1. First Benchmark Publishing’s gross margin is 50% of sales. C. 25.0 % A. 3.

67 %
The operating costs of the publishing are estimated at 15% of
sales. If the company is within the 40% tax bracket, determine the D. 25.8 % B. 4.00 %
percent of sales is their profit after taxes?
A. 21 %* View Answer: C. 4.15 %
B. 20 % Answer: Option C
C. 19 % D. 4.25 %
D. 18 % Explanation:
View Answer:
2. A farmer selling eggs at 50 pesos a dozen gains 20%. If he 6. A loan of P5,000 is made for a period of 15 months, at a simple Answer: Option B
sells the eggs at the same price after the costs of the eggs rises interest rate of 15%, what future amount is due at the end of the
by 12.5%, how much will be his new gain in percent? loan period? Explanation:
A. 6.89 %
B. 6.65 %* A. 5,937.50 9. It is the practice of almost all banks in the Philippines that when
C. 6.58 % they grant a loan, the interest for one year is automatically
D. 6.12 % B. 5,873.20 deducted from the principal amount upon release of money to a
borrower. Let us therefore assume that you applied for a loan with
3. A feasibility study shows that a fixed capital investment of C. 5,712.40 a bank and the P80,000 was approved at an interest rate of 14%
P10,000,000 is required for a proposed construction firm and an of which P11,200 was deducted and you were given a check of
estimated working capital of P2,000,000. Annual depreciation is D. 5,690.12 P68,800. Since you have to pay the amount of P80,000 one year
estimated to be10% of the fixed capital investment. Determine the after, what then will be the effective interest rate?
rate of return on the total investment if the annual profit is View Answer:
P3,500,000. Answer: Option A A. 16.02 %
A. 28.33 %
B. 29.17 %* Explanation: B. 16.28 %
C. 30.12 %
D. 30.78 % 7. Mr. Bacani borrowed money from the bank. He received from C. 16.32 %
the bank P1,842 and promised to repay P2,000 at the end of 10
4. The monthly demand for ice cans being manufactured by Mr. months. Determine the rate of simple interest. D. 16.47 %
Camus is 3200 pieces. With a manual operated guillotine, the unit
cutting cost is P25.00. An electrically operated hydraulic guillotine A. 12.19 % View Answer:
was offered to Mr. Camus at a price of P275,000.00 and which Answer: Option B
cuts by 30% the unit cutting cost. Disregarding the cost of money, B. 12.03 %
how many months will Mr. Camus be able to recover the cost of Explanation:
the machine if he decides to buy now? C. 11.54 %
A. 10 months 10. A man invested P110,000 for 31 days. The net interest after
B. 11 months D. 10.29 % deducting 20% withholding tax is P890.36. Find the rate of return
C. 12 months* annually.
D. 13 months View Answer:
Answer: Option D A. 11.50 %
5. Engr. Trinidad loans from a loan firm an amount of P100,000
with a rate of simple interest of 20% but the interest was deducted Explanation: B. 11.75 %
from the loan at the time the money was borrowed. If at the end of
one year, she has to pay the full amount of P100,000, what is the 8. A college freshman borrowed P2,000 from a bank for his tuition C. 11.95 %
actual rate of interest? fee and promised to pay the amount for one year. He received
A. 23.5 % only the amount of P1,920 after the bank collected the advance D. 12.32 %
B. 24.7 % interest of P80.00. What was the rate of discount?
View Answer: A. 13.15 % A. 9.01 %
Answer: Option B
B. 13.32 % B. 9.14 %
Explanation:
C. 13.46 % C. 9.31 %
11. A investor wishes to earn 7% on his capital after payment of
taxes. If the income from an available investment will be taxed at D. 13.73 % D. 9.41 %
an average rate of 42%, what minimum rate of return, before
payment of taxes, must the investment offer to be justified? View Answer: View Answer:
Answer: Option D Answer: Option B
A. 12.07 %
Explanation: Explanation:
B. 12.34 %
14. The exact simple interest of P5,000 invested from June 21, 17. What is the effective rate corresponding to 18% compounded
C. 12.67 % 1995 to December 25, 1995 is P100. What is the rate of interest? daily? Take 1 year is equal to 360 days.

D. 12.87 % A. 3.90 % A. 19.61 %

View Answer: B. 3.92 % B. 19.44 %

Answer: Option A
C. 3.95 % C. 19.31 %
Explanation:
D. 3.98 % D. 19.72 %
12. Mr. Jun Ramos was granted a loan of P20,000 by his
employer Excel First Review and Training Center, Inc. with an View Answer: View Answer:
interest of 6% for 180 days on the principal collected in advance. Answer: Option A Answer: Option D
The corporation would accept a promissory note for P20,000 non-
interest for 180 days. If discounted at once, find the proceeds of Explanation: Explanation:
the note.
15. What is the ordinary interest on P1,500.50 for 182 days at 18. What rate of interest compounded annually is the same as the
A. P18,000 5.2%? rate of interest of 8% compounded quarterly?

B. P18,900 A. P39.01 A. 8.07 %

C. P19,000 B. P39.82 B. 8.12 %

D. P19,100 C. P39.45 C. 8.16 %

View Answer: D. P39.99 D. 8.24 %

Answer: Option A
View Answer: View Answer:
Explanation: Answer: Option C Answer: Option D

13. Miss Evilla borrowed money from a bank. She receives from Explanation: Explanation:
the bank P1,340.00 and promised to pay P1,500.00 at the end of
9 months. Determine the corresponding discount rate or often 16. A loan for P50,000 is to be paid in 3 years at the amount of 19. Which of these gives the lowest effective rate of interest?
referred to as the “banker’s discount”. P65,000. What is the effective rate of money?
A. 12.35% compounded annually
B. 11.90% compounded annually A. 11.23 years 25. A student plans to deposit P1,500 in the bank now and
another P3,000 for the next 2 years. If he plans to withdraw
C. 12.20% compounded annually B. 11.46 years P5,000 three years from after his last deposit for the purpose of
buying shoes, what will be the amount of money left in the bank
D. 11.60% compounded annually C. 11.57 years after one year of his withdrawal? Effective annual interest rate is
10%.
View Answer: D. 11.87 years
Answer: Option D A. P1,549.64
View Answer:
Explanation: Answer: Option C B. P1,459.64

20. An amount of P1,000 becomes P1,608.44 after 4 years Explanation: C. P1,345.98

compounded bimonthly. Find the nominal interest.
23. A sum of P1,000 is invested now and left for eight years, at D. P1,945.64
A. 11.89% which time the principal is withdrawn. The interest has accrued is
left for another eight years. If the effective annual interest rate is View Answer:
B. 12.00% 5%, what will be the withdrawal amount at the end of the 16th Answer: Option A
year?
C. 12.08% Explanation:
A. P693.12
D. 12.32% 26. You borrow P3,500.00 for one year from a friend at an interest
B. P700.12 rate of 1.5% per month instead of taking a loan from a bank at a
View Answer: rate of 18% per year. How much lesser you will pay by borrowing
Answer: Option B C. P702.15 the money from the bank?

Explanation: D. P705.42 A. P 62.44

21. How long will it take money to double itself if invested at 5% View Answer: B. P44.55
compounded annually? Answer: Option D
C. P54.66
A. 13.7 years Explanation:
D. P37.56
B. 14.7 years 24. Mandarin Bank advertises 9.5% account that yields 9.84%
annually. Find how often the interest is compounded. View Answer:
C. 14.2 years Answer: Option C
A. Monthly
D. 15.3 years Explanation:
B. Bimonthly
View Answer: 27. What is the present worth of two P 100 payments at the end of
Answer: Option C C. Quarterly the third year and fourth year? The annual interest rate is 8%.

Explanation: D. Annually A. P 150.56

22. By the condition of a will, the sum of P20,000 is left to a girl to View Answer: B. P 152.88
be held in trust fund by her guardian until it amounts to P50,000. Answer: Option C
When will the girl receive the money if fund invested at 8% C. P 153.89
compounded quarterly? Explanation:
D. P 151.09 B. The construction of a smaller building now to cost P300,000 View Answer:
and at the end of 5 years, an extension to be added to cost P Answer: Option B
View Answer: 200,000.
Answer: Option B Explanation:
By how much is proposal B more economical than proposal A if
Explanation: interest rate is 20% and depreciation to be neglected? 33. A factory operator bought a diesel generator set for P
10,000.00 and agreed to pay the dealer uniform sum at the end of
28. A firm borrows P2,000 for 6 years at 8%. At the end of 6 A. P 19,122.15 each year for 5 years at 8% interest compounded annually, that
years, it renews the loan for the amount due plus P2,000 more for the final payment will cancel the debt for principal and interest.
2 years at 8%. What is the lump sum due? B. P 19,423.69 What is the annual payment?

A. P 3,260.34 C. P 19,518.03 A. P 2,500.57

B. P 3,280.34 D. P 19,624.49 B. P 2,544.45

C. P 3,270.34 View Answer: C. P 2,540.56

Answer: Option D
D. P 3,250.34 D. P 2,504.57
Explanation:
View Answer: View Answer:
Answer: Option A 31. What is the present worth of a P500 annuity starting at the Answer: Option D
end of the third year and continuing to the end of the fourth year, if
Explanation: the annual interest rate is 10 %? Explanation:

29. In year zero, you invest P 10,000.00 in a 15% security for 5 A. P 727.17 34. What is the present worth of a year annuity paying P 3,000.00
years. During that time, the average annual inflation is 6%. How at the end of each year, with interest at 8% compounded
much in terms of year zero pesos will be in the account at B. P 717.17 annually?
maturity?
C. P 714.71 A. P 7,654.04
A. P 15,030.03
D. P 731.17 B. P 7,731.29
B. P 20,113.57
View Answer: C. P 7,420.89
C. P 18,289.05 Answer: Option B
D. P 7,590.12
D. P 16,892.34 Explanation:
View Answer:
View Answer: 32. What annuity is required over 12 years to equate with a future Answer: Option B
Answer: Option A amount of P 20,000? Assume i= 6% annually.
Explanation:
Explanation: A. P 1,290.34
35. A man loans P 187,400 from a bank with interest at 5%
30. The institute of Electronics and Communications Engineers of B. P 1,185.54 compounded annually. He agrees to pay his obligations by paying
the Philippines (IECEP) is planning to put up its own building. Two 8 equal annual payments, the first being due at the end of 10
proposals being considered are: C. P 1,107.34 years. Find the annual payments.

A. The construction of the building now to cost P 400,000 D. P 1,205.74 A. P 43,600.10

B. P 43,489.47 savings account which earned 10% per annum. How much is in
the account at the end of the 4th year? 41. A VOM has a selling price of P 400. If its selling price is
C. P 43,263.91 expected to decline at a rate of 10% per annum due to
A. P 4,880.00 obsolescence, what will be its selling price after 5 years?
D. P 43,763.20
B. P 4,820.00 A. P 222.67
View Answer:
Answer: Option D C. P 4,860.00 B. P 212.90

Explanation: D. P 4,840.00 C. P 236.20

36. A person buys a piece of lot for P 100,000 downpayment and View Answer: D. P 231.56
10 deferred semi-annual payments of P 8,000 each, starting three Answer: Option C
years from now. What is the present value of the investment if the View Answer:
rate of interest is 12% compounded semi-annually? Explanation: Answer: Option C

A. P 142,999.08 39. A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. Explanation:
What is the rate of interest of this investment?
B. P 143,104.89 42. A machine costs of P 8,000 and an estimated life of 10 years
A. 3.0% with a salvage value of P 500. What is its book value after 8 years
C. P 142,189.67 using straight line method?
B. 3.4%
D. P 143,999.08 A. P 2,000.00
C. 3.7%
View Answer: B. P 2,100.00
Answer: Option D D. 4.0%
C. P 2,200.00
Explanation: View Answer:
Answer: Option A D. P 2,300.00
37. A young engineer borrowed P 10,000 at 12% interest and paid
P 2,000 per annum for the last 4 years. What does he have to pay Explanation: View Answer:
at the end of the fifth year in order to pay off his loan? Answer: Option A
40. A P 1, 000, 6% bond pays dividend semiannually and will be
A. P 6,999.39 redeemed at 110% on June 21, 204. It is bought on June 21, Explanation:
2001 to yield 4% interest. Find the price of the bond.
B. P 6,292.93 43. ABC Corporation makes it a policy that for any new equipment
A. P 1,122.70 purchased, the annual depreciation cost should not exceed 20%
C. P 6,222.39 of the first cost at any time with no salvage value. Determine the
B. P 1,144.81 length of service life necessary if the depreciation used is the SYD
D. P 6,922.93 method.
C. P 1,133.78
View Answer: A. 7 eyars
Answer: Option D D. P 1,155.06
B. 8 years
Explanation: View Answer:
Answer: Option B C. 9 years
38. Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the
end of the 2nd year, 3rd year and 4th year, respectively in a Explanation: D. 10 years
 Answer: Option A
View Answer: A. $ 5,000,000.00
Answer: Option C Explanation:
B. $ 5,010,000.00
Explanation: 49. A telephone switchboard 100 pair cable can be made up with
C. $ 5,025,000.00 either enameled wire or tinned wire. There will be 400 soldered
44. An asset is purchased for P 9,000.00. Its estimated economic connections. The cost of soldering a connection on the enameled
life is 10 years after which it will be sold for P 1,000.00. Find the D. $ 5,050,000.00 wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair
depreciation in the first three years using sum-of-years digit cable made up with enameled wire cost P 0.55 per linear foot and
method View Answer: those made up of tinned wire cost P 0.75 per linear foot.
Answer: Option A Determine the length of cable run in feet so that the cost of each
A. P 3,279.27 installation would be the same.
Explanation:
B. P 3,927.27 A. 1,000 feet
47. A manufacturer produces certain items at a labor cost of P
C. P 3,729.27 115 each, material cost of P 76 each and variable cost of P 2.32 B. 1,040 feet
each. If the item has a unit price of P 600, how many units must
D. P 3,792.72 be manufactured each month for the manufacturer to break even C. 1,100 feet
if the monthly overhead is P428,000
View Answer: D. 1,120 feet
Answer: Option B A. 1,033
View Answer:
Explanation: B. 1,037 Answer: Option A

45. Shell Philippines, a multinational company, has a total gross C. 1,043 Explanation:
income for a particular year of P 50,000,000. The taxable income
after taking all deductions except for depletion is P 18,500,000. D. 1,053 50. A leading shoe manufacturer produces a pair of Lebron
What is the allowable depletion allowance for that particular year? James signature shoes at a labor cost of P 900.00 a pair and a
Take percentage of gross income for oil as 22%. View Answer: material cost of P 800.00 a pair. The fixed charges on the
Answer: Option D business are P 5,000,000 a month and the variable costs are P
A. P 9,358.41 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of
Explanation: shoes sold. If the shoes sell at P 5,000 a pair, how many pairs
B. P 9,228.45 must be produced each month for the manufacturer to break-
48. A manufacturing firm maintains one product assembly line to even?
C. P 9,250.00 produce signal generators. Weekly demand for the generators is
35 units. The line operates for 7 hours per day, 5 days per week. A. 2.590
D. P 9,308.45 What is the maximum production time per unit in hours required of
the line to meet the demand? B. 2,632
View Answer:
Answer: Option C A. 1.0 hour per unit C. 2,712

Explanation: B. 1.2 hours per unit D. 2,890

46. The Saudi Arabian Oil Refinery developed an oil well which is C. 1.4 hours per unit View Answer:
estimated to contain 5,000,000 barrels of oil at an initial cost of $ Answer: Option B
50,000,000. What is the depletion charge during the year where it D. 1.6 hours per unit
produces half million barrels of oil? Use Unit or Factor method in Explanation:
computing depletion. View Answer:
921. Find the interest on P6,800.00 for 3 years at 11% simple Answer: Option C View Answer:
interest. Answer: Option D
Explanation:
A. P 1,875.00 Explanation:
924. What is the principal amount if the amount of interest at the
B. P 1,987.00 end of 2 1/2 year is P4,500.00 for a simple interest of 6% per 927. A man lends P6,000 at 6% simple interest for 4 years. At the
annum? end of this time he invest the entire amount (principal plus
C. P 2,144.00 interest) at 5% compounded annually for 12 years. How much will
A. P 35,000.00 he have at the end of the 16-year period.?
D. P 2,244.00
B. P 30,000.00 A. P 13,361.20
View Answer:
Answer: Option D C. P 40,000.00 B. P 13,633.20

Explanation: D. P 45,000.00 C. P 13,333.20

922. A man borrowed P10,000.00 from his friend and agrees to View Answer: D. P 16,323.20
pay at the end of 90 days under 8% simple interest rate. What is Answer: Option B
the required amount? View Answer:
Explanation: Answer: Option A
A. P 10,200.00
925. How long must a P40,000 note bearing 4% simple interest Explanation:
B. P 11,500.00 run to amount to P41,350.00?
928. A time deposit of P110,000 for 31 days earns P890.39 on
C. P 9,500.00 A. 340days maturity date after deducting the 20% withholding tax on interest
income. Find interest per annum.
D. P 10,700.00 B. 403 days
A. 12.5%
View Answer: C. 304 days
Answer: Option A B. 11.95%
D. 430 days
Explanation: C. 12.25%
View Answer:
923. Annie buys a television set from a merchant who offers Answer: Option C D. 11.75%
P25,000.00 at the end of 60 days. Annie wished to pay
immediately and the merchant offers to compute the required Explanation: View Answer:
amount on the assumption that the money is worth 14% simple Answer: Option D
interest. What is the required amount? 926. If P16,000 earns P480 in 9 months, what is the annual rate
of interest? Explanation:
A. P 20,234.87
A. 1% 929. A bank charges 12% simple interest on a P300.00 loan. How
B. P 19,222.67 much will be repaid if the loan is paid back in one lump sum after
B. 2% three years.
C. P 24,429.97
C. 3% A. P 408.00
D. P 28,456.23
D. 4% B. P 551.00
View Answer:
C. P415.00 C. P 9,455.67 C. 5 years

D. P450.00 D. P 11,876.34 D. 6 years

View Answer: View Answer: View Answer:

Answer: Option A Answer: Option A Answer: Option C

Explanation: Explanation: Explanation:

930. A tag price of a certain commodity is for 100 days. If paid in 933. Accumulate P5,000.00 for 10 years at 8% compounded 936. How long will it take for an investment to double its amount if
31 days, there is 3% discount. What is the simple interest paid? monthly invested at an interest rate of 6% compounded bi-monthly

A. 12.5% A. P 15,456.75 A. 10 years

B. 6.25% B. P 11,102.61 B. 12 years

C. 22.32% C. P 10,955.61 C. 13 years

D. 16.14% D. P 10,955.61 D. 14 years

View Answer: View Answer: View Answer:

Answer: Option D Answer: Option B Answer: Option B

Explanation: Explanation: Explanation:

931. Accumulate P5,000.00 for 10 years at 8% compounded 934. Accumulate P5,000.00 for 10 years at 8% compounded 937. If the compound interest on P3,000.00 in years is P500.00
quarterly. annually. then the compound interest on P3,000.00 in 4 years is:

A. P 12,456.20 A. P 10,794.62 A. P 956.00

B. P 13,876.50 B. P 8,567.97 B. P 1,083.00

C. P 10,345.80 C. P 10,987.90 C. P 1,125.00

D. P 11,040.20 D. P 7,876.87 D. P 1,526.00

View Answer: View Answer: View Answer:

Answer: Option D Answer: Option A Answer: Option B

Explanation: Explanation: Explanation:

932. Accumulate P5,000.00 for 10 years at 8% compounded 935. How long it will take P1,000 to amount to P1,346 if invested 938. The salary of Mr. Cruz is increased by 30% every 2 years
semi-annually. at 6% compounded quarterly. beginning January 1, 1982. Counting from that date, at what year
will his salary just exceed twice his original salary?
A. P 10,955.61 A. 3 years
A. 1988
B. P 10,233.67 B. 4 years
B. 1989
 B. 12
C. 1990 A. 4.55 years
C. 13
D. 1991 B. 4.77 years
D. 14
View Answer: C. 5.11 years
Answer: Option A View Answer:
Answer: Option B D. 5.33 years
Explanation:
Explanation: View Answer:
939. If you borrowed P10,000 from the bank with 18% interest per Answer: Option B
annum, what is the total amount to be repaid at the end of one 942. An interest of 8% compounded semiannually is how many
year. percent if compounded quarterly? Explanation:

A. P 11,800.00 A. 7.81% 945. Mr. Adam deposited P120,000.00 in a bank who offers 8%
interest compounded quarterly. If the interest is subject to a 14%
B. P 19,000.00 B. 7.85% tax, how much will he receive after 5 years?

