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S -5
Mr Z borrowed P 300,000 from a bank. The bank charges 16% effective interest.
26. What is the equivalent monthly interest rate?
27. What is the monthly amortization if he will pay at the end of each month for 5 years?
28. What will be the monthly amortization if he delays his payment by 6 months (his 1st payment happened at the
end of 6 months ) .
29. What is the monthly amortization if he pays at the beginning of each month for 5 years.
30. Which is the biggest interest rate?
a. 12%
compounded quarterly
b. 11.88% compounded seminually
c. 11.99 % compounded monthly
d. 12.02% compounded continuously
S-6
Given the series of payments at the end of each year:
Year 1
2000
Year 2
5000
Year 3
8000
and so on until year 20, If i = 12% per annum
31. The present worth of all payments. (year 0 )
32. The future worth of all payments ( year 20)
33. The equivalent equal annual worth of all the payments.
S7
Given the first cost of a machine FC = 500,000 Salvage Value is 150,000 Economic Life = 12 years
34. USING straight line method , the annual depreciation is
35. USING Straight line method, the book value after 5 years is
36. USING SOYD, the book value after 3 years is
37 USING SOYD, the maximum depreciation in any year is
38. USING SOYD, the total depreciation after 6 years is
39. USING MATHESONS METHOD, the Mathesons constant is
40. The sunk cost after 3 years using MATHESONS formula is
41. The total depreciation after 7 years is (MATHESONS FORMULA )
42. USING DOUBLE DECLINING BALANCE METHOD , the book value after 3 years is
43. USING SINKING FUND METHOD , with i = 8% , the annual depreciation is
44. The book value after 6 years is (SINKING FUND METHOD )
45. The total depreciation after 5 years is
46. The depreciation on the 4th year is
S-8
Find the present value of a perpetuity of P 15,000 payable semiannually if money is worth 8% compounded
quarterly
47. The interest rate every six months is
48. The present value of the given perpetuity is
2
49. A man invest in a medium scale business that cost him P 57,000.00. The net annual return is estimated at P
14,000 for each of the next 8 years. Find the benefit cost ratio if annual interest rate is 8%.
50. Compute the benefit cost ratio of the given project
Project Cost P 80,000
Gross Income 25,000 per year
Operating Cost
P 6,000 per year
Salvage Value
0
Life of Project
10 years
Rate of Interest 12%
51. If the nominal interest rate is 3%, how much is P 5,000 worth in 10 years in a continuous compounded account?
52. P 6,000 is deposited each year into a savings account that pays 6% nominal interest compounded continuously.
How much will be the account at the end of 8 years?
53. A man borrows P 100,000 at a rate of 6% compounded continuously for 5 years. How much money must he
pay annually?
54. At 6% , find the capitalized cost of a bridge whose cost is 250 M and life is 20 years if the bridge must be
partially rebuilt at a cost of 100 M every 20 years.
S-9
A machine cost P 150,000 and will have a scrap value of P 10,000 when retired at the end of 15 years. If money is
worth 4%
55. Find the annual investment
56. The Capitalized Cost is
S-10
57. The cost of producing a certain commodity consist of P 45 per unit for labor and material cost and P 15 per unit
for other variable cost. The fixed cost per month is P 450,000. If the commodity is sold at P 250 per unit
57. What is the break even quantity ?
58. What is the profit/loss if the number of items sold is 3000?
59. A certain copier machine cost P 150,000 with a trade in value of P 1.50,000 after making 800,000 copies. Using
the declining balance method, what is the book value of the machine when it had made 300,000 copies?
60. What is the present worth of two P 100.00 payments at the end of the 3rd and the 4th year is interest rate is 8%?
61. The nominal rate of interest is 4%. How much is P 10,000 worth in 10 years in a continuously compounded
account?
62. If P 500,000 is deposited at a rate of 11.25% compounded monthly, what will be the amount after 7 years and 9
months?
63. In year zero, you invest P 10,000 in a 15% security for 5 years. During the time, the average inflation is 6%. How
much in terms of year zero pesos will be the account at the maturity?
S 11
A man inherited a regular endowment of P 100,000 every end of 3 months for 10 years. However he may elect to
get a single lump sum after 4 years.
64 . How much is the lump sum if the cost of money is 14% compounded quarterly?
65. What is the present worth of the endowment?
66. A debt of x pesos with interest rate of 7% compounded annually will be retired at the end of 10 years through the
accumulation of deposit in a sinking fund invested at 6% compounded semiannually. The deposit in the sinking fund
every end of the six months is P 21,962.68. The value of x is
67. A man paid 10% downpayment of P 200,000 for a house and lot and agreed to pay the balance on a monthly
installments for 60 months at an interest rate of 15% compounded monthly. Determine the required monthly
payment.
S -12
Determine the break even point in terms of the number of units produced per month. Cost are in pesos per unit
Selling Price Per unit P 600
Labor Cost
P 115
Cost of Materials
P 76
Other Cost
P 2.32
Total Monthly Overhead Cost
428,000
68. The break even point is
69. Determine the profit/loss if it sells 1000 units.
S -13
Given the bank deposits in an account that earns 3% per annum.
End of :
Year 1
5,000
Year 2
6,000
Year 3
7,200
70. The deposit at year 20 is
71. The total deposits made without interest after 20 years.
72. The Present Worth of 20 deposits.
73. The Future worth of the 20 deposits
74. The equivalent equal annual deposits for the 20 deposits.
75. An amount of 1,000 becomes 3500 after 6 years. If money is x% compounded quarterly , x = ?
S 14
A 3 deg simple curve is used to connect two highways whose bearings are S 110 W and S 470 W . Use arc basis.
76. The radius of the curve is
77. The length of the curve is
78. The external distance is
79. The length of the middle ordinate is
4
0
+c
7.8
+y
S 20
The road has a width of 10 m and have a slope of 2: 1 (horizontal: vertical ) . The area of the cross section is 47.4
m2
99. The value of x is
100. The value of y is
101. The value of c is
a. 4.23 m