#160.
Mr. Juan de la Cruz borrowed P1,000 and was able to signed a promissory note that he would pay P2,032.79 after 4 years. How much is the nominal rate of interest and the corresponding effective rate if money is compounded bi-monthly.
A
16%; 16.52%
B
18%; 19.40%
C
17%; 17.4%
D
15%; 15.6%
Answer: 18%; 19.40%
#161.
Determine the effective interest rate of P1.00 for one year compounded semi-annually at a nominal rate of 6%.
A
6.20%
B
6.09%
C
7.02%
D
5.90%
Answer: 6.09%
#162.
Compute the effective rate of interest corresponding to each of the following interest rate. If you invest your money which would you prefer?
A
12% compounded quarterly
B
12% compounded monthly
C
12% compounded bi-monthly
D
12% compounded daily
Answer: 12% compounded daily
#163.
Which is better to invest your money at the rate of 12%
A
12% compounded monthly
B
12% compounded semi-annually
C
12% compounded bi-monthly
D
12% compounded daily
Answer: 12% compounded monthly
#164.
A businessman wants to have P500,000 four years from now. What amount should he invest now if it will earn interest of 6% compounded quarterly for the first 2 years and 8% compounded semi-annually during the next 2 years.
A
P379,409.60
B
P561,895.55
C
P420,539.68
D
P510,485.45
Answer: P379,409.60
#165.
A businessman invested P1,000 and after 4 years, it becomes P1,608.44 when he invested at a certain rate of interest compounded bi-monthly. Determine the nominal rate and the corresponding effective rate.
A
12%; 13.40%
B
14%; 14.6%
C
12%;12.62%
D
14%; 14.8%
Answer: 12%;12.62%
#166.
If P10,000 is borrowed now at 6% interest, how much will remain to be paid after a P3,000 payment is made four years now?
A
P6824.77
B
P9624.77
C
P6896.24
D
P7844.24
Answer: P9624.77
#167.
A businessman invests P100,000 right now. He then received two payments P109,460 one at the end of 3 years and one at the end of the 6th year. Calculate the return on investment.
A
15%
B
12%
C
18%
D
20%
Answer: 20%
#168.
The VISA CREDIT CARD charges 2% interest per month on the unpaid balance for purchases made on this card. Compute the effective rate of interest.
A
24.14%
B
19.83%
C
26.82%
D
18.42%
Answer: 26.82%
#169.
A man purchases government bonds at P750 each which mature in 10 years and have a face value of P1000 at the end of 10 years. Determine the average nominal interest rate earned by the purchase price of P750 assuming nominal compounding.
A
2.90%
B
2.98%
C
2.92%
D
3.10%
Answer: 2.92%
#170.
How long will it take money to double itself if invested at 5% compounded annually?
A
7 years
B
28 years
C
14 years
D
21 years
Answer: 14 years
#171.
If P5000 shall accumulate for 10 years at 8% compounded quarterly the compound interest at the end of 10 years is:
A
P6,040
B
P6,400
C
P60,404
D
P64,040
Answer: P6,040
#172.
Find the compound amount and interest if P2500 is invested at 8% compounded quarterly for 5 years and 6 months.
A
P7,200.55
B
P3,864.95
C
P3,864.95
D
P3,975.25
Answer: P3,864.95
#173.
An amount of P1000 becomes P1608.44 after 4 years compounded bimonthly. Find the nominal interest.
A
12.62%
B
12%
C
14.64%
D
15%
Answer: 12%
#174.
The amount of P5,000 was deposited in the bank earning an interest of 7.5% per annum. Determine the total amount at the end of 5 years, if the principal and interest were not withdrawn during the period?
A
P71,781.47
B
P72,475.23
C
P70,374.90
D
P78,536.34
Answer: P71,781.47
#175.
What is the corresponding effective rate of 18% compounded semi-quarterly?
A
19.25%
B
19.48%
C
18.46%
D
18.95%
Answer: 19.48%
#176.
In how many years is required for P2000 to increase by P3000 if interest at 12% compounded semi-annually?
A
8
B
9
C
20
D
7
Answer: 8
#177.
Find the present worth of a future payment of P100,000 to be made in 10 years with an interest of 12% compounded quarterly.
A
P30,444.44
B
P33,000.00
C
P30,655.68
D
P30,546.01
Answer: P30,655.68
#178.
Find the nominal rate which if converted quarterly could be used instead of 12% compounded semi-annually.
A
14.02%
B
21.34%
C
11.83%
D
11.29%
Answer: 11.83%
#179.
What nominal rate, compounded semi-annually, yields the same amount as 16% compounded quarterly?