C. P 28,000.00 C. 7.92% A. P 178,313.69

D. P 10,180.00 D. 8.01% B. P 153,349.77

View Answer: View Answer: C. P 170,149.77

Answer: Option A Answer: Option C
D. P 175,343.77
Explanation: Explanation:
View Answer:
940. What is the effective rate for an interest rate at 12% 943. A man is expecting to receive P450,000.00 at the end of 7 Answer: Option C
compounded continuously? years. If money is worth 14% compounded quarterly how much is
it worth at present? Explanation:
A. 12.01%
A. P 125,458.36 946. What interest compounded monthly is equivalent to an
B. 12.89% interest rate of 14% compounded quarterly
B. P 147,456.36
C. 12.42% A. 1.15%
C. P 162,455.63
D. 12.75% B. 13.84%
D. P 171,744.44
View Answer: C. 10.03%
Answer: Option D View Answer:
Answer: Option D D. 11.52%
Explanation:
Explanation: View Answer:
941. How long it will take for an investment to fivefold its amount if Answer: Option B
money is worth 14% compounded semiannually. 944. A man has a will of P650,000.00 from his father. If his father
deposited an amount of P450,000 in a trust fund earning 8% Explanation:
A. 11 compounded annually, after how many years will he man receive
his will?
947. What is the worth of two P100,000 payments at the end of Answer: Option C
the third and the fourth year? The annual interest rate is 8%. 950. A student has money given by his grandfather in the amount
of P20,000.00. How much money in the form of interest will he get Explanation:
A. P 152.87 if the money is put in a bank that offers 8% rate compounded
annually at the end of 7 years? 953. Agnes Abanilla was granted a loan of P20,000 by her
B. P 112.34 employer CPM Industrial Fabricator and Construction Corporation
A. P 34,276.48 with an interest of 6% for 180 days on the principal collected in
C. P 187.98 advance. The corporation would accept a promissory note for
B. P 34,270.00 P20,000 non-interest for 180 days. If discounted at once, find the
D. P 176.67 proceeds of the note.
C. P 36,276.40
View Answer: A. P18,600
Answer: Option A D. P 34,266.68
B. P18,800
Explanation: View Answer:
Answer: Option A C. P19,000
948. A firm borrows P2,000.00 for 6 years at 8%. At the end of 6
years, it renews the loan for the amount due plus P2,000 more for Explanation: D. P19,200
2 years at 8%. What is the lump sum due?
951. P4,000 is borrowed for 75 days at 16% per annum simple View Answer:
A. P 5,679.67 interest. How much will be due at the end of 75 days? Answer: Option B

B. P 6,789.98 A. P4,133.33 Explanation:

C. P 6,034.66 B. P4,333.33 954.What will be the future worth of money after 12 months, if the
sum of P25,000 is invested today at simple interest rate of 1% per
D. P 5,888.77 C. P4,166.67 month?

View Answer: D. P4,150.00 A. P30,000

Answer: Option C
View Answer: B. P29,000
Explanation: Answer: Option A
C. P28,000
949. At an annual rate of return of 8%, what is the future worth of Explanation:
P1,000 at the end of 4 years? D. P27,859
952. A deposit of P110,000.00 was made for 31 days. The net
A. P 1,388.90 interest after deducting 20% withholding tax is P890.36. Find the View Answer:
rate of return annually. Answer: Option C
B. P 1,234.56
A. 11.95% Explanation:
C. P 1,765.56
B. 12.75% 955. If you borrowed money from your friend with simple interest
D. P 1,360.50 of 12%, find the present worth of P50,000 which is due at the end
C. 11.75% of 7 months.
View Answer:
Answer: Option D D. 12.25% A. P46,200

Explanation: View Answer: B. P44,893

 Explanation:
C. P46,730 View Answer:
958. A man borrowed P20,000 from a local commercial bank Answer: Option D
D. P45,789 which has a simple interest rate of 16% but the interest is to be
deducted from the loan at the time that the money was borrowed Explanation:
View Answer: and the loan is payable at the end of one year. How much is the
Answer: Option C actual rate of interest? 961. What is the corresponding effective rate of 18% compounded
semi-quarterly?
Explanation: A. 12%
A. 19.25%
956. Annie buys a television set from a merchant who ask P1,250 B. 14%
at the end of 60 days. Annie wishes to pay immediately and the B. 19.48%
merchant offers to compute the cash price on the assumption that C. 10%
money is worth 8% simple interest. What is the cash price? C. 18.46%
D. 19%
A. P1,233.55 D. 18.95%
View Answer:
B. P1,244.68 Answer: Option D View Answer:
Answer: Option B
C. P1,323.66 Explanation:
Explanation:
D. P1,392.67 959. A bank charges 12% simple interest on a P300.00 loan. How
much will be repaid if the loan is paid back in one lump sum after 962. Mandarin Bank advertises 9.5% account that yields 9.84%
View Answer: three years? annually. Find how often the interest is compounded.
Answer: Option A
A. P408.00 A. Daily
Explanation:
B. P415.00 B. Monthly
957. It is the practice of almost all banks in the Philippines that
when they grant a loan. The interest for one year is automatically C. P551.00 C. Bi-Monthly
deducted from the principal amount upon the release of money to
a borrower. Let us therefore assume that you applied for a loan D. P450.00 D. Quarterly
with a bank and the P80,000 was approved at an interest rate of
14% of which P11,200 was deducted and you were given a check View Answer: View Answer:
of P68,800. Since you have to pay the amount of P80,000 one Answer: Option A Answer: Option D
year after, what then will be the effective interest rate?
Explanation: Explanation:
A. 15.90%
960. A man borrowed P100,000 at the interest rate of 12% per 963. A bank pays one percent interest on savings accounts four
B. 16.28% annum, compounded quarterly. What is the effective rate? times a year. The effective annual interest rate is

C. 16.30% A. 3% A. 4.06%

D. 16.20% B. 13.2% B. 1.00%

View Answer: C. 12% C. 2.04%

Answer: Option B
D. 12.55% D. 3.36%
 View Answer:
View Answer: Answer: Option B C. P70,374.90
Answer: Option A
Explanation: D. P78,536.34
Explanation:
967. Find the present worth of a future payment of P100,000 to be View Answer:
964. The effective rate of 14% compounded semi-annually is made in 10years with an interest of 12% compounded quarterly. Answer: Option A

A. 14.49% A. P30,444.44 Explanation:

B. 12.36% B. P33,000.00 970. Alexander Michael owes P25,000.00 due in 1 year and
P75,000 due in 4 years. He agrees to pay P50,000 today and the
C. 14.94% C. P30,655.68 balance in 2 years. How much must he pay at the end of two
years if money is worth 5% compounded semi-annually?
D. 14.88% D. P30,546.01
A. P38,025.28
View Answer: View Answer:
Answer: Option A Answer: Option C B. P35,021.25

Explanation: Explanation: C. P30,500.55

965. An interest rate is quoted as being 7.5% compounded 968. On his 6th birthday a boy is left an inheritance. The D. P39,021.28
quarterly. What is the effective annual interest rate? inheritance will be paid in a lump sum of P10,000 on his 21st
birthday. What is the present value of the inheritance as of the View Answer:
A. 7.71% boy’s 6th birthday, if the interest is compounded annually? Answer: Option D
Assume i = 4%
B. 7.22% Explanation:
A. P6,500
C. 15.78% 971. At an interest rate of 10% compounded annually, how much
B. P8,600 will a deposit of P1,500 be in 15 years?
D. 21.81%
C. P5,500 A. P6,100.00
View Answer:
Answer: Option A D. P7,500 B. P6,234.09

Explanation: View Answer: C. P 6,265.87

Answer: Option C
966. The amount of P12,800 in 4 years at 5% compounded D. P6,437.90
quarterly is Explanation:
View Answer:
A. P14,785.34 969. The amount of P50,000 was deposited in the bank earning at Answer: Option C
interest of 7.6% per annum. Determine the total amount at the
B. P15,614.59 end of 5 years, if the principal and interest were not withdrawn Explanation:
during the period?
C. P16,311.26 972. How long (in years) will it take money to quadruple if it earns
A. P71,781.47 7% compounded semi-annually?
D. P15,847.33
B. P72,475.23 A. 20.15
 975. A company invests P10,000 today to be repaid in 5 year in
B. 26.30 one lump sum at 12% compounded annually. How much profit in Explanation:
present day pesos is realized?
C. 33.15 978. P200,000 was deposited on January 1, 1988 at an interest
A. P7,632 rate of 24% compounded semi-annually. How much would the
D. 40.30 sum be on January 1,1993?
B. P7,236
View Answer: A. P401,170
Answer: Option A C. P7,326
B. P421,170
Explanation: D. P7,362
C. P521,170
973. In how many year is required for P2,000 to increase by View Answer:
P3,000 if interest at 12% compounded semi-annually? Answer: Option A D. P621,170

A. 8 Explanation: View Answer:

Answer: Option D
B. 9 976. A firm borrows P2,000 for 6 years at 8%. At the end of 6
years, it renews the loan for the amount due plus P2,000 more for Explanation:
C. 10 2 years at 8%. What is the lump sum due?
979. If P500,000 is deposited at a rate of 11.25% compounded
D. 7 A. P5,355.00 monthly, determine the compounded interest after 7 years and 9
months.
View Answer: B. P5,892.00
Answer: Option A A. P660,550
C. P6,035.00
Explanation: B. P670,650
D. P6,135.00
974. Consider a deposit of P600.00 to be paid back in one year by C. P680,750
P700.00. What are the conditions on the rate of interest, i% per View Answer:
year compounded annually such that the net present worth of the Answer: Option C D. P690,850
investment is positive? Assume i is greater than or equal to 0.
Explanation: View Answer:
A. 0 ≤ i < 14.3% Answer: Option D
977. A deposit of P1,000 is made in a bank account that pays 8%
B. 0 ≤ i < 16.7% interest compounded annually. Approximately how much money Explanation:
will be in the account after 10 years?
C. 12.5% ≤ i < 14.3% 980. Fifteen years ago P1,000.00 was deposited in a bank
A. P1,925.00 account, and today it is worth P2,370.00. The bank pays interest
D. 16.7% ≤ i < 100% semi-annually. What was the interest rate paid in this account?
B. P1,860.00
View Answer: A. 3.8%
Answer: Option B C. P2,345.00
B. 4.9%
Explanation: D. P2,160.00
C. 5.0%
View Answer:
Answer: Option D D. 5.8%
 B. 2.9%
View Answer: A. P2,000,000
Answer: Option D C. 3.5%
B. P2,000,150
Explanation: D. 4%
C. P2,000,300
981. If P5,000.00 shall accumulate for 10 years at 8% View Answer:
compounded quarterly, find the compounded interest at the end of Answer: Option C D. P2,000,500
10 years.
Explanation: View Answer:
A. P6,005.30 Answer: Option B
984. A merchant puts in his P2,000.00 to a small business for a
B. P6,000.00 period of six years. With a given interest rate on the investment of Explanation:
15 % per year, compounded annually, how much will he collect at
C. P6,040.20 the end of the sixth year? 987. In year zero, you invest P10,000.00 in a 15% security for 5
years. During that time, the average annual inflation is 6%. How
D. P6,010.20 A. P4,400.00 much, in terms of year zero pesos will be in the account at
maturity?
View Answer: B. P4,390.15
Answer: Option C A. P12,020
C. P4,200.00
Explanation: B. P13,030
D. P4,626.00
982. A sum of P1,000 is invested now and left for eight years, at C. P14,040
which time the principal is withdrawn. The interest has accrued is View Answer:
left for another eight years. If the effective annual interest rate is Answer: Option D D. P15,030
5%, what will be the withdrawal amount at the end of the 16th
year? Explanation: View Answer:
Answer: Option D
A. P706.00 985. A man expects to receive P25,000 in 8 years. How much is
that money worth now considering interest at 8% compounded Explanation:
B. P500.00 quarterly?
988. By the condition of a will, the sum of P20,000 is left to a girl
C. P774.00 A. P13,859.12 to be held in trust fund by her guardian until it amounts to
P50,000. When will the girl receive the money if the fund is
D. P799.00 B. P13,958.33 invested at 8% compounded quarterly?

View Answer: C. P13,675.23 A. 7.98 years

Answer: Option A
D. P13,265.83 B. 10.34 years
Explanation:
View Answer: C. 11.57 years
983. P1,500.00 was deposited in a bank account, 20 years ago. Answer: Option D
Today it is worth P3,000.00. Interest is paid semi-annually. D. 10.45 years
Determine the interest rate paid on this account. Explanation:
View Answer:
A. 3% 986. P500,000 was deposited 20.15 years ago at an interest rate Answer: Option C
of 7% compounded semi-annually. How much is the sum now?
Explanation: View Answer: B. P41,114.29
Answer: Option B
989. You borrow P3,500.00 for one year from a friend at an C. P41,454.29
interest rate of 1.5% per month instead of taking a loan from a Explanation:
bank at a rate of 18% per year. Compare how much money you D. P40,544.29
will save or lose on the transaction. 992. Money borrowed today is to be paid in 6 equal payments at
the end of 6 quarters. If the interest is 12% compounded View Answer:
A. You will pay P155.00 more if you borrowed from the bank. quarterly. How much was initially borrowed if quarterly payment is Answer: Option A
P2,000.00?
B. You will save P55.00 by borrowing from your friend. Explanation:
A. P10,834.38
C. You will pay P85.00 more if you borrowed from the bank 995. How much must be deposited at 6% each year beginning on
B. P10,382.90 January 1, year 1, in order to accumulate P5,000 on the date of
D. You will pay P55.00 less if you borrowed from the bank. the last deposit, January 1, year 6?
C. P10,586.99
View Answer: A. P751.00
Answer: Option D D. P10,200.56
B. P717.00
Explanation: View Answer:
Answer: Option A C. P715.00
990. What is the present worth of two P100 payments at the end
of the third year and fourth year? The annual interest rate is 8%. Explanation: D. P725.00

A. P153 993. You need P4,000 per year for four years to go to college. View Answer:
Your father invested P5,000 in 7% account for your education Answer: Option B
B. P160 when you were born. If you withdraw P4,000 at the end of your
17th, 18th, 19th and 20th birthday, how much will be left in the Explanation:
C. P162 account at the end of the 21st year?
996. A debt of P10,000 with 10% interest compounded semi-
D. P127 A. P1,700 annually is to be amortized by semi-annual payment over the next
5 years. The first due is in 6 months. Determine the semi-annual
View Answer: B. P2,500 payment.
Answer: Option A
C. P3,400 A. P1,200.00
Explanation:
D. P4,000 B. P1,295.05
991. Anne purchased on monthly installment a P100,000 worth of
land. The interest rate is 12% nominal and payable in 20 years. View Answer: C. P1,193.90
What is the monthly amortization? Answer: Option A
D. P1,400.45
A. P1,101.08 Explanation:
View Answer:
B. P1,121.01 994. What is the accumulated amount of five year annuity paying Answer: Option B
P6,000 at the end of each year, with interest at 15% compounded
C. P1,152.15 annually? Explanation:

