What refers to the cost of borrowing money or the amount earned by a unit principal per unit time ?

Related Mcqs:

1. What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?

   A. Effective rate of interest
   B. Nominal rate of interest
   C. Compound interest
   D. Simple interest

2. The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?

   A. 10 months
   B. 11 months
   C. 12 months
   D. 13 months

3. What refers to the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal ?

   A. Return of investment
   B. Interest rate
   C. Yield
   D. Rate of return

4. You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank ?

   A. P 62.44
   B. P44.55
   C. P54.66
   D. P37.56

5. What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal ?

   A. Effective rate of interest
   B. Nominal rate of interest
   C. Compound interest
   D. Simple interest

6. A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. There will be 400 soldered connections. The cost of soldering a connection on the enameled wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair cable made up with enameled wire cost P 0.55 per linear foot and those made up of tinned wire cost P 0.75 per linear foot. Determine the length of cable run in feet so that the cost of each installation would be the same ?

   A. 1,000 feet
   B. 1,040 feet
   C. 1,100 feet
   D. 1,120 feet

7. What refers to the amount of money paid for the use of borrowed capital ?

   A. Interest
   B. Rate of interest
   C. Simple interest
   D. Principal

8. A manufacturing firm maintains one product assembly line to produce signal generators. Weekly demand for the generators is 35 units. The line operates for 7 hours per day, 5 days per week. What is the maximum production time per unit in hours required of the line to meet the demand ?

   A. 1.0 hour per unit
   B. 1.2 hours per unit
   C. 1.4 hours per unit
   D. 1.6 hours per unit

9. What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment ?

   A. Economic return
   B. Yield
   C. Rate of return
   D. Return of investment

10. 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 %