1.

What is a series of equal payments occurring at equal interval of time where the first
payment is made after several periods, after the beginning of the payment?
A. Progressive annuity
B. Delayed annuity
C. Simple annuity
D. Deferred annuity
2. What do you call the amount of property in which a willing buyer will pay to a willing
seller for the property when neither one is under the compulsion to buy nor sell?
A. fair value
B. market value
C. book value
D. goodwill value
3. What is the type of annuity where the payments are made at the start of its period,
beginning from the first period?
A. deferred annuity
B. annuity due
C. ordinary annuity
D. perpetuity
4. It is the function of interest and time that determines the cumulative amount of a
sinking fund resulting from specific periodic deposits.
A. present worth factor
B. sinking fund factor
C. demand factor
D. capacity factor
5. It is defined as the future value minus the present value in a negotiable paper.
A. Discount
B. Capital
C. rate of return
D. Interest
6. What is the type of annuity where the payments are made at the end of each
payment period starting from the first period?
A. deferred annuity
B. annuity due
C. ordinary annuity
D. perpetuity
7. It is the flow back of profit plus depreciation from a given project.
A. earning value
B. economic return
C. cash flow
D. capital recovery
8. It is the profit derived from a project or business enterprise without consideration of
obligations to financial contributors or claims of other based on profit.
A. Economic return
B. Expected yield
C. Earning value
D. Yield
9. What is a mathematical expression which is also known as the present value of an
annuity of one?
A. capacity factor
B. present worth factor
C. sinking fund factor
D. demand factor
10. It is the payment for the use of borrowed money.
A. loan
B. interest
C. maturity value
D. principal
11. It is the interest rate at which the present worth of the cash flow on a project is zero
of the interest earned by an investment,
A. rate of return
B. effective rate
C. yield
D. nominal rate
12. It is the recorded current value of an asset.
A. scrap value
B. salvage value
C. present worth
D. book value
13. It is 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. interest rate
B. interest
C. investment
D. all of the above
14. What is the method of depreciation whereby the amount to recover is spread over
the estimated life of the asset in terms units of output?
A. service output
B. declining balance
C. sinking fund
D. straight line
15. It is the method of depreciation where a fixed sum of money is regularly deposited at
compound interest in a real or imaginary fund in order to accumulate an amount equal
to the total depreciation of an asset's estimated life.
A. sinking fund method
B. straight line
C. declining balance
D. SYD method
16. _____ is the true value of interest rate computed by equations for compound
interest for a 1 year period.
A. nominal interest
B. interest
C. effective interest
 D. expected return
17. What is the reduction of the value of an asset due to constant use and passage of
time?
A. depreciation
B. depletion
C. book value
D. scrap value
18. It is a condition where only few individual produce a certain product that action of
one will lead to almost the same action by the other.
A. monopoly
B. semi-monopoly
C. perfect competition
D. oligopoly
19. What is the simplest form of business organization?
A. partnership
B. corporation
C. sole proprietorship
D. enterprise
20. _____ is an association of two or more persons for a purpose of engaging in a
profitable business.
A. partnership
B. corporation
C. sole proprietorship
D. enterprise
21. is a distinct legal entity which can practically transact any business transaction
which a real person could do.
A. partnership
B. corporation
C. sole proprietorship
D. enterprise
22. What is the type of annuity where payments continue infinitely?
A. perpetuity
B. deferred annuity
C. annuity due
D. ordinary annuity
23. It is an example of intangible assets.
A. cash
B. patents
C. investment in subsidiary companies
D. fixed assets
24. It is a form of fixed-interest security issued by central or local governments,
companies, banks, or other
institutions. They are usually a form of long-term security but may be irredeemable.
A. bonds
B. certificate of all deposits
C. t-bills
 D. all of these
25. _____ is a type of bond where the corporation pledges securities which it owns
(stocks, bonds of its subsidiaries).
A. mortgage bond
B. collateral trust bond
C. coupon bond
D. registered bond
26. _____ is a type of bond which does not have security except a promise to pay by
the issuing corporation.
