ed the follo!ing semiannual di/idends P"$'00 on *ecember 1$ 1))+ P"$"00 on 9une 1$ 1))) P"$"00 on *ecember 1$ 1))) P"$000 on 9une 1$ '000 &fter recei/ing the last di/idend$ 2s. 2arcial sold her stock$ recei/ing P15'$000 after deduction of brokerage fees. 3hat semiannual semiannual rate did this di/idend reali,e on her her in/estment •
&. ".'-%
•
B. ".5"%
•
(. ".+%
•
*. ".)1%
5+). 4ngr. arito has P1$-0 in cash and he !ould like to in/est it in business. is estimates of the ear; b;ear receipts and disbursements disbursements for all purposes purposes are sho!n in the tabulation tabulation belo!
?ear
:eceipts
*isbursements
0
0
; P1$-0
"
P5$000
L P1$000
5
P-$'00
L P1$'00
-
P$500
L P1$500
P+$+00
L P1$+00
e estimates that his euipment !ill ha/e a sal/age /alue of P'$000 at the end of useful life. Find the rate of return of the prospecti/e euipment. •
&. 10.11%
•
B. 11.+0%
•
(. 11.10%
•
*. 10.51%
5)0. 3hat interest rate$ compounded monthl$ is eui/alent to a 10% effecti/e rate •
&. )."5%
•
B. ).'-%
•
(. ).-5%
•
*. ).5-%
5)1. Frod 3ess 3ess et!ork Inc. plans to purchase a piece of land and to build a school building on this land. o!e/er$ since the school building is not an immediate reuirement$ the institute is considering !hether it should purchase this land and build the building no! or defer this action for ears. The current costs are as follo!s 6and P+00$000 Building P1'$000$000 The purchase price of the land and the cost of the school building are e#pected to appreciate at the rate of 15% and "% per annum$ respecti/el r especti/el.. 3hat !ill be the total cost of the land and structure ears hence •
&. P1"$5'0$1'0
•
B. P1"$15$0-+
•
(. P1"$)0'$1+)
•
*. P15$0'1$+1
5)'.A 2r. 9imene, o!es 2r. Padua the follo!ing amounts P"0$000 due ' ears hence P-0$000 due ears hence P'$000 due " ears hence a/ing !on the lotter$ 2r. 2r. 9imene, decided to liuidate the debts at the present time. If the t!o parties agree on a 5% interest rate$ !hat sum must 2r. 9imene, pa •
&. P1"$5'0.'0
•
B. P1"$"-.0'
•
(. P1"$)0'.+)
•
*. P1"$0'1.+1
5). 2r. 9ohn Bongat !orking in the Gnited 7tates planned of returning to the Philippines at the end of '001. e established a fund starting in 1))5 !ith the follo!ing recorded deposits and !ithdra!als. 9anuar 1$ 1))5 *eposit of P"0$000 9anuar 1$ 1)) *eposit of P+0$000 9ul 1$ 1)) 3ithdra!al of P1'$000 9ul 1$ 1))+ *eposit of P-"$000 9anuar 1$ 1))) 3ithdra!al of P"+$000 is fund earned interest at the rate of .5% compounded semiannuall until the end of 1)). &t that date$ the interest !as augmented to "% compounded semiannuall. semiannuall. 3hat !ill be the principal in the fund at the end of '001 •
&. P1"-$'.0+
•
B. P1"-$))'.))
•
(. P1"-$+"-.)'
•
*. P1"-$0''.+'
5)". 9:T Publishers is contemplating of installing a labor;sa/ing printing euipment. It has a choice bet!een t!o different different models. 2odel & !ill cost P1$"-0$000 !hile !hile model B !ill cost P1$"5'$000. The anticipated repair costs for each model are as follo!s 2odel & P-0$000 at the end of 5 th ear P+0$000 at the end of 10th ear 2odel B P15'$000 at the end of ) th ear The t!o models are alike in all other respects. If the publisher is earning a % return of its capital$ !hich model should be purchased o! much sa/ings !ill be accrued if the publisher !ill purchase the more economical model •
&. P+$-).1+
•
B. P+$)1+.'
•
(. P)$01'.5
•
*. P)$"1.11
5)5. 3hat is the future amount of P50$000 if the single pament compound amount factor of this in/estment is 1.'% •
&. P-1$00
•
B. P-1$)00
•
(. P-1$'00
•
*. P-1$500
5)-. &n in/estment in/estment indicates a single compound amount factor of 1.' if in/ested for < n= ears. If the interest rate is ".% per annum$ find the /alue of < n.=
•
&. "
•
B. 5
•
(. -
•
*.
5). 2r. 2ondragon in/ests P50$000 toda. 7e/eral ears later$ it becomes P-0$000. 3hat is the single pament present !orth factor of this in/estment in/estment If the amount !as in/ested in/ested for 5 ears$ !hat is the rate rate of interest •
&. .1%
•
B. .%
•
(. .5%
•
*. .%
5)+. 2one is deposited in a certain account for !hich the interest is compounded continuousl. continuousl. If the balance doubles in - ears$ !hat is the annual percentage percentage rate •
&. 11.55%
•
B. 11.--%
•
(. 11.%
•
*. 11.++%
5)).A En 9anuar 1$ 1)))$ 2s. &ngel 6ocsin opened an account at Bank of Philippine Islands !ith an initial deposit of P1$000$000.00. En 2arch 1$ '000$ she opened an additional P1$000$000.00. If the bank pas 1'% interest compounded compounded monthl$ monthl$ ho! much !ill be in in the account on &pril 1$ '000 '000 •
&. P'$1+0$)-+.)5
•
B. P'$1)0$)-+.)5
•
(. P'$1-0$)-+.)5
•
*. P'$10$)-+.)5
-00. The paper currenc issued b the (entral Bank !hich forms part of the countr’ countr’ss mone suppl. •
&. T;bills
•
B. Bank note
•
(. (heck
•
*. (oupon
-01. :eduction in the le/el of national income and output usuall accompanied b the fall in the general price le/el. •
&. *e/aluation
•
B. *eflation
•
(. Inflation
•
*. *epreciation
-0'. It is a series of eual paments occurring at eual inter/al of ti me. •
&. &nnuit
•
B. *ebt
•
(. &morti,a &morti,ation tion
•
*. *eposit
-0. The place !here buers and sellers come together. •
&. 2arket
•
B. Business
•
(. :ecreation center
•
*. Bu and sell section
-0". & market !hereb there is onl one buer of an item for !hich there are no goods substitute •
&. 2onopson
•
B. Eligopol
•
(. 2onopol
•
*. Eligopson
-05. It is a series of eual paments occurring at eual inter/al of ti me !here the first pament is made after se/eral periods$ after the beginning of the pament. pa ment. •
&. Perpetuit
•
B. Erdinar annuit
•
(. &nnuit due
•
*. *eferred annuit
-0-. The total income euals the total operating cost. •
&. Balanced sheet
•
B. In;place /alue
•
(. (heck and balance
•
*. Break e/en R no gain no loss
-0. ind of obligation !hich has no condition attached. •
&. &naltic
•
B. Pure
•
(. Hratuitous
•
*. Pri/ate
-0+. *irect labor costs incurred in the factor and direct material costs are the costs of all materials that go into production. The sum of these t!o direct costs is kno!n as •
&. H7 and & e#penses
•
B. Eperating and maintenance costs
•
(. Prime cost
•
*. E and 2 costs
-0). &n inde# of short term paing abilit is called •
&. :ecei/able turn;o/er
•
B. Profit margin ratio
•
(. (urrent ratio
•
*. &cid;test ratio
-10. &rtificial &rtificial e#penses that spread the purchase price of an asset or another propert o/er a number of ears. •
&. *epreciation
•
B. 7inking fund
•
(. &mnest
•
*. Bond
-11. 4stimated /alue at the end of the useful life. •
&. 2arket /alue
•
B. Fair /alue
•
(. 7al/age /alue
•
*. Book /alue
-1'. (onsists of the actual counting or determination of the actual uantit of the materials on hand as of a gi/en date. •
&. Phsical in/entor
•
B. 2aterial update
•
(. Te Technological chnological assessment
•
*. 2aterial count
-1. &dditional &dditional information of prospecti/e bidders on contract documents issued prior to bidding date. •
&. *elict
•
B. 4scalator
•
(. Te Technological chnological assessment
•
*. Bid bulletin
-1". & series of uniform accounts o/er an infinite period of time. •
&. *epreciation
•
B. &nnuit
•
(. Perpetuit
•
*. Inflation
-15. 3hat is the present !orth of a P500 annuit starting at the end of the third ear and continuing to the end of the fourth ear$ if the annual interest rate is 10% •
&. P'.1
•
B. P1.1
•
(. P1".1
•
*. P1.1
-1-. Toda$ Toda$ a businessman businessman borro!ed mone to be paid in 10 eual paments for 10 uarters. If the interest rate is 10% compounded uarterl and the uarterl pament is P'$000$ ho! much did he borro! •
&. P1$0".+
•
B. P1$"0".1'
•
(. P1$50".1
•
*. P1$-0"."
-1. 3hat annuit is reuired o/er 1' ears to euate !ith a future amount of P'0$000 &ssume i C -% annuall. •
&. P1$')0."
