Set A Set B

1)A contractor bought a concrete mixer at P120, 000 if paid in cash. The mixer may 1) A contractor bought a concrete mixer at P120,000 if paid in cash. The mixer
also be purchased by installment to be paid within 5years. If money is worth may also be purchased by installment to be paid within 5years. If money is
8%, the amount of each annual payment, if all payments are made at the worth 8%, the amount of each annual payment, if all payments are made at
beginning of each year , is; the beginning of each year , is;
a. 27,829 a. 27,829
b. 29,568 b. 29,568
c. 31,005 c. 31,005
d. 32,555 d. 32,555
2)Increasing the number of periods will increase all of the following except 2) Increasing the number of periods will increase all of the following except
a. The present value of annuity a. The present value of annuity
b. The present value of a peso b. The present value of a peso
c. The future value of peso c. The future value of peso
d. The future value of an annuity d. The future value of an annuity
3)If money is worth 8%, determine the present value of a perpetuity of 1000 3) If money is worth 8%, determine the present value of a perpetuity of 1000
payable annually, with the first payment due at the end of 5years. payable annually, with the first payment due at the end of 5years.
a. 16,000 a. 16,000
b. 17,000 b. 17,000
c. 18,000 c. 18,000
d. 19,000 d. 19,000
4)If P10,000 is deposited each year for 9years, how much can a person get annually 4) If P10,000 is deposited each year for 9years, how much can a person get
from the bank every for 8 years starting 1year after the 9th deposit is made. annually from the bank every for 8 years starting 1year after the 9th deposit
Considering the rate of interest is 14% per annum is made. Considering the rate of interest is 14% per annum
a. 14,675 a. 14,675
b. 24,675 b. 24,675
c. 34,675 c. 34,675
d. 44,675 d. 44,675
5)A certain property is sold and the owner received a bid. The bidder offered to pay 5) A certain property is sold and the owner received a bid. The bidder offered
P400,000 each year for 5yrs each payment is to be made at the beginning of to pay P400,000 each year for 5yrs each payment is to be made at the
each year. If the money is worth 20% compounded annually. What is the value beginning of each year. If the money is worth 20% compounded annually.
of the property? What is the value of the property?
a. P 1,435,480 a. P 1,435,480
b. P 1,534,840 b. P 1,534,840
c. P 1,646,480 c. P 1,646,480
d. P 1,754,840 d. P 1,754,840
6)A man bought an equipment costing P60, 000 payable in 12 quarterly payments, 6) A man bought an equipment costing P60, 000 payable in 12 quarterly
with each installment payable at the beginning of each period. The rate of payments, with each installment payable at the beginning of each period.
interest is 24% compounded quarterly. How much does the man pay each The rate of interest is 24% compounded quarterly. How much does the man
month? pay each month?
a. P 7,117.71 a. P 7,117.71
b. P 7,371.91 b. P 7,371.91
c. P 7,521.19 c. P 7,521.19
d. P 7,611.17 d. P 7,611.17
7)What amount of money invested today at 15% interest can provide the following 7) What amount of money invested today at 15% interest can provide the
scholarships: P30,000 at the end of each year for 6 years; P40,000 for the next following scholarships: P30,000 at the end of each year for 6 years; P40,000
6 years; P50,000 thereafter? for the next 6 years; P50,000 thereafter?
a. P 141,277 a. P 141,277
b. P 241,277 b. P 241,277
c. P 341,277 c. P 341,277
d. P 441,277 d. P 441,277
8)On his 6th birthday, a boy is left an inheritance from his grandparents. The 8) On his 6th birthday, a boy is left an inheritance from his grandparents. The
inheritance will be paid in a lump sum of P10,000 on his 21st birthday. What is inheritance will be paid in a lump sum of P10,000 on his 21st birthday. What
the present value of the inheritance as of the boy’s 6th birthday if the interest is the present value of the inheritance as of the boy’s 6th birthday if the
rate is 4% compounded annually? interest rate is 4% compounded annually?
a. P 5,500 a. P 5,500
b. P 6,500 b. P 6,500
c. P 7,500 c. P 7,500
d. P 8,500 d. P 8,500
9)Find the present value in pesos if you are saving infinitely and paying semi- 9) Find the present value in pesos if you are saving infinitely and paying semi-
annually P15,000 on a savings account with interest of 8% compounded annually P15,000 on a savings account with interest of 8% compounded
quarterly. quarterly.
a. P372,537 a. P372,537
b. P374,977 b. P373,767
c. P373,767 c. P371,287
d. P371,287 d. P374,977
10) A couple decided to save for the college education of their two year old son. 10) A couple decided to save for the college education of their two year old son.
