1. A man was offered a bank certificate with a face value of P100,000 which is baring 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 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 have been maintained during its 3 years of operation by 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 years 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. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?