#120.
Which method is the best for an investor, to invest at 5% compounded semi-annually or 5% compounded monthly?
A
Semi-annually
B
Compounded monthly
C
Quarterly
D
Yearly
Answer: Semi-annually
#121.
An additional investment of P20,000 will be required at the end of the year. The project would terminate at the end of the fifth year, and the assets are estimated to have a salvage value of P25,000 at that time. Is this a good investment?
A
This is not a good investment; the rate is smaller than 6%
B
This is a good investment; the rate is bigger than 6%.
C
This is good investment; the rate is less than 6%
D
None of these
Answer: This is not a good investment; the rate is smaller than 6%
#122.
For instance, you have P10,000 invested in your savings bank account, it is earning 12% interest compounded annually. Determine how many years your money will be doubled.
A
6.13
B
6.20
C
6.12
D
7.10
Answer: 6.12
#123.
What is the value of a bank account at the end of 25 years if the initial deposit is P1000.00? The interest rate is 7% per annum. Assume that there is no further deposit made after the first year.
A
P6554.40
B
P5783.25
C
P5342.60
D
P5427.43
Answer: P5427.43
#124.
The present worth of several future cash payments may be defined as the sum of the values of the future payments may be defined as the sum of the values of the future payments discounted at a given rate for the corresponding period to the present. Find the present value of installment payments of P1,000 now, P2,000 at the end of second year, if money is worth 10% compounded annually.
A
P11,717.85
B
P18,398.25
C
P17,117.45
D
P10,771.35
Answer: P11,717.85
#125.
Accumulate P300 for 9 years at 6% compounded quarterly. What is the compound interest earned?
A
P2127.42
B
P3592.30
C
P4285.70
D
P7841.11
Answer: P2127.42
#126.
How long will it take P5 to be four times its value if invested at the rate of 7% compounded semi-annually? What is the effective rate of interest?
A
47 years; 7.40%
B
45 years; 8.10%
C
41 years; 7.12%
D
50 years; 9.02%
Answer: 41 years; 7.12%
#127.
If P25,000 is invested at 8% interest compounded quarterly, how many years will it take for this amount to accumulate P45,000?
A
7.5 years
B
8.5 years
C
8 years
D
9.8 years
Answer: 7.5 years
#128.
How long will it take money to triple itself in invested at 8% compounded annually?
A
20
B
16
C
17
D
15
Answer: 15
#129.
Five years ago, you paid P34,000 for a house. If you sold it today for P50,000, what would be your annual rate of appreciation?
A
8.018%
B
9.027%
C
8.090%
D
9.020%
Answer: 8.018%
#130.
Compute the value of P100,000 5 years ago if the single payment present worth factor is 0.74726.
A
P75,843
B
P74,726
C
P75,423
D
P81,521
Answer: P74,726
#131.
Ten years ago, the value of money is P120,000 and now it is worth P179,000. Compute the value of the single payment amount factor.
A
1.492
B
1.6231
C
0.9362
D
0.8472
Answer: 1.492
#132.
If a sum of money triples in a certain period of time at a given rate of interest, compute the value of the single payment present worth factor.
A
0.333
B
3
C
0.292
D
1.962
Answer: 0.333
#133.
If the single payment amount factor for a period of 5 years is 1.33822. What is the nearest value of the interest rate?
A
8%
B
7%
C
5.10%
D
6%
Answer: 6%
#134.
If the single payment present worth factor for a period of 8 years is equal to 0.58201, compute the nearest value of the rate of interest for that period.
A
6%
B
7%
C
6.5%
D
8%
Answer: 7%
#135.
If money is worth 8% compounded quarterly, compute the single payment amount factor for a period of 6 years.
A
1.60844
B
0.62172
C
1.70241
D
0.53162
Answer: 1.60844
#136.
What is the difference of the amount 3 years from now for a 10% simple interest and 10% compound interest per year?
A
P155
B
P100
C
Same
D
P50
Answer: P155
#137.
Find the discount if P2,000 is discounted for 6 months at 8% compounded quarterly.
A
P76.92
B
P80
C
P77.66
D
P78.42
Answer: P77.66
#138.
I owe P10,000 due at the end of 3 years without interest. What should my creditor be willing to accept today if he discounts at 7% compounded annually?
A
P8,162.98
B
P8,264.46
C
P7,900
D
P7,162.48
Answer: P8,162.98
#139.
P500,000 was deposited at an interest of 6% compounded quarterly. Compute the compound interest after 4 years and 9 months.