#380.
Today is September 2, 1978. Ten years ago, you deposited P10.00 per month. You made the deposit continuously for 6 years and then stopped. In September 2, 1982, you established a belts and nuts factory. Starting September 2, 1982, you withdraw P100 a month for advertisement. How many months can you withdraw before the money is exhausted? Interests is 6% compounded monthly.
A
13
B
12
C
15
D
16
Answer: 15
#381.
Two years ago, the rental for the use of equipment and facilities as paid 5 years in advance, with option to renew the rent for another years by payment of P15,000 annually at the start of each year for the renewal period. Now, the lessor asks the lessee if it could be possible to prepay the rental that will be paid annually in the renewed 5 years period. If the lessee will consider the request, what would the fair prepayment to be made to the lessor if interest is now figured at 8%?
A
P61,589.60
B
P49,978.43
C
P59,453.32
D
P51,346.59
Answer: P51,346.59
#382.
Annual maintenance costs for a rotary kiln is P2,000.00. The placement of a new refractory would reduce the annual maintenance cost to P500 a year for the first 5 years and to P1000.00 a year for the next 5 years. The annual maintenance cost after 10 years would again be P2,000.00. If maintenance costs are the only savings what maximum investment can be justified for the new refractory? Assume interest at 4%.
A
P6,695.99
B
P10,336.81
C
P7,653.67
D
P8,135.50
Answer: P10,336.81
#383.
An old boiler cost P2,400 a year t0 maintain. What expenditures for a new boiler is justified if no maintenance will be required for the first 3 years, P600 per year for the next 7 years, and P2,400 a year thereafter? Assume money to cost 4% compounded annually and no other costs to be considered.
A
P16,264.66
B
P17,435.60
C
P18,321.43
D
P16,895.70
Answer: P16,264.66
#384.
A shirt factory has just installed a boiler. It is expected that there will be no maintenance expenses until the end of the 11th year, when P400 will be spent on the boiler. P400 will be spent at the end of each successive year until the boiler is scrapped at the age of 35 years. What sum of money set aside at his time at 6% interest will take care of all maintenance expenses for the boiler?
A
P2,654.50
B
P2,855.26
C
P2,985.46
D
P3,103.30
Answer: P2,855.26
#385.
A new generator has just been installed. It is expected that there will be no maintenance charges until the end of the 6th year, when P300 will be spent at the end of each successive year until the generator is scrapped at the end of its fourteenth year of service. What sum of money set aside at the time of installation of the generator at 6% will take care of all maintenance expenses for the generator?
A
P1,524.79
B
P2,424.84
C
P1,694.32
D
P3,958.31
Answer: P1,524.79
#386.
A fund for replacement of machinery in a plant must contain P30,000 at the end of 9 years. If the fund is invested at 3.5% compounded semi-annually, what equal deposits should be placed in the fund at the end of each 6 months just for the first four years?
A
P2,964.64
B
P2,892.42
C
P3,122.38
D
P3,262.42
Answer: P2,964.64
#387.
A house costs P400,000 cash. A purchaser will pay P90,000 cash, P60,000 at the end of 2 years and a sequence of 6 equal annual payments starting with one at the end of 4 years, to discharge all his liability as to the principal and interest at 7% compounded annually. Find the annual payments which must be made for 6 yrs.
A
P67,593.80
B
P66,219.46
C
P65,895.32
D
P68,102.67
Answer: P66,219.46
#388.
A businessman borrowed P300,000 and agrees to discharge his obligation by paying a series of 8 equal payments of P57434.78 the first being due at the end of 5 years. Find the rate of interest he is paying if it is compounded semi-annually.
A
6%
B
8%
C
10%
D
12%
Answer: 6%
#389.
An annual deposit of P1270 is placed on the fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually, how much is worth of this fund at the end of 9 years?
A
P12,000
B
P10,000
C
P11,000
D
P14,000
Answer: P10,000
#390.
A fund for replacement of a machinery in a plant must have P30,000 at the end of 9 yrs. An equal deposit of P2965 was made on the fund at the end of each 6 months for 4 years only. How much is the rate of the fund invested if it is compounded semi-annually?
A
3.5%
B
4.5%
C
5.5%
D
6.5%
Answer: 3.5%
#391.
The cash price of an apartment condominium is P85,908 and can be acquired by a down payment of P50,000 and a yearly payment of P10, 000 at the end of each year for 10 years starting at the end of 5 years from the date of purchase. If money is worth "x" percent compounded annual what is the value of "x”?
A
19%
B
12%
C
8%
D
9%
Answer: 12%
#392.
A commercial bldg. can be acquired at a down payment of P500,000 and a yearly payment of P100,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 12% compounded yearly. what is the cash price of the commercia bldg.?
A
P859,082.00
B
P765,845.00
C
P634,024.00
D
P324,895.00
Answer: P859,082.00
#393.
If money is worth 5% compounded s annually, find the present value sequence of 12 semi-annual payments of P500 each, the first of which is due at the end of 4 ½ years.
A
P4,209.51
B
P5,038.29
C
P3,958.48
D
P4,936.39
Answer: P4,209.51
#394.
The CIT School of Engineering needs P20M to pay for the building renovation in 6 years. To generate this sum, a sinking fund consisting of four annual payments is established now. For tax purposes, no further payments will be made after four years. What are the necessary payments if money is worth 18% per annum?
A
1.834 M
B
2.754 M
C
3.162 M
D
4.186 M
Answer: 2.754 M
#395.
A businessman purchases a common stock worth P1,000 every year for a period of 10 yrs. At the end of the 10th year just after his last purchase, he sold all his stock to a prospective buyer for P12,000. Find the rate of return he received on the investment.
A
3%
B
4%
C
5%
D
8%
Answer: 4%
#396.
A business man invest P100,000 now and received two payments of P102,139 at the end of the 3rd year and one at the end of the 6th year, compute the rate of return for his investment.
A
14%
B
16%
C
18%
D
15%
Answer: 18%
#397.
An investor has an initial investment of P10,000 which yield P1769.84 per annum for 10 years. Compute the rate of return for his investment.
A
10%
B
12%
C
14%
D
16%
Answer: 12%
#398.
A printing press is considering buying a new offset machine which cost P80,000. The machine has a useful life of 20 year with a salvage value of P20,000. The annual operating cost is equal to P18,00. The offset machine will produce an annual savings in material of find the rate of return if the machine is installed?
A
6%
B
7%
C
8%
D
5%
Answer: 8%
#399.
A businessman invested P20,000 in a certain company. In return he receives P1,200 per year for 8 years and his P20,000 investment back at the end of 8 years. Compute the rate of return for his investment.