#300.
If a low-cost house and lot worth P87,000 were offered at 10% down payment and P500 per month for 25 years. What is the effective monthly interest rate on the diminishing balance?
A
0.492%
B
0.687%
C
0.531%
D
0.683%
Answer: 0.492%
#301.
An investor has a projected surplus income of P1,000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit of over 5 years. Compute how much shall the investor collect at the end of 13 years, assuming that he never withdraws before the 13th year.
A
P42,218.70
B
P45,593.40
C
P43,322.80
D
P44,329.90
Answer: P42,218.70
#302.
The purchase amount of an equipment P100,000 has been made available through a loan which earns 12% per annum. It has been agreed that the loan be payable in 10 equal annual payments. How much then is the yearly due?
A
P17,698.42
B
P18,983.50
C
P19,454.46
D
P17,897.80
Answer: P17,698.42
#303.
The average annual cost of damages caused by floods to certain subdivision located along the Pasig River is estimated at P700,000. To build a gravity dam to protect the area from the floods, would cost P2,500,000 and would involve an annual maintenance cost of P20,000. With interest at 8% compounded annually, how many years will it take for the dam to pay itself?
A
5.2
B
6.1
C
4.5
D
4.9
Answer: 4.5
#304.
A man will buy a nice house and lot worth P300,000 in subdivision in Metro Manila. His carrying charges is P34,200 to the price of this house and lot. Further he will be obligated to pay it over twenty (20) years. Through his monthly amortization does not look much as a burden to his income, what is the annual rate?
A
9.890%
B
9.567%
C
8.890%
D
9.699%
Answer: 9.567%
#305.
A man wishes to prepare the future of his 10-year-old son. Determine the monthly savings that the man should make with interest of 5.41% per annum to amount P120,000 at the time his son will be 18.
A
P1,021.65
B
P1,001.64
C
P1,212.70
D
P1,311.65
Answer: P1,001.64
#306.
A building and loan association requires that loans be repaid by uniform monthly payments which includes monthly interest calculated on the basis of nominal 5.4% per annum. If P5,000 is borrowed to be repaid in 10 years, what must be the monthly payment?
A
P54.02
B
P60.03
C
P55.07
D
P58.05
Answer: P54.02
#307.
You want to start saving for your 10-year-old son’s college education. If you were guaranteed 6% interest compounded quarterly, how much would you have to save per month to amount P12,000 by the time he is 18?
A
P98.20
B
P99.32
C
P97.90
D
P98.77
Answer: P98.20
#308.
Juan dela Cruz borrowed P2,400 at 1% per month payable in 24 equal ends of the month payments. How much of the loan remains unpaid immediately after he has paid the 12th payment, compute also the effective annual interest rate?
A
P1,271.60; 12.68%
B
P1,873.29; 12.42%
C
P1,723.78; 10.23%
D
P1,217.24; 14.29%
Answer: P1,271.60; 12.68%
#309.
A businessman needs P50,000 for his operations. One financial institution is willing to lend him the money for one year at 12.5% interest per annum(discounted). Another lender is charging 14%, with the principal and interest payable at the end of one year. A third financier is willing to lend him P50,000 payable in 12 equal monthly installments of P4,600 each. Which offer is best for him?
A
First offer 12.5% discounted
B
Second offer at 14%
C
Third offer
D
None of these
Answer: Second offer at 14%
#310.
The purchaser of a tractor paid P10,000 cash and agreed to pay P3,000 at the end of 6 months for 10 years. He failed to make the first 5 payments of P3,000 each. At the end of 3 years he desires to pay the tractor by a single payment which will cancel both his accumulated liabilities and his future liabilities. What must he pay if money is worth 6% per annum compounded semi-annually?
A
P54,389
B
P55,432
C
P57,642
D
P53,293
Answer: P53,293
#311.
The MSC Construction Company agreed to pay P100,000 for a new bulldozer with an expected life of 20 years. After delivery, it was found that the dozer has only 85% of the guaranteed horsepower. If a more efficient machine would increase the earnings of the company by an estimated P12,000 annually, what would the company be willing to pay for the more efficient machine? Interest is 12% compounded annually.
A
P100,200.40
B
P189,633.30
C
P210,345.40
D
P190,593.45
Answer: P189,633.30
#312.
A man bought a Ford Fairlane Model 1965, for P21,000 on installment basis at the rate of 12% per annum on the unpaid balance. If he paid a down payment of P6,000 in cash and proposes to pay the balance in 20 monthly payments, what should these monthly payments be?
A
P831.23
B
P930.32
C
P857.20
D
P912.41
Answer: P831.23
#313.
An employee obtained a loan P100,000 at the rate of 6% compounded annually in order to build a house. How much must he pay monthly to amortize the loan within a period of 10 years?
A
P8,322.07 monthly
B
P1,101.80 monthly
C
P2,494.04 monthly
D
P3,452.90 monthly
Answer: P1,101.80 monthly
#314.
A backpay certificate is offered for sale on which the yearly payments are P996 partly principal and partly interest. There are 8 annual payments still due, the first of these due one year from now. How much should one pay for this note in order to get 5% interest, compounded annually on the investment?
A
P6,437.36
B
P7,343.50
C
P6,834.80
D
P6,847.64
Answer: P6,437.36
#315.
A factory operator bought a Diesel generator set for P10,000 and agreed to pay the dealer a uniform sum at the end of each year for 5 years at 8% interest compounded annually, so that the final payment will cancel the debt for principal an interest. What is the annual payment?
A
P2,530.60
B
P8,123.32
C
P2,194.53
D
P2,504.57
Answer: P2,504.57
#316.
Compute the numbers of years in order that the capital recovery factor for a uniform payment series be equal to 0.1424564 if money is worth 6% compounded semi-annually?
A
8
B
4
C
5
D
10
Answer: 4
#317.
A piece of machinery costs P20,000 and has estimated life of eight years and scrap value of P2,000. What uniform annual amount must be set aside at the end of each of the 8 years for replacement if the interest rate is 4%.
A
P2,753.50
B
P2,589.45
C
P3,495.45
D
P4,653.51
Answer: P2,753.50
#318.
In the purchase of a rice cooker, a buyer pays P200 cash. He will discharge the balance, principal and interest included at 18% payable monthly on the unpaid balance, by payments of P75 at the end of each month for a year. Find the cash value of the rice cooker?
A
P1,018.06
B
P2,124.26
C
P1,521.60
D
P1,800.00
Answer: P1,018.06
#319.
A man bought a refrigerator for P500 down and P300 per month for 24 months. The same brand of refrigerator could have been purchased for P6,750 cash. What nominal annual interest rate is the man paying?