•
B. P1$1+5.5"
•
(. P1$10."
•
*. P1$'05."
-1+. Find the annual pament to e#tinguish a debt of P10$000 paable for - ears at 1'% interest annuall. •
&. P'$'".-'
•
B. P'$'".'-
•
(. P'$"'.'-
•
*. P'$"'.'-
-1). & manufacturer desires to set aside a certain sum of mone to pro/ide funds to co/er the earl operating e#penses and the cost of replacing e/er ear the des of a stamping machine used in making radio chassis as model changes for a period of 10 ears. Eperating cost per ear C P500.00 (ost of de C P1$'00.00 7al/age /alue of de C P-00.00 The mone !ill be deposited in a sa/ings account !hich earns -% interest. *etermine the sum of mone that must be pro/ided$ including the cost of the initial de. •
&. P+$-'-.0'
•
B. P+$--'.0'
•
(. P+$''-.0'
•
*. P+$---.''
-'0. & factor operator bought a diesel generator set for P10$000.00 and agreed to pa the dealer uniform sum at the end of each ear for 5 ears at +% interest compounded annuall$ that the final pament !ill cancel the debt for principal and interest. 3hat is the annual pament •
&. P'$500.5
•
B. P'$5""."5
•
(. P'$5"0.5-
•
*. P'$50".5
-'1. & man paid 10% do!npament of P'00$000 for a house and lot and agreed to pa the )0% balance on monthl installment for -0 months at an interest rate of 15% compounded monthl. monthl. (ompute the amount of the monthl pament. •
&. P"'$+'1.+-
•
B. P"'$1'+.-
•
(. P"'$'1+.5
•
*. P"'$+1'.-+
-''. 3hat is the present !orth of a ear annuit paing P$000.00 at the end of each ear$ !ith interest at +% compounded annuall •
&. P$-5".0"
•
B. P$1.')
•
(. P$"'0.+)
•
*. P$5)0.1'
-'. 3hat is the accumulated amount of fi/e;ear annuit paing P-$000 at the end of each ear$ !ith interest at 15% compounded annuall •
&. P"0$51).'1
•
B. P"0$-+1.')
•
(. P"0$"5".')
•
*. P"0$').10
-'". & debt debt of P10$000 !ith 10% interest compounded semi;annuall is to be amorti,ed a morti,ed b semi;annual pament o/er the ne#t 5 ears. ears. The first due in - months. months. *etermine the semi;annual semi;annual pament. •
&. P1$'".0)
•
B. P1$'55.)0
•
(. P1$'5.-+
•
*. P1$')5.05
-'5. & man borro!ed P00$000 from a lending institution !hich !ill be paid after 10 ears at an interest rate of 1'% compounded annuall. If mone is !orth +% per annum$ ho! much should he deposit to a bank monthl in order order to discharge his his debt 10 rs. hence •
&. P5$1".'
•
B. P5$1-'.+)
•
(. P5$1)0.1'
•
*. P5$1)".'
-'-. & man loans P1+$"00 from a bank !ith interest at 5% compounded annuall. e agrees to pa his obligations b paing + eual annual paments$ the first being due at the end of 10 ears. Find the annual paments. •
&. P"$-00.10
•
B. P"$"+)."
•
(. P"$'-.)1
•
*. P"$-.'0
-'. 2one borro!ed toda is to be paid in - eual paments at the end of - uarters. If the interest is 1'% compounded uarterl$ ho! much !as initiall borro!ed if uarterl pament is P'$000.00 •
&. P10$+".+
•
B. P10$'+.1'
•
(. P10$"50.00
•
*. P10$-'.)0
-'+. & person bus a piece of lot for P100$000 do!npament and 10 deferred semi;annual paments of P+$000 each$ starting three ears from no!. 3hat is the present /alue of the in/estment if the rate of interest is 1'% compounded semi;annuall •
&. P1"'$))).0+
•
B. P1"$10".+)
•
(. P1"'$1+).-
•
*. P1"$))).0+
-'). o! much must ou in/est toda in order to !ithdra! P'$000 annuall for 10 ears if the interest rate is )% •
&. P1'$+5.'
•
B. P1'$))'.''
•
(. P1'$5-'.0)
•
*. P1'$00".5)
-0. o! much must be deposited at -% each ear beginning on 9anuar 1$ ear 1$ in order to accumulate P5$000 on the date of the last deposit$ 9anuar 1$ ear - •
&. P'+.))
•
B. P"'.0)
•
(. P1-.+1
•
*. P0'.00
-1. & piece of machiner can be bought for P10$000 cash or for P'$000 do!n and paments of P50 per ear for 15 ears. 3hat is the annual interest rate for the time paments pa ments •
&. ".-1%
•
B. ".1%
•
(. "."1%
•
*. ".51%
-'. & compan issued 50 bonds of P1$000.00 face /alue each$ redeemable at par at the end of 15 ears to accumulate the funds reuired for redemption. The firm established a sinking fund consisting of annual deposits$ the interest rate of the fund being "%. 3hat !as the principal in the fund at the end of the 1'th ear •
&. P+$1'0.00
•
B. P$5'0."
•
(. P$'50."
•
*. P$00'.00
-. & house and lot can be acuired b b a do!npament of P500$000 and a earl pament of P100$000 at the end of each ear for a period of 10 ears$ starting at the end of 5 ears from the date of purchase. If mone is !orth 1"% compounded annuall$ !hat !hat is the cash price of the propert •
&. P+0-$+)).
•
B. P+0$100.1'
•
(. P+0$+.1'
•
*. P+0+$+5.)'
-". & parent on the da the child is born !ishes to determine !hat lump sum !ould ha/e to be paid into an account bearing interest at 5% compounded annuall$ in order to !ithdra! P'0$000 each on the child’s 1+th$ 1)th$ '0th and '1st birthdas. o! much much is the lump sum amount •
&. P0$11).
•
B. P0$)"1.
•
(. P0$1").
•
*. P0$"1).
-5. &n instructor instructor plans to retire in e#actl one ear and !ant an account that !ill pa him P'5$000 a ear for the ne#t 15 ears. &ssuming &ssuming a -% annual effecti/e interest rate$ !hat is the amount he !ould need to deposit no! @The fund !ill be depleted after 15 earsA. •
&. P'"'$+-0.''
•
B. P'"'$-+0.''
•
(. P'"'$-0+.''
•
*. P'"'$+0-.''
--. & manufacturing firm !ishes to gi/e each +0 emploees a holida bonus. o! much is needed to in/est monthl for a ear at 1'% nominal interest rate compounded monthl$ monthl$ so that each emploee !ill recei/e a P'$000 bonus •
&. P1'$-15.+0
•
B. P1'$51-.+0
•
(. P1'$-11.+0
•
*. P1'$510.+0
-. & man purchased on monthl installment a P100$000 !orth of land. The interest rate is 1'% nominal and paable in '0 ears. 3hat is the monthl amorti,ation •
&. P1$101.0+
•
B. P1$'0'.0+
•
(. P1$0.0+
•
*. P1$"0".0+
-+. & oung engineer borro!ed P10$000 at 1'% interest and paid P'$000 per annum for the last " ears. 3hat does he ha/e to pa at the end of the fifth ear in order to pa off his loan •
&. P-$))).)
•
B. P-$')'.)
•
(. P-$'''.)
•
*. P-$)''.)
-). &n in/estment in/estment of P50$000 is made toda and is eui/alent to paments of P'00$000 each ear for ears. 3hat is the annual rate of return on in/estment for the pro8ect •
&. '.%
•
B. .+%
•
(. .'%
•
*. .-%
-"0. 2aintenance cost of an euipment is P'00$000 for ' ears$ P"0$000 at the end of " ears and P+0$000 at the end of + ears. (ompute the semi;annual amount that !ill be set aside for this euipment. 2one !orth 10% compounded annuall. •
&. P$"'5.'
•
B. P$').-
•
(. P$'"5.+)
•
*. P$1+.+)
-"1. 2r. (ru, plans to deposit for the education of his 5 ears old son$ P500 at the end of each month for 10 ears at 1'% annual interest compounded monthl. The amount that !ill be a/ailable in t!o ears is •
&. P1$100.-0
•
B. P1$5+).50
•
(. P1$)+'.+0
•
*. P1$"+-.0
-"'. & small machine has an initial cost of P'0$000$ a sal/age /alue of P'$000 and a life of 10 ears. If our cost of operation per ear is P$500 and our re/enues per ear is P)$000$ !hat is the appro#imate rate of return @:E:A on the in/estment •
&. '".'%
•
B. '".+%
•
(. '5.1%
•
*. '5."%
-". &n emploee is about to recei/e the sum of P00.00 at the end of each ear for 5 ears. Ene ear prior to the receipt of the the first sum$ he decides to discount discount all 5 sum. If the interest interest rate is -%$ !hat proceeds !ill he obtain obtain •
&. P1$')+.00
•
B. P1$'1.0)
•
(. P1$''1.-'
•
*. P1$'-.1
-"". The president of a gro!ing engineering firm !ishes to gi/e each of 50 emploees a holida bonus. o! much is needed to in/est monthl for a ear at 1'% nominal rate compounded monthl$ monthl$ so that each emploee !ill recei/e a P1$000.00 bonus •
&. P$)"'.""
