$1.$ What is the MOST nearly effective annual interest rate on a loan if the nominal

interest rate is $9\%$ per year compounded quarterly?

A$.9\mathrm{.}52\%$ B$.9\mathrm{.}84\%$ C$.9\mathrm{.}68\%$ D$.9\mathrm{.}31\%$

$2.$ Find the amount of P$30,000$ at $6\%$ simple interest after $5$ years.

A$.$ P$39,000$ B$.$ P$40,000$ C$.$ P$41,000$ D$.$ P$42,000$

$3.$ My Johnson borrows $ $100,000$ at $10\%$ effective annual interest. He must pay back

the loam over $30$ years with uniform monthly payments due on the first day of each

month. What does Mr$.$ Johnson pay each month?

A$.$ $$839$ B$.$ $$846$ C$.$ $$870$ D$.$ $$884$

$4.$ The rate of return for a $10,000$ investment that will yield $1,000$ per year for $20$

years is closest to

A$.2\%$ B$.4\%$ C$.8\%$ D$.16\%$

$5.$ A price tag of $1,200$ is payable in $60$ days but if paid within $30$ days it will have a $3$

percent discount. Find the rate of interest.

A$.36\mathrm{.}33\%$ B$.36\mathrm{.}12\%$ C$.37\mathrm{.}66\%$ D$.37\mathrm{.}11\%$

$6.$ How long in nearest years$)$ will it take money to quadruple if it earns $7\%$

compounded semi$-$annually?

A$.20$ B$.18$ C$.21$ D$.19$

$7.$ If P$5,000$ shall accumulate for $10$ years at $8\%$ quarterly, then what is the compound

interest at the end of $10$ years?

A$.$ P$6,080\mathrm{.}40$ B$.6,020\mathrm{.}40$ C$.$ P$6,040\mathrm{.}20$ D$.$ P$6,060\mathrm{.}20$

$8.$ An asset is purchased for P $120,000,00.$ Its estimated life is $10$ years, after which it

will be sold for P $12,000,00.$ Find the depreciation for the second year using SOYD

method.

A$.$P $17,673$ B$.17,637$ C$.$ P $18,236$ D$\mathrm{.}18,326$

$9.$ A student will receive P $3,000$ at the beginning of each $3$ months for $4$ years. What is

the sum of this annuity of the end of the $4$th year if the interest rate is $6\%$

compounded quarterly?

A$.$ P $45,604$ B$.$ P $54,604$ C$.$ P $64\mathrm{.}620$ D$.$ P $46,690$

$11.$ A equipment cost P$10,000$ with a salvage value of P$500$ at the end of $10$ years.

Calculate the annual depreciation cost by sinking fund method at $4\%$ interest.

A$.791\mathrm{.}26$ B$.729\mathrm{.}28$ C$.854\mathrm{.}62$ D$.896\mathrm{.}48$

$12.$ A man paid a $10\%$ down payment of P$2,000,000$ for a house and lot and agreed to

pay the balance on monthly installments for $5$ years at an interest rate of $15\%$

compounded monthly. What is the monthly installment in pesos?

A$.44,528\mathrm{.}34$ B$.42,821\mathrm{.}87$ C$.43,625\mathrm{.}92$ D$.45,365\mathrm{.}78$

$13.$ In how many years will P$100000$earned as compound interest of P$50000$ if the

interest rate is $9\%$ compounded quarterly?

A$.3\mathrm{.}5$ B$.4\mathrm{.}5$ C$.5\mathrm{.}56$ D$\mathrm{.}2\mathrm{.}11$

$14.$ A loan of P$5000$ is made for a period of $15$ months, at a simple interest of $15\%,$ what

future amount is due at the end of the loan period?

A$.$ P$5937\mathrm{.}5$ B$.$ P$5870\mathrm{.}3$ C$.$ P$5712\mathrm{.}40$ D$.$P$5690\mathrm{.}12$

$15.$ Mr$.$ Bacani borrowed money from the bank. He received from the bank P$1842$ and

promise to repay P$2000$ at the end of $10$mos, determine the rate of simple interest.

A$.12\mathrm{.}19\%$ B$.12\mathrm{.}03\%$ C$.11\mathrm{.}54\%$ D$\mathrm{.}10\mathrm{.}29$

$16.$ What rate of interest compound annually is the same as the rate of interest of $8\%$

compounded quarterly?

