#100.
An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?
A
21.81%
B
7.71%
C
7.22%
D
15.78%
Answer: 7.71%
#101.
Fifteen years ago, P1,000.00 was deposited in a bank account, and today it is worth P2,370.00. The bank pays interest rate paid on this account?
A
4.9%
B
5.8%
C
5.0%
D
3.8%
Answer: 5.8%
#102.
You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. Compare how much money you will save or lose on the transaction.
A
You will pay P155.00 more than if you borrowed from the bank
B
You will save P55.00 by borrowing from your friend
C
You will pay P85.00 more than if you borrowed from the bank
D
You will pay P55.00 less than if you borrowed from the bank
Answer: You will pay P55.00 less than if you borrowed from the bank
#103.
P200,000 was deposited on Jan. 1, 1988 at an interest rate of 24% compounded semi-annually. How much would the sum be on Jan. 1, 1993?
A
P421,170
B
P521,470
C
P401,170
D
P621,170
Answer: P621,170
#104.
If P500,000 is deposited at a rate of 11.25% compounded monthly, determine the compounded interest after 7 years and 9 months.
A
P690,849
B
P670,849
C
P680,849
D
P960,592
Answer: P690,849
#105.
How much should you put into a 10% savings account in order to have P10,000.00 in five years?
A
P8,200.00
B
P7,209.00
C
P7,000.00
D
P6,209.21
Answer: P6,209.21
#106.
A company invest P10,000 today to be repaid in 5 years in one lumpsum at 12% compounded annually. How much profit in present day pesos is realized over 5 years?
A
P5626
B
P7623
C
P3202
D
P5202
Answer: P7623
#107.
A bank is advertising 9.5% accounts that yields 9.84% annually. How often is the interest compounded?
A
Monthly
B
Bi-monthly
C
Quarterly
D
Daily
Answer: Quarterly
#108.
A loan of P500 is made for a period of 15 months at a simple interest rate of 15%. What future amount is due at the end of the loan period?
A
P5637.50
B
P5900.90
C
P5937.50
D
P5842.54
Answer: P5937.50
#109.
P500,000 was deposited 20.15 years ago at an interest rate of 7% compounded semi-annually. How much is the sum now?
A
P1.4M
B
P1.6M
C
P1.8M
D
P2.0M
Answer: P2.0M
#110.
Alexander Michael owes P25,000 due one year and P75,000 due in 4 years. He agrees to pay P50,000 today and the balance in two years. How much must he pay at the end of two years if money is worth 5% compounded semi-annually?
A
P103992.34
B
P395035.32
C
P520130.30
D
P420146.10
Answer: P103992.34
#111.
If money is worth 5% compounded quarterly find the equated time for paying a loan of P150,000 due in 1 year and P280,000 due in 2 years.
A
1.70 years
B
1.80 years
C
1.66 years
D
1.59 years
Answer: 1.66 years
#112.
For a loan acquired six years ago, a man paid out the amount of P75,000. The interest was computed at 18% compounded annually. How much was the borrowed amount?
A
P27782.36
B
P27037.45
C
P42342.20
D
P32951.54
Answer: P27782.36
#113.
A man who won P300,000 in a lottery decided to place 50% of his winning in a trust fund for the college education of his son. If the money will earn 14% per year compounded quarterly, how much will the man have at the end of 10 years when his son will be starting his college education?
A
P593,888.96
B
P487,224.68
C
P539,868.35
D
P488,847.26
Answer: P593,888.96
#114.
A couple decided that for every child that will be born to them they will place a deposit in the bank so that on the child’s 18th birthday, the child will receive the amount of P300,000.00. If the bank will pay an interest of 18% compounded yearly, how much deposit will the couple to have to make on the birth of a child to them?
A
P15,249.13
B
P12492.18
C
P14394.28
D
P16,928.58
Answer: P15,249.13
#115.
A rich man put up a trust fund in the bank with instructions to give his son the earnings of P400,000.00 at the end of every four years and to continue until the twentieth year of the deposit when the son could get the P400,000.00 earning and the principal. What is the amount of money placed in the trust fund if guaranteed interest is 16% per year?
A
P467,980.20
B
P469,342.32
C
P520,435.38
D
P468,081.15
Answer: P468,081.15
#116.
If the sum P15,000 is deposited in an account earning 4% per annum compounded quarterly, what will be the deposited amount at the end of 5 years?
A
P18302.85
B
P13820.25
C
P12490.75
D
P19020.55
Answer: P18302.85
#117.
The Phil. Society of Mechanical Engineers is planning to put up its own building. Two proposals being considered are:
A. The construction of the building now, to cost P400,000.00
B. The construction of a smaller building now, to cost P300,000.00 and at the end of 5 years, an extension to be added to cost P200,000.00.
Which proposal is more economical, if interest rate is 20%, depreciation to be neglected and by how much?
A
P20,630.55
B
P19,760.55
C
P19,624.50
D
P21,540.69
Answer: P19,624.50
#118.
The sum of P26,000 was deposited in a fund earning interest at 8% per annum compounded quarterly. What was the principal in the fund at the end of 3 years?
A
P33,897.30
B
P32,974.29
C
P34,546.43
D
P36,342.80
Answer: P32,974.29
#119.
Mr. W borrowed P2,000.00 Mr. Y one June 1,1928 and P500 on June 1, 1930, agreeing that the money is worth 5% compounded annually. Mr. W paid P500 on June 1, 1933. What additional sum should Mr. W pay on June 1, 1936 to discharge all remaining liability?