D. P1,128.12 A. P40,454.29
997. A young engineer borrowed P10,000 at 12% interest and Answer: Option A
paid P2,000 per annum for the last 4 years. What does he have to D. P38,236.04
pay at the end of the fifth year in order to pay off his loan? Explanation:
View Answer:
A. P6,919.28 1000. How much must you invest today in order to withdraw Answer: Option A
P2,000 annually for 10 years if the interest rate is 9%?
B. P5,674.00 Explanation:
A. P12,853.32
C. P6,074.00 1003. A housewife bought a brand new washing machine costing
B. P12,881.37 P12,000 if paid in cash. However, she can purchase it on
D. P3,296.00 installment basis to be paid within 5 years. If money is worth 8%
C. P12,385. 32 compounded annually, what is her yearly amortization if all
View Answer: payments are to be made at the beginning of each year?
Answer: Option A D. P12,835.32
A. P2,782.85
Explanation: View Answer:
Answer: Option D B. P2,872.58
998. Mr. Cruz plans to deposit for the education of his 5 years old
son, P500 at the of end each month for 10 years at 12% annual Explanation: C. P2,400.00
interest compounded monthly. The amount that will be available in
two years is 1001. A person buys a piece of lot for P100,00 down payment and D. P2,827.58
10 deferred semi-annual payments of P8,000 each, starting three
A. P13,000 years from now. What is the present value of the investment if the View Answer:
rate of interest is 12% compounded semi-annually? Answer: Option C
B. P14,500
A. P134,666.80 Explanation:
C. P13,500
B. P143,999.08 1004. Mr. Ayala borrows P100,000 at 10% effective annual
D. P14,000 interest. He must pay back the loan over 30 years with uniform
C. P154,696.80 monthly payments due on the first day of each month. What does
View Answer: Mr. Ayala pay each month?
Answer: Option C D. P164,969.80
A. P870.00
Explanation: View Answer:
Answer: Option B B. P846.00
999. If you obtain a loan of P1M at the rate of 12% compounded
annually in order to build a house, how much must you pay Explanation: C. P878.00
monthly to amortize the loan within a period of ten years?
1002. A man loans P187,400 from a bank with interest at 5% D. P839.00
A. P13,994.17 compounded annually. He agrees to pay his obligations by paying
8 equal annual payments, the first being due at the end of 10 View Answer:
B. P12,955.21 years. Find the annual payments. Answer: Option D

C. P15,855.45 A. P44,982.04 Explanation:

D. P12,900.25 B. P56,143.03 1005. A house and lot can be acquired by a down payment of
P500,000 and a yearly payment of P100,000 at the end of each
View Answer: C. P62, 334.62 year for a period of 10 years, starting at the end of 5 years from
the date of purchase. If money is worth 14% compounded
annually, what is the cash price of the property? Explanation: C. 51.1%

A. P810,100 1008. A parent on the day the child is born wishes to determine D. 15%
what lump sum would have to be paid into an account bearing
B. P808,811 interest at 5% compounded annually, in order to withdraw View Answer:
P20,000 each on the child’s 18th,19th,20th and 21st birthdays. Answer: Option B
C. P801,900 How much is the lump sum amount?
Explanation:
D. P805,902 A. P35,941.73
1011. A small machine has an initial cost of P20,000, a salvage
View Answer: B. P33,941.73 value of P2,000 and a life of 10 years. If your cost of operation per
Answer: Option B year is P3,500 and your revenues per year is P9,000, what is the
C. P30,941.73 approximate rate of return on the investment?
Explanation:
D. P25,941.73 A. 25.0%
1006. A piece of machinery can be bought for P10,000 cash or for
P2,000 down and payments of P750 per year for 15 years. What View Answer: B. 22.5%
is the annual interest rate for the time payments? Answer: Option C
C. 23.9%
A. 4.61% Explanation:
D. 24.8%
B. 3.81% 1009. An instructor plans to retire in exactly one year and want an
account that will pay him P25,000 a year for the next 15 years. View Answer:
C. 5.71% Assuming a 6% annual effective interest rate, what is the amount Answer: Option D
he would need to deposit now? (the fund will be depleted after 15
D. 11.0% years). Explanation:

View Answer: A. P249,000 1012. A man paid 10% down payment of P200,000 for a house
Answer: Option A and lot and agreed to pay the balance on monthly installments for
B. P242,806 ‘x’ years at an interest rate of 15% compounded monthly. If the
Explanation: monthly installment was P42,821.87, find the value of x?
C. P248,500
1007. A man inherited a regular endowment of P100,000 every A. 11
end of 3 months for 10 years. However, he may choose to get a D. P250,400
single lump sum payment at the end of 4 years. How much is this B. 9
lump sum if the cost of money is 14% compounded quarterly? View Answer:
Answer: Option B C. 5
A. P3,802,862
Explanation: D. 7
B. P3,702,939
1010. An investment of P350,000 is made to be followed by View Answer:
C. P3,502,546 payments of P200,000 each year for 3 years. What is the annual Answer: Option C
rate of return on investment for the project?
D. P3,602,431 Explanation:
A. 41.7%
View Answer: 1013. A manufacturing firm wishes to give each 80 employees a
Answer: Option B B. 32.7% holiday bonus. How much is need to invest monthly for a year at
12% nominal interest rate compounded monthly, so that each View Answer: B. P30,000
employee will receive a P2,000 bonus? Answer: Option D
C. P16,400
A. P12,608 Explanation:
D. P22,300
B. P12,610 1016. A company issued 50 bonds of P1,000.00 face value each,
redeemable at par at the end of 15 years to accumulate the funds View Answer:
C. P12,600 required for redemption. The firm established a sinking fund Answer: Option B
consisting of annual deposits, the interest rate of the fund being
D. P12,300 4%. What was the principal in the fund at the end of the 12th Explanation:
year?
View Answer: 1019. The initial cost of a paint sand mill, including its installation,
Answer: Option B A. P35,983.00 is P800,000. The BIR approved life of this machine is 10 years for
depreciation. The estimated salvage value of the mill is P50,000
Explanation: B. P38,378.00 and the cost of dismantling is estimated to be P15,000. Using
straight-line depreciation, what is the annual depreciation charge
1014. Find the present value in pesos, of a perpetuity of P15,000 C. P41,453.00 and what is the book value of the machine at the end of six years?
payable semi-annually if money is worth 8% compounded
quarterly. D. P37,519.00 A. P74,500; P340,250

A. P372,537 View Answer: B. P76,500; P341,000

Answer: Option D
B. P374,977 C. P76,500; P342,500
Explanation:
C. P373,767 D. P77,500; P343,250
1017. A unit of welding machine cost P45,000 with an estimated
D. P371,287 life of 5 years. Its salvage value is P2,500. Find its depreciation View Answer:
rate by straight-line method. Answer: Option B
View Answer:
Answer: Option D A. 17.75% Explanation:

Explanation: B. 19.88% 1020. The cost of equipment is P500,000 and the cost of
installation is P30,000. If the salvage value is 10% of the cost of
1015. A fund donated by a wealthy person to IIEE to provide C. 18.89% equipment at the end of 5 years, determine the book value at the
annual scholarships to deserving EE students. The fund will grant end of the fourth year. Use straight-line method.
P5,000 for each of the first five years, P8,000 for the next 5 years D. 15.56%
and P10,000 for each year thereafter. The scholarship will start A. P155,000
one year after the fund is established, if the fund earns 8% View Answer:
interest, what is the amount of the donation? Answer: Option C B. P140,000

A. P101,605.71 Explanation: C. P146,000

B. P101,505.21 1018. A machine has an initial cost of P50,000 and a salvage D. P132,600
value of P10,000 after 10 years. Find the book value after 5 years
C. P100,506.21 using straight-line method. View Answer:
Answer: Option C
D. P 99,601.71 A. P12,500
Explanation:
 Answer: Option A
1021. An asset is purchased for P500,000.00. The salvage value B. 10 years
in 25 years is P100,000.00. What is the total depreciation in the Explanation:
first three years using straight-line method? C. 12 years
1024. A machine costing P720,000 is estimated to have a book
A. P48,000 value of P40,545.73 when retired at the end of 10 years. D. 19 years
Depreciation cost is computed using a constant percentage of the
B. P24,000 declining book value. What is the annual rate of depreciation in View Answer:
%? Answer: Option A
C. P32,000
A. 28 Explanation:
D. P16,000
B. 25 1027. A company purchases an asset for P10,000.00 and plans to
View Answer: keep it for 20 years. If the salvage value is zero at the end of 20th
Answer: Option A C. 16 year, what is the depreciation in the third year? Use SYD method.

Explanation: D. 30 A. P1,000

1022. A machine has an initial cost of P50,000 and a salvage View Answer: B. P857
value of P10,000.00 after 10 years. What is the block value after 5 Answer: Option B
years using straight line depreciation? C. P937
Explanation:
A. P35,000.00 D. P747
1025. A machine costing P45,000 is estimated to have a book
B. P25,000.00 value of P4,350 when retired at the end of 6 years. Depreciation View Answer:
cost is computed using a constant percentage of declining book Answer: Option B
C. P15,500.00 value. What is the annual rate of depreciation in %?
Explanation:
D. P30,000.00 A. 33.25
1028. A telephone company purchased a microwave radio
View Answer: B. 32.25 equipment for P6 million, freight and installation charges
Answer: Option D amounted to 4% of the purchased price. If the equipment will be
C. 35.25 depreciated over a period of 10 years with a salvage value of 8%,
Explanation: determine the depreciation cost during the 5th year using SYD.
D. 34.25
1023. An equipment costs P10,000 with a salvage value of P500 A. P626,269.10
at the end of 10 years. Calculate the annual depreciation cost by View Answer:
sinking fund method at 4% interest. Answer: Option B B. P622,786.07

A. P791.26 Explanation: C. P638,272.08

B. P950.00 1026. ABC Corporation makes it a policy that for any new D. P627,989.90
equipment purchased, the annual depreciation cost should not
C. P971.12 exceed 20% of the first cost at any time with no salvage value. View Answer:
Determine the length of service life necessary if the depreciation Answer: Option A
D. P845.32 used is the SYD method.
Explanation:
View Answer: A. 9 years
1029. An asset is purchased for P9,000.00. Its estimated life is 10
years after which it will be sold for P1,000.00. Find the book value View Answer: A. 886 units
during the first year if sum-of-years digit(SYD) depreciation is Answer: Option C
used. B. 885 units
Explanation:
A. P8,000 C. 688 units
1032. A corporation uses a type of motor truck which costs
B. P6,500 P5,000 with life of 2 years and final salvage value of P800. How D. 668 units
much could the corporation afford to pay for another type of truck
C. P7,545 of the same purpose whose life is 3 years with a final salvage View Answer:
value of P1,000. Money is worth 4%. Answer: Option A
D. P6,000
A. P8,450.66 Explanation:
View Answer:
Answer: Option C B. P7,164.37 1035. A manufacturer produces certain items at a labor cost of
P115 each, material cost of P76 each and a variable cost of P2.32
Explanation: C. P6,398.24 each. If the item has a unit price of P600, how many number of
units must be manufactured each month for the manufacturer to
1030. The maintenance cost for a sewing machine this year is D. P9,034.56 break even if the monthly overhead is P428,000?
expected to be P500. The cost will increase P50 each year for the
subsequent 9 years. The interest is 8% compounded annually. View Answer: A. 1053
What is the approximate present worth of maintenance for the Answer: Option B
machine over the full 10-year period? B. 1138
Explanation:
A. P4,700 C. 946
1033. A company must relocate one of its factories in three years.
B. P5,300 Equipment for the loading dock is being considered for purchase. D. 1232
The original cost is P20,000, the salvage value of the equipment
C. P4,300 after three years is P8,0000. The company’s rate of return on the View Answer:
money is 10%. Determine the capital recovery rate per year. Answer: Option A
D. P5,500
A. P5,115 Explanation:
View Answer:
Answer: Option A B. P4,946 1036. Steel drum manufacturer incurs a yearly fixed operating
cost of $200,000. Each drum manufactured cost $160 to produce
Explanation: C. P5,625 and sells $200. What is the manufacturer’s break-even sales
volume in drums per year?
1031. At 6%, find the capitalized cost of a bridge whose cost is D. P4,805
P250 M and life is 20 years, if the bridge must be partially rebuilt A.1250
at a cost of P100 M at the end of each 20 years. View Answer:
Answer: Option C B. 2500
A. P275.3 M
Explanation: C. 5000
B. P265.5 M
1034.The annual maintenance cost of a machine shop is D. 1000
C. P295.3 M P69,994. If the cost of making a forging is P56 per unit and its
selling price is P135 per forged unit, find the number of units to be View Answer:
D. P282.1 M forged to break-even. Answer: Option C
 A. 40
Explanation: Explanation:
B. 150
1037. JRT Industries manufactures automatic voltage regulator at 1039. The annual maintenance cost of a machine is P70,000. If
a labor cost of P85.00 per unit and material cost of P350.00 per the cost of making a forging is P56 and its selling price is P125 C. 80
unit. The fixed charges on the business are P15,000 per month per forged unit. Find the number of units to be forged to break
and the variable costs are P20.00 per unit. If the automatic even. D. 160
voltage regulators are sold to retailers at P580.00 each, how
many units must be produced and sold per month to breakeven? A. 1015 units View Answer:
Answer: Option D
A. 104 B. 985 units
Explanation:
B. 200 C. 1100 units
1042. A price tag of P1200 is specified if paid within 60 days but
C. 120 D. 1000 units offers 3% discount for cash in 30 days. Find the rate of interest.

D. 150 View Answer: a. 37.11%

Answer: Option A
View Answer: b. 38.51 %
Answer: Option C Explanation:
c. 40.21 %
Explanation: 1040. XYZ Corporation manufactures bookcases that sell for
P65.00 each. It costs XYZ Corporation P35,000 per year to d. 39.31 %
1038. Compute for the number of locks that an ice plant must be operate its plant. This sum includes rent, depreciation charges on
able to sell per month to break even based on the following data: equipment, and salary payments. If the cost to produce one View Answer:
bookcase is P50.00, how many cases must be sold each year for Answer: Option A
Cost of electricity per block – P20.00 XYZ to avoid taking a loss?
Explanation:
Tax to be paid per block – P2.00 A. 2334
1043. Mr. Almagro made a money market of P1 000 000 for 30
Real estate Tax – P3,500.00 per month B. 539 days at 7.5% per year. If the withholding tax is 20%, what is the
net interest that he will receive at the end of the month?
Salaries and Wages – P25,000.00 per month C. 750
a. P3 000
Others – P12,000.00 per month D. 2333
b. P4 000
Selling price of ice – P55.00 per block View Answer:
Answer: Option A c. P6 000
A.1228
Explanation: d. P5 000
B. 1285
1041. A company which manufactures electric motors has a View Answer:
C. 1373 production capacity of 200 motors a month. The variable costs are Answer: Option D
P150.00 per motor. The average selling price of the motors is
D. 1312 P275.00. Fixed costs of the company amount to P20,000 per Explanation:
month which includes taxes. The number of motors that must be
View Answer: sold each month to break even is closest to:
Answer: Option A
1044. A deposit of P110 000 was made for 31 days. The net Explanation:
interest after deducting 20% withholding tax is P890.36. Find the Explanation:
rate of return annually. 1047. P200 000 was deposited for a period of 4 years and 6
months and bears on interest of P85 649.25. What is the rate of 1050. If a sum of money triples in a certain period of time at a
a. 12.25 interest if it is compounded quarterly? given rate of interest, compute the value of the single payment
present worth factor.
b. 11.75 a. 8%
a. 0.292
c. 12.75 b. 7%
b. 0.333
d. 11.95 c. 6%
c. 1.962
View Answer: d. 5%
Answer: Option B d. 3
View Answer:
Explanation: Answer: Option A View Answer:
Answer: Option B
1045. A nominal interest of 3% compounded continuously is given Explanation:
on the account. What is the accumulated amount of P10 000 after Explanation:
10 years? 1048. Find the time required for a sum of money to triple itself at
5% per annum compounded continuously? 1051. A price tag of P1200 is specified if paid within 60 days but
a. P13 610.10 offers a 3% discount for cash in 30 days. Find the rate of interest.
a. 18.23 yrs.
b. P13 500.10 a. 37.11%
b. 21.97 yrs.
c. P13 498.60 b. 38.51%
c. 23.36 yrs.
d. P13 439.16 c. 40.21%
d. 25.34 yrs.
View Answer: d. 39.31%
Answer: Option C View Answer:
Answer: Option B View Answer:
Explanation: Answer: Option A
Explanation:
1046. A man expects to receive P25 000 in 8 years. How much is Explanation:
that worth now considering interest at 8% compounded quarterly? 1049. If the nominal interest is 12% compounded continuously,
compute the effective rate of annual interest. 1052. It is the practice of almost all bank in the Philippines that
a. P13 859.12 when they grant a loan, the interest for 1 year is automatically
a. 12.40% deducted from the principal amount upon release of money to a
b. P13 958.33 borrower. Let us therefore assume that you applied for a loan with
b. 11.26% the bank and the P80000 was approved at an interest rate of 14%
c. P13 675.23 of which P11200 was deducted and you were given ac check of
c. 12.75% P68800. Since you have to pay the amount of P80000 one year
d. P13 265.83 after, what then will be the effective interest rate?
d. 11.55%
View Answer: a. 16.28%
Answer: Option D View Answer:
Answer: Option C b. 38.51%
 d. P5,000
c. 17.30% 1055. Agnes Abanilla was granted a loan of P20,000 by her
employer CPM Industrial Fabricator and Construction Corporation View Answer:
d. 39.31% with an interest at 6% for 180days on the principal collected in Answer: Option D
advance. The corporation would accept a promissory note for
View Answer: P20,000 non-interest for 180days. If discounted at once, find the Explanation:
Answer: Option A proceeds in the note.
1058. A bill for motorboat specifies the cost as P1,200 due at the
Explanation: a. P18,000 end of 100 days but offers a 4% discount for cash in 30days.
What is the highest rate, simple interest at which the buyer can
1053. Mr. J. Dela Cruz borrowed money from the bank. He b. P19,000 afford to borrow money in order to take advantage of the
received from the bank P1,340.00 and promised to pay P1,500.00 discount?
at the end of 9 months. Determine the simple interest rate and the c. P18,800
corresponding discount rate or often referred to as the “Banker’s a. 18.4%
Discount”. d. P18,400
b. 19.6%
a. 12.95% ; 17.33% View Answer:
Answer: Option C c. 20.9%
b. 15.92% ; 13.73%
Explanation: d. 21.4%
c. 18.28% ; 13.12%
1056. P4000 is borrowed for 75 days at 16% per annum simple View Answer:
d. 19.25% ; 13.33% interest. How much will be due at the end of 75 days? Answer: Option D