•
B. P$'1.''
•
(. P$-00.1'
•
*. P$0+0.'
-"5. 2r. Padilla plans a deposit of P500 at the end of each month for 10 ears at 1'% annual interest$ compounded monthl. monthl. 3hat !ill be the amount that !ill be a/ailable in ' ears •
&. P1$)"1.""
•
B. P1$''.''
•
(. P1$"+-.
•
*. P1$0+).'
-"-. 2r. :amire, borro!ed P15$000 t!o ears ago. The terms of the loan are 10% interest for 10 ears !ith uniform paments. e 8ust made his second annual pament. pa ment. o! much principal does he still o!e •
&. P1$+"1."
•
B. P1$"'.''
•
(. P1$'+-.-
•
*. P1$0'.5'
-". & man inherited a regular endo!ment of P100$000 e/er end of months for 10 ears. o!e/er$ he ma choose to get a single lump sum pament at the end of " ears. o! much is this lump sum of the cost of mone is 1"% compounded uarterl •
&. P$0'$)).
•
B. P$-0$5-'.1-
•
(. P$))$+01.'
•
*. P$--$5)0.1'
-"+. & man paid 10% do!n pament of P'00$000 for a house and lot and agreed to pa the balance on monthl installments for < = ears at an interest rate of 15% compounded monthl. If the monthl installment !as P"'$+'1.+$ find the /alue of •
&.
•
B. "
•
(. 5
•
*. -
-"). ?ou ?ou need P"$000 per ear for four ears to go to college. ?our ?our father in/ested P5$000 in % account for our education !hen ou !ere born. If ou !ithdra! P"$000 at the end of our 1 th$ 1+th$ 1)th and '0th birthda$ ho! much !ill be left in the account at the end of the '1 st ear •
&. P1$---.)+
•
B. P1$-)).+-
•
(. P1$-'.+)
•
*. P1$-"5.-
-50. 2r. &ala borro!s P100$000 at 10% effecti/e annual interest. e must pa back the loan o/er 0 ears !ith uniform monthl paments pa ments due on the first da of each month. 3hat does 2r. & &ala pa each month •
&. P+).1)
•
B. P+"'.+
•
(. P+0.1-
•
*. P+1".5
-51. & machine is under consideration for in/estment. The cost of the machine is P'5$000.00. 4ach ear it operates$ the machine !ill generate a sa/ings of P15$000.00. Hi/en the effecti/e annual interest rate of 1+%$ !hat is the discounted paback period$ in ears$ on the in/estment of the machine •
&. .15
•
B. 1.5
•
(. '.15
•
*. '.5
-5'. & machine costs P'0$000.00 toda and has an estimated scrap /alue of P'$000.00 after + ears. Inflation is '% per ear. The effecti/e annual interest rate earned on mone in/ested is +%. o! much mone needs to be set aside each ear to replace the machine !ith an identical model + ears from no! •
&. P$"5.
•
B. P$+).'
•
(. P$"+).11
•
*. P$5.))
-5. 4ngr. 7antos borro!s P100$000.00 at 10% effecti/e annual interest. e must pa back the loan o/er 0 ears !ith uniform monthl pament due on the first da of each month. 3hat does 4ngr. 7antos pa each month •
&. P++.+-
•
B. P+").1'
•
(. P+50.1'
•
*. P+"0.'1
-5". Instead of paing P100$000.00 in annual rent for office space at the beginning of each ear for the ne#t 10 ears$ an engineering firm has decided to take out a 10;ear P1$000$000.00 loan for a ne! building at -% interest. interest. The firm !ill !ill in/est P100$000.00 of of the rent sa/ed and earn 1+% annual annual interest on that amount. 3hat !ill be the difference bet!een the firm’s annual re/enue and e#penses •
&. P10$'00.1'
•
B. P10$'05.1
•
(. P10$'10.-
•
*. P10$'15.5-
-55. & ser/ice car !hose cash price !as P5"0$000 !as bought !ith a do!npament of P1-'$000 and monthl installment of P10$+".') for 5 ears. 3hat !as the rate of interest if compounded 5monthl •
&. '0%
•
B. '"%
•
(. '1%
•
*. '%
-5-. 3hat uniform annual amount should be deposited each ear in order to accumulate P100$000.00 at the end of the 5 th annual deposit if mone earns 10% interest
•
&. P1-$00'.1+
•
B. P15$+)0.1'
•
(. P1-$).5
•
*. P15$)+0.1'
-5. In fi/e ears$ P1+$000 !ill be needed to pa for a building reno/ation. In order to generate this sum$ a sinking fund consisting of three annual paments is established no!. no!. For ta# purposes$ no further pament !ill be made after three three ears. 3hat paments are necessar if mone !orth 15% 15% per annum •
&. P$)1).5'
•
B. P$+1.'
•
(. P$+1.'
•
*. P$1)).5'
-5+. Find the present /alue in pesos$ of a perpetuit of P15$000 paable semi;annuall if mone is !orth +% compounded uarterl. •
&. P1$1).5'
•
B. P1$'+.1
•
(. P1$-0."
•
*. P1$+0'.-
-5). If P500.00 is in/ested at the end of each ear for - ears$ at an annual interest rate of %$ !hat is the total peso amount a/ailable upon the deposit of the si#th pament •
&. P$-1.1
•
B. P$1'.+
•
(. P$"50.1'
•
*. P$5-.-"
--0. o! man ears must ou in/est toda in order to !ithdra! P1$000.00 per ear for 10 ears if the interest rate is 1'% •
&. P5$"-.1'
•
B. P5$5-0.''
•
(. P5$-50.''
•
*. P5$+0.1'
--1. & man paid a 10% do!n pament pa ment of P'00$000 for a house and lot and agreed to pa the balance on monthl installments for 5 ears at an interest rate of 15% compounded monthl. monthl. 3hat !as the monthl installment in pesos •
&. P"'$+'1.+
•
B. P"'$)+0.00
•
(. P"$10'.'
•
*. P"$1+).0
--'. & man inherited a regular endo!ment of P100$000.00 e/er end of months for ears. o!e/er$ he ma choose to get a single lump sum of P$0'$)).+0 at the end of " ears. If the rate of interest !as 1"% compounded uarterl$ !hat is the /alue of
•
&. 10
•
B. 11
•
(. 1'
•
*. 1
--. If ou obtain a loan of P12 at the rate of 1'% compounded annuall in order to build a house$ ho! much must ou pa monthl to amorti,e the loan !ithin a period of 10 ears •
&. P1$))".1
•
B. P1"$+01.1'
•
(. P1$'0.15
•
*. P1"$0+.+
--". :e8 &/erion &/erion borro!ed P50$000.00 from 7ocial 7ecurit 7stem$ in the form of calamit loan$ !ith interest at +% compounded uarterl paable in eual uarterl installments for 10 ears. Find the uarterl paments. •
&. P1$5)0.+
•
B. P1.-0).'
•
(. P1$+.1
•
*. P1$+'.)
--5. For ha/ing been loal$ trust!orth and efficient$ the compan has offered a super/isor a earl gratuit pa of P'0$000.00 for 10 ears !ith the first pament to be made one ear after his retirement. The super/isor$ instead$ instead$ reuested that he be paid a lump sum on the date of his retirement less interact that the compan !ould ha/e earned if the gratuit is to be paid on the earl basis. If interest is 15%$ !hat is the eui/alentl lump sum that he could get •
&. P100$5.
•
B. P100$5.
•
(. P100$5.
•
*. P100$5.
---. In anticipation of a much bigger /olume of business after 10 ears$ a fabrication compan purchased an ad8acent lot for its e#pansion program !here it hopes to put up a building pro8ected to cost P"$000$000.00 !hen it !ill be constructed 10 ears after$ To pro/ide the reuired capital e#pense$ it plans to put up a sinking fund for the purpose. o! much must the compan deposit each ear if interest to be earned is computed at 15% •
&. P1)"$0+).1
•
B. P1)5$+0.1'
•
(. P1)-$+01.5-
•
*. P1)$00+.'5
--. & man purchased a car !ith a cash price of P50$000. e !as able to negotiate !ith the seller to allo! him to pa onl a do!npament of '0% and the balance paable in eual "+ end of the month installment at 1.5% interest per month. Ence the da he paid the '0 th installment$ he decided to pa monthl pament. o! much is his monthl pament •
&. P+$)').')
•
B. P+$''5.00
•
(. P+$55'.00
•
*. P+$00+.'0
--+. & man purchased a car !ith a cash price of P50$000. e !as able to negotiate !ith the seller to allo! him to pa onl a do!npament of '0% and the balance paable in eual "+ end of the month installment at 1.5% interest per month. Ence the da he paid the '0 th installment$ he decided to pa monthl pament. 3hat is the remaining balance that he paid •
&. P1+-$)'.'"
