#180.
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?
A
6.48%
B
8.42%
C
8.24%
D
6.88%
Answer: 8.24%
#181.
Find the difference between simple interest and compound interest on a savings deposit of fifty thousand pesos at 10 percent per annum for three years.
A
P1,550
B
P2,120
C
P1,250
D
P1,830
Answer: P1,550
#182.
A man expects to receive P20,000 in 10 years. How much is that money worth now considering interest at 6% compounded quarterly?
A
P11,025.25
B
P1,052.52
C
P12,520.52
D
P13,250.25
Answer: P11,025.25
#183.
By the conditions of a will, the sum of P25,000 is left to a girl to be held in a trust fund by her guardian until it amounts to P45,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly?
A
7.42 years
B
7.25 years
C
6.8 years
D
7 years
Answer: 7.42 years
#184.
What is the effective rate corresponding to 16% compounded daily? Take 1 year=360 days.
A
16.78%
B
16.5%
C
17.35%
D
17.84%
Answer: 17.35%
#185.
Which of these gives the lowest effective rate of interest?
A
12.35% compounded annually
B
11.9% compounded semi-annually
C
12.2% compounded quarterly
D
11.6% compounded monthly
Answer: 11.6% compounded monthly
#186.
A nominal interest of 3% compounded continuously is given on the account. What is the accumulated amount of P10,000 after 10 years?
A
P13,498.60
B
P13,620.10
C
P13,500.10
D
P13,439.16
Answer: P13,498.60
#187.
Compute the effective annual interest rate which is equivalent to 5% nominal annual interest compounded continuously.
A
5.13%
B
4.94%
C
5.26%
D
4.9%
Answer: 5.13%
#188.
A man wishes to have P40,000 in a certain fund at the end of 8 years. How much should he invest in a fund that will pay 6% compounded continuously?
A
P24,751.34
B
P36,421.44
C
P28,864.36
D
P30,486.42
Answer: P24,751.34
#189.
If the effective interest rate is 4% compute the equivalent nominal annual interest compounded continuously.
A
3.92%
B
4.10%
C
3.80%
D
4.09%
Answer: 3.92%
#190.
What is the nominal rate of interest compounded continuously for 10 years if the compound amount factor is equal to 1.34986?
A
4%
B
3%
C
6%
D
5%
Answer: 3%
#191.
American Express Corp. charges 1 ½ % interest per month, compounded continuously on the unpaid balance purchases made on this credit card. Compute the effective rate of interest.
A
19.90%
B
21.20%
C
20.25%
D
19.72%
Answer: 19.72%
#192.
If the nominal interest is 12% compounded continuously, compute the effective annual rate of interest.
A
11.26%
B
11.55%
C
12.40%
D
12.75%
Answer: 12.75%
#193.
If the effective rate is 24%, what nominal rate of interest is charged for a continuously compounded loan?
A
21.90%
B
23.25%
C
21.51%
D
22.35%
Answer: 21.51%
#194.
What is the nominal rate of interest compounded continuously for 8 years if the present worth factor is equal to 0.6187835?
A
4%
B
5%
C
6%
D
7%
Answer: 6%
#195.
Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if it is compounded continuously for 5 years at the same rate.
A
P3.87
B
P4.21
C
P5.48
D
P6.25
Answer: P3.87
#196.
A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the 90% balance on monthly installments for 60 months at an interest rate of 15% compounded monthly. Compute the amount of the monthly payment.
A
P42,821.87
B
P51,643.87
C
P39,362.58
D
P24,853.27
Answer: P42,821.87
#197.
What is the present worth of a 3 years annuity paying P3,000.00 at the end of each year, with intertest at 8% compounded annually?
A
P9,731.79
B
P7,731.29
C
P7,371.29
D
P9,371.79
Answer: P7,731.29
#198.
How much must be deposited at 6% each year beginning on January 1, year 1, in order to accumulate P5,000 on the date of the last deposit, January 1, year 6?
A
P751.00
B
P717.00
C
P715.00
D
P725.00
Answer: P717.00
#199.
An instructor plans to retire in one year and want an account that will pay him P25,000 a year for the next 15 years. Assuming a 6% annual effective interest rate, what is the amount he would need to deposit now? (The fund will be depleted after 15 years).