A. debenture
B. coupon bond
C. registered bond
D. collateral trust bond
27. What is the type of bond issued jointly by two or more corporations?
A. collateral trust bond
B. debenture bond
C. joint bond
D. registered bond
28, The corporation's owner name is recorded and the interest is paid periodically to the
owners with their asking for it is known as
A. preferred bond
B. incorporator's bond
C. registered bond
D. all of these
29. What is an increase in the value of a capital asset?
A. capital stock
B. capital gain
C. capital expenditure
D. profit
30. The reduction in the money value of a capital asset is known as
A. deficit
B. capital expenditure
C. capital loss
D. loss
31. A negotiable claim issued by a bank in lieu of a term deposit is called
A. certificate of deposit
B. capital gain
C. bond
D. time deposit
32. It is any particular raw material or primary product.
A. stock
B. commodity
C. utility
D. necessity
33. What denotes the fall in the exchange rate of one currency in terms of other? The
term usually applies to floating exchange rates.
 A. currency float
B. currency appreciation
C. currency devaluation
D. currency depreciation
34. is the amount of company's profits that the board of directors of the corporation
decides to distribute to ordinary shareholders.
A. par value
B. share of stock
C. return
D. dividend
35. It is a document that shows proof of legal ownership of a financial security.
A. coupon
B. bank note
C. bond
D. check
36. A market condition where there are two buyers and two sellers is called
A. duopoly
B. duopsony
C. bilateral oligopoly
D. bilateral duopoly
37. In case of bankruptcy a partnership
A. the partners are not liable for the liabilities of the partnership
B. the partners personal assets are attached to the debt of the partnership
C. the partners may sell stock to generate additional capital
D. the partnership assets (excluding the partners' personal assets) only will be used
to pay the liabilities
38. Which is true about corporations?
A. the minimum number of incorporators to start a corporation is three
B. it is not best for business organization
C. the stockholders of the corporation only liable to the extent of their investments
D. the life is dependent on the lives of the incorporators
39. It is defined as the capacity of commodity to satisfy human want.
A. luxuries
B. utility
C. discount
D. necessity
40. What is the profit obtained by selling at a higher price than its original purchase
price?
A. capital gain
B. internal rate of return
C. goodwill
D. debenture
41, It is a financial summary showing the relationship among assets, liabilities, and
ownership in the corporation on a specific date.
A. balance sheet
B. income tax return
 C. accounting cost
D. bookkeeping records
42. What is the ratio of the annual net profit to the amount of capital invested?
A. rate of return
B. gross income
C. working capital
D. net income
43. What is the difference between sales revenue and the cost of goods sold?
A. gross profit
B. net income
C. gross national
D. rate of return
44. It is also known as second hand value.
A. going value
B. book value
C. salvage value
D. scrap value
45. It represents the ownership, and enjoys certain preference than erdinary stock.
A. incorporator's stock
B. preferred stock
C. authorized stock
D. common stock
46. An intangible value which is actually operating concern has due to its operation.
A. scrap value
B. book value
C. salvage value
D. going value
47. It is the satisfaction or pleasure that an individual derives from the consumption of a
good or services.
A. luxury
B. market
C. utility
D. necessity
48. What is an intangible item of value arising from the exclusive right of the company to
provide a specified product and service in a certain region of the country?
A. franchise value
B. goodwill value
C. fair value
D. marked value
49. The quantity of a certain commodity that is offered for sale at a certain price at a
given time and place is called
A. demand
B. market
C. supply
D. utility
50. The quantity of a certain commodity that is bought at a certain price at a given time
and place is called
A. demand
B. market
C. supply
D. utility
51. What do you call the place where sellers and buyers come together?.
A. shopping center
B. department store
C. mall
D. market
52. It is a market situation where there are few sellers and few buyers.
A. oligopoly
B. bilateral oligopoly
C. oligopsony
D. bilateral oligopsony
53. It is a market situation where there is one seller and one buyer.
A. monopsony
B. bilateral monopsony
C. monopoly
D. bilateral monopoly
54. _____ is an agreed payment made to an owner of an industrial property right for the
grant of an exclusive sell for profit of the item concerned.
A. royalty
B. salary
C. commission
D. all of these
55. It is a form of indirect tax which is incorporated into the selling price of a product and
which is borne by the customer.