•
B. P1++$''5.00
•
(. P1+$01.'-
•
*. P1+5$)00.'0
--). & compan purchased for a cash price of P500$000.00 a machine !hich is estimated to ha/e a sal/age /alue of P50$000.00 at the end of its 10 ears economic life. o! much earl deposit must the compan deposit in a sinking fund that !ill pa 1+% interest$ compounded earl$ to accumulate the needed fund to purchase the ne! machine at the end of the 10 th ear economic life of the machine it purchased if a ne! machine !ill !ill cost 5% more b that that time •
&. P"$+5).+
•
B. P5$+)0.1'
•
(. P5$0".5+
•
*. P"$0".+5
-0. & car dealer ad/ertises the sale of a car model for a cash price of P'+0$000. If purchased on installment$ the regular do!npament is 15% and balance paable in 1+ eual monthl installments at an interest rate of 1.5% per month. o! much !ill be reuired monthl paments •
&. P15$1+5.+
•
B. P15$'+).1'
•
(. P15$+.)0
•
*. P15$-'.11
-1. & machiner machiner supplier is offering a certain machiner on a 10% do!npament and the balance paable in eual end of the the ear paments !ithout !ithout interest for ' ears. Gnder Gnder this arrangement$ the price is pegged to be P'50$000. o!e/er$ for cash purchase$ the machine !ould onl cost P1)5$000. 3hat is the eui/alent interest rate that is being charged on the ';ear pa ment plan if interest is compounded uarterl •
&. 1+."%
•
B. 1).'1%
•
(. 1)."%
•
*. 1)."%
-'. & compan has appro/ed a car plan for f or its si# senior officers in !hich the compan !ill shoulder '5% of the cost and the difference paable b each officer to a financing compan in "+ eual end of the month installments at an interest rate of 1.5% per month. If the cost of each car is P50$000$ determine the amount each officer has to pa pa the financing compan per month •
&. P$5'.)0
•
B. P$-1).''
•
(. P$1)0.00
•
*. P$10.)"
-. If P10$000 is deposited each ear for ) ears$ ho! much annuit can a person get annuall from the bank e/er ear for + ears starting starting 1 ear after the )th deposit is made. (ost of mone is 1"%. •
&. P"$"-.'1
•
B. P"$5-.+1
•
(. P"$-5.1+
•
*. P"$+-.
-". &n emploee is earning P1'$000.00 a month and he can afford to purchase a car !hich !ill reuire a do!npament of P10$000.00 and a monthl amorti,ation of not more than 0% of his monthl salar. 3hat should be the ma#imum cash /alue of a car he can purchase if the seller !ill agree to a do!npament of P10$000.00 and the balance paable in four ears at 1+% per ear paable pa able on monthl basis The first pament !ill be due at the the end of the first month •
&. P15$'-.'1
•
B. P15$50."'
•
(. P15$-05."+
•
*. P15$+0.0
-5. & ne! compan de/eloped a program in !hich the emploees e mploees !ill be allo!ed to purchase shares of stocks of the compan at the end of its fifth ear of operation$ !hen the compan’s thought thought to ha/e gained stabilit alread. alread. The stock has a par /alue of P100.00 per share. Belie/ing in the good potential of the compan$ an emploee decided to sa/e in a bank the amount of P+$000.00 at the end of e/er ear !hich !ill earn for him )% interest$ compounded annuall. annuall. o! much shares of stocks !ill he be able to purchase at the end of the fifth ear of his earl deposits •
&. "-
•
B. "+
•
(. "+0
•
*. "+'
--. 2r. 9uan dela (ru, borro!s P100$000 at 10% compounded annuall$ agreeing to repa the loan in t!ent eual annual paments. o! much of the original principal is still unpaid after he has made the tenth pament •
&. P-)$+)0."'
•
B. P'$000.+0
•
(. P'$1.)0
•
*. P'$11.""
-. & debt of P1'$000 !ith an interest of '0% compounded uarterl is to be amorti,ed b eual semi; annual paments o/er the ne#t three ears$ the first due in - months. o! much is the semi;annual paments •
&. P'$5.50
•
B. P'$--'.+)
•
(. P'$5)0.0"
•
*. P'$"0).+
-+. & fund donated b a benefactor to PI(4 to pro/ide annual scholarships to deser/ing (4 students. The fund !ill grant P5$000 for each of the first fi/e ears$ P+$000 for the ne#t fi/e ears and P10$000 each ear thereafter. The scholarship !ill start one ear after the fund is established. If the fund earns +% interest$ !hat is the amount of the donation •
&. P))$")0.00
•
B. P))$50.5
•
(. P))$-01.1
•
*. P))$'.5"
-). If a lo! cost house and lot !orth P+$000 !ere offered at 10% do!npament and P500 per month for '5 ears$ !hat is the effecti/e monthl interest rate on the diminishing balance •
&. 0.")'%
•
B. ".)'%
•
(. 0.0")'%
•
*. ").'%
-+0. The a/erage annual cost of damages caused b b floods at *ona :osario Dillage Dillage located along Butuanon ri/er is estimated at P00$000. To build a gra/it dam to protect the area from the floods$ !ould cost P'$500$000 and !ould in/ol/e an annual maintenance cost of P'0$000. 3ith interest at +% compounded annuall$ annuall$ ho! man ears !ill it take for the dam to pa for itself •
&. ".0 ears
•
B. ".5 ears
•
(. 5.0 ears
•
*. 5.5 ears
-+1. & businessman borro!ed P10$000.00 from a bank at 1'% interest$ and paid P'$000.00 per annum for the first " ears. 3hat does he pa at the end of the fifth ear in order to pa;off the loan •
&. P-$+1'.5"
•
B. P-$+'.1
•
(. P-$)1.'
•
*. P-$--0.)0
-+'. 4ngr. :odel arito agreed to pa the loan he is borro!ing from a de/elopment bank in si# annual end;of;the;ear paments of P1$".0. Interest is 1+% per annum compounded annuall and is included in the earl amount he !ill be paing the bank. o! much mone 4ngr. arito is borro!ing from the bank •
&. P'50$000
•
B. P'-0$000
•
(. P'0$000
•
*. P'+0$000
-+. :ona !ishes to purchase a ');inch flat;screened colored TD at Bodega &ppliance (enter an amount of P'0$000.00. 7he made a do!npament of P5$000.00 and the balance paable in '" eual monthl
installments. If financing charge is 1'% for each ear computed on the total balance to be paid b b installment and interest rate 1'%$ ho! much !ould :ona pa e/er month for the colored TD 3hat !ill be the actual cost of the mone mone •
&. -.1%
•
B. -.'1%
•
(. 5.+)%
•
*. 5.'%
-+". 4ngr. Bacolongan of 2ain 4ngineering decided to purchase a machine !hich is to be used for their refrigeration and airconditioning airconditioning !orks at an amount of P1$'00$000. The useful life of the machine is estimated to be 5 ears !ith a sal/age /alue of P+0$000 as based on current prices. The a/erage annual rate of inflation during the ne#t 5 ears !ill be %. The machine !ill be replaced !ith a duplicate and the firm !ill accumulate the necessar capital b making eual end;of;ear deposits in a reser/e fund that earns -% per annum. *etermine the annual deposit. •
&. P'$1+).5-
•
B. P'+$--".5"
•
(. P')$1+0.00
•
*. P'+0$-.1'
-+5. 4ngr. Bacolongan of 2ain 4ngineering decided to purchase a machine !hich is to be used for their refrigeration and air;conditioning air;conditioning !orks at an amount of P1$'00$000. The useful life of the machine is estimated to be 5 ears !ith a sal/age /alue of P+0$000 as based on current prices. The a/erage annual rate of inflation during the ne#t 5 ears !ill be %. The machine !ill be replaced !ith a duplicate and the firm !ill accumulate the necessar capital b making eual end;of;ear deposits in a reser/e fund. If mone is !orth -% per annum$ determine the annual deposit. •
&. P-$+)0.1'
•
B. P--$0-'.
•
(. P-5$0+)."
•
*. P-"$+)0."
-+-. Because of the peso de/aluation$ a car costing P150$000 is to be purchased through a finance compan instead of paing cash. If the buer is reuired to pa P"0$000 as do!npament and P"$000 each month for " ears$ !hat is the effecti/e interest rate on the diminishing balance •
&. 5.'+%
•
B. 5.+'%
•
(. ".+)%
•
*. ".')%
-+. 4ngr. 4d!in &storga &storga plans to purchase a ne! office building costing P1$000$000. e can raise the building b issuing issuing 10%$ '0;ear bond that !ould pa P150$000 interest per ear and repa the the face amount at maturit. Instead of buing the ne! building$ he can least it for P1"0$000 per ear$ first pament being due one ear ear from no!. The building has has an e#pected life of '0 ears. ears. Ignoring effects on income ta#$ !hat is the difference bet!een buing the building and leasing the building •
&. P'$).'
•
B. P'$00.1'
•
(. P'"$00."
•
*. P'"$5-0.1'
-++. Triple Triple 9 (onstruction Firm had put up for sale of some of their hea/ euipments for construction !orks. There !ere t!o interested buers submitting their respecti/e bids for the hea/ euipments. The bids are as follo!s u&er offers P10$000$000 paable '0% do!npament$ the balance paable P1$000$000 annuall for + ears. u&er offers P)$000$000 paable P'$000$000 do!n pament$ the balance paable P500$000 semi; annuall for ears.
o! much is the difference bet!een the t!o bids if mone is !orth 10% effecti/e •
&. P"-$5'0.05
•
B. P"-$)+0.1'
•
(. P"$01)."5
•
*. P"$.')