View Answer: a. P4186.43 Explanation:

Answer: Option B
b. P5124.54 1059. In buying a computer disk, the buyer was offered the
Explanation: options of paying P250 cash at the end of 30 days or P270 at the
c. P4133.33 end of 120 days. At what rate is the buyer paying simple interest if
1054. A man borrowed from the bank under a promissory note he agree to pay at the end of 120days?
that he signed in the amount of P25000.00 for a period of 1 year. d. P5625.43
He received only the amount of P21,915.00 after the bank a. 32%
collected the advance interest and an additional amount of P85.00 View Answer:
for notarial and inspection fees. What was the rate of interest that Answer: Option C b.40%
the bank collected in advance?
Explanation: c. 28%
a. 10.32%
1057. Mr. Almagro made a money market placement of d. 25%
b. 13.64% P1,000,000 for 30 days at 7.5% per year. If withholding tax is
20%, what is the net interest that Mr. Almagro will receive at the View Answer:
c. 16.43% end of the month? Answer: Option A

d. 18.37% a. P3,000 Explanation:

View Answer: b. P4,000 1060. On March 1, 1996 Mr. Almagro obtains a loan of P1500
Answer: Option B from Mr. Abella and signs a note promising to pay the principal
c. P6,000 and accumulated simple interest at the rate of 5% at the end of
Explanation:
120 days. On May 15, 1996, Mr. Abella discounts the note at the Explanation:
bank whose discount rate is 6%. What does he receive? View Answer:
1063. A man borrowed P2000 from a bank and promise to pay the Answer: Option C
a. P2,201.48 amount for 1year. He received only the amount of P1,920 after
the bank collected an advance interest of P80. What was the rate Explanation:
b. P1,123.29 of discount and the rate of interest that the bank collected in
advance? 1066. Compute the discount if P2000 is discounted for 6 months
c. P1,513.56 at 8% simple interest.
a. 4% ; 4.17%
d. P938.20 a. P29.67
b. 3% ; 3.17%
View Answer: b. P67.29
Answer: Option C c. 4% ; 4.71%
c. P76.92
Explanation: d. 3% ; 3.71%
d. P92.76
1061. A deposit of P110,000 was made for 31 days. The net View Answer:
interest after deducting 20% withholding tax is P890.36. Find the Answer: Option A View Answer:
rate of return annually. Answer: Option C
Explanation:
a. 12.25 Explanation:
1064. An engineer promised to pay P36,000 at the end of 90days.
b. 11.75 He was offered a 10% discount if he pays in 30 days. Find the 1067. The amount of P12,800 in 4years at 5% compounded
rate of interest. quarterly is _____.
c. 12.75
a. 64.6% a. P14,785.34
d. 11.95
b. 65.6% b. P15,614.59
View Answer:
Answer: Option B c. 66.6% c. P16,311.26

Explanation: d. 67.6% d. P15,847.33

1062. If you borrowed money from your friend with simple interest View Answer: View Answer:
of 12%, find the present worth of P50,000 which is due at the end Answer: Option C Answer: Option B
of 7 months.
Explanation: Explanation:
a. P46,200
1065. A man is required to pay P200 at the end of 160 days or 1068. A man borrows money from a bank which uses a simple
b. P44,893 P190 at the end of 40 days. Determine the rate of interest. discount rate of 14%. He signs a promissory note promising to
pay P500.00 per month at the end of 4th, 6th, and 7th month
c. P46,729 a. 18.4% respectively. Determine the amount of money that he received
from the bank.
d. P45,789 b. 19.6%
a. P1403.68
View Answer: c. 15.8%
Answer: Option C b. P1340.38
d. 16.4%
c. P1102.37
b. P13,958.33 a. 8%
d. P1030.28
c. P13,675.23 b. 6%
View Answer:
Answer: Option A d. P13,265.83 c. 7%

Explanation: View Answer: d. 5%

Answer: Option D
1069. A nominal interest of 3% compounded continuously is given View Answer:
on the account. What is the accumulated amount of P10,000 after Explanation: Answer: Option A
10 years?
1072. P500,000 was deposited at an interest of 6% compounded Explanation:
a. P13,610.10 quarterly. Compute the compound interest after 4 years and 9
months. 1075. How many years will P100,000 earn a compound interest of
b. P13,500.10 P50,000 if the interest rate is 9% compounded quarterly?
a. P163,475.37
c. P13,498.60 a. 3.25 years
b. P178,362.37
d. P13,439.16 b. 4.55 years
c. P158,270.37
View Answer: c. 5.86 years
Answer: Option C d. P183,327.37
d. 2.11 years
Explanation: View Answer:
Answer: Option A View Answer:
1070. BY the condition of a will, the sum of P2000 is left to a girl Answer: Option B
to be held in trust fund by her guardian until it amount to Explanation:
P50000.00. When will the girl receive the money of the fund is Explanation:
invested at 8% compounded quarterly? 1073. If the nominal interest rate is 3%, how much is P5000 worth
in 10 years in a continuously compounded account? 1076. A certain amount was deposited 5 years and 9 months ago
a. 7.98 years at an interest of 8% compounded quarterly. If the sum now is
a. P5750 P315,379.85, how much was the amount deposited?
b. 10.34 years
b. P6750 a. P200,000
c. 11.57 years
c. P7500 b. P180,000
d. 10.45 years
d. P6350 c. P240,000
View Answer:
Answer: Option C View Answer: d. P260,000
Answer: Option B
Explanation: View Answer:
Explanation: Answer: Option A
1071. A man expects to receive P25,000 in 8 years. How much is
that worth now considering interest at 8% compounded quarterly? 1074. P200,000 was deposited for a period of 4 years and 6 Explanation:
months and bears on interest of P85649.25. What is the rate of
a. P13,859.12 interest if it is compounded quarterly? For Problems 1077-1079:
 Explanation:
When compounded Bi-monthly, P15000 becomes P22,318.30 1080. How will it take a money to double itself if invested at 5%
after 5 years. compounded annually? 1083. A man wishes to have P40,000 in a certain fund at the end
of 8 years. How much should he invest in a fund that will pay 6%
1077. What is the nominal rate of interest? a. 12.2 years compounded continuously?

a. 7% b. 13.2 years a. P24,751.34

b. 8% c. 14.2 years b. P36,421.44

c. 9% d. 15.2 years c. P28,864.36

d. 10% View Answer: d. P30,468.42

Answer: Option C
View Answer: View Answer:
Answer: Option B Explanation: Answer: Option A

Explanation: 1081. Compute the effective annual interest rate which is Explanation:
equivalent to 5% nominal annual interest compounded
1078. What is the equivalent rate if it is compounded quarterly? continuously. 1084. If the effective annual interest rate is 4%, compute the
equivalent nominal annual interest compounded continuously.
a. 7.03% a. 5.13%
a. 3.80%
b. 8.03% b. 4.94%
b. 4.10%
c. 9.03% c. 5.26%
c. 3.92%
d. 10.03% d. 4.90%
d. 4.09%
View Answer: View Answer:
Answer: Option B Answer: Option A View Answer:
Answer: Option C
Explanation: Explanation:
Explanation:
1079. What is the effective rate if it is compounded quarterly? 1082. Find the time required for a sum of money to triple itself at
5% per annum compounded continuously. 1085. What is the nominal rate of interest compounded
a. 7.28% continuously for 10 years if the compound amount factor is equal
a. 21.97 years to 1.34986?
b. 8.28%
b. 25.34 years a. 3%
c. 9.28%
c. 18.23 years b. 4%
d. 10.28%
d. 23.36 years c. 5%
View Answer:
Answer: Option B View Answer: d. 6%
Answer: Option A
Explanation: View Answer:
Answer: Option A
View Answer: d. same
Explanation: Answer: Option A
View Answer:
1086. American Express Corp. charges 1.5% interest per month, Explanation: Answer: Option A
compounded continuously on the unpaid balance purchases
made on this credit card. Compute the effective rate of interest. 1089. If the effective rate is 24%, what nominal rate of interest is Explanation:
charged for a continuously compounded loan?
a. 19.72% 1092. Find the discount if P2,000 is discounted for 6 months at
a. 21.51% 8% compounded quarterly.
b. 20.25%
b. 22.35% a. P76.92
c. 21.20%
c. 23.25% b. P80.00
d. 19.90%
d. 21.90% c. P77.66
View Answer:
Answer: Option A View Answer: d. P78.42
Answer: Option A
Explanation: View Answer:
Explanation: Answer: Option C
1087. If the nominal interest is 12% compounded continuously,
compute the effective annual rate if interest. 1090. What is the nominal rate of interest compounded Explanation:
continuously for 8 years if the present worth factor is equal to
a. 12.40% 0.6187835? 1093. If a sum of money triples in a certain period of time at a
given rate interest, compute the value of the single payment
b. 11.26% a. 4% present worth factor.

c. 12.75% b. 5% a. 0.333

d. 11.55% c. 6% b. 3.000

View Answer: d. 7% c. 0.292

Answer: Option C
View Answer: d. 1.962
Explanation: Answer: Option C
View Answer:
1088. Compute the difference in the future amount of P500 Explanation: Answer: Option A
compounded annually at nominal rate of 5% and if it is
compounded continuously for 5 years at the same rate. 1091. What is the difference of the amount 3 years from now for a Explanation:
10% simple interest and 10% compound interest per year?
a. P3.87 (P5000 accumulated) 1094. If the single payment amount factor for a period of 5 years
is 1.33822. What is the nearest value of the interest rate?
b. P4.21 a. P155
a. 8%
c. P5.48 b. P100
b. 7%
d. P6.25 c. P50
c. 5%
b. P705.42 a. P422,462.64
d. 6%
c. P750.42 b. P507,233.24
View Answer:
Answer: Option D d. P425.07 c. P524,242.46

Explanation: View Answer: d. P519,327.95

Answer: Option B
1095. If the single payment present worth factor for a period of 8 View Answer:
years is equal to 0.58201, compute the nearest value of the rate Explanation: Answer: Option D
of interest for that period.
For problems 1098-1100: Explanation:
a. 6%
Compute the interest for an amount of P200,000 for a period of 8 1101. Find the value of x, (F/P, x, 6) if F/P compounded quarterly
b. 7% years. is equal to 1.612226.

c. 5% 1098. If it was made at a simple interest rate of 16% . a. 8%

d. 8% a. P274,000 b. 7%

View Answer: b. P265,000 c. 6%

Answer: Option B
c. P256,000 d. 5%
Explanation:
d. P247,000 View Answer:
1096. If money is worth 8% compounded quarterly, compute the Answer: Option A
single payment amount factor for a period of 6 years. View Answer:
Answer: Option C Explanation:
a. 1.60844
Explanation: 1102. Find the value of y, (P/F, 6%, y) if P/F compounded bi-
b. 0.62172 monthly is equal to 0.787566.
1099. If it was made at 16% compounded bi-monthly.
c. 1.70241 a. 7 years
a. P507,267.28
d. 0.53162 b. 6 years
b. P507,365.96
View Answer: c. 5 years
Answer: Option A c. P407,283.01
d. 4 years
Explanation: d. P459,923.44
View Answer:
1097. A sum of P1,000 is invested now and left for 8 years, at View Answer: Answer: Option D
which time the principal is withdrawn. The interest has an accrued Answer: Option B
left for another 8 years. If the effective annual interest is 5%, what Explanation:
will be the withdrawn amount at the end of the 16th year? Explanation:
1103. Find the rate of interest if compound amount factor
a. P507.42 1100. If it was made at 16% compounded continuously. compounded bi-monthly for 5 years is equal to 1.487887.
 1109. A man loan P2000 from the bank. How long would it take in
a. 7% a. 1.249347 years if it was made at 8% compounded continuously.

b. 8% b. 1.214359 a. 7.18 years

c. 5% c. 1.243248 b. 8.18 years

d. 6% d. 0.616783 c. 5.18 years

View Answer: View Answer: d. 6.18 years

Answer: Option B Answer: Option D
View Answer:
Explanation: Explanation: Answer: Option D

1104. Compute the nominal rate for a period of 6 years for an 1107. A man loan P2000 from the bank. How long would it take in Explanation:
effective rate of 8.33% if it is compounded continuously. years for the amount of the loan and interest to equal P3280 if it
was made at 8% simple interest. 1110. An amount of P1000 becomes P1608.44 after 4 years
a. 5% compounded bi-monthly. Find the nominal rate of interest, the
a. 7 years effective rate of interest, and the equivalent rate of interest if it is
b. 6% compounded quarterly.
b. 8 years
c. 7% a. 11% ; 12.623% ; 11.42%
c. 5 years
d. 8% b. 12% ; 12.616% ; 12.06%
d. 6 years
View Answer: c. 12% ; 11.06% ; 12.724%
Answer: Option D View Answer:
Answer: Option B d. 11% ; 11.664% ; 11.93%
Explanation:
Explanation: View Answer:
1105. Compute the equivalent compound amount factor if it is Answer: Option B
compounded continuously. 1108. A man loan P2000 from the bank. How long would it take in
years if it was made at 8% compounded quarterly. Explanation:
a. 1.61607
a. 5.25 years 1111. How long would it take your money to double itself if it is
b. 1.24282 invested at 6% simple interest, compounded semi-quarterly, and
b. 6.25 years compounded continuously?
c. 1.24532
c. 7.25 years a. 12.67 yrs ; 11.2yrs ; 15.05 yrs
d. 0.24245
d. 8.25 years b. 16.67 yrs ; 11.6yrs ; 11.55 yrs
View Answer:
Answer: Option A View Answer: c. 18.67 yrs ; 11.6yrs ; 11.24 yrs
Answer: Option B
Explanation: d. 17.67 yrs ; 10.2yrs ; 11.45 yrs
Explanation:
1106. Compute the equivalent present worth factor if it is View Answer:
compounded continuously. Answer: Option B
 d. P14,242.15 b. 8.24%
Explanation:
View Answer: c. 7.00%
For problems 1112-1114: Answer: Option B
d. 7.96%
An amount of P50,000 was invested for 3 years. Explanation:
View Answer:
1112. Compute its interest at the end of 3 years if it is invested at For Problems 1115-1117: Answer: Option D
10% simple interest.
P200,000 was deposited for a period of 4 yrs. And 6 months and Explanation:
a. P16,550.00 bears on interest of P85,659.25.
1118. What is the value of (F/P, 8%, 6) if it is compounded semi-
b. P17,492.94 1115. What is the nominal rate of interest if it is compounded quarterly.
quarterly?
c. P15,000.00 a. 0.524273541
a. 8.00%
d. P14,242.15 b. 0.787566127
b. 8.24%
View Answer: c. 1.487886717
Answer: Option C c. 7.00%
d. 1.612226000
Explanation: d. 7.96%
View Answer:
1113. Compute for its compound interest if it is invested at 10% View Answer: Answer: Option D
compounded annually. Answer: Option A
Explanation:
a. P16,550.00 Explanation:
1119. What is the value of (P/F, 6%, 4) if it is compounded bi-
b. P17,492.94 1116. What is the actual rate of interest? monthly.

c. P15,000.00 a. 8.00% a. 0.524273541

d. P14,242.15 b. 8.24% b. 0.787566127

View Answer: c. 7.00% c. 1.487886717

Answer: Option A
d. 7.96% d. 1.612226000
Explanation:
View Answer: View Answer:
1114. Compute its interest if it is invested at 10% compounded Answer: Option B Answer: Option B
continuously.
Explanation: Explanation:
a. P16,550.00
1117. What is the equivalent nominal rate if it is compounded 1120. What is the single payment compound amount factor for 8%
b. P17,492.94 semi-quarterly? compounded bi-monthly for 5 years.

c. P15,000.00 a. 8.00% a. 0.524273541

b. 0.787566127 1123. What is the value of the present worth factor if it is 1126. What is the equivalent nominal rate if it is compounded
compounded continuously? quarterly of problem# 1124?
c. 1.487886717
a. 1. 272441 a. 6.12%
d. 1.612226000
b. 1.726419 b. 5.43%
View Answer:
Answer: Option C c. 0.272441 c. 4.24%

Explanation: d. 0.726149 d. 5.87%

For Problems 1121-1123: View Answer: View Answer:

Answer: Option D Answer: Option D
If money is invested at a nominal rate of interest of 8% for a
period of 4 years. Explanation: Explanation:

