1. A man was offered a bank certificate with a face value of P100,000 which is bearing interest of 8% per year payable semi-annually and due in 6 years. If he wants to earn 6% semi-annually, how much must he pay for the certificate?

2. A P110,00 chemical plant had an estimated life of 6 years and a projected scrap value of P10,000. After 3 years of operation, an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P150,000 if a depreciation reserved has been maintained during its 3 years of operation by the sinking fund method?

3. The corporation purchased a machine for 1 million pesos. Freight and installation charges amounted to 3% of the purchase price. If the machine shall be depreciated over a period of 8 years with a salvage value of 12%. Determine the depreciation charge during the 5th year using the sum of the year's digit method.

4. A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of 6 years. The depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?