-+). Frod :e/ie! U Train Training ing (enter Inc. is e#panding its school facilities starting '001. The program reuires the follo!ing estimated e#penditures P1$000$000 at the end of '001 P1$'00$000 at the end of '00' P1$500$000 at the end of '00 To accumulate accumulate the reuired funds$ it establish a sinking fund constituting of 15 uniform annual deposits$ the first deposit has been made at the end of 1))'. The interest rate of the fund is '% per annum. (alculate the annual deposit. •
&. P'1$5'0.05
•
B. P'1-$)+0.1'
•
(. P'1$-).01
•
*. P'1-$.')
-)0. Frod :e/ie! U Train Training ing (enter Inc. is e#panding its school facilities starting '001. The program reuires the follo!ing estimated e#penditures P1$000$000 at the end of '001 P1$'00$000 at the end of '00' P1$500$000 at the end of '00 To accumulate accumulate the reuired funds$ it establish a sinking fund constituting of 15 uniform annual deposits$ the first deposit has been made at the end of 1))'. The interest rate of the fund is '% per annum. (alculate the balance in the fund on 9anuar 1$ '00'. •
&. P'$1+5$)0'.11
•
B. P'$1)5$-00.0
•
(. P'$1-5$)).5"
•
*. P'$15$+0.00
-)1. Padilla Pa!nshop sells 8e!elries on either of the follo!ing arrangements
(ash Price *iscount of 10% of the marked price Installment *o!npament *o!npament of '0% of the marked price and the balance paable in eual annual installments for the ne#t " ears. If ou are buing bu ing a necklace !ith a marked price of P5$000$ ho! much is the difference bet!een buing in cash and buing in installment &ssume &ssume that mone is !orth 5%. •
&. P"0.-
•
B. P"1.)0
•
(. P".5"
•
*. P"5.)5
-)'. 6im Bon Fing ? ermanos Inc has offered for sale its t!o;store building in the commercial district of (ebu (it. The building contains contains t!o stores on the ground floor and a number of offices on the second floor. & prospecti/e prospecti/e buer estimates that if he bus bu s this propert$ propert$ he !ill hold it for about 10 ears. e estimates that the a/erage receipts from the rental during this period to be P50$000.00 and the a/erage e#penses for all purpose in connection !ith its o!nership and operation @maintenance and repairs$ 8anitorial ser/ices$ insurance$ etc.A to be P15$000.00. e belie/es that the propert can be sold for a net of P'$000$000 at the end of the 10 th ear. If the rate of return on this tpe of in/estment is %$ determine the cash price of this propert for the buer to reco/er his in/estment !ith a % return before income ta#es. •
&. P'$5'-$-+.-1
•
B. P'$")0$15-."
•
(. P'$)0$1+).00
•
*. P'$'0$1'0.5-
-). Bicol ard!are Inc is considering t!o alternati/e strategies for a ne! po!er tool. &ccording &ccording to 9un :amos !ho is introducing the po!er tool$ the ne! product !ill reuire an outla of P0$000 !ith a lo! price strateg. strateg. The product !ill !ill generate cash proceeds proceeds of P'0$000 per ear and !ill !ill ha/e a life to t!o ears. 3ith a high price strateg$ strateg$ the product !ill generate cash proceeds of P-$000 but !ill ha/e a life of onl one ear. The cost of mone for the compan is 10%. *etermine the net present /alue of the lo! price strateg. strateg. •
&. P"$+).1'
•
B. P"$")0.10
•
(. P"$51+.+)
•
*. P"$10."
-)". Bicol ard!are Inc is considering t!o alternati/e strategies for a ne! po!er tool. &ccording &ccording to 9un :amos !ho is introducing the po!er tool$ the ne! product !ill reuire an outla of P0$000 !ith a lo! price strateg. strateg. The product !ill !ill generate cash proceeds proceeds of P'0$000 per ear and !ill !ill ha/e a life to t!o ears. 3ith a high price strateg$ strateg$ the product !ill generate cash proceeds of P-$000 but !ill ha/e a life of onl one ear. The cost of mone for the compan is 10%. *etermine the net present /alue of the high price strateg. strateg. •
&. P'$'.'
•
B. P$."
•
(. P$".'0
•
*. P$5.+)
-)5. 9ohn 7mith plans to purchase a ne! house costing P1$000$000. e can raise the building b issuing a 10%$ '0 ear old bond that !ould pa P150$000 interest per ear and repa the face amount at maturit. Instead of buing the ne! house$ 9an 2ichael has an option of leasing it for P1"0$000 per ear$ the first pament due one ear ear from no!. The The building has an e#pected life of '0 ears. If interest interest charge for leasing is 1'%$ !hich of the follo!ing is true •
&. 6ease is more economical than borro! and bu.
•
B. 6ease has same result !ith borro! and bu.
•
(. Borro! and bu is half the /alue than lease.
•
*. Borro! and bu is economical b almost a hundred thousand than lease.
-)-. 4ngr. 4d!ard Vuela is considering establishing his o!n business. &n in/estment of P100$000 !ill be reuired !hich must be reco/ered in 15 ears. It is estimated that sales !ill be P150$000 per ear and that annual operating e#penses !ill be as follo!s 2aterials
P"0$000
6abor
P0$000
E/erhead
P10$000 L 10% of sales
7elling e#penses
P5$000
4ngr. Vuela !ill gi/e up his regular 8ob paing P15$000 per ear and de/ote full time to the operation of the business. This !ill result in decreasing labor cost b P10$000 per ear$ material cost b P$000 per ear and o/erhead cost b P+$000 per ear. If he e#pects to earn at least '0% of his capital$ is in/esting in this business a sound idea •
&. ?es$ it is a sound idea
•
B. o$ it is not a sound idea
•
(. either es nor no because it simpl breake/en
•
*. It depends on the current demand of the market.
-). & house!ife house!ife bought a brand ne! !ashing machine costing P1'$000 if paid in cash. o!e/er$ she can purchase it on installment installment basis to be paid !ithin 5 ears. If mone is !orth !orth +% compounded annuall annuall$$ !hat is her earl amorti,ation if all pa ments are to be made at the beginning of each ear •
&. P'$-1.-5
•
B. P'$+'.)
•
(. P'$+)0.1
•
*. P'$5+).)0
-)+. & (i/il (i/il 4ngineering student borro!ed P'$000.00 to meet college e#penses during his senior ear. e promised to repa the loan loan !ith interest at ".5% ".5% in 10 eual semi;annual semi;annual installments$ the first first pament to be made ears after the date of the the loan. o! much !ill this this pament be •
&. P'5'.1'
•
B. P'-1.+)
•
(. P'.)0
•
*. P'+0.)"
-)). & father !ishes to pro/ide P"0$000 for his son on his son’s '1 st birthda. o! much should he deposit e/er - months in a sa/ings account !hich pas % compounded semi;annuall$ semi;annuall$ if the first deposit !as made !hen the son !as W ears old •
&. P+').-+
•
B. P+15.+0
•
(. P+0.1'
•
*. P+"-.10
00. & group of Filipino 2echanical 4ngineers formed a corporation and the opportunit to in/est P+$000$000 in either of the t!o situations. The first is to e#pand a domestic operation. It is estimated that this in/estment !ould return a net ear end cash flo! of P'$000$000 each ear for 10 ears and at the end of that time$ the phsical assets$ !hich !ould no longer be needed$ could be sold at P5$000$000. The alternati/e opportunit !ould in/ol/e building and operating a plant in a foreign countr. This operation !ould in/ol/e no net cash flo! during the first ears$ but it is belie/ed that$ beginning !ith the end of the fourth ear$ an annual flo! of P"$000$000 !ould be recei/ed$ running through the end of the 10 th ear. &fter that time$ it is belie/ed that the operation and facilities might be e#propriated$ !ith little$ if an$ compensation$ being paid. 3hich of the follo!ing is true •
&. Foreign operation ields bigger rate of return.
•
B. *omestic and foreign operations ield the same rate of return.
•
(. *omestic operation has double the rate of return of the foreign operation.
•
*. Foreign operation ields appro#imatel % less rate of return than domestic operation.
01. & house costs P"00$000 cash. & purchaser !ill pa P)0$000 cash$ P-0$000 at the end of ' ears and a seuence of - eual annual paments starting !ith one at the end of " ears$ to discharge all his liabilities as to the principal and interest at % compounded annuall. annuall. Find the annual pament !hich must be made for - ears. •
&. P--$'0".1"
•
B. P-5$01.-
•
(. P-$)01."