1121. What is the effective rate if it is compounded continuously? 1124. If the single payment amount factor for a period of 5 years 1127. Money was invested at x% compounded quarterly. If it
is 1.33822, what is the nominal rate of interest? takes money to quadruple in 17.5 years, find the value of x.
a. 8.33%
a. 6.00% a. 6.23%
b. 8.93%
b. 6.92% b. 5.92%
c. 9.33%
c. 7.00% c. 8.00%
d. 9.93%
d. 7.92% d. 9.78%
View Answer:
Answer: Option A View Answer: View Answer:
Answer: Option A Answer: Option C
Explanation:
Explanation: Explanation:
1122. What is the value of the compound amount factor if it is
compounded continuously? 1125. What is the effective rate of interest if it is compounded 1128. What is the actual interest rate of problem# 1127?
semi-annually of problem# 1124?
a. 1.377128 a. 7.24%
a. 5.00%
b. 0.214212 b. 8.24%
b. 6.92%
c. 1.424231 c. 7.92%
c. 7.24%
d. 0.122416 d. 8.87%
d. 6.09%
View Answer: View Answer:
Answer: Option A View Answer: Answer: Option B
Answer: Option D
Explanation: Explanation:
Explanation:
1129.) What is the equivalent rate if problem# 1127 is View Answer: d. 3.64 years
compounded daily? Answer: Option D
View Answer:
a. 7.24% Explanation: Answer: Option A

b. 8.24% 1132. How much is he going to pay at the end of 5 years if it was Explanation:
made at 12% compound continuously?
c. 7.92% 1135. P200,000 was placed in a time deposit at x% compounded
a. P800,000.00 quarterly and was free of taxes. After exactly 5 years, the total
d. 8.87% interest earned was P120,000. What is the value of x?
b. P823,243.09
View Answer: a. 9.5%
Answer: Option C c. P911,059.20
b. 8.21%
Explanation: d. P907,009.21
c. 6.35%
For Problems 1130-1132: View Answer:
Answer: Option C d. 7.12%
A businessman loaned P500,000 from a local bank that charges
an interest rate of 12%. Explanation: View Answer:
Answer: Option A
1130. How much is he going to pay at the end of 5 years if it was 1133. P60,000 was deposited at 6% compounded quarterly, tax
made at 12% simple interest? free for 9 years and 3 months. How much interest was earned at Explanation:
the end of the period?
a. P800,000.00 1136. Which of these gives the lowest effective rate of interest?
a. P43,214.24
b. P823,243.09 a. 12.35% compounded annually
b. P43.242.24
c. P911,059.20 b. 11.9% compounded semi-annually
c. P44,086.60
d. P907,009.21 c. 12.2% compounded quarterly
d. P44,215.60
View Answer: d. 11.6% compounded monthly
Answer: Option A View Answer:
Answer: Option C View Answer:
Explanation: Answer: Option D
Explanation:
1131. How much is he going to pay at the end of 5 years if it was Explanation:
made at 12% compound semi-quarterly? 1134. P100,000 was placed in a time deposit which earned 9%
compounded quarterly tax free. After how many years would it be 1137. It takes 20.15 years to quadruple your money if it is
a. P800,000.00 able to earn a total interest of P50,000? invested at x% compounded semi-annually. Find the value of x.

b. P823,243.09 a. 4.56 years a. 8%

c. P911,059.20 b. 4.23 years b. 6%

d. P907,009.21 c. 3.45 years c. 7%

d. 5% a. P95,324.95
d. 3.8%
View Answer: b. P82938.28
Answer: Option C View Answer:
Answer: Option B c. P68743.24
Explanation:
Explanation: d. P56244.75
1138. It takes 13.87 years to treble the money at the rate of x%
compounded quarterly. Compute the value of x. 1141. You borrow P3,500.00 for one year from a friend at an View Answer:
interest rate of 1.5% per month instead of taking a loan from a Answer: Option B
a. 5% bank at a rate of 18% per year. Compare how much money you
will save or lose on the transaction. Explanation:
b. 6%
a. pay P155 more if you borrowed from the bank 1144. The effective rate of interest of 14% compounded semi-
c. 7% annually is:
b. save P55 by borrowing from your friend
d. 8% a. 14.49%
c. pay P85 more if you borrowed from the bank
View Answer: b. 14.36%
Answer: Option D b. save P95 by borrowing from your friend
c. 14.94%
Explanation: View Answer:
Answer: Option B d. 14.88%
1139. Money was invested at x% compounded quarterly. If it
takes the money into quadruple in 17.5 years, find the value of x. Explanation: View Answer:
Answer: Option A
a. 8% 1142. Find the present worth of a future payment of P1000,000 to
be made in 10 years with an interest of 12% compounded Explanation:
b. 6% quarterly.
1145. The amount of P50,000 was deposited in a bank earning an
c. 7% a. P30,444.44 interest of 7.5% per annum. Determine the total amount at the
end of 5 years, if the principal and interest were not withdrawn
d. 5% b. P33,000.00 during the period.

View Answer: c. P30,655.68 a. P71,781.47

Answer: Option A
d. P30,546.01 b. P72,475.23
Explanation:
View Answer: c. P70,374.90
1140. Fifteen years ago P1,000.00 was deposited in a bank Answer: Option C
account, and today it is worth P2.370.00. The bank pays interest d. P78,536.34
semi-annually. What was the interest rate paid on this account? Explanation:
View Answer:
a. 4.9% 1143.) An initial savings deposit of P80,000 in a certain bank Answer: Option A
earns 6% interest per annum compounded monthly. If the
b. 5.8% earnings from the deposit are subject to a 20% tax, what would Explanation:
the net value of the deposit be after three quarters?
c. 5.0%
1146. What is the effective rate corresponding to 18% 1149. What is the corresponding effective interest rate of 18% Explanation:
compounded daily? Take 1 year is equal to 360 days. compounded semi-quarterly?
1152. How long (in years) will it take the money to quadruple if it
a. 18.35% a. 19.25% earns 7% compounded semi-annually?

b. 19.39% b. 19.48% a. 26.30 years

c. 18.10% c. 18.46% b. 40.30 years

d. 19.72% d. 18.95% c. 33.15 years

View Answer: View Answer: d. 20.15 years

Answer: Option D Answer: Option B
View Answer:
Explanation: Explanation: Answer: Option D

1147. If P1,000 becomes P1,126.49 after 4 years when invested 1150. If P5000 shall accumulate for 10 years at 8% compounded Explanation:
at a certain nominal rate of interest compounded semi-annually, quarterly, find the compounded interest at the end of 10 years.
determine the nominal rate and the corresponding effective rate. 1153. P200,000 was deposited on Jan. 1,1988 at an interest rate
a. P6,005.30 of 24% compounded semi-annually. How much would the sum be
a. 3.00% and 3.02% on Jan. 1, 1993?
b. P6,000.00
b. 4.29% and 4.32% a. P421,170
c. P6,040.20
c. 2.30% and 2.76% b. P521,170
d. P6,010.20
d. 3.97% and 3.95% c. P401,170
View Answer:
View Answer: Answer: Option C d. P621,170
Answer: Option A
Explanation: View Answer:
Explanation: Answer: Option D
1151. A couple borrowed P4,000 from a lending company for 6
1148. Convert 12% semi-annually to compounded quarterly. years at 12%. At the end of 6 years, it renews the loan for the Explanation:
amount due plus P4,000 more for 3 years at 12%. What is the
a. 19.23% lump sum due? 1154. If P500,000 is deposited at a rate of 11.25% compounded
monthly, determine the compounded interest after 7 years and 9
b. 23.56% a. P14,842.40 months.

c. 14.67% b. P16,712.03 a. P690,849

d. 11.83% c. P12,316.40 b. P670,258

View Answer: d. P15,382.60 c. P680,686

Answer: Option D
View Answer: d. P660,592
Explanation: Answer: Option B
View Answer:
Answer: Option A c. P110,297.27 1160. If the inflation rate is 6%, cost of money is 10%, what
interest rate will take care of inflation and the cost of money?
Explanation: d. P122,265.69
a. 16.6%
1155. P200,000 was deposited at an interest rate of 24% View Answer:
compounded semi-annually. After how many years will the sum Answer: Option A b. 15.5%
be P621,170?
Explanation: c. 17.7%
a. 4 years
1158. In year zero, you invest P10,000.00 in a 15% security for 5 d. 14.4%
b. 3 years years. During that time, the average annual inflation is 6%. How
much, in terms of year zero will be in the account at maturity? View Answer:
c. 5 years Answer: Option A
a. P15,386.00
d. 6 years Explanation:
b. P15,030.00
View Answer: 1161. A man bought a government bond which cost P1000 and
Answer: Option C c. P13,382.00 will pay P50 interest each year for 20 years. The bond will mature
at the end of 20 years and he will receive the original P1000. If
Explanation: d. P16,653.00 there is 2% annual inflation during this period, what rate of return
will the investor receive after considering the effect of inflation?
1156. A bank is advertising 9.5% accounts that yields 9.84% View Answer:
annually. How often is the interest compounded? Answer: Option B a. 2.94%

a. monthly Explanation: b. 3.16%

b. bi-monthly 1159. A machine has been purchased and installed at a total cost c. 4.25%
of P18,000.00. The machine will be retired at the end of 5 years,
c. quarterly at which time it is expected to have a scrap value of P2,000.00 d. 5.16%
based on current prices. The machine will then be replaced with
d. daily an exact duplicate. The company plans to establish a reserve View Answer:
fund to accumulate the capital needed to replace the machine. If Answer: Option A
View Answer: an average annual rate of inflation of 3% is anticipated, how much
Answer: Option C capital must be accumulated? Explanation:

Explanation: a. P15,030.00 1162. The inflated present worth of P2000 in two years is equal to
P1471.07. What is the rate of inflation if the interest rate is equal
1157. A marketing company established a program to replace the b. P18,548.39 to 10%?
cars of its sales representatives at the end of every 5 years. If the
present price of the approved type of car is P520,000.00 with a c. P12,382.00 a. 5%
resale value at the end of 5 years of 60% its present value, how
much money must the company accumulate for 5 years if inflation d. P15,386.00 b. 6%
annually is 10%. Release value will also appreciate at 10% yearly.
View Answer: c. 7%
a. P120,289.51 Answer: Option B
d. 4%
b. P129,382.38 Explanation:
View Answer:
Answer: Option B
c. P8000 1168. A printing equipment costs P73,500 has a life expectancy of
Explanation: 8 years and has a salvage value of P3,500 at the end of its life.
d. P9000 The book value at the end of x years is equal to P38,500. Using
1163. 12% rate of interest can take care of the cost of money and straight line method of depreciation, solve for the value of x.
inflation. If the nominal rate of interest is 6%, what is the rate of View Answer:
inflation? Answer: Option C a. 5 years

a. 6.62% Explanation: b. 4 years

b. 5.66% 1166. A machine has a salvage value of P12,000 at the end of its c. 6 years
useful life of 6 years. The book value at the end of 5 years is
c. 7.67% P30,833.33. Using a straight line method of depreciation, what is d. 3 years
the first cost of the machine?
d. 4.64% View Answer:
a. P125,500 Answer: Option B
View Answer:
Answer: Option B b. P135,500 Explanation:

Explanation: c. P125,000 1169. The cost of the printing equipment is P500,000 and the cost
of handling and installation is P30,000. If the book value of the
1164. An engineer bought an equipment for P500,000. Other d. P135,000 equipment at the end of the 3rd year is P242,000 and the life of
expenses including installations amounted to P30,000. At the end the equipment is assumed to be 5 years, determine the salvage
of its estimated useful life of 10 years, the salvage value will be View Answer: value of this equipment at the end of 5 years.
10% of the first cost. Using straight line method of depreciation, Answer: Option C
what is the book value after 5 years? a. P50,000
Explanation:
a. P214,242 b. P60,000
1167. A manufacturing plant was built at a cost of P5M and is
b. P282,242 estimated to have a life of 20 years with a salvage value of P1M. c. P53,000
A certain equipment worth P570,000 was installed at a cost of
c. P242,241 P80,000 is expected to operate economically for 15 years with a d. P64,000
salvage value of P50,000. Determine the book value of the plant
d. P291,500 and equipment after 10 years, use straight line depreciation View Answer:
method. Answer: Option A
View Answer:
Answer: Option D a. P3,250,000 Explanation:

Explanation: b. P3,750,000 1170. An engineer bought an equipment for P500,000. He spent

an additional amount of P30,000 for installation and other
1165. A small machine costing P80,000 has a salvage value of x c. P4,250,000 expenses. The salvage value is 10% of the first cost. If the book
at the end of its life of 5 years. The book value at the end of the value at the end of 5 years will be P291,500 using straight line
4th year is P22,400. What is the value of x using the straight line d. P4,500,000 method of depreciation, compute the useful life of the equipment
method depreciation? in years.
View Answer:
a. P6000 Answer: Option A a. 6 years

b. P7000 Explanation: b. 8 years

c. 10 years 1173. Using Sum of Years Digit Method 1176. The purchase of a motor for P6000 and a generator for
P4000 will allow the company to produce its own energy. The
d. 15 years a. P1,150,000 configuration can be assembled for P500. The service will operate
for 1600 hours per year for 10 years. The maintenance cost is
View Answer: b. P1,200,000 P300 per year, and cost to operate is P0.85 per hour for fuel and
Answer: Option C related cost. Using straight line depreciation, what is the annual
c. P1,300,000 cost for the operation? There is a P400 salvage value for the
Explanation: system at the end of 10 year.
d. P1,350,600
1171. The cost of equipment is P500,000 and the cost of a. P2,710
installation is P30,000. If the salvage value is 10% of the cost of View Answer:
equipment at the end of 5 years, determine the book value at the Answer: Option B b. P2,480
end of the fourth year. Use straight line method.
Explanation: c. P2,630
a. P155,000
1174. Using Constant Percentage Method d. P2,670
b. P140,000
a. P1,355,024.24 View Answer:
c. P146,000 Answer: Option D
b. P1,185,769.76
d. P132,600 Explanation:
c. P1,246,422.53
View Answer: 1177. A machine has an initial cost of P50,00.00 and a salvage
Answer: Option C d. P1,432,624.84 value of P10,000.00 after 10 years. What is the straight line
method depreciation rate as a percentage of the initial cost?
Explanation: View Answer:
Answer: Option B a. 10%
For Problems 1172-1174:
Explanation: b. 8%
The first cost of a machine is P1,800,000 with a salvage value of
P300,000 at the end of its life of 5 years. Determine the total 1175. An asset is purchased for P9,000.00. Its estimated c. 12%
depreciation after 3 years. economic life is 10 years after which it will be sold for P1,000.00.
Find the depreciation in the first three years using straight line d. 9%
1172. Using Straight Line Method method.
View Answer:
a. P800,000 a. P2,500 Answer: Option B

b. P600,000 b. P2,400 Explanation:

c. P900,000 c. P3,000 1178. A machine has an initial cost of P50,00.00 and a salvage
value of P10,000.00 after 10 years. What is the book value after 5
d. P700,000 d. P2,000 years using straight line method depreciation rate?

View Answer: View Answer: a. P35,000

Answer: Option C Answer: Option B
b. P25,000
Explanation: Explanation:
c. P15,500 depreciation charge during the 5th year using the Sum of Year
Digit Method. View Answer:
d. P30,000 Answer: Option B
a. P756,632.78
View Answer: Explanation:
Answer: Option D b. P957,902.56
1184. A certain equipment costs P7,000 has an economic life of n
Explanation: c. P652,333.33 years and a salvage value P350 at the end of n years. If the book
value at the end of 4 years is equal to P2197.22, compute for the
1179. A machine has a first of P80,000 and a salvage of P2,000 d. P845, 935.76 economic life of the equipment using the sum of years digit
at the end of its life of 10 years. Find the book value at the end of method.
the 6th year using straight line method of depreciation. View Answer:
Answer: Option C a. 10 years
a. P33,200
Explanation: b. 16 years
b. P35,400
1182. A consortium of international communications companies c. 8 years
c. P34,300 contracted for the purchase and installation of a fiber optic cable
linking two major Asian cities at a total cost of P960M. This d. 11 years
d. P32,900 amount includes freight and installation charges at 10% of the
above total contract price. If the cable depreciated over a period View Answer:
View Answer: of 15 years with zero salvage value, what is the depreciation Answer: Option C
Answer: Option A charge during the 8th year using the sum of year digits method?
Explanation:
Explanation: a. P64 M
1185. A company purchased an asset for P10000 and plans to
1180. An asset is purchased for P90,000.00. Its estimated life is b. P23 M keep it for 20 years. If the salvage value is zero at the end of the
10 years after which it will be sold for P1,000.00. Find the book 20th year, what is the depreciation in the third year? Use sum of
value during the first year if Sum of the Years Digits(SYD) c. P80 M years digit method.
depreciation is used.
d. P76 M a. P1000
a. P7,545.45
View Answer: b. P857
b. P2,980.24 Answer: Option A
c. P938
c. P5,245.92 Explanation:
d. P747
d. P6,259.98 1183. A machine cost P7,350 has a life of 8 years and has a
salvage value of P350 at the end of 8 years. Determine its book View Answer:
View Answer: value at the end of 4 years using sum years digit method. Answer: Option B
Answer: Option A
a. P3,476.90 Explanation:
Explanation:
b. P2,294.44 1186. An equipment costs P7000 and has a life of 8 years and
1181. A telephone company purchased a microwave radio salvage value of x after 8 years. If the book value of the
equipment for P6M. Freight and installation charges amounted to c. P6,543.21 equipment at the 4th year is equal to P2197.22, compute the
3% of the purchased price. If the equipment shall be depreciated salvage value x using the sum of years digit method.
over a period of 8 years with a salvage value of 5%, determine the d. P5,455.01
a. P594 c. P11,680
Explanation:
b. P430 d. P9,840
1189. A machine costing P720,000 is estimated to have a life of
c. P350 10 years. If the annual rate of depreciation is 25%, determine the View Answer:
total depreciation using a constant percentage of the declining Answer: Option B
d. P290 balance method.
Explanation:
View Answer: a. P679,454.27
Answer: Option C 1192. An equipment which cost P200,000 has a useful life of 8
b. P432,725.45 years with a salvage value of P25,000 at the end of its useful life.
Explanation: If the depreciation at the first year is P21,875, what method is
c. P532,825.73 used in the calculation of depreciation?
1187. ABC Corporation makes it policy that for every new
equipment purchased, the annual depreciation should not exceed d. P764,243.33 a. Straight Line
20% of the first cost at any time without salvage value. Determine
the length of service if the depreciation used is the SYD Method. View Answer: b. Sinking Fund
Answer: Option A
a. 9 years c. Declining Balance
Explanation:
b. 10 years d. Sum of Years Digit
1190. An earth moving equipment that cost P90,000 will have an
c. 12 years estimated salvage value of P18,000 at the end of 8 years. Using View Answer:
double-declining balance method, compute the book value and Answer: Option A
d. 19 years the total depreciation at the end of the 5th year.
Explanation:
View Answer: a. P21,357.42 ; P68,642.58
Answer: Option D 1193. An equipment costs P8,000 has an economic life of 8 years
b. P15,830.34 ; P74,169.66 and salvage value of P400 at the end of 8 years. The first year
Explanation: depreciation amounts to P1,688.89. What method is used in the
c. P24,362.48 ; P65,637.52 calculation of the depreciation?
1188. A machine having a certain first cost has a life of 10 years
and a salvage value of 6.633% of the first cost at the end of 10 d. P19,442.78 ; P70,557.22 a. Straight Line
years. If it has a book value of P58,914 at the end of the 6th year,
how much is the first cost of the machine if the constant View Answer: b. Sinking Fund
percentage of declining value is used in the computation for its Answer: Option A
depreciation.(Matheson’s Method) c. Declining Balance
Explanation:
a. P600,000 d. Sum of Years Digit
1191. A certain office equipment has a first cost of P20,000 and
b. P300,000 has a salvage value of P1,000 at the end of 10 years. Determine View Answer:
the depreciation at the end of the 6th year using Sinking fund Answer: Option D
c. P100,000 method at 3% interest.
Explanation:
d. P900,000 a. P10,720
1194. The original cost of a certain machine is P150,000 and has
View Answer: b. P12,420 an economic life of 8 years with a salvage value of P9,000 at that
Answer: Option B
time. If the depreciation of the first year is equal to P44,475, what View Answer: quality, what is the depreciation charge at the end of the fourth
method is used in the calculation of the depreciation? Answer: Option B year.

