#320.
A man agrees to pay P300 at the end of each month for 20 years, in purchasing a house. Find the present value of this agreement if money is worth 7% compounded monthly.
A
P39,657.70
B
P38,706.74
C
P39,253.65
D
P40,185.33
Answer: P38,706.74
#321.
At what nominal rate compounded quarterly will payments of P800 at the end of each 3 months for 5 years discharge all liabilities for a debtor who borrows P14,000 today?
A
5.23%
B
6.12%
C
4.92%
D
7.36%
Answer: 5.23%
#322.
A businessman made 10 annual end of year purchase of P1,000 of common stock. At the end pf the 10th year she sold all the stock for P12,000. What interest rate did she obtained on her investment?
A
4%
B
5%
C
3%
D
8%
Answer: 4%
#323.
A piece of property is purchased for P100,000 and yields P10,000 yearly profit. If the property is sold after 5 years, what is the minimum price to break even, with interest at 6%.
A
P77,451.63
B
P86,421.43
C
P68,866.24
D
P92,421.84
Answer: P77,451.63
#324.
A generator was purchased on the basis of guaranteed performance. A test indicates that the operating cost will be P600 more per year than the generator is 20 years and money is worth 6% per annum, how much should the purchaser deduct from the purchase price to compensate for the extra operating cost.
A
P6,881.95
B
P5,426.48
C
P7,182.68
D
P9,772.48
Answer: P6,881.95
#325.
A payment of P25,000 5 years from now is equivalent at 8% interest to an annual equal payment for 6 years at the end of each year. Compute for the annual payment.
A
P3,680.52
B
P2,940.82
C
P3,490.64
D
P4,181.42
Answer: P3,680.52
#326.
A corporation foresees the necessity of making a large payment at some future date, business prudence leads to the formation of a sinking fund by annual deposits of P250 invested at 3%. Find the amount in the fund just after the 4th deposit.
A
P1,213.90
B
P1,045.91
C
P1,142.62
D
P946.42
Answer: P1,045.91
#327.
San Miguel Corporation purchases P400,000 worth of equipment in year 1970. It decided to use the straight-line depreciation over the expected 20-year life of the equipment. The intertest rate is 16%. If the overall tax rate is 35%, what is the present worth of tax shield?
A
P40,298.68
B
P41,501.89
C
P45,450.28
D
P51,410.37
Answer: P41,501.89
#328.
If a man buys a diskette and is to pay for it making 20 monthly payments of P40 each, with interest on the unpaid balance at 6% nominal interest rate what is the purchase price?
A
P784.54
B
P853.45
C
P759.50
D
P820.90
Answer: P759.50
#329.
In purchasing a house, a man makes a cash payment and takes out a mortgage for P10,000 on which he agrees to pay P200 at the end of each months for 5 years. At what interest rate compounded monthly was interest charged on the mortgage?
A
8.41%
B
7.42%
C
7.68%
D
9.60%
Answer: 7.42%
#330.
A man borrows P5,000 and agrees to cancel his debt by paying equal sums at the end of each year 3 months for 20 ½ years. Find his quarterly payments if interest is at the rate of 5% compound quarterly.
A
P97.82
B
P67.80
C
P83.90
D
P72.98
Answer: P97.82
#331.
If interest is at the rate of 8% compounded semi-annually what sum must be invested at the end pf each 6 months to accumulate a fund of P10,000 at the end of 8 years?
A
P458.20
B
P532.11
C
P498.23
D
P753.10
Answer: P458.20
#332.
A corporation will invest P5,000 in a fund at the end of each 6 months to accumulate P100,000 to initiate a plant overhaul. If the fund is invested at 6.5% compounded semi-annually, on how many years will the fund contain at least P100,000?
A
10 years
B
9 years
C
8 years
D
7 years
Answer: 8 years
#333.
A contract calls for the payment of P1,200 at the end of each year for 15 years. At what interest rate compounded annually would this agreement to be equivalent to a cash payment of P11,400?
A
9.10%
B
6.34%
C
7.34%
D
8.51%
Answer: 6.34%
#334.
To accumulate a fund of P8,000 at end of 10 years, a man will make equal annual deposit of P606.94 in the fund at the end of each year. How much is the rate of interest if it is compounded annually?
A
12%
B
10%
C
8%
D
6%
Answer: 6%
#335.
A man bought a brand-new car for P650,000 on installment basis at the rate of 10% per annum on the unpaid balance. If he paid a down payment of P120,000 cash and proposed to pay the balance in equal monthly payment for two years, what should be his monthly payment?
A
P54,323.03
B
P34,532.94
C
P24,447.03
D
P83,534.32
Answer: P24,447.03
#336.
The purchaser of a tractor paid P10,000 cash and agreed to pay “x” pesos at the end of each 6 months for 10 years. He failed to pay the first 5 payments of “x” pesos each. At the end of the third year he desires to pay the tractor by a single payment of P53,293 which will cancel both his accumulated liabilities and his future liabilities. If money is worth 6% per annum compounded semi-annually, find the value of “x”?
A
P7,000
B
P400
C
P3,000
D
P8,000
Answer: P3,000
#337.
A father wishes to develop a fund for his son’s college education. The fund is to pay P2,000 on the 18th, 19th, 20th, and 21st birthday of the son. The fund will be built up by the deposit of the fixed sum on the son’s 1st to 17th birthday inclusive. If the fund earns 2% what would be the yearly deposit into the fund?
A
P532.82
B
P123.65
C
P380.54
D
P239.89
Answer: P380.54
#338.
A company invested P400,000 presently and expected a revenue of “x” at the end of years one and two. What value of “x” is expected to have a net worth of approximate zero, if the company is given a discount rate of 14% compounded annually.
A
P142,316.20
B
P85,416.92
C
P242,915.89
D
P40,360.45
Answer: P242,915.89
#339.
A replacement is being considered for purchase. The original cost is P200,000 and the salvage value at the end of 3 years is P800,000. If the company’s rate of return is 10, compute the capital recovery rate per year.