•
*. P-+$)00.1'
0'. T!o T!o ears ago$ the rental for the use of euipment and facilities as paid 5 ears in ad/ance$ !ith option to rene! the rent for another ears b pament of P15$000 annuall at the start of each ear for the rene!al period. o!$ the lessor asks the lessee if it could be possible to prepa the rental that !ill be paid annuall in the rene!ed 5 ears period. If the lessee !ill consider the reuest$ !hat !ould be the fair prepament to be made to the the lessor if interest is no! no! figured at + % •
&. P51$+".)0
•
B. P51$"-.5+
•
(. P5'$00'."5
•
*. P5'$"0.'0
0. 7 Builders plans to construct an additional building at the end of 10 ears for an estimated cost of P5$000$000.00. To To accumulate the amount$ it !ill ha/e eual ear end deposits in a fund earning 1%.
o!e/er$ at the end of the 5 th ear$ it !as decided to ha/e a larger building that originall originall intended to an estimated cost of P+$000$000.00. 3hat should be the annual deposit for the last 5 ears •
&. P"$)1."+
•
B. P"'$+)0.10
•
(. P+$)00."5
•
*. P"0$010.+-
0". The uantit of a certain commodit that is offered for sale at a certain price at a gi/en place and time. •
&. *emand
•
B. 7uppl
•
(. 7tocks
•
*. Hoods
05. 3ork;in process is classified as •
&. &n asset
•
B. & liabilit
•
(. &n e#penses
•
*. &n o!ner’s euit
0-. 3hat is the highest position in the corporation •
&. President
•
B. Board of *irectors
•
(. (hairman of the Board
•
*. 7tockholders
0. Tpe Tpe of o!nership in business !here indi/iduals e#ercise and en8o the right in their o!n interest. •
&. 4uitable
•
B. Public
•
(. Pri/ate
•
*. Pure
0+. *ecrease in the /alue of a phsical propert due to the passage of time. •
&. Inflation
•
B. *epletion
•
(. :ecession
•
*. *epreciation
0). &n association association of t!o or more indi/iduals for the purpose of operating a business as co;o!ners for profit. •
&. 7ole proprietorship
•
B. (ompan
•
(. Partnership
•
*. (orporation
10. 3e ma ma classif an interest rate$ !hich specifies the actual rate of interest on the principal for one ear as •
&. ominal rate
•
B. :ate of return
•
(. 4#act interest rate
•
*. 4ffecti/e rate
11. It is defined to be the capacit of a commodit to satisf human !ant. •
&. *iscount
•
B. 6u#ur
•
(. ecessit
•
*. Gtilit
1'. It is the amount a mount !hich a !illing buer !ill pa to a !illing seller for a propert !here each has eual ad/antage and is under no compulsion to bu or sell. •
&. Fair /alue
•
B. 2arket /alue
•
(. Book /alue
•
*. 7al/age /alue
1. This occurs in a situation !here a commodit or ser/ice is supplied b a number of /endors and there is nothing to pre/ent additional /endors entering the market. •
&. Perfect competition
•
B. Eligopol
•
(. 2onopol
•
*. 4lastic demand
1". These are products or ser/ices that are desired b b human and !ill be purchased if mone is a/ailable after the reuired necessities ha/e been obtained. •
&. Gtilities
•
B. ecessities
•
(. 6u#uries
•
*. Products$ goods and ser/ices
15. These are products or ser/ices that are reuired to support human life and acti/ities$ that !ill be purchased in some!hat some!hat the same uantit e/en though though the price /aries considerabl considerabl.. •
&. Gtilities
•
B. ecessities
•
(. 6u#uries
•
*. Products$ goods and ser/ices
1-. & condition condition !here onl fe! indi/iduals produce a certain product and that an action of one !ill lead to almost the same action of the others.
•
&. Eligopol
•
B. 7emi;monopol
•
(. 2onopol
•
*. Perfect competition
1. Hrand total of the assets and operational capabilit of a corporation. •
&. &uthori,ed capital
•
B. In/estment
•
(. 7ubscribed capital
•
*. 2one market
1+. The !orth of the propert euals to the original cost less depreciation. •
&. 7crap /alue
•
B. Face /alue
•
(. 2arket /alue
•
*. Book /alue
1). 2one paid for the use of borro!ed capital. •
&. *iscount
•
B. (redit
•
(. Interest
•
*. Profit
'0. 6iuid assets such as cash$ and other assets that can be con/erted uickl into cash$ such as accounts recei/able and merchandise are called •
&. Total assets
•
B. Fi#ed assets
•
(. (urrent assets
•
*. one of the abo/e
'1. The length of time !hich the propert ma be considered at a profit. •
&. Phsical life
•
B. 4conomic life
•
(. Eperating life
•
*. &ll of the abo/e
''. The pro/ision in the contract that indicates the possible ad8ustment of material cost and labor cost. •
&. 7econdar cause
•
B. 4scalator clause
•
(. (ontingenc clause
•
*. 2ain clause
'. The present !orth of all depreciation o/er the economic life of the item is called •
&. Book /alue
•
B. (apital reco/er
•
(. *epreciation reco/er
•
*. 7inking fund
'". Hross profit$ sales less cost of goods sold$ as a percentage of sales is called •
&. Profit margin
•
B. Hross margin
•
(. et income
•
*. :ate of return
'5. 3orth 3orth of the propert as sho!n in the accounting records of an enterprise. •
&. Fair /alue
•
B. 2arket /alue
•
(. 7al/age /alue
•
*. Book /alue
'-. Those funds that are reuired to make the enterprise or pro8ect a going concern. •
&. Initial in/estment
•
B. (urrent accounts
•
(. 3orking capital
•
*. 7ubscribed capital
'. & market situation situation !here there is onl one seller !ith man buer. •
&. 2onopol
•
B. 2onopson
•
(. Eligopol
•
*. Eligopson
'+. & market situation situation !here there are fe! sellers and fe! buers. bu ers. •
&. Eligopol
•
B. Eligopson
•
(. Bilateral oligopol
•
*. Bilateral oligopson
'). & market situation situation !here there is one seller and one buer. •
&. 2onopol
•
B. 2onopson
•
(. Bilateral monopol
•
*. Bilateral monopson
0. & market situation situation !here there are onl t!o buers !ith man sellers. •
&. *uopol
•
B. Eligopol
•
(. *uopson
•
*. Eligopson
1. The cumulati/e effect of elapsed time on the mone /alue of an e/ent$ based on the earning po!er of eui/alent in/ested funds capital should or !ill learn. •
&. Present !orth factor
•
B. Interest rate
•
(. Time /alue of mone
•
*. ?ield
'. *efined as the future /alue minus the present /alue. •
&. Interest
•
B. :ate of return
•
(. *iscount
•
*. (apital
. The flo! back of profit plus depreciation from a gi/en pro8ect is called •
&. (apital reco/er
•
B. (ash flo!
•
(. 4conomic return
•
*. 4arning /alue
". &n in/estment in/estment consisting of deposits of P1$000$ P1$500 and P'$000 are made at the end of the nd ' ear$ rd ear and "th ear$ respecti/el. respecti/el. If mone is !orth 10%$ !hat is the eui/alent present !orth of the in/estment •
&. P$1').+)
•
B. P$1)."5
•
(. P$'.1'
•
*. P$")0.0)
5. 2iss 2arcial deposited P1$000$ P1$500 and P'$000 at the end of the ' nd ear$ rd ear and "th ear$ respecti/el in a sa/ings account !hich earned 10% per annum. o! much is in the account at the end of the "th ear •
&. P"$++0.00
•
B. P"$+'0.00
•
(. P"$+-0.00
•
*. P"$+"0.00
-. 2iss 7antos deposited P1$000$ P1$500 and P'$000 at the end of the ' nd ear$ rd ear and "th ear$ respecti/el in a sa/ings account !hich earned 10% per annum. 3hat is the eui/alent uniform deposit for the uniform gradient onl •
&. P-0.+1
•
B. P-)0.5+
•
(. P--0.5
•
*. P-+0.1'
. &n amorti,ation amorti,ation of a debt is in a form for m of a gradient series of P5$000 on the first ears$ P"$500 on the second ear$ P"$000 on the third ear and P$500 on the fourth ear. 3hat is the eui/alent present !orth of the debt if interest is 5% •
&. P15$0).'+
•
B. P15$1+."
•
(. P15$+)0.1'
•
*. P15$+).+'
+. &n amorti,ation amorti,ation of a debt is in a form for m of a gradient series of P5$000 on the first ear$ P"$500 on the second ear$ P"$000 on the third ear$ P$500 on the fourth ear. *etermine future amount of the amorti,ation if interest is 5%. •
&. P1+$00.5-
•
B. P1+$')0.1'
•
(. P1+$-'1.+)
•
*. P1+$"").
). &n amorti,ation amorti,ation of a debt is in a form for m of a gradient series of P5$000 on the first ear$ P"$500 on the second ear$ P"$000 on the third ear$ P$500 on the fourth ear. 3hat is the eui/alent uniform periodic pament if interest is 5% 5% •
&. P"$'+0."