a. Straight Line Explanation: a. P14,000

b. Sinking Fund 1197. An equipment costs P480,000 and has a salvage value of b. P13,000
10% of its cost at the end of its economic life of 35,000 operating
c. Declining Balance hours. In the first year, it was used for 4,000 hours. Determine its c. P15,000
book value at the end of the first year.
d. Sum of Years Digit d. P16,000
a. P430,629.00
View Answer: View Answer:
Answer: Option C b. P380,420.00 Answer: Option A

Explanation: c. P418,360.00 Explanation:

1195. A machine has a first cost of P140,000 and a life of 8 years d. P376,420.00 1200. A lathe machine costs P300,000 brand new with a salvage
with a salvage value of P10,000 at the end of its useful life. If the value of x pesos. The machine is expected to last for 28500 hours
depreciation at the first year amounts to P35,000, what method is View Answer: in a period of 5 years. In the first year of service it was used for
used in the calculation of depreciation? Answer: Option A 8000 hours. If the book value at the end of the first year is
P220,000, compute for the salvage value x in pesos.
a. Double Declining Balance Explanation:
a. P15,000
b. Declining Balance 1198. An equipment costs P480,000 and has a salvage value of
10% of its cost at the end of its economic life of 36,000 operating b. P18,000
c. Straight Line hours in a period of 5 years. In the first year of service, it was
used for 12,000 hours. If at the end of the 2nd year it was used for c. P12,000
d. Sum of Years Digit 15,000 hours, find the depreciation at the second year.
d. P20,000
View Answer: a. P180,000
Answer: Option A View Answer:
b. P160,000 Answer: Option A
Explanation:
c. P190,000 Explanation:
1196. A hydraulic machine cost P180,000 and has a salvage
value of P15,000 at the end of its useful life which is 12 years. If d. P150,000 1201. A certain machine cost P40,000 and has a life of 4 years
the depreciation at the first year is P9,780.71, what method is and a salvage value of P5000. The production output of this
used in computing the depreciation. Assume money is worth 6% View Answer: machine in units per year is first year 1800 units, second year
annually. Answer: Option A 2200 units, third year 3000, and fourth year 4000 units. If the units
produced are of uniform quality, what is the depreciation charge at
a. Straight Line Explanation: the end of 4th year?

b. Sinking Fund 1199. A certain machine cost P40,000 and has a life of 4 years a. P12,727.27
and a salvage value of P5000. The production output of this
c. Declining Balance machine in units per year is 1000 units for the first year, 2000 b. P15,350.23
units for the second year, 3000 units for the third year, and 4000
d. Sum of Years Digit units for the fourth year. If the units produced are in uniform c. P16,420.43
d. P17,200.98
a. P40,629 d. P20,000
View Answer:
Answer: Option A b. P30,420 View Answer:
Answer: Option D
Explanation: c. P40,000
Explanation:
1202. A lathe machine cost P300,000 with a salvage value of d. P30,000
P15,000 is expected to last for 285000 hours in a period of 5 1207. What is the nominal value of interest compounded
years. In the first year of service it was used for 8000 hours. View Answer: continuously for a period of 5 years of an equal payment series if
Compute the book value of the machine at the end of the first Answer: Option C the capital recovery factor is equal to 0.2385787.
year.
Explanation: a. 4%
a. P292,000
1205. An engineering firm from purchased, 12 years ago, a heavy b. 5%
b. 200,000 planner for P50,000 with no salvage value. As the life of the
planner was 20 years, a straight line depreciation reserve has c. 6%
c. P250,000 been provided on that basis. Now the firm wishes to replace the
old planner with a new one possessing several advantages. It can d. 8%
d. P323,000 sell the old planner for P10,000. The new one will cost P100,000.
How much new capital will be required to make the purchase? View Answer:
View Answer: Answer: Option C
Answer: Option A a. P60,000
Explanation:
Explanation: b. P55,000
1208. What is the nominal rate of interest compounded
1203. A machine costing P280,000 has a useful life of 20,000 hrs. c. P66,000 continuously for a period of 5 years of an equal payment series if
at the end of which its salvage value is P30,000. In the first year, it the sinking fund factor is equal 0.180519?
was used for 2080 hrs, in the second year, 3160 hrs. Find the d. P57,000
second depreciation cost in pesos. a. 4%
View Answer:
a. P23,520 Answer: Option A b. 5%

b. P25,252 Explanation: c. 6%

c. P39,500 1206. Ten years ago, a contractor was able to purchase a crane d. 8%
whose capacity is 2000 tons costing P125 per ton. The life was
d. P35,400 estimated to be 15 years with a salvage value of 10% of the cost. View Answer:
A market has been found for the old crane for P80,000. If the Answer: Option B
View Answer: depreciation has been figured on a straight line basis what is the
Answer: Option C difference between the depreciation book value of the old crane Explanation:
and its sale value.
Explanation: 1209. Compute the number of years so that the capital recovery
a. P10,000 factor of a uniform payment series be equal to 0.218638 if money
1204. An equipment costs P400,000 and has a life of 30,000 hrs is worth 3% compounded continuously.
at the end of which its salvage value is x pesos. In the first year, it b. P30,000
was used for 6240 hrs. The book value at the end of the first year a. 5
was P325,120. Find the value of x. c. P15,000
b. 4 1212. Ryan invest P5,000 at the end of each year in an account
which gives a nominal annual interest of 7.5%, compounded View Answer:
c. 6 continuously. Determine the total worth of his investment at the Answer: Option B
end of 15 years.
d. 3 Explanation:
a. P133,545.58
View Answer: 1215. In anticipation of a much bigger volume of business after 10
Answer: Option A b. P142,647.28 years, a fabrication company purchased an adjacent lot for its
expansion program where it hopes to put up a building projected
Explanation: c. P126,336.42 to cost P4,000,000 when it will be constructed 10 years after. To
provide for the required capital expense, it plans to put up a
1210. A manufacturing firm wishes to give each 80 employee a d. P135,429.64 sinking fund for the purpose. How much must the company
holiday bonus. How much is needed to invest monthly for a year deposit each year if the interest to be earned is computed at 15%
at 12% nominal interest rate, compounded monthly, so that each View Answer:
employee will receive a P2000 bonus? Answer: Option A a. P197,008.25

a. P12,608 Explanation: b. P199,090.25

b. P12,615 1213. A car dealer advertise the sale of a car model far a cash c. P177,009.25
price of P280,000. If purchased in installment, the required down
c. P12,600 payment is 15% and balance payable in 18 equal monthly d. P179,008.25
installments at an interest rate of 1.5% per month. How much will
d. P12,300 be the required monthly payments? View Answer:
Answer: Option A
View Answer: a. P15,185.78
Answer: Option B Explanation:
b. P11,588.72
Explanation: 1216. Rainer Wandrew borrowed P50,000 from Social Security
c. P10,972.33 System, in the form of calamity loan, with interest at 8% quarterly
1211. An instructor plans to retire in one year and want an installments for 10 years. Find the quarterly payments.
account that will pay him P25000 a year for the next 15 years. d. P15,558.12
Assuming 6% annual effective interest rate, what is the amount he a. P1827.79
would need to deposit now? (The fund will be depleted after 15 View Answer:
years) Answer: Option A b. P1892.18

a. P249,000 Explanation: c. P1287.78

b. P242,806 1214. How much must be deposited at 6% each year beginning d. P1972.36
Jan 1, year 1, in order to accumulate P5,000 on the date of the
c. P248,500 last deposit, Jan 1, year 6? View Answer:
Answer: Option A
d. P250,400 a. P751
Explanation:
View Answer: b. P717
Answer: Option B 1217. For having been loyal, trustworthy, and efficient, the
c. P715 company has offered a superior yearly gratuity pay of P20,000 for
Explanation: 10 years with the first payment to be made one year after his
d. P775 retirement. The supervisor, instead, requested that he be paid a
lump sum, on the date of his retirement, having less interest that maturity value is P150,000. How much should be deposited each
the company would have earned if the gratuity is to be paid in View Answer: year if the fund pays interest at the rate of 3%?
yearly basis. If interest is 15%, what is the equivalent lump sum Answer: Option D
that he could get? a. P12,547.14
Explanation:
a. P100,375.37 b. P13,084.58
1220. In five years, P18,000 will be needed to pay for a building
b. P100,735.37 renovation,. In order to generate this sum, a sinking fund c. P14,094.85
consisting of three annual payments is established now. For tax
c. P101,757.37 purposes, no further payments will be made after three years. d. P16,848.87
What payments are necessary if money is worth 15% per annum?
d. P100,575.37 View Answer:
a. P2870 Answer: Option B
View Answer:
Answer: Option A b. P3919 Explanation:

Explanation: c. P5100 1223. A machine costs P20,000 today and has an estimated
scrap value of P2,000 after 8 years. Inflation is 2% per year. The
1218. If P500 is invested at the end of each year for 6 years, at an d. P2670 effective annual interest rate earned on money invested is 8%.
annual interest rate of 7%, what is the total peso amount available How much money needs to be set aside each year to replace the
upon the deposit of the sixth payment? View Answer: machine with an identical model 8 years from now?
Answer: Option B
a. P3,210 a. P2,808.88
Explanation:
b. P3,577 b. P3,290.00
1221. San Miguel Corporation purchases P400,00 worth of
c. P3,000 equipment in year 1970. It decided to use straight line c. P3,920.00
depreciation over the expected 20 year life of the equipment. The
d. P4,260 interest rate is 16%. If the overall tax rate is 35% , what is the d. P3,610.00
present worth of the tax shield?
View Answer: View Answer:
Answer: Option B a. P40,298.68 Answer: Option A

Explanation: b. P41,501.89 Explanation:

1219. A series of year and payments extending over eight years c. P45,450.28 1224. A machine is under consideration for investment. The cost
are as follows: P10,000 for the first year, P20,000 for the second of the machine is P25,000. Each year it operates, the machine
year, P50,000 for the third year, and P40,000 for each year from d. P51,410.37 generates P15,000. Given an effective annual interest rate of
fourth year through the 8th year. Find the equivalent annual worth 18%, what is the discounted payback period, in years, on the
of these payments if the annual interest is 8%. View Answer: investment of the machine?
Answer: Option B
a. P44,800.00 a. 1.75 years
Explanation:
b. P30,563.00 b. 3.17 years
1222. A local firm is establishing a sinking fund for the purpose of
c. P35,650.00 accumulating a sufficient capital to retire its outstanding bonds c. 1.67 years
and maturity. The bonds are redeemable in 10 years, and their
d. P33,563.85 d. 2.16 years
 single lump of P3,702,939,80 at the end of 4 years. If the rate
View Answer: interest was 14% compounded quarterly, what is the value of x? Explanation:
Answer: Option D
a. 13 years 1230. A man paid a 10% down payment of P200,000 for a house
Explanation: and lot and agreed to pay the balance on monthly installments for
b. 10 years 5 years at an interest rate of 15% compounded monthly. What
1225. Company A purchases P200,000 of equipment in year zero. was the monthly installment on pesos?
It decides to use straight line depreciation over the expected 20 c. 12 years
year life of the equipment. The interest rate is 14%. If the average a. P44,528.34
tax rate is 40%, what is the present worth of the depreciation tax d. 11 year
held? b. P42,821.87
View Answer:
a. P30,500 Answer: Option B c. P43,625.92

b. P26,500 Explanation: d. P45,825.62

c. P39,700 1228. A service car whose car price was P540,000 was bought View Answer:
with a down payment of P162,000 and monthly installments of Answer: Option B
d. P40,000 P10,847.29 for 5 years. What was the rate of interest if
compounded monthly? Explanation:
View Answer:
Answer: Option B a. 30% 1231. A man inherited a regular endowment of P100,000 every
end of 3 months for 10 years. However, he may choose to get a
Explanation: b. 24% single lump sum payment at the end of 4 years. How much is this
lump sum if the cost of money is 14% compounded quarterly?
1226. Instead of paying P100,000 in annual rest for office space c. 20%
at the beginning of each year for the next 10 years, an a. P3,702,939.73
engineering firm has decided to take out a 10 year P100,000 loan d. 15%
for a new building at 6% interest. The firm will invest P100,000 of b. P3,802,862.23
the rent saved and earned 18% annual interest on that amount. View Answer:
What will be the difference between the revenue and expenses? Answer: Option B c. P3,502,546.23

a. Firm will need P17,900 extra Explanation: d. P3,602,431.73

b. Firm will break even 1229. What is the present worth of a 3 year annuity paying P3000 View Answer:
at the end of each year, with interest at 8% compounded Answer: Option A
c. Firm will have P21,500 left over annually?
Explanation:
d. Firm will need P13,000 extra a. P7,731.29
1232. A man paid 10% down payment of P200,000 for a house
View Answer: b. P9,731.79 and lot and agreed to pay the balance on monthly installments for
Answer: Option A x years at an interest rate of 15% compounded monthly. If the
c. P7,371.29 monthly installment was P42,821.87, find the value of x.
Explanation:
d. P9,371.79 a. 5 years
1227. A man inherited a regular endowment of P100,000 every
end of 3 months for x years. However, he may choose to get a View Answer: b 9 years
Answer: Option A
c. 8years a. P4,209.51 Explanation:

d. 7 years b. P5,602.62 1238. In purchasing a house, a man makes a cash payment and
takes out a mortgage for P10,000 on which he agrees to pay
View Answer: c. P6,240.62 P200 at the end of each month for 5 years. At what interest rate
Answer: Option A compounded monthly was interest charged on the mortgage?
d. P7,161.42
Explanation: a. 8.41%
View Answer:
1233. A father wishes to provide P4000 for his son on his 21st Answer: Option A b. 7.42%
birthday. How much should he deposit every 6 months in a
savings bank which pays 3% compounded semi-annually if the Explanation: c. 7.68%
first deposit is made when the son is 3.5 years old?
1236. An annual deposit of P1270 is placed on the fund at the end d. 9.60%
a. P45.76 of each year for 6 years. If the fund invested has a rate of interest
of 5% compounded annually, how much is the worth of this fund View Answer:
b. P94.24 at the end of 9 years? Answer: Option B

c. P84.61 a. P12,000 Explanation:

d. P78.68 b. P10,000 1239. How much money must you invest in order to withdraw
P2000 annually for 10 years if the interest rate is 9%?
View Answer: c. P11,000
Answer: Option C a. P12,853.32
d. P14,000
Explanation: b. P12,881.37
View Answer:
1234. An employee obtained a loan of P100,000 at the rate of 6% Answer: Option B c. P12,835.32
compounded in order to build a house. How much must he pay
monthly to amortize the loan within a period of 10 years? Explanation: d. P12,385.32

a. P8,322.07 1237. A fund for replacement of a machinery in a plant must have View Answer:
P30,000 at the end of 9 years. An equal deposit of P2,965 was Answer: Option C
b. P1,101.80 made on the fund at the end of each 6 months for 4 years only.
How much is the rate of the fund invested if it is compounded Explanation:
c. P2,494.04 semi-annually?
1240. If interest is at rate of 8% compounded semi-annually, what
d. P3,452.90 a. 3.5% sum must be invested at the end of each 6 months to accumulate
a fund of P10,000 at the end of 8 years?
View Answer: b. 4.5%
Answer: Option B a. P458.20
c. 5.5%
Explanation: b. P532.11
d. P6.5%
1235. If money is worth 5% compounded semi-annually, find the c. P498.23
present value of a sequence of 12 semi-annual payments of P500 View Answer:
each, the first of which is due at the end of 4.5 years. Answer: Option A d. P753.10
View Answer: 1246. A house and lot can be acquired with a down payment of
Answer: Option A c. 10% P500,000 and a yearly payment P100,000 at the end of each year
for a period of 10 years, starting at the end of 5 years from the
Explanation: d. 12% date of purchase. If the money is worth 14% compounded semi-
annually, what is the cash price of the property?
1241. A Corporation will invest P5000 in a fund at the end of each View Answer:
6 months to accumulate P100,000 to initiate a plant overhaul. If Answer: Option A a. P810,000
the fund is invested at 6.5% compounded semi-annually, how
may years will the fund contain at least P100,000? Explanation: b. P808,836

a. 8 years 1244. A purchasing engineer of a certain firm is to purchase a c. P801,900

second hand truck for P75,000. A dealer offers cash payment of
b. 6 years P5,000 and P6486 per month for 12 months. Another dealer d. P805,902
offered under the same condition with 0.75% interest per month
c. 10 years for 12 months of the unpaid balance. Which offer should the View Answer:
engineer choose and what is the rate of interest? Answer: Option B
d. 9 years
a. 0.62% Explanation:
View Answer:
Answer: Option A b. 1.66% 1247. A man bought a brand new car for P650,000 on installment
basis at the rate of 10% per annum on the unpaid balance. If he
Explanation: c. 0.75% paid a down payment of P120,000 cash and proposed to pay the
balance in equal monthly payment for 2 years, what should be his
1242. A piece of machinery can be bought for P10,000 cash, or d. 0.40% monthly payment?
for P2000 down and payments of P750 per year for 15 years.
What is the annual interest rate for time payments? View Answer: a. P54,323.03
Answer: Option C
a. 4.61% b. P34,532.94
Explanation:
b. 3.81% c. P24,447.03
1245. If a low cost house and lot worth P87,000 were offered at
c. 5.71% 10% down payment and P500 per month for 25 years. What is the d. P83,534.32
effective monthly interest rate on the diminished balance?
d. 11.00% View Answer:
a. 0.492% Answer: Option C
View Answer:
Answer: Option A b. 0.687% Explanation:

