Na ne General Mathematics: Page 3 of 4 For 2425: John invested P120 000 in a bank which eamed P37 800 after 3 years 24. Who is the investor? A. John B. the bank C. both John and the bank D. not enough information 25. At what simple interest rate was the money invested? A. 0.09% C. 10% B. 9% D. 19% Sol'n: For 26 - 27: Fely invested P15 000 at 4% compounded quarterly for 12 year. 26. How much is the compound interest Sol'n: earned? A. P301.50 C. P609.06 B. P606 D. P1,224 27 What effective rate corresponds to the given nominal rate? A 3.94% C. 4.06% Sol'n: B4% D. 5% For 28 - 29: David deposited P2 500 for 2 years at 10% compounded annually and earned a compound interest of P525. 28. What is the future value of the deposit? A P525 B. P2 500 CP3 025 D. Not enough information Sol'n: 29. 11 David decided to withdraw the money after 1 year, how much is the interest? A P525 C. P2 500 BP750 D. P2 750 For 30 - 31: A hospital equipment was purchased on instalment by your company. Your company made a P150 000 down payment and made a regular payment of P10 000 every end of two months for five years 30. What kind of annuity is described in the problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. none of the above Sol'n: 31. What is the cash value of the equipment if money is worth 7% compounded bimonthly? (hint: bimonthly is every two months.) A P251 899.56 C. P401 899.56 BP356 739.03 D. P506 739.03 For 32 - 33: Marte bought a laboratory equipment with P25 000 down payment plus 18 months monthly payment of P2 500 each. If interest was computed at 9% compounded monthly, how much was the cash value if the first installment payment was made at the end of 6 months? 32. What kind of annuity is described in the problem? A Annuity Due B. Ordinary Annuity C. Deferred Annuity D. General Annuity 33 What is the answer to the question of the Solna problem? A P24 494.40 C. PB2 179.92 BP49 494 40 D. P90 500