•
B. P"$+.1
•
(. P"$'5).-+
•
*. P"$'5.1'
"0. &n B& Basketball Basketball superstar$ plaing for 6os &ngeles 6akers is earning an a/erage annual salar of 5$000$000 for 10 ears. (hicago Bulls ball club !ould like to acuire his ser/ices as a replacement of the retired 2ichael 9ordan$ offered him an initial annual salar of $000$000 but is increasing at the rate of "00$000 annuall. annuall. If he can still pla in the B& for 10 ears and mone is !orth 10%$ !hich one is true •
&. (hicago Bulls’ offer is smaller than that of 6& 6akers’
•
B. (hicago Bulls’ offer is e#actl the same as 6& 6akers’
•
(. (hicago Bulls’ offer is 8ust fe! dollars more per ear than that of 6& 6akers’
•
*. (hicago Bulls’ offer is o/er 150$000 per ear than that of 6& 6akers’
"1. 9ohn Hrisham$ author of the best;selling no/el
Hross receipt
"% of Hross :eceipt
1
10$000$000.00
"00$000.00
'
+$000$000.00
'0$000.00
-$000$000.00
'"0$000.00
"
"$000$000.00
1-0$000.00
5
'$000$000.00
+0$000.00
If mone is !orth 10% and 2r. Hrisham !ill not recei/e an roalt after the fifth ear of e#hibition of the mo/ie$ b ho! much is proposal bigger than proposal •
&. P1$5'$-0
•
B. P1$)0$0)0
•
(. P1$"+$100
•
*. P1$'+)$"50
"'. T!o T!o sisters$ 9oan and 9oceln decided to sa/e mone in funds that earns 1"% compounded annuall but on different !as. 9oan decided to sa/e b making an end;of;ear end;of;ear deposit of P1$000 on the first first ear$ P1$100 on the second ear$ P1$'10 on the third ear and so on increasing the ne#t ear’s deposit b 10% of the deposit in the preceding ear until the end of the 10 th ear. 9oceln decided to sa/e b 8ust making an eual deposit of P1$"00 annuall for 10 ears. 3ho has more sa/ings at the end of 10 ears and b ho! much bigger compared to the other sister •
&. 9oceln$ P-1.1+
•
B. 9oceln$ P-.'
•
(. 9oan$ P-1.1+
•
*. 9oan$ P-.'
". 4ngr. 2aragat$ belie/ing that life begins at "0$ decided to retire and start en8oing life at age "0. e !ishes to ha/e upon his retirement the sum of P5$000$000. En his '1 st birthda$ he deposited a certain amount and increased his deposit b 15% each ear until he !ill be "0. If the mone is deposited in a super sa/ings account !hich earns 15% interest compounded annuall$ ho! much !as his initial deposit •
&. P1$'5.1+
•
B. P1$5--.
•
(. P1$-'.
•
*. P1$")0.'1
"". & ne!l;acuired ne!l;acuired euipment reuires an annual maintenance costs of P10$000. If the annual maintenance cost is increased b '0% each ear e/er ear for 10 ears$ !hat is the estimated present !orth of the maintenance costs if mone is !orth 15% •
&. P105$1'.
•
B. P10-$101.
•
(. P10$")0.1'
•
*. P10+$+)0.11
"5. The profit deri/ed from a pro8ect or business enterprise !ithout consideration of obligations to financial contributors or claims of other based on profit. •
&. 4conomic return
•
B. ?ield
•
(. 4arning /alue
•
*. 4#pected ield
"-. The pament for the use of borro!ed mone is called •
&. 6oan
•
B. 2aturit /alue
•
(. Interest
•
*. Principal
". The interest rate at !hich the present !ork of the cash flo! on a pro8ect is ,ero of the interest earned b an in/estment. •
&. 4ffecti/e rate
•
B. ominal rate
•
(. :ate of return
•
*. ?ield
"+. The ratio of the interest pament to the principal for a gi/en unit of time and usuall e#pressed as a percentage of the principal. principal. •
&. Interest
•
B. Interest rate
•
(. In/estment
•
*. &ll of the abo/e
"). The true /alue of interest rate computed b euations for compound interest for a 1 ear period is kno!n as •
&. 4#pected return
•
B. Interest
•
(. ominal interest
•
*. 4ffecti/e interest
50. The intangible item of /alue from the e#clusi/e right of a compan to pro/ide a specific product or ser/ice in a stated region of the countr. •
&. 2arket /alue
•
B. Book /alue
•
(. Hood!ill /alue
•
*. Franchise /alue
Choose the letter of the best answer in each questions.
51. The recorded current /alue of an asset is kno!n as •
&. 7crap /alue
•
B. 7al/age /alue
•
(. Book /alue
•
*. Present !orth
5'. 7crap /alue of an asset is sometimes kno!n as •
&. Book /alue
•
B. 7al/age /alue
•
(. :eplacement /alue
•
*. Future /alue
5. 3hat is sometimes called second;hand /alue •
&. 7crap /alue
•
B. 7al/age /alue
•
(. Book /alue
•
*. Hoing /alue
5". &n intangible /alue !hich is actuall operating concern has due to its operation. •
&. Book /alue
•
B. Fair /alue
•
(. Hood!ill /alue
•
*. Hoing /alue
55. & compan issued 50 bonds of P1$000.00 face /alue each$ redeemable at par at the end of 15 ears. To accumulate accumulate the funds reuired for redemption the firm established a sinking fund consisting of annual deposits$ the interest rate of the fund being "%. 3hat !as the principal in the fund at the end of the 1'th ear •
&. P$00'.5"
•
B. P$5'0."
•
(. P+$010.'
•
*. P+$+'."
5-. & local local firm is establishing a sinking fund for the purpose of accumulating a sufficient capital to retire its outstanding bonds at maturit. maturit. The bonds are redeemable in 10 ears and their maturit /alue is P150$000.00. o! much should be deposited each ear if the fund pas interest at the rate of % •
&. P1$0+".5+
•
B. P1$0"+.+5
•
(. P1$"0+.5+
•
*. P1$"+0.5+
5. & P1$000$000 issue of %$ 15;ear bond !as sold at )5%. 3hat is the rate of interest of this in/estment •
&. .0%
•
B. ."%
•
(. .%
•
*. ".0%
5+. & man !as offered a 6and Bank certificate !ith a face /alue of P100$000 !hich is bearing interest of -% per ear paable semiannuall and due in - ears. If he !ants to earn +% semiannuall$ ho! much must he pa the certificate •
&. P)0$1'.0)
•
B. P)0$-1".)
•
(. P)0$5)0.1'
•
*. P)0$.'5
5). & P1$000 bond !hich !ill mature in 10 ears and !ith a bond rate of +% paable annuall is to be redeemed at par at the end of this period. It is sold at P1$00. *etermine the ield at this price. •
&. .5-%
•
B. .-5%
•
(. .5%
•
*. .+-%
-0. ?ou ?ou purchase purchase a bond at P5$100. The bond pas P'00 per ear. It is redeemable for P5$050 at the end of 10 ears. 3hat is the net rate of interest on our in/estment •
&. .5-%
•
B. .+5%
•
(. .5%
•
*. .-+%
-1. & P1$000$ -% bond pas di/idend semiannuall and !ill be redeemed at 110% on 9une '1$ '00". It is bought on 9une '1$ '001 to ield "% interest. Find the price of the bond. •
&. P1$1''.0
•
B. P1$1"".+1
•
(. P1$1.+
•
*. P1$155.0-
-'. The /alue !hich a disinterested third part$ different from the buer and seller$ !ill determine in order to establish a price acceptable to both parties. •
&. 2arket /alue
•
B. Hood!ill /alue
•
(. Fair /alue
•
*. Franchise /alue
-. & tpe of annuit !here the paments are made at the end of each pament period starting from the first period. •
&. Erdinar annuit
•
B. &nnuit due
•
(. *eferred annuit
•
*. Perpetuit
-". It is a series of eual paments occurring at eual inter/als of time !here the first pament is made after se/eral periods$ after the beginning of the pament. pa ment.
•
&. *eferred annuit
•
B. *elaed annuit
•
(. Progressi/e annuit
•
*. 7imple annuit
-5. & tpe of annuit !here the paments are made at the start of each period$ beginning from the first period. •
&. Erdinar annuit
•
B. &nnuit due
•
(. *eferred annuit
•
*. Perpetuit
--. 3hich is ET an essential element of an ordinar annuit •
&. The amounts of all paments are eual.
•
B. The paments are made at eual inter/al of time.
•
(. The first pament is made at the beginning of each period.
•
*. (ompound interest is paid on all amounts a mounts in the annuit.