Explanation: c. 0.531% 1248. A businessman is faced with the prospect of fluctuating

future budget for the maintenance of the generator. During the
1243. To accumulate a fund of P8000 at end of 10 years, a man d. 0.683% first 5 years, P1,000 per year will be budgeted. During the second
will make equal annual deposit of P606.94 in the fund at the end 5 years, the annual budget will be P1500 per year. In addition,
of each year. How much is the rate of interest if it is compounded View Answer: P3500 will be budgeted for an overhaul of the machine at the end
annually? Answer: Option A of the fourth year and another P3500 for an overhaul at the end of
8th year. Assuming compounded interest at 6% per annum, what
a. 6% Explanation: is the equivalent annual cost of maintenance?

b. 8% a. P1,888.87
 1251. A businessman borrowed P300,000 with interest at the rate
b. P1,738.34 of 6% compounded semi-annually. He agrees to discharge his View Answer:
obligation by paying a series of 8 equal semi-annual payments, Answer: Option A
c. P1,777.38 the first being due at the end of 5.5 years. Find the semi-annual
payment. Explanation:
d. P1,999.34
a. P69,475.53 1254. A man owes P12,000 today and agrees to discharge the
View Answer: debt by equal payments at the beginning of each 3 months for 8
Answer: Option A b. P57,434.78 years, where this payments include all interest at 8% payable
quarterly. Find the quarterly payment.
Explanation: c. P73.083.59
a. P501.30
1249. A parent on the day the child is born wishes to have to d. P40,922.40
determine what lump sum would have to be paid into an account b. P602.40
bearing interest at 5% compounded annually, in order to withdraw View Answer:
P20,000 each on the child’s 18th, 19th, 20th, and 21st birthdays. Answer: Option B c. P498.20

a. P35,941.73 Explanation: d. P701.60

b. P33,941.73 1252. A man borrowed P300,000 from a lending institution which View Answer:
will be paid after 10 years at an interest rate of 12% compounded Answer: Option A
c. P30,941.73 annually. How much should he deposit to a bank monthly in order
to discharge his debt 10 years hence? Explanation:
d. P25,941.73
a. P2,798.52 1255. A man will deposit P200 with a savings and loan
View Answer: association at the beginning of 3 months for 9 years. If the
Answer: Option C b. P3,952.50 association pays interest at the rate of 5.5% quarterly, find the
sum to his credit just after the last deposit.
Explanation: c. P4,672.31
a. P9236
1250. If money is worth 5% compounded semi-annually, find the d. P5,093.06
present value of a sequence of 12 semi-annual payments of P500 b. P9363
each, the first of which is due at the end of 4.5 years. View Answer:
Answer: Option D c. P9563
a. P4,209.51
Explanation: d. P9684
b. P5,038.29
1253. What is the accumulated amount of the five year annuity View Answer:
c. P3,958.48 paying P6000 at the end of each year, with interest at 15% Answer: Option B
compounded annually?
d. P4,936.39 Explanation:
a. P40,454.29
View Answer: 1256. At what interest rate payable quarterly will payments of
Answer: Option A b. P41,114.29 P500 at the beginning of each 3 months for 7 years discharge a
debt of P12500 due immediately?
Explanation: c. P41,454.29
a. 3.44%
d. P40,544.29
b. 4.33% 1259. The National Irrigation Administration undertakes the at 18% interest is to be established at recover of investment, how
construction of an irrigation project in the province of oriental much must be paid to the oil well?
c. 5.44% Mindoro which will cover an area of 10,000 hectares and
estimated cost P10,000,000 which was borrowed from the World a. P70,215,276.17
d. 6.33% Bank at the start of the construction. The construction will last 30
years with no salvage value. Bonds will be paid at 4% per annum b. P73,297,198.28
View Answer: compounded annually for 30 years. The construction of project
Answer: Option A will take 4 years. Insurance operation and maintenance of the c. P73,921,184.58
system will cost P120,00 per year. Interest on sinking fund is 6%.
Explanation: How much should each hectare be charged? d. P75,973,209.26

1257. A P1,000,000 issue of 3% 15 years bonds was sold at 95%. a. P64.65 View Answer:
If miscellaneous initial expenses of the financing were P20,000 Answer: Option C
and yearly expenses of P2,000 is incurred, what is the true cost b. P66.56
the company is paying for the money it borrowed? Explanation:
c. P60.66
a. 2.6% 1262. An investor pays P1,100,000 for a mine which will yield a
d. P45.65 net income of P200,000 at the end of each year for 10 years and
b. 4.2% then will become useless. He accumulated a replacement fund to
View Answer: recover his capital by annual investments at 4.5%. At what
c. 4.0% Answer: Option A rate(%) does he receive interest on his investment at the end of
each year?
d. 3.8% Explanation:
a. 10.04%
View Answer: 1260. A company issued 50 bonds of P1,000 face value each
Answer: Option D redeemable at par at the end of 15 years to accumulate the funds b. 8.5%
required for redemption. The firm established a sinking fund
Explanation: consisting of annual deposits, the interest rate of the fund being c. 11.5%
4%. What was the principal in the fund at the end of 12th year?
1258. A man was offered a Land Bank certificate with a face value d. 14.5%
of P100,000 which is baring interest of 8% per year payable semi- a. P35,983
annually and due in 6 years. If he wants to earn 6% semi- View Answer:
annually, how much must he pay the certificate? b. P38,378 Answer: Option A

a. P96,041.92 c. P41,453 Explanation:

b. P90,061.49 d. P37,519 1263. A certain marble mine property has an estimated life of 30
years at a projected annual output of 3000 cubic meters of marble
c. P90,614.92 View Answer: blocks. Estimated management cost per year is placed at
Answer: Option D P1,500,000 and operating cost of the quarry and processing plant
d. P99,814.92 is P8000 per cubic meter. The finished products, tiles and slabs,
Explanation: can be sold for P12,000 per cubic meter if exported. Determine
View Answer: the present valuation of the mineral property if the sinking fund
Answer: Option C 1261. An oil well which could produce a net income of rate of interest is 15% and the annual dividend rate is to be 12%.
P15,000,000 per year for 25 years is being considered to be
Explanation: purchased by a group of businessman. If the return on investment a. P85,444,313.27
is targeted to be 20% out of the net income and the sinking fund
b. P85,554,371.18
 1266. The annual income from the mine is P100,000 and the life b. P4946
c. P85,854,317.13 of the mine is 20 years. Find the price that an investor is willing to
pay for the mine if he considers that money is worth 5% and if he c. P5625
d. P85,345,365.28 is to accumulate a sinking fund at 6% in order to replace the
capital he invested. d. P4805
View Answer:
Answer: Option C a. P1,295,595.57 View Answer:
Answer: Option C
Explanation: b. P1,995,959.97
Explanation:
1264. The annual dividend from a mine will be P75,000 until the c. P1,529,847.29
ore is exhausted at the end of 30 days, and the mine becomes 1269. A new engine will cost P12,000 with an estimated life of 15
useless. Find the price of the mine to yield the investor 6.5%, if he d. P1,159,287.92 years and a salvage value of P800 and guaranteed to have an
accumulated a replacement fund to restore his capital by annual operating cost of P3500 per year. The new engine is considered
investment at 5%. View Answer: as a replacement of the old one. The old engine had a total
Answer: Option A annual cost of P5,200 to operate. Determine the rate of return of
a. P936,897.63 the new investment using 6% sinking fund to recover
Explanation: depreciation, if the old engine could be sold now for P2000.
b. P836,286.39
1267. An untreated electric wooden pole that will last 10 years a. 12.19%
c. P982,286.29 under a certain soil conditions costs P1200. If a treated pole will
last for 20 years, what is the maximum justifiable amount that can b. 14.29%
d. P735,385.53 be paid for the treated pole, if the maximum return on investment
is 12%? Consider annual taxes and insurance amount to be 1% at c. 10.47%
View Answer: first cost.
Answer: Option A d. 15.92%
a. P1,559.50
Explanation: View Answer:
b. P1995.28 Answer: Option A
1265. The privileges of a patent will last for 20 more years and the
royalty from it will be P60,000 at the end of each year during that c. P1,593.20 Explanation:
time. Find the value of his patent rights to an investor who desires
interest at 8% on his investment and will accumulate a capital d. P1,959.30 1270. A corporation uses a type of motor truck which costs
replacement fund at 5%. P5000with a life of 2 years and final salvage value of P800. How
View Answer: much could the corporation afford to pay for another type of truck
a. P594,297.20 Answer: Option A of the same purpose for a life of 3 years with a final salvage value
of P1000? Money is worth 4%
b. P544,254.30 Explanation:
a. P8450.66
c. P405,384.28 1268. A company must relocate one of its factories in three years.
Equipment for the loading dock is being considered for purchase. b. P7164.37
d. P629,289.40 The original cost is P20,000,000, the salvage value of the
equipment after three years is P8,000. The company’s rate of c. P6398.24
View Answer: return on money is 10%. Determine the capital recovery rate per
Answer: Option B year. d. P9034.56

Explanation: a. P5115 View Answer:

Answer: Option B
 d. 482 days
Explanation: c. P936,431.16
View Answer:
1271. A granite quarry purchased of P1,600,000 is expected to be d. P843,916.27 Answer: Option B
exhausted at the end of 4 years. If the resale value of the land is
P100,000, what annual income is required to yield an investment View Answer: Explanation:
rate of 12%? Use a sinking fund rate of 3% Answer: Option A
1276. A contractor can purchase a heavy-duty truck for P500,000.
a. P551,544 Explanation: Its estimated life is 8 years and estimated salvage value of P6000.
Maintenance is estimated to be P2500 annually including the cost
b. P552,550 1274. A multi million project can purchase heavy duty trucks for of driver and fuel maintenance. The contractor can hire a similar
P600,000 each. It is estimated to have a salvage value of P60000 unit and driver for P750 a day. If interest is taken at 8%, how
c. P550,540 at the end of its life which is 10 years. Maintenance and operating many days per year must be services of a dump truck be required
cost including the driver is estimated to cost an average of P3000 to justify the purchase of a truck? Use annual cost method.
d. P553,420 per year. The contractor however can hire a similar truck and its
operator for P420 per day. If money is worth 12%, how many days a. 112 days
View Answer: per year must the service of the truck be required to justify the
Answer: Option C buying of the trucks. Use annual cost method. b. 121days

Explanation: a. 243 days c. 132 days

1272. A machine has a first cost of P800,000 and a salvage value b. 225 days d. 211 days
of P50,000 at the end of its life after 10 years. The annual saving
for the use of the machine amount s to P124,900.97. If the annual c. 252 days View Answer:
maintenance of the machine is P4000 and the sinking fund to Answer: Option A
recover depreciation earns 6%, compute for the rate of return of d. 255 days
investment. Explanation:
View Answer:
a. 8% Answer: Option C 1277. It cost P50,000 at the end of each year to maintain a
section of Kennon road. If money is worth 10%, how much would
b. 7% Explanation: it pay to spend immediately to reduce the annual cost to P10,000?

c. 6% 1275. Each removal from a ditch in city streets is accomplished by a. P410,000

a machine loading into trucks. This machine will cost P20,000 with
d. 9% labor, fuel, oil, and maintenance amounting to P5000 per year. b. P554,000
Life of the machine is estimated to be 5 years and no salvage
View Answer: value. The contractor however can hire a similar machine and its c. P400,000
Answer: Option A operator at P340 per day. How many days per year must the
services of the machine be required to justify the purchase of their d. P453,000
Explanation: new machine of the money is worth 10%. Use annual cost
method. View Answer:
1273. The first cost of a certain equipment is P324,000 and a Answer: Option C
salvage value of P50,000 at the end of its life of 4 years. If money a. 428 days
is worth 6% compounded annually, find the capitalized cost. Explanation:
b. 248 days
a. P1,367,901.15 1278. If money is worth 12% compounded quarterly, what is the
c. 284 days present value of the perpetuity of P1,000 payable monthly?
b. P1,427,846.17
a. P453,876.80 1281. A project costs P100,000. The benefit at the end of each Determine the break even point. If only 200 units were produced
year for a period of 5 years is equal to P40,000. Assuming money per month, determine the profit.
b. P100,976.23 is worth 8% with no salvage value, compute the benefit cost ratio.
a. 50 ; P112,656.67
c. P342,993.70 a. 1.125
b. 45 ; P122,676.88
d. P100,993.78 b. 2.124
c. 48 ; P121,666.67
View Answer: c. 1.875
Answer: Option D d. 48 ; P212,666.67
d. 1.597
Explanation: View Answer:
View Answer: Answer: Option C
1279. Find the present value, in peso, of a perpetuity of P15,000 Answer: Option D
payable semi-annually if money is worth 8% compounded Explanation:
quarterly. Explanation:
1284. General Electric Company, which manufactures electric
a. P372,537 1282. Compute the benefit cost ratio of the following project: motor, has a capacity of producing 150 motors a month. The
variable costs are P4,000 per month, the average selling price of
b. P374,977 Project cost = P80,000 the motor is P750 per motor. Fixed costs of the company amounts
to P78,000 per month which includes all taxes. Determine the
c. P373,767 Gross income = P25,000 per year number of motors to be produced per month to break even and
the sales volume in pesos at this point.
d. P371,287 Opening Cost = P6,000 per year
a. 105 units
View Answer: Salvage Value = 0
Answer: Option D b. 120 units
Life of Project = 10 years
Explanation: c. 110 units
Rate of Interest = 12%
1280. A businessman invested in a medium scale business which d. 115 units
cost him P47,000. The net annual return estimated is P14,000 for a. 1.34
each of the next 8 years. Compute the benefit cost ratio if the View Answer:
annual rate of interest is 18%. b. 1.78 Answer: Option C

a. 1.21 c. 2.23 Explanation:

b. 1.76 d. 1.11 1285. A plywood manufacturer produces a piece of plywood at a

labor cost of P0.50 and material at P3.00. The fixed charges on
c. 2.23 View Answer: business are P50,000 a month and the variable cost is P0.50 per
Answer: Option A piece. If one plywood sells for P6.00 each, how many pieces must
d. 1.11 be produced each month for the manufacturer to break even?
Explanation:
View Answer: a. 27,000
Answer: Option A 1283. A local factory assembling calculators produces 100 units
per month and sells them at P1,800 each. Dividends are 8% on b. 25,000
Explanation: the 8000 shares with par value of P250 each. The fixed operating
cost per month is P25,000. Other costs are P1,000 per unit. c. 24,000
 estimated at P100 per year. A machine that is being considered a. 322.33 ; 377
d. 22,000 for this job will cost P2,400, have a salvage value of P100 at any
time and a fixed annual cost of P200. With it, labor cost is P0.22 b. 345.33 ; 379
View Answer: per unit. For what number of units of product per year at zero
Answer: Option B interest and life of 6 years for the machine will the annual cost of c. 353.33 ; 333
the two methods break even?
Explanation: d. 333.33 ; 397
a. 1510 units
1286. The profit on a product selling for P8.20 is 10% of the View Answer:
selling price. What percentage increase in production cost will b. 1050 units Answer: Option D
reduce the profit by 60%?
c. 1150 units Explanation:
a. 6.67%
d. 1551 units 1291. A certain firm has the capacity to produce 650,000 units of
b. 6.76% product per year. At present, it is operating at 62% capacity. The
View Answer: firm’s annual income is P4,160,000. Annual fixed cost is
c. 7.66% Answer: Option A P1,920,000 and the variable cost is equal to P3.56 per unit of
product. What is the firm’s annual profit or loss and what volume
d. 7.66% Explanation: of sales does the firm break even?

