Find The m aximum profit, given the foll owing profit versus -production
function for a cert ai n commodit y:
1.1
P = 200000 – x – (1+𝑥) 8 where P is t he profit and x is the unit of
production.
A.
B.
C.
D.
200,000
190,000
250,000
550,000
If 12% is compounded quart erl y, how m uch is the effective rate?
A.
B.
C.
D.
12.55 %
13 %
11.55 %
12.98 %
The sum of P15,000.00 was deposited in an account earning 4% per annum
compounded quarterl y and will becom e P18,302.85. What us the effective
rat e of interest per annum?
A.
B.
C.
D.
4.06
6.06
3.06
5.06
%
%
%
%
How much mone y should a m an invest in a fund pa ying 8 per cent annual
interest compounded continuousl y if he wants to use the m one y to bu y a Php
20,000 equipm ent in 4 years?
A.
B.
C.
D.
11,237.45
15,346.76
14,522.98
12,457.45
If a Mining Engineer borrowed m one y with simple int erest of 12%,
cal culat e the present worth of P75,000.00 which is due at the end of 7
months.
A.
B.
C.
D.
P72,200.20
P73,900.50
P70,093.50
P70,200.20
An el ect ric m otor has a cash pri ce of P8000. It can also be bought on
installment basis wit h down pa ym ent o f P2000 and with peri odic equal
pa yments at t he end of ever y 6 months for 5 years if interest i s fixed at 8%
compounded semi -annuall y, how much is each periodic pa ym ent?
A.
B.
C.
D.
439.56
739.75
874.32
122.56
Mr. Suave borrowed P50,000 from SSS, in form of cal amit y l oan, with
interest at 8% compounded quarterl y, payable in equal quart erl y
installments for 10 years. Find the quart erl y pa ym ents.
A.
B.
C.
D.
P4,827.80
P3,827.80
P1,827.80
P2,827.80
An Electri cal Engineer obtained a loan of P50,000.00 at the rate of 6%
compounded annuall y in order to repair his mistress’ house. How much must
the El ect rical Engi neer pa y monthl y to amortize the loan wit hin a peri od of
ten years?
A.
B.
C.
D.
P605.20
P550.90
P508.90
P505.90
If the salar y loan was for 15 months at 16.8% int erest a year and the
repa yment on a loan was P12,100.00, what was the pri ncipal amount?
A.
B.
C.
D.
P10,000.00
P8,500.00
P9,500.00
P10,500.00
A computerized s yst em cost s Php 900,000.00 and annual mai ntenance is Php
45,000.00. After 3 years, th e salvage val ue of the s ystem is P hp 150,000.00.
If the int erest rate is 8%, what is the equivalent uniform annual cost?
A.
B.
C.
D.
Php
Php
Php
Php
348,025.00
340.645.00
542,500.00
474,000.00
What amount must be deposited in a bank ever y 3 months i n a fund pa ying
12% compound quarterl y in order to have P25,000.00 in 8 ye ars?
A.
B.
C.
D.
P746.71
P700.00
P674.71
P476.17
If you invest P200,000 toda y to be repai d in five years in one lump sum at
18% int erest compounded annuall y. How much profit in present da y pesos is
realized over 5 years?
A.
B.
C.
D.
P457,551
P257,551
P247,896
P227,681
What is the amount t hat must be deposit ed ever y quarterl y in a fund pa ying
12% compounded quart erl y in order to have P25,000 i n 8 years ?
A.
B.
C.
D.
P674.71
P700.00
P476.17
P746.71
How much must be i nvested at the end of each mont h for 30 years in a
sinking fund that is to Php 2,500,000 at the end of 30 years i f interest is
nominal 4% compounded monthl y?
A.
B.
C.
D.
Php
Php
Php
Php
8,108,494
3,602
44,575
4,034
If J oanne borrowed mone y from his friend with simpl e int erest of 12%, what
is the present worth of P75,000.00, whi ch is due at the end of 7 months?
A.
B.
C.
D.
P72,200.20
P73,900.50
P70,200.20
P70,093.5
A stock certi ficate of a mini ng compan y guarant ees a divi dend of P100 at
the end of each year for 10 years and a fi nal additional pa ym ent at the end
of 10 years of P1,200. If mone y is worth 12% effective, what is the
certificat e worth now?
A.
B.
C.
D.
951.39
897.54
789.45
1095.54
A businessman appli ed a loan of P500,000.00 at the rat e of 6% com pounded
annuall y in order to bu y a service vehicl e. How much must t he pa y monthl y
to amortize the l oan within a period of ten years?
A.
B.
C.
D.
P6052.00
P5050.90
P5008.90
P5509.00
Determine the accumulated value of P2,000.00 in 5 years it is invest ed at
11% compounded quart erl y.
A.
B.
C.
D.
P4,304.00
P3,404.00
P3,044.00
P3,440.00
Determine the amount that must be deposited in a bank ever y 3 months in a
fund pa ying 12% compounded quart erl y in order to have P25,000 in 8 years?
A.
B.
C.
D.
