#340.
A person bought a number of lots for P3,200 on June 1, 1945 and boasted that he had sold them on June 1, 1957 for double what he had paid for them. Annual taxes have been P50 and he received no income during his period of ownership. What rate of interest had he made on his investment?
A
4.90%
B
4.79%
C
5.80%
D
5.10%
Answer: 4.79%
#341.
A man paid 10% down payment of P200,000 for a house and lot and agreed to pay the balance on monthly installments for “x” years at an interest rate of 15% compounded monthly. If the monthly installment was P42,821.87, find the value of x?
A
5
B
9
C
11
D
7
Answer: 5
#342.
A generating set that has a first cost of P50,000 4 years ago has a remaining life of 6 years, but is no longer efficient in this performance. If extensive repairs are made now, the annual operating and maintenance costs will be reduced by P2,200 during the last 2 years. The life of the generating set will not be affected, but its salvage value will be increased by P1,400. What amount maybe spent on repairs if money is worth 12%?
A
P9,560
B
P9,002
C
P9,866
D
P8,604
Answer: P9,002
#343.
A couple decided to save for the college education of their two-year-old son. What annual deposit should they make on each birthday from the third to the 16th inclusive so that their son will be able to withdraw P1,500 on each birthday from the 17th to the 20th inclusive? Money is worth 4% compounded monthly?
A
P321.10
B
P299.90
C
P312.43
D
P297.65
Answer: P297.65
#344.
A man bought an Olivetti electric typewriter for P50 down and P30 a month for 2 years. He could have bought the same typewriter for P675 cash. What true effective annual rate of return, before taxes, did the time payment indicate?
A
15.12%
B
15.45%
C
14.93%
D
16.10%
Answer: 14.93%
#345.
A P10,000 mortgage is being amortized by means of 20 equal yearly installments at an interest of 6%. The agreement provides for paying of the mortgage in a lump sum at any time with an amount equal to the unpaid balance plus a charge of 1% of the unpaid balance. What would have to be paid to discharged the mortgage after 10 payments have been made?
A
P7,453.45
B
P6,894.40
C
P6,484.20
D
P7,452.15
Answer: P6,894.40
#346.
A company let a contract for a group of 50 hp. motors. The contract provides that the motors shall have an efficiency of 92% and are to cost the company P430 each. After the motors are completed, test show that they have an efficiency of only 91%. The contractor agrees to sell them thru the company for P370 each. Each motor will have a life of 12 years with no salvage value at that time and all annual operational costs except that for electrical energy, will be the same for both motors. At what interest rate is this offer exactly equivalent to the original contract, provided that each motor will be 'operated 1000 hrs. a year with energy costing 1.5 centavos per kw/hr. One horsepower is equal to 0.746 kw/hr.
A
8.25%
B
7.90%
C
8.47%
D
4.797%
Answer: 4.797%
#347.
What is the present worth of a 3 years annuity paying P3,000.00 at the end of each year, with interest at 8% compounded annually?
A
P9,731.79
B
P7,371.29
C
P7,731.29
D
P9,371.79
Answer: P7,731.29
#348.
An employee obtained a loan of P10,000 at the rate of 6% compounded annually in order to repair a house. How much must he pay monthly to amortize the loan within a period of 10 years?
A
P110.22
B
P112.22
C
P111.22
D
P109.22
Answer: P110.22
#349.
Engr. Sison borrows P100,000.00 at 10% effective annual interest. He must pay back the loan over 30 years with uniform monthly payments due on the first day of each month. What does Engr. Sison pay each month?
A
P879
B
P897
C
P978
D
P789
Answer: P879
#350.
Instead of paying P100,000.00 in annual rent for office space at the beginning of each year for the next 10 years, an engineering firm has decided to take out a 10-year P1,000,000.00 loan for a new building at 6% interest. The firm will invest P100,000.00 of the rent saved and earn 18% annual interest on that amount. What will be the difference between the firm's annual revenue and expenses?
A
The firm will need P10,177.32 extra
B
The firm will break even
C
The firm will have P21,500.00 left over
D
The firm will need P13,000.00 extra
Answer: The firm will need P10,177.32 extra
#351.
A man wishes to have P35,000 when he retires 15 years from now. If he can expect to receive 4% annual interest, how much he set aside in each of 15 equal annual beginning of year deposits?
A
P1,704.60
B
P1,801.23
C
P1,680.71
D
P2,103.42
Answer: P1,680.71
#352.
A man owes P10,000.00 with interest at 6% payable semi-annually. What equal payments at the beginning of each 6 months for 8 years will discharge his debt?
A
P772.93
B
P832.48
C
P812.20
D
P790.56
Answer: P772.93
#353.
Under a factory savings plan, a workman deposits P25 at the beginning of each month for 4 years, and the management guarantees accumulation at 6% compounded monthly. How much stands to the work man's credit at the end of 4 years?
A
P1,359.21
B
P16,668.42
C
P15,386.40
D
P14,946.30
Answer: P1,359.21
#354.
A man owes P12,000 today and agrees to discharge the debt by equal payments at the beginning of each 3 months for 8 years, where these payments include all interest at 8% payable quarterly. Find the quarterly payment.
A
P501.30
B
P602.40
C
P498.20
D
P701.60
Answer: P501.30
#355.
A man will deposit P200 with a and loan association at the beginning of each 3 months for 9 years. association pays interest at the rate of 5.5% quarterly, find the sum to his credit just after the last deposit.
A
P9,236
B
P9,363
C
P9,563
D
P9,684
Answer: P9,363
#356.
Engr. Peter Aventajado loan an amount of P100000 at a local commercial bank at 10% compounded annually. How much is his monthly payment if he is required to pay at the beginning of the first day of the month for a period of 30 years?
A
P748.42
B
P839.19
C
P698.88
D
P546.92
Answer: P839.19
#357.
At what interest rate payable quarterly will payments of P500 at the beginning of each 3 months for 7 years discharge a debt of P12500 due immediately?
A
3.44%
B
4.33%
C
5.44%
D
6.33%
Answer: 3.44%
#358.
The maintenance cost of a certain equipment is P40,000 per year for the first 5 years, P60,000 per year for the next 5 years, cost of overhaul at the end of the 5th year and the 8th year is P140,000. Find the equivalent uniform annual cost of maintenance if money is worth 6% compounded annually.
A
P74,701.81
B
P68,369.42
C
P59,642.68
D
P88,421.82
Answer: P74,701.81
#359.
A company manufacturing acid, upon inspection of the roofing of the plant, found out that it is badly corroded from the acid, fumes and would need to be replaced. To try to get some more life out of the roofing, the company consulted a roofing coating contractor who presented the company with two options. The first options is a coating that will cost P20,000 which would extend the life of the roofing for 3 years from the date of application, and the second options will cost P30,000 and which would extend the life of the roofing for 5 years from the date of application. At what rate of return are the two investments equal?