-. is a periodic pament and is the interest rate$ then present !orth of a perpetuit C •
&. &i
•
B. &in
•
(. &nKi
•
*. &Ki
-+. & mathematical e#pression also kno!n as the present /alue of an annuit of 1 is called •
&. 6oad factor
•
B. *emand factor
•
(. 7inking fund factor
•
*. Present !orth factor
-). &s applied to a capitali,ed asset$ the distribution of the initial cost b a periodic changes to operation as in depreciation or the reduction of a debt b either periodic or irregular prearranged program is called •
&. &nnuit
•
B. (apital reco/er
•
(. &nnuit factor
•
*. &morti,ati &morti,ation on
0. The reduction of the /alue of an asset due to constant use and passage of time. •
&. 7crap /alue
•
B. *epletion
•
(. *epreciation
•
*. Book /alue
1. & method method of computing depreciation in !hich the annual charge is a fi#ed percentage of the depreciated book /alue at the beginning of the ear !hich the depreciation applies. •
&. 7traight line method
•
B. 7inking fund method
•
(. 7?* method
•
*. *eclining balance method
'. & DE2 has a selling price of P"00. If its selling price is e#pected to decline at a rate of 10% per annum due to obsolescence$ !hat !ill be its selling price after 5 ears •
&. P'''.-
•
B. P'1'.)0
•
(. P'-.'0
•
*. P'1.5-
. & machine costs P+$000 and an estimated life of 10 ears !ith a sal/age /alue of P500. 3hat is its book /alue after + ears ears using straight line method method •
&. P'$000.00
•
B. P'$100.00
•
(. P'$'00.00
•
*. P'$00.00
". & telephone telephone compan purchased a micro!a/e radio euipment for P- million$ freight and installation charges charges amounted to "% of the purchased price. If the euipment !ill be depreciated o/er a period of 10 ears !ith a sal/age sal/age /alue of +%$ determine determine the depreciation cost during the 5 th ear using 7?*. •
&. P-'-$'-).0)
•
B. P-'$'0).0)
•
(. P-'5$1').0)
•
*. P-'"$0-).+)
5. &B( (orporation makes it a polic that for an ne! euipment purchased$ the annual depreciation cost should not e#ceed '0% of the first cost at an time !ith no sal/age /alue. *etermine the length of ser/ice life necessar if the depreciation used is the 7?* method. •
&. ears
•
B. + ears
•
(. ) ears
•
*. 10 ears
-. & compan purchases an asset for P10$000.00 and plans to keep it for '0 ears. If I f the sal/age /alue is ,ero at the end of the '0 th ear$ !hat is the depreciation in the third ear Gse 7?* method. •
&. P+5.1"
•
B. P+-'.1)
•
(. P+1.11
•
*. P++0.00
. &n asset is purchased for P500$000.00. The sal/age /alue in '5 ears is P100$000.00. 3hat is the total depreciation in the first three ears using straight;line method •
&. P"5$000.00
•
B. P"-$000.00
•
(. P"$000.00
•
*. P"+$000.00
+. & machine has an initial cost of P50$000 and a sal/age /alue of P10$000 after 10 ears. 3hat is the book /alue after 5 ears ears using straight line depreciation depreciation •
&. P0$000.00
•
B. P1$000.00
•
(. P0$500.00
•
*. P1$500.00
). &n asset is purchased for P)$000.00. Its estimated life is 10 ears after !hich it !ill be sold for P1$000.00. Find the book /alue during the first ear if 7?* depreciation is used. •
&. P$5"5."5
•
B. P$'0.11
•
(. P$")0.00
•
*. P$-)0.1'
+0. The cost of euipment is P500$000 and the cost of installation is P0$000. If the sal/age /alue is 10% of the cost of euipment at the end of ears$ determine the book /alue at the end of the fourth ear. Gse straight;line method. •
&. P1"-$'0.50
•
B. P1"-$000.00
•
(. P1"-$'0.50
•
*. P1"-$0'.50
+1. &n asset is purchased for P'0$000.00. Its estimated life is 10 ears after !hich it !ill be sold for P1'$000.00. Find the depreciation for the first ear using 7?* method. •
&. P1$5"5."5
•
B. P1$"5".5"
•
(. P1$"".'1
•
*. P1$'"5."5
+'. & machine has an initial cost of P50$000 and a sal/age /alue of P10$000 after 10 ears. Find the book /alue after 5 ears ears using straight;line depreciation. depreciation. •
&. P1$000.00
•
B. P1$500.00
•
(. P0$000.00
•
*. P0$500.00
+. & machine has an initial cost of P50$000.00 and a sal/age /alue of P10$000.00 after 10 ears. 3hat is the straight line method depreciation rate as a percentage of the initial cost
•
&. 10%
•
B. +%
•
(. %
•
*. )%
+". & machine costing P"5$000 is estimated to ha/e a book /alue of P"$50 !hen retired at the end of ears. *epreciation cost is computed using a constant percentage of the declining book /alue. 3hat is the annual rate of depreciation in % •
&. '.50%
•
B. '.'5%
•
(. '.00%
•
*. '.5%
+5. &n asset is purchased for P1'0$000.00. Its estimated life is 10 ears$ after !hich it !ill be sold for P1'$000.00. Find the depreciation for the second ear using the sum;of;ears’ digit method. •
&. P1$5+.1
•
B. P1$"1'."
•
(. P1$"".-
•
*. P1$-'.
+-. & machine costing P'0$000 is estimated to ha/e a book /alue of P"0$5"5. !hen retired at the end of 10 ears. *epreciation cost is computed using a constant percentage of the declining book /alue. 3hat is the annual rate of depreciation in % •
&. '5%
•
B. '-%
•
(. '%
•
*. '+%
+. &n asset is purchased for P)$000.00. Its estimated economic life is 10 ears after !hich it !ill be sold for P1$000.00. Find the depreciation in the first three ears using straight line method. •
&. P'$"00.00
•
B. P'$"1'."
•
(. P'$'50.00
•
*. P'$"50.00
++. &n engineer bought an euipment for P500$000. e spent an additional amount of P0$000 for installation and other e#penses. The estimated useful life of the euipment is 10 ears. The sal/age /alue is #% of the first cost. Gsing the straight line method of depreciation$ the book /alue at the end of 5 ears !ill be P')1$500. 3hat is the /alue of # •
&. 0.'
•
B. 0."
•
(. 0.
•
*. 0.1
+). The initial cost of a paint sand mill$ including its installation$ installation$ is P+00$000. The BI: appro/ed life of this machine is 10 ears for depreciation. The estimated sal/age /alue of the mill is P50$000 and the cost of dismantling is estimated to be P15$000. Gsing straight;line depreciation$ !hat is the annual depreciation charge •
&. P5$500.00
•
B. P-$000.00
•
(. P-$500.00
•
*. P$000.00
)0. The initial cost of a paint sand mill$ including its installation$ installation$ is P+00$000. The BI: appro/ed life of this machine is 10 ears for depreciation. The estimated sal/age /alue of the mill is P50$000 and the cost of dismantling is estimated to be P15$000. Gsing straight;line depreciation$ !hat is the book /alue of the machine at the end of si# ears •
&. P"1$000.00
•
B. P"$000.00
•
(. P"0$000.00
•
*. P"'$000.00
)1. & unit of !elding machine cost P"5$000 !ith an estimated life of 5 ears. Its sal/age /alue is P'$500. Find its depreciation rate b straight;line method. •
&. 1+.+)%
•
B. 1).'1%
•
(. 1).5+%
•
*. 1).+)%
)'. & ta# and dut free importation of a 0 hp sandmill for paint manufacturing cost P-0$000.00. Bank charges arrastre and brokerage cost P5$000.00. Foundation and installation costs !ere P'5$000.00. Ether incidental e#penses amount to P'0$000.00. 7al/age /alue of the mill is estimated to be P-0$000 after '0 ears. Find the appraisal /alue of the mill using straight line depreciation at the end of 10 ears. •
&. P'"$000.00
•
B. P'5$000.00
•
(. P'"$500.00
•
*. P'5$500.00
). &n euipment euipment costs P10$000 !ith a sal/age /alue of P500 at the end of 10 ears. (alculate the annual depreciation cost b sinking;fund method at "% interest. •
&. P)1.'-
•
B. P)'.-1
•
(. P'-.1
•
*. P1.'-
)". & machine initiall !orth P50$000 depreciates in /alue each ear b '0% of its /alue at the beginning of that ear. ear. Find its book book /alue !hen it is ) ears old. •
&. P-$10.+)
•
B. P-$"00.+)
•
(. P-$---.+)
•
*. P-$51'.+
)5. & consortium consortium of international telecommunications telecommunications companies contracted for the purchase and installation of fiber optic cable linking 2anila (it and (ebu (it at a total cost of P)-0 million. This amount includes freight and installation charges estimated estimated at 10% of the abo/e total contract price. If the cable shall be depreciated o/er a period of 15 ears !ith ,ero sal/age /alue and mone is !orth -% per annum$ !hat is the annual depreciation charge •
&. P"1$0""$)0."0
•
B. P"1$'11$15 P"1$'11$15+."0 +."0
•
(. P"1$'5"$000."0
•
*. P"1$'""$'5."0
)-. &n asset is purchased for P)$000.00. Its estimated economic life is 10 ears after !hich it !ill be sold for P1$000.00. Find the depreciation in the first three ears using sum;of;ears’ digit digit method. •
&. P$').'
•
B. P$)'.'
•
(. P$').'
•
*. P$)'.'
). & radio ser/ice panel truck initiall cost P5-0$000. Its resale /alue at the end of the 5 th ear of the useful life is estimated at P150$000. B means of declining balance method$ determine the depreciation charge for the second ear. •
&. P))$-5+."1
•
B. P))$1'+."5
•
(. P))$')0.00
•
*. P))$+."5
)+. 7hell Philippines$ a multinational compan$ compan$ has a total gross income for a particular ear of P50$000$000. The ta#able income after taking all deductions e#cept for depletion is P1+$500$000. 3hat is the allo!able depletion allo!ance for that particular ear Take percentage of gross income for oil as ''%. •
&. P)$5+."1
•
B. P)$''+."5
•
(. P)$'50.00
•
*. P)$0+."5
)). The 7audi &rabian Eil :efiner de/eloped an oil !ell !hich is estimated to contain 5$000$000 barrels of oil at an initial initial cost of 50$000$000. 50$000$000. 3hat is the depletion depletion charge during the the ear !here it produces half;million half;million barrels of oil Gse Gnit Gnit or Factor method in computing computing depletion. •
&. 500$000$000
•
B. 510$000$000
•
(. 5'5$000$000
•
*. 550$000$000
+00. The first cost of a certain euipment is P'"$000 and a sal/age /alue of P50$000 at the end of its life of " ears. If mone is !orth -% compounded annuall$ find the capitali,ed cost. •
&. P5"0$0)0."
•
B. P5"1$0.--
•
(. P5"0$5+).1'
•
*. P5"1$'0.))
