The true value of interest rate computed by equations for compound interest for a 1 year period is known as __________________?

Related Mcqs:

1. 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 %

2. 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

3. A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period ?

   A. 5,937.50
   B. 5,873.20
   C. 5,712.40
   D. 5,690.12

4. A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.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

5. 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 %

6. Capitalized cost of any structure or property is computed by which formula ?

   A. First cost + interest of first cost
   B. Annual cost – interest of first cost
   C. First cost + cost of perpetual maintenance
   D. First cost + salvage value

7. 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

8. What is the present worth of a P500 annuity starting at the end of the third year and continuing to the end of the fourth year, if the annual interest rate is 10 % ?

   A. P 727.17
   B. P 717.17
   C. P 714.71
   D. P 731.17

9. 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 savings account which earned 10% per annum. How much is in the account at the end of the 4th year ?

   A. P 4,880.00
   B. P 4,820.00
   C. P 4,860.00
   D. P 4,840.00

10. 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