P476.17
P700.00
P746.71
P674.71
A China m ade lat he machine was purchased under these t erm s: P30,000.00
down and P5,000.00 each month for 5 ye ars. If mone y is wort h 12%
compounded m onthl y, det ermine the cash price of the machi ne.
A.
B.
C.
D.
P542.775.91
P254,775.19
P144,775.19
P245,775.19
A factor y op erator bought a diesel generator set for P10,000 and agreed to
pa y the deal er uniform sum at the end of each year for 5 years at 8%
compounded annuall y, t hat the final pa yment will cancel the debt for
principal and int erest. What is the annual pa ym ent?
A.
B.
C.
D.
15
17
12
10
years
years
years
years
J en borrowed P2,000.00 from a local bank and agreed to pa y the loan at the
end of one year. The local bank discount ed the loan and gave her Php
1,950.00 in cash. Fi nd the rat e of dis count.
A.
B.
C.
D.
3.12 %
2.5 %
1.2 %
3.75 %
A compan y can manufacture a product with off -the-shelf hand tools. Fixed
cost will be Php 50,000.00 for t he tools and Php 75.00 m anufacturing cost
per unit. As an alt ernative, an autom ated syst em will cost Php 750,000.00
with a Php 25.00 manufacturing cost u nit . With annual antici pated volum e
of 5,000 units, how man y years to break -even?
A.
B.
C.
D.
2.8
2.0
15.0
3.6
One million pesos was placed in a time deposit that earns 9% compounded
quart erl y, tax free. After how man y years woul d it be abl e t o earn a tot al
interest of five hundred thousand pesos?
A.
B.
C.
D.
4.63
4.56
4.32
4.47
A manufacturer uses 1000 item s uniform l y throughout the ye ar. The cost t o
produce t he it ems in -house is Php 2000.00 for set -up and Php 260.00 per
item. Insurance and taxes are estimat ed as 12% of averag e inventor y, and it
costs Php 40.00 to st ore each unit for one compl ete year. How man y of
these it ems should t he manufacturer produce at a time?
A.
B.
C.
D.
276
237
435
209
An ai r conditioner is purchased for P150,000. Its estim ated li fe is 10 years,
aft er which it will be sold for P20,000. Find the depreciation for the second
year using the sum -of-the- years di git m et hod.
A.
B.
C.
D.
P20,732
P21,723
P21,273
P21,836
How much must be i nvested at the end of each mont h for 30 years in a
sinking fund to reach the amount of P2,500,00 0 at the end of 30 years if
interest is nomi nal 4% com pounded mont hl y?
A.
B.
C.
D.
P44,575
P3,602
P8,108,494
P4,034
The amount of P10,000 is borrowed at 30% per annum simpl e interest. How
much will be the due at the end of 130 days?
A.
B.
C.
D.
P11,083
P11,038
P11,830
P11,830
Determine the accumulated value of P200,000.00 in 5 years invest ed at 11%
compounded quarterl y.
A.
B.
C.
D.
P340,400.00
P344,000.00
P400,304.00
P300,440.00
What amount must be deposited in a bank ever y 3 months i n a fund pa ying
12% compounded quart erl y in order to ha ve P25,000.00 in 8 years?
A.
B.
C.
D.
P700.00
P746.00
P476.00
P674.00
If a Mining Engineer borrowed m one y with simple int erest of 12%,
cal culat e the present worth of P75,000.00 which is due at the end of 7
months.
A.
B.
C.
D.
P70,093.50
P73.900.50
P72,200.20
P70,200.20
The amount of P2, 82 5.00 in 8 years at 5% com pounded conti nuousl y is:
A.
B.
C.
D.
P4,214.40
P4,166.77
P4,188.56
P4,397.86
Each year, a machine loses 20% of the value it has been at the beginning of
the year. What is the ori ginal val ue of the machine if its value at t he end of
sixth year is 120,000 pesos?
A.
B.
C.
D.
Php
Php
Php
Php
572,205
715,256
457,764
366,211
The amount of P15,000.00 was deposit ed in a fund which earns 4% per
annum compounded quart erl y, will become P18,302.85. Find the effective
rat e of interest per year?
A.
B.
C.
D.
5.06
3.06
4.06
6.06
%
%
%
%
J en borrowed P200,000.00 from a local bank and agreed to pay the loan at
the end of one year. The local bank discounted the loan and gave her
P195,000.00 in cash. Find t he rat e of discount.
A.
B.
C.
D.
2.5 %
1.3 %
3.75 %
3.12 %
A China m ade lat he machine was purchased under these t erm s: P30,000.00
down and P5,000.00 each month for 5 ye ars. If mone y is wort h 12%
compounded m onthl y, det ermine the cash price of the machi ne?
A.
B.
C.
D.
P254,775.19
P542,775.91
P245,775.19
P144,775.19
Annie bu ys a tel evision set from a m erchant who offers P25,000.00 at the
end of 60 da ys. Anni e wishes to pa y imm ediat el y, and the m erchant offers
to comput e the requi red amount on the assumption that mone y is wort h 14%
interest. What is the required am ount?
A.
B.
C.
D.
P24,429.97
P19,222.67
P28,456.23
P20,234.87