#0.
A business man wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified?
A
12.1%
B
13.4%
C
11.1%
D
12.7%
Answer: 12.1%
#1.
P5,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?
A
P6,167.30
B
P5,164.38
C
P5,166.67
D
P6,666.67
Answer: P5,166.67
#2.
A deposit of 110,000 was made for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually.
A
12.25%
B
11.75%
C
12.75%
D
11.95%
Answer: 11.75%
#3.
A man borrowed P2,000 from a bank and promise to pay the amount for one year. He received only the amount of P1,920 after the bank collected an advance interest of P80,000. What was the rate of discount and the rate of interest that the bank collected in advance?
A
4% ; 4.17%
B
3% ; 3.17%
C
4% ; 4.71%
D
3% ; 3.71%
Answer: 4% ; 4.17%
#4.
If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000; which due at the end of 7 months.
A
P46,200
B
P44,893
C
P46,730
D
P45,789
Answer: P46,730
#5.
A price tag of P1200 is payable in 60 days but if paid within 30 days it will have a 3% discount. Find the rate of interest.
A
37.1%
B
40.2%
C
38.5%
D
39.3%
Answer: 37.1%
#6.
A bank charges 12% simple interest on a P300.00 loan. How much will be repaid if the load is paid back in one lump sum after three years?
A
P408.00
B
P415.00
C
P551.00
D
P450.00
Answer: P408.00
#7.
It is the practice of almost all bank in the Philippines that when they grant a loan, the interest for one year is automatically deducted the principal amount upon release of money to a borrower. Let us therefore assume that you applied for a loan with a bank and the P80,000.00 was approved at an interest rate of 14% of which P11,200.00 was deducted and you were given a check of P68,800.00. Since you have to pay the amount of P80,000.00 one year after, what then will be the effective interest rate?
A
15.90%
B
16.28%
C
16.30%
D
16.20%
Answer: 16.28%
#8.
A P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?
A
P5212.43
B
P4954.35
C
P4133.33
D
P6422.44
Answer: P4133.33
#9.
A man borrowed from a bank under a promissory note that he signed in the amount of P25,000.00 for a period of one year. He received only the amount of P21,915.00 after the bank collected the advance interest and an additional amount of P85.00 for notarial and inspection fees. What was the rate of interest that the bank collected in advance?
A
13.64%
B
18.37%
C
16.43%
D
10.32%
Answer: 13.64%
#10.
If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months.
A
P19,485.59
B
P18,348.60
C
P28.394.45
D
P42.953.10
Answer: P18,348.60
#11.
Kathy buys a television set from a merchant who asks P1,250.00 at the end of 60 days (cash in 60 days. Kathy wishes to pay immediately and the merchant offers to compute the cash price on the assumption that money is worth 8% simple interest. What is the cash price today?
A
P1,233.55
B
P1,324.45
C
P2,195.60
D
P2,135.50
Answer: P1,233.55
#12.
Find the amount due at the end of 15 months whose present value is P2000 at 5% simple discount.
A
P2,133.33
B
P2,313.12
C
P2,233.23
D
P2,333.22
Answer: P2,133.33
#13.
What simple interest rate is equivalent the simple discount rate of 6%in discounting an amount P1000 due at the end of 3 months.
A
6.09%
B
9.12%
C
6.15%
D
6.02%
Answer: 6.09%
#14.
Mr. Almagro made a money market placement of Pl1,000,000 for 30 days at 7.5% per year. If the withholding tax is 20%, what is the net interest that Mr. Almagro will receive at the end of the month?
A
P3 000
B
P4 000
C
P6 000
D
P5 000
Answer: P5 000
#15.
A bill for motorboat specifies the cost as P1 200 due at the end of 100 days but offers a 4% discount for cash in 30 days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount?
A
18.4%
B
19.6%
C
20.9%
D
21.4%
Answer: 21.4%
#16.
In buying a computer disk, the buyer was offered the options of paying P250 cash at the end of 30 days or P270 at the end of 120 days. At what rate is the buyer paying simple interest if he agrees to pay at the end of 120 days.
A
32%
B
40%
C
28%
D
25%
Answer: 32%
#17.
On March 1, 1996 Mr. Almagro obtains a loan of P1500 from Mr. Abella and signs a note promising to pay the principal and accumulated simple interest at the rate of 5% at the end of 120 days. On May 15, 1996, Mr. Abella discounts the note at the bank whose discount rate is 6%. What does he receive?
A
P2,201.48
B
P1,123.29
C
P1,513.56
D
P938.20
Answer: P1,513.56
#18.
A loan was made 3 years and ago 4 months at 6% simple interest. amount of the loan has just been repaid along with P800 of interest. Compute the principal amount of the original loan. The principal
A
P4,000
B
P3,800
C
P5,000
D
P2,500
Answer: P4,000
#19.
A businessman loan P100,000 from a bank to expand its business. A quarterly interest of P4,400 must be paid every three months and the entire principal of P100,000 will be repaid in 4 years. Compute the nominal annual interest paid by the businessman.