View Answer: 1289. A shoe manufacturer produces a pair of shoes at a labor a. P805,320 ; P3,354,680
Answer: Option A cost of P9.00 a pair and a material cost of P8.00 a pair. The fixed
charges on the business is P90,000 a month and the variable cost b. P850,330 ; P3,543,683
Explanation: is P4.00 a pair. If the shoes sells at P30 a pair, how many pairs
must be produced each month for the manufacturer to break c. P803,550 ; P3,276,398
1287. A local company assembling stereo radio cassette even?
produces 300 units per month at a cost of P800 per unit. Each d. P800,286 ; P3,186,586
stereo radio cassette sells for P1,200. If the firm makes a profit of a. 10,000
10% on its 10,000 shares with a par value of P200 per share, and View Answer:
the total fixed cost is P20,000 per month. What is the break even b. 12,000 Answer: Option A
point and how much is the loss or profit if only 100 units are
produced in a given month? c. 11,000 Explanation:

a. 90 ; P3,444.33 d. 13,000 1292. The direct labor cost and material cost of a certain product
are P300 and P400 per unit, respectively. Fixed charges are
b. 91 ; P4,333.44 View Answer: P100,000 per month and other variable costs are P100 per unit. If
Answer: Option A the product is sold at P1,200 per unit, how many units must be
c. 92 ; P3,333.33 produced and sold to break even?
Explanation:
d. 93 ; P4,444.33 a. 200 units
1290. An item which can be sold for P36.00 per unit wholesale is
View Answer: being produced with the following cost data; labor cost, P10 per b. 250 units
Answer: Option C unit; material cost, P15.00 per unit; fixed charges, P10,000;
variable cost, P8.00 per unit. What is the break even point sales c. 300 units
Explanation: volume and the break even sales volume if one out of every ten
units produced is defective and is rejected with only full recovery d. 260 units
1288. A certain operation is now performed by hand, the labor on materials?
cost per unit is P0.54 and the annual fixed charge for tool used is View Answer:
Answer: Option B P150 per motor. The average selling price of the motor is P275. c. 3004
Fixed costs of the company amounts to P20,000 per month which
Explanation: included taxes. The number of motors that must be sold each d. 4300
month to break even is closest to:
1293. XYZ Corporation manufacturers book cases that it sells for View Answer:
P65.00 each. It costs XYZ P35,000 per year to operate its plant. a. 40 Answer: Option A
This sum includes rent, depreciation charges on equipment and
salary payments. If the cost to produce one bookcase is P50.00, b. 150 Explanation:
how many cases must be sold each year for XYZ to avoid taking a
loss? c. 80 1298. A manufacturer produces certain items at a labor cost per
unit of P315, material cost per unit of P100, variable cost of P3.00
a. 2334 d. 160 each. If the item has a selling price of P995, how many units must
be sold to break even if the monthly overhead is P461,600?
b. 539 View Answer:
Answer: Option D a. 600
c. 750
Explanation: b. 700
d. 2233
1296. Steel drums manufacturer incurs a yearly fixed operating c. 800
View Answer: cost of P200,000. Each drum manufactured cost P160 to produce
Answer: Option A and sells for P200. What is the manufacturer’s break even sales d. 900
volume in drum per year? If they could manufacture 7,000 drums
Explanation: per year, determine the amount of profit or loss. View Answer:
Answer: Option C
1294. A telephone switchboard 100 pair cable can be made up a. 1250 ; P70,000
with either enameled wire or tinned wire. There will be 400 Explanation:
soldered connections. The cost of soldering a connection on the b. 2500 ; P60,000
enameled wire will be P1.65, on the tinned wire, it will be P1.15. A 1299. A cement firm with production capacity of 130 tons per day
100 pair cable made up with enameled wire cost P0.55 per lineal c. 5,000 ; P80,000 (24 hrs) of clinker has its burning zone about 45 tons of
foot and those made up to tinned wire cost P0.76 per lineal foot. magnesium chrome bricks being replaced periodically, depending
Determine the length of cable run in feet so that the cost of each d. 1,000 ; P75,000 on some operational factors and the life of the bricks. If locally
installation would be the same. produced bricks cost costing P30,000 per ton and have a life of 6
View Answer: months, determine the more economical bricks and by how
a. 1121.06 ft Answer: Option C much?

b. 1001.25 ft Explanation: a. P6,057,000

c. 864.92 ft 1297. A new Civil Engineer produces a certain b. P6,750,000

construction ,material at a labor cost of P16.20 per piece, material
d. 952.38 ft cost of P38.50per piece and variable cost of P7.40 per piece. The c. P6,505,000
fixed charges on the business is P100,000 a month. If he sells the
View Answer: finished product at P95.00 each, how many pieces must be d. P6,075,000
Answer: Option D manufactured each month to break even?
View Answer:
Explanation: a. 3040 Answer: Option D

1295. A company which manufactures electric motors has a b. 3400 Explanation:

production capacity of 200 motors a month. The variable costs are
1300. An equipment installation job in the completion stage can Explanation:
be completed in 40 days of 8 hour day work, with 40 men working. b. P0.1084
With the contract expiring in 30 days, the mechanical engineer 1305. In a certain department store, the monthly salary of a
contractor decided to add 10 men on the job, overtime not being c. P0.1840 saleslady is partly constant and partly varies as the value of her
permitted. If the liquidated damages is P2,000 per day of delay, sales for the month. When the value of her sales for the month is
and the men are paid P80 per day, how much money would he d. P0.8104 P10,000, her salary for that month is P900, when her monthly
save if he will add workers? sales goes up to P12,000, her monthly salary goes up to P1,000.
View Answer: What must be the value of her sales for the month so that her
a. P15,000 Answer: Option A salary for that month would be P2,000?

b. P15,500 Explanation: a. P32,000

c. P16,500 1303. A mechanical engineer who was awarded a P450,000 b. P35,000

contract to install the machineries of an oil mill failed to finish the
d. P16,000 work on time. As provided for in the contract, he has to pay a daily c. P30,000
penalty equivalent to one fourth of one percent per day for the
View Answer: next ten days and one percent per day for every day thereafter. If d. P40,000
Answer: Option D the total penalty was P60750, how many days was the completion
of the contract delayed? View Answer:
Explanation: Answer: Option A
a. 30 days
1301. A fixed capital investment of P10,000,000 is required for a Explanation:
proposed manufacturing plant and an estimated working capital of b. 22 days
P2,000,000. Annual depreciation is estimated to be 10% of the 1306. An equipment installation job in the completion stage can
fixed capital investment. Determine the rate of return on the total c. 26 days be completed in 50 days of 8 hour day work, with 50 men working.
investment and the minimum pay out period if the annual profit is With the contract expiring in 40 days, the mechanical engineer
P2,500,000. d. 24 days contractor decided to add 15 men on the job, overtime not being
permitted. If the liquidated damages is P5,00 per day of delay,
a. 20.38% ; 2.68 View Answer: and the men are paid P150 per day, how much money would he
Answer: Option C save with the additional workers?
b. 20.83% ; 2.86
Explanation: a. P44570
c. 23.80% ; 6.28
1304. By selling balut at P5 per dozen, a vendor gains 20%. The b. P44750
d. 23.08% ; 6.66 cost of the eggs rises by 12.5%. If he sells at the same price as
before, find his new gain %. c. P47540
View Answer:
Answer: Option B a. 5.5% d. P45407

Explanation: b. 6.6% View Answer:

Answer: Option B
1302. A 500kw electric lighting plant cost P95 per kw installed. c. 7.7%
Fixed charges is 14%, operating cost is P0.013 per kw-hr. The Explanation:
plant averages 150kw for 5000 hour of the year, 420 kw for 1000 d. 7.6%
hour and 20kw for the remainder. What is the unit cost of 1307. Jojo bought a second hand Betamax VCR and then sold it
production of electric energy? View Answer: to Rudy at a profit of 40%; Rudy then sold the VCR to Noel at a
Answer: Option B profit of 20%. If Noel paid P2,856 more than it cost Jojo, how
a. P0.0184 much did Jojo pay for the unit?
 Answer: Option C
a. P2200 a. P842.40
Explanation:
b. P4400 b. P962.52
1310. A manufacturing firm maintains one product assembly line
c. P2400 to produce signal generators. Weekly demand for the generators c. P786.40
is 35 units. The line operates for 7 hours per day, 5 days per
d. P4200 week. What is the maximum production time per unit in hours d. P695.40
required of the line to meet the demand?
View Answer: View Answer:
Answer: Option D a. 1 hour Answer: Option B

Explanation: b. 0.75 hours Explanation:

1308. Dalisay Corporation’s gross margin is 45% of sales. c. 3 hours 1313. An engineer buys a machine costing P500,000. Compute
Operating expenses such as sales and administration are 15% of the capitalized cost if the machine has a life of 5 years and a
sales. Dalisay is in 40% tax bracket. What percent of sales is their d. 2.25 hours salvage value of P80,000. Rate of interest is 12% per annum.
profit after taxes?
View Answer: a. P2,424,732
a. 18% Answer: Option A
b. P1,050,934
b. 5% Explanation:
c. P2,431,643
c. 24% 1311. A businessman wishes to earn 7% on his capital after
payment of taxes. If the income from an available investment will d. P5,124,153
d. 0% be taxed at an average of 42%, what minimum rate or return,
before payment of taxes, must the investment offer to be justified? View Answer:
View Answer: Answer: Option B
Answer: Option A a. 12.1%
Explanation:
Explanation: b. 10.7%
1314. A project costing P250,000 yields a yearly benefit of
1309. A manufacturer of sports equipment produces tennis c. 11.1% P80,000 for a period of 10 years with no salvage value at an
rackets for which there is a demand of 200 per month. The interest rate of 6%. What is the benefit cost ratio?
production setup cost for each lot of racket is O300. IN addition, d. 12.7%
the inventory carrying cost for each racket is P24 per year. Using a. 4.24
the Economic Order Quantity (EQQ) model, which is the best View Answer:
production batch size fro the rackets? Answer: Option A b. 3.85

a. 71 units Explanation: c. 2.36

b. 173 units 1312. A 200 hp generator is being considered for purchase. The d. 4.30
generator will cost P320,000 with a life expectancy of 10 years,
c. 245 units with an efficiency of 82%. The maintenance cost per year is View Answer:
P5,000. This generator is used for 300 hours per year and the Answer: Option C
d. 346 units cost of fuel, oil is P0.12 per kilowatt-hour. (1 hp = 0.746 kw).
Assuming the generator will have no salvage value, what will be Explanation:
View Answer: the monthly cost of maintaining the generator?
1315. A company constructed its factory with a fixed capital and the cost of dismantling is estimated to be P15,000. Using
investment of P120M. The net income after the tax and View Answer: straight line depreciation, what is book value of the machine at the
depreciation is expected to be P23m per year. Annual Answer: Option A end of 6 years?
depreciation cost is 10 % of fixed capital investment. Determine
the payout period in years. Explanation: a. P341,000

a. 3.04 years 1318. An engineer bought an equipment for P500,000. He spent b. P343,000
an additional amount of P30,000 for installation and other
b. 2.54 years expenses. The estimated useful life of the equipment is 10 years. c. P340,000
The salvage value is x% of the first cost. Using the straight line
c. 3.43 years method of depreciation, the book value at the end of 5 years will d. P342,000
be P291,500. What is the value of x?
d. 4.85 years View Answer:
a. 20% Answer: Option A
View Answer:
Answer: Option C b. 40% Explanation:

Explanation: c. 30% 1321. A unit of welding machine cost P45,000 with an estimated
life of 5 years. Its salvage value is P2,500. Find its depreciation
1316. A machinery costing P720,000 is estimated to have a book d. 10% rate by straight line method.
value of P40,545.73 when retired at the end of 10 years.
Depreciation cost is computed using a constant percentage of the View Answer: a. 18.89%
declining book value. What is the annual rate of depreciation? Answer: Option D
b. 19.21%
a. 20% Explanation:
c. 19.58%
b. 25% 1319. The initial cost of a paint sand mill, including its installation
is P800,000. The BIR approved life of this machine is 10 years for d. 19.89%
c. 30% depreciation. The estimated salvage value of the mill is P50,000
and the cost of dismantling is estimated to be P15,000. Using View Answer:
d. 35% straight line depreciation, what is the annual depreciation charge? Answer: Option A

View Answer: a. P75,500 Explanation:

Answer: Option B
b. P76,000 1322. A tax and duty free importation of a 30hp sand mill for
Explanation: painting manufacturing cost P360,000. Bank charges and
c. P76,500 brokerage cost P5,000. Foundation and installation costs were
1317. An asset is purchased for P9,000. Its estimated economic P25,000. Other incidental expenses amount to P20,000. Salvage
life is 10 years after which it will be sold for P1,000. Find the d. P77,000 value of the mills estimated to be P60,000 after 20 years. Find the
depreciation in the first three years using straight line method. appraisal value of the mill using straight line depreciation at the
View Answer: end of 10 years.
a. P2,400.00 Answer: Option C
a. P234,000
b. P2,412.34 Explanation:
b. P235,000
c. P2,250.00 1320. The initial cost of a paint sand mill, including its installation
is P800,000. The BIR approved life of this machine is 10 years for c. P234,500
d. P2,450.00 depreciation. The estimated salvage value of the mill is P50,000
d. P235,500 b. P2241.12
c. P1,250
View Answer: c. P5061.45
Answer: Option B d. P1,750
d. P5123.24
Explanation: View Answer:
Answer: Option D View Answer:
1323. An equipment costs P10,000 with a salvage value of P500 Answer: Option C
at the end of 10 years. Calculate the annual depreciation cost by Explanation:
sinking fund method at 4% interest. Explanation:
1326. What is the difference of the amount 5 years from now for a
a. P721.54 12% simple interest and 12% compound interest per year? 1329. Find the exact simple interest at 7.5% on P5000 and the
(P8,000 accumulated) corresponding amount at the end of 59 days.
b. P724.56
a. P1298.73 a. P5187.24
c. P791.26
b. P1281.24 b. P5221.12
d. P721.76
c. P1224.97 c. P5021.45
View Answer:
Answer: Option C d. P1862.76 d. P5060.60

Explanation: View Answer: View Answer:

Answer: Option A Answer: Option D
1324. An equipment costs P50,000 with a salvage value of P250
at the end of 10 years. Calculate the annual depreciation cost by Explanation: Explanation:
sinking fund method at 8% interest.
1327. Find the discount if P5,500 is discounted for 9 months at 1330.) If P1050 accumulate P1275 when invested at a simple
a. P3123.53 15% compounded quarterly. interest for 3 years. What is the rate of interest?

b. P3223.75 a. P2442.09 a. 4.21%

c. P3434.22 b. P1248.24 b. 5.85%

d. P3241.24 c. P1883.66 c. 6.73%

View Answer: d. P2451.99 d. 7.14%

Answer: Option C
View Answer: View Answer:
Explanation: Answer: Option C Answer: Option D

1325. An asset is purchased for P12,000. Its estimated economic Explanation: Explanation:
life is 20 years after which it will be sold for P5,000. Find the
depreciation in the first five years using straight line method. 1328. Find the ordinary simple interest at 7.5% on P5000 and the 1331. Determine the exact simple interest on P5,000 investment
corresponding amount at the end of 59 days. for the period from January 15, 1996 to October 12, 1996 of the
a. P1,450 rate of interest in 18%.
a. P2145.24
b. P1,412 a. P666.39
b. P621.22 a. P166.77 a. P129.24

c. P632.40 b. P224.09 b. P166.94

d. P636.29 c. P163.12 c. P195.32

View Answer: d. P214.12 d. P128.87

Answer: Option A
View Answer: View Answer:
Explanation: Answer: Option A Answer: Option B

1332. The exact simple interest of P5000, invested from June 21, Explanation: Explanation:
1995 to December 25, 1995, is P100. What is the rate of interest?
1335. Determine the future amount of P100 for 10.25 years at a 1338. What is the present worth of a P500 annuity starting at the
a. 2.4% rate of 5% compounded quarterly. end of the third year and continuing to the end of the fourth year, if
the annual interest rate is 10%?
b. 3.2% a. P124.02
a. P717.17
c. 2.7% b. P166.42
b. P252.91
d. 3.9% c. P182.42
c. P720.24
View Answer: d. P175.10
Answer: Option D d. P287.09
View Answer:
Explanation: Answer: Option B View Answer:
Answer: Option A
1333. The amount of P50,000 was deposited in the bank earning Explanation:
at 7.5% per annum. Determine the total amount at the end of 5 Explanation:
years if the principle and interest were not withdrawn during the 1336. Determine the future amount of P100 for 10.25 years at a
period. rate of 5% compounded semi-annually. 1339. Today a businessman borrowed money to be paid in 10
equal payments for 10 quarters. If the interest rate is 10%
a. P24,257.75 a. P153.29 compounded quarterly and the quarterly payment is P2,000, how
much did he borrow?
b. P71,781.47 b. P165.90
a. P24214.23
c. P70,024.29 c. P169.22
b. P24311.53
d. P29,240.99 d. P173.24
c. P15125.24
View Answer: View Answer:
Answer: Option B Answer: Option B d. P17504.13

Explanation: Explanation: View Answer:

Answer: Option D
1334. Determine the future amount of P100 for 10.25 years at a 1337. Determine the future amount of P100 for 10.25 years at a
rate of 5% compounded monthly. rate of 5% compounded daily. Explanation:
 Answer: Option D c. P400
1340. What annuity is required over 12 years to equate with a
future amount of P20,000? Assume i = 6% annually. Explanation: d. P500

a. P1121.24 1343. Determine the amount of interest you would receive per View Answer:
period if you purchase a 6%, P5000 bond which matures in 10 Answer: Option C
b. P1244.22 years with interest payable quarterly.
Explanation:
c. P2314.12 a. P24
1246. The selling price of a tv set is double that of its net cost. If
d. P1185.54 b. P98 the tv set is sold to a customer at a profit of 25% of the net cost,
how much discount was given to the customer?
View Answer: c. P75
Answer: Option D a. 35.8%
d. P52
Explanation: b. 37.5%
View Answer:
1341. Find the annual payment to extinguish a debt of P10,000 Answer: Option C c. 34.5%
payable for 6 years at 12% interest annually.
Explanation: d. 44.5%
a. P2214.42
1344. A corporation floats callable bonds amounting to P100,000 View Answer:
b. P2432.26 each having a par value of P500, the bond rate is 7.5% and the Answer: Option B
bonds are to be retired in 5 years, the annual payments being as
c. P2525.24 nearly equal as possible. What is the total payment for the whole Explanation:
period of 5 years?
d. P2044.83 1347. A manufacturing firm maintains one product assembly line
a. P123,625 to produce signal generators. Weekly demand for the generators
View Answer: is 35 units. The line operates for 7 hours per day, 5 days per
Answer: Option B b. P124,241 week. What is the maximum production time per unit in hours
required of the line to meet the demand?
Explanation: c. P214,124
a. 1 hour
1342. A bond issue of P50,000 in 10 years, bonds in P1000 units d. P923,124
paying 10% interest in annual payments, must be retired by the b. 2 hours
use of sinking fund which earns 8% compounded annually. What View Answer:
is the total cost for the interest ad retirement of the entire bond Answer: Option A c. 3 hours
issue.
Explanation: d. 4 hours
a. P82,241
1345. A book store purchased the best selling book at P200. At View Answer:
b. P84,150 what price should this book be sold so that by giving a 20% Answer: Option A
discount, the profit is 30%.
c. P82,214 Explanation:
a. P200
d. P84,510 1348. Mahusay Corporation’s gross margin is 55% of sales.
b. P300 Operating expenses such as sales and administration are 5% of
View Answer:
sales. Mahusay is in 40% tax bracket. What percent of sales is
their profit after taxes?

a. 20%

b. 30%

c. 40%

d. 50%

View Answer:
Answer: Option B

Explanation:

1349. How much money must you invest in order to withdraw

P5000 annually for 20 years if the interest rate is 12%?

a. P37,347.22

b. P23,325.23

c. P38,243.29

d. P27,124.09

View Answer:
Answer: Option A

Explanation:

1350. If interest is at rate of 10% compounded semi-annually,

what sum must be invested at the end of each 6 months to
accumulate a fund of P12,000 at the end of 8 years?

a. P507.24

b. P451.24

c. P247.24

d. P694.92

View Answer:
Answer: Option A

Explanation: