Related Mcqs:

1. A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000?

   A. 28.33 %
   B. 29.17 %
   C. 30.12 %
   D. 30.78 %

2. A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments ?

   A. P 43,600.10
   B. P 43,489.47
   C. P 43,263.91
   D. P 43,763.20

3. 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 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 after one year of his withdrawal? Effective annual interest rate is 10% ?

   A. P1,549.64
   B. P1,459.64
   C. P1,345.98
   D. P1,945.64

4. What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly ?

   A. 8.07 %
   B. 8.12 %
   C. 8.16 %
   D. 8.24 %

5. 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 each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment ?

   A. P 2,500.57
   B. P 2,544.45
   C. P 2,540.56
   D. P 2,504.57

6. 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 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 actual rate of interest ?

   A. 23.5 %
   B. 24.7 %
   C. 25.0 %
   D. 25.8 %

7. A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year ?

   A. P693.12
   B. P700.12
   C. P702.15
   D. P705.42

8. What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%?

   A. P 150.56
   B. P 152.88
   C. P 153.89
   D. P 151.09

9. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method____________________?

   A. P 3,279.27
   B. P 3,927.27
   C. P 3,729.27
   D. P 3,792.72

10. A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment ?

    A. 3.0%
    B. 3.4%
    C. 3.7%
    D. 4.0%