What annual deposit should they make on each birthday from the third to the What annual deposit should they make on each birthday from the third to
16th, inclusive so that their son will be able to withdraw P150,000 on each the 16th, inclusive so that their son will be able to withdraw P150,000 on
birthday from the 17th to the 20th inclusive? Money is worth 4% compounded each birthday from the 17th to the 20th inclusive? Money is worth 4%
annually. compounded annually.
a. P 9,766.40 a. P 9,766.40
b. P19,766.40 b. P19,766.40
c. P29,766.40 c. P29,766.40
d. P39,766.40 d. P39,766.40
11) What present amount would be needed for annual end of year payments of 11) What present amount would be needed for annual end of year payments of
P15,000 each, forever if money is worth 8% P15,000 each, forever if money is worth 8%
a. P387,500 a. P387,500
b. P287,500 b. P287,500
c. P187,500 c. P187,500
d. P87,500 d. P87,500
12) An individual makes five deposits that increase uniformly by P300 every month 12) An individual makes five deposits that increase uniformly by P300 every
in a saving account that earns 12% compounded monthly. If the initial deposit month in a saving account that earns 12% compounded monthly. If the
is P4500. Determine the accumulated amount in the account just after the last initial deposit is P4500. Determine the accumulated amount in the account
deposit. just after the last deposit.
a. P2883.08 a. P2883.08
b. P24,723.52 b. P25,984.67
c. P25,984.67 c. P24,723.52
d. P2950.80 d. P2950.80
13) An instructor plans to retire in one year and wants an account that will pay him 13) An instructor plans to retire in one year and wants an account that will pay
P25,000 a year for the next 15 years. Assuming 6% annual effective interest rate, him P25,000 a year for the next 15 years. Assuming 6% annual effective
what will be amount that should be deposited now? interest rate, what will be amount that should be deposited now?
a. P249,000 a. P242,806
b. P242,806 b. P249,000
c. P248,500 c. P248,500
d. P250,400 d. P250,400
14) At what interest rate payable quarterly will payments of P500 at the beginning of 14) At what interest rate payable quarterly will payments of P500 at the beginning
each 3months for 7 years discharge a debt of P12500 due immediately? of each 3months for 7 years discharge a debt of P12500 due immediately?
a. 3.44% a. 6.33%
b. 4.33% b. 5.44%
c. 5.44% c. 4.33%
d. 6.33% d. 3.44%
15) Public corporations have no fixed life span; such that they will pay dividends to 15) Public corporations have no fixed life span; such that they will pay dividends to
their shareholders in perpuity. Suppose, that Concepcion Industries pays a their shareholders in perpuity. Suppose, that Concepcion Industries pays a
dividend of P2 per share every year. If the rate of interest is 12% per annum, dividend of P2 per share every year. If the rate of interest is 12% per annum,
what is the present value of all future dividends? what is the present value of all future dividends?
a. 16.67 a. 46.67
b. 26.67 b. 36.67
c. 36.67 c. 26.67
d. 46.67 d. 16.67
16) A mother on the day the child is born wishes to determine what lump sum 16) A mother on the day the child is born wishes to determine what lump sum
would have to be paid into an account bearing interest at 15% compound would have to be paid into an account bearing interest at 15% compound
annually, in order to withdraw P 29000 each on the child’s 18th , 19th, 20th and 21st annually, in order to withdraw P 29000 each on the child’s 18th , 19th, 20th and
birthdays? 21st birthdays?
a. P7693.74 a. P7693.74
b. P7936.74 b. P7936.74
c. P7369.47 c. P7369.47
d. P7693.47 d. P7693.47
17) A man borrowed P40,000 and promised to pay the amount annually for 11 years, 17) A man borrowed P40,000 and promised to pay the amount annually for 11
at the beginning of each period with interest rate of 15% compounded annually. years, at the beginning of each period with interest rate of 15% compounded
Find the annual amount. annually. Find the annual amount.
a. P6465.9 a. P6465.9
b. P6645.9 b. P6546.8
c. P6546.8 c. P6646.9
d. P6646.9 d. P6645.9
18) Mrs. Concepcion purchased a lot. Her annual payment was P7000 at the 18) Mrs. Concepcion purchased a lot. Her annual payment was P7000 at the
beginning of each year becomes P470,123 in 15years. Find the rate of increase of beginning of each year becomes P470,123 in 15years. Find the rate of increase
her money. of her money.
a. 15.5% a. 18.25%
b. 16.75% b. 17.25%
c. 17.25% c. 15.5%
d. 18.25% d. 16.75%
19) A warehouse is initially rented for P100,000 a year. If the 10-year lease contract 19) A warehouse is initially rented for P100,000 a year. If the 10-year lease
indicates that the rent increases by P10,000 each year, determine the present contract indicates that the rent increases by P10,000 each year, determine the
worth of the lease. Money is worth 8% compounded monthly. present worth of the lease. Money is worth 8% compounded monthly.
a. P964,290.31 a. P1,392,395.35
b. P946,920.13 b. P1,932,953.53
c. P1,392,395.35 c. P946,920.13
d. P1,932,953.53 d. P964,290.31
20) A small gold mine yielded an equipment of P500,000 during its first year of 20) A small gold mine yielded an equipment of P500,000 during its first year of
operation. P460,000 on its second year, and amount decreasing by P40,000 operation. P460,000 on its second year, and amount decreasing by P40,000
every year. What is its equivalent present annual yield if interest rate is 10%? every year. What is its equivalent present annual yield if interest rate is 10%?
a. P1,584,932.72 a. P1,584,932.72
b. P175,124.65 b. P444,753.29
c. P444,753.29 c. P175,124.65
d. P1,409,808.07 d. P1,409,808.07