A$.8\mathrm{.}07\%$ B$.8\mathrm{.}12\%$ C$.8\mathrm{.}16\%$ D$\mathrm{.}8\mathrm{.}24\%$

$17.$ An amount of P$1000$ becomes P$1608\mathrm{.}44$ after $4$years compounded bimonthly. Find

the nominal rate.

A$.11\mathrm{.}69\%$ B$.12\mathrm{.}00\%$ C$.12\mathrm{.}08\%$ D$.12\mathrm{.}32$

$17.$ How long will it take money to double itself if invested at $5\%$ compounded annually?

A$.13\mathrm{.}7$ years B$.14\mathrm{.}7$ years C$.14\mathrm{.}2$ years D$\mathrm{.}15\mathrm{.}3$ years

$18.$ What annuity is required over $12$ years to equate with a future amount of P$20,000?$

Assume i $=6\%$ annually

A$.$ P$1,290\mathrm{.}34$ B$.$ P$1,185\mathrm{.}54$

C$.$ P$1,107\mathrm{.}34$ D$.$ P$1,205\mathrm{.}74$

$19.$ How much should you put into a $7\mathrm{.}9\%$ savings account in order to have $$175,000$ in

$63$ years?

A$.$ $$1,541\mathrm{.}55$ B$.$ $$1,454\mathrm{.}41$ C$.$ $$1,342\mathrm{.}21$ D$.$ $$1,356\mathrm{.}32$

$20.$ A type of annuity where the payments are made at the start of each period,

beginning from the first period

A$.$ Ordinary annuity C$.$ Deferred annuity

B$.$ Annuity due D$.$ Perpetuity

$21.$ At an annual rate of return of $8$ percent, what is the future worth of $$100$ at the end

of four years?

A$.$ $ $130$ B$.$ $ $132$ C$.$ $ $135$ D$.$ $ $136$

$22.$ If you borrow money from your friend with, simple interest of $12$ percent, find the

present worth of P$20,000$ which is due at the end of nine months

A$.$ P$18,992\mathrm{.}08$ B$.$ P$18,782\mathrm{.}18$ C$.$ P$18,348\mathrm{.}62$ D$.$ P$18,120\mathrm{.}45$

$23.$ A load of P$5,000$ is made for a period of $15$ months, at a simple interest rate of $15$

percent, what future amount is due at the end of the loan period?

A$.$ P$5,937\mathrm{.}50$ B$.$ P$5,873\mathrm{.}20$ C$.$ P$5,712\mathrm{.}40$ D$.$ P$5,690\mathrm{.}12$

$24.$ A machine has an initial cost of P$50,000\mathrm{.}00$ and a salvage value of P$10,000\mathrm{.}00$ after

$10$ years. What is the book value after $5$ years using straight line depreciation?

A$.$ P$35,000\mathrm{.}00$ B$.$ P$25,000\mathrm{.}00$ C$.$ P$15,000\mathrm{.}00$ D$.$ P$30,000\mathrm{.}00$

$25.$ A loan of P$4,000$ is made for a period of $16$ months at a simple discount rate of $7$

percent, what future amount is due at the end of the loan period?

A$.$ P$3,635\mathrm{.}18$ B$.$ P$3,598\mathrm{.}57$ C$.$P$4446\mathrm{.}22$ D$.$P$4411\mathrm{.}76$

$26.$ A man borrowed P$2,000$ from a bank and promised to pay the amount for one year.

He received only the amount of P$1,920$ after the bank collected an advance interest

of P$80\mathrm{.}00.$ What is the rate of discount?

A$.4\mathrm{.}17$ B$.4\mathrm{.}00$ C$\mathrm{.}3\mathrm{.}67$ D$.4\mathrm{.}50$

$27.$ A machine is under consideration for investment. The cost of machine is P$25,000.$

Each of year it operates, the machine will generate a saving of P$15,000.$ Given an

effective annual interest of $18\%,$ what is the discount payback period, in year, on the

investment of the machine?

A$.1\mathrm{.}566$ B$.2\mathrm{.}233$ C$.2\mathrm{.}155$ D$.2\mathrm{.}607$

$28.$A price tag of P$1,450$ is paid in $70$days, but if paid within $35$days, it will have a $5\%$

discount. Find the rate of interest.

A$.52$ percent B$.54$ percent C$.57$ percent D$.36$ percent

$29.$ A machine has an initial cost of P$50,000$ and a salvage value of P$10,000$ after $10$ years. What is the straight$-$line method depreciation rate as a percentage of the initial cost?

A$.7\%$ B$.8\%$ C