A. capital gain tax
B. EVAT
C. tariff
D. sales tax
56. EVAT means
A. Extended Value Added Tax
B. External Value Added Tax
C. Export Value Added Tax
D. Expanded Value Added Tax
57. A market that deals in long term company securities (stocks and shares) and
government securities (bonds) is called
A. test market
B. share market
C. super market
D. stock market
58. _____ is the negotiation of wage rates, conditions of employment, etc. by
representatives of the labor force and management.
 A. collective bargaining
B. union rally
C. union trade
D. cooperative
59. What is a form of business firm which is owned and run by a group of individuals for
their mutual benefit?
A. partnership
B. union
C. cooperative
D. joint venture
60. The sum of the first cost and the present worth of all costs of replacement, operation
and maintenance for a long time or forever is called _____.
A. capitalized cost
B. variable cost
C. fixed cost
D. none of these
61. _____ is obtained by setting the sum of the values on a certain comparison or focal
date of one set of obligations equal to the sum of the values on the same date of
another set of obligations.
A. disbursement
B. equation of value
C. equation of state
D. focal date
62. The book value where the original accounts are recorded is called
A. balance sheet
B. journal
C. folio
D. ledger
63. It is the point where the cost of an order (ordering cost) will approximately
compensate with the inventory carrying cost.
A. break-even point
B. safety stock
C. shot-down point
D. economic order quantity
64. What is the process of determining the value of certain property?
A. appraiser
B. booking
C. appraisal
D. evaluation
65. A form of report stating the financial status of an individual or firm at a particular
time.
A. financial statement
B. trial balance
C. income statement
D. balance sheet
66. Is a contra-asset, uncollectible as the result of customer's non-payment of their
accounts.
A. bad debt
B. purchase
C. freight-in-debt
D. merchandise
67. A formal organization of producers within industry forming a perfect collusion
purposely formed to increase profit and block new comers from the industry
A. Cartel
B. Monopoly
C. Corporations
D. Competitors
68. What is the series of equal payments made at equal interval of time?\
A. loss
B. annuity
C. sunk cost
D. liability
69. The length of time needed to recover the capital
A. future worth
B. pay back period
C. present worth
D. rate of investment
70. It is the stock that has prior right to dividends. It usually does not bring voting right to
the owners and the dividend is fixed and cannot be higher than the specified amount.
A. Common stock
B. Voting stock
C. Pretend stock
D. Non-par value stock
71. The value of stock as stated on the stocks certificate
A. Stock value
B. Par value
C. Interest
D. Maturity value
72. A market situation in which two competing buyers exert controlling influence over
many sellers.
A. Bilateral monopoly
B. Oligopoly
C. Duopsony
D. Duopoly
73. The condition in which the total income equals the total operating expenses
A. Tally
B. Par value
C. Check and balance
D. Break-even
74. The amount which has been spend or capital invested which for some reasons
cannot be retrieved.
 A. Sunk cost
B. Fixed cost
C. Depletion cost
D. Construction cost
75. Grand total of the assets and operational capability of a corporation.
A. Authorized capital
B. Paid off capital
C. Subscribed capital
D. Investment
76. It is where the original record of a business transaction is recorded.
A. Ledger
B. Spreadsheet
C. Journal
D. Logbook
77. The length of time which the property may be operated at a profit.
A. Life span
B. Economic life
C. Operating life
D. Profitable life
78. The amount received from the sale of an additional unit of a product.
A. Marginal cost
B. Marginal revenue
C. Extra profit
D. Prime cost
79. The sum of the direct labor cost incurred in the factory and the direct material cost of
all materials that go into production is called
A. Net cost
B. Maintenance cost
C. Prime cost
D. Operating cost
80. The addition cost of producing one more unit
A. Prime cost
B. Marginal cost
C. Differential cost
D. Sunk cost
81. If P3000 accumulates to P4500 when invested at a simple interest for ten years,
what is the rate of interest?
A. 4%
B. 5%
C. 6%
D. 7%
82. P2000 is borrowed for 105 days at 12% per annum simple interest. How much will
be due at the end of 105 days?
A. P2,070
B. P2,170
C. P2,270
 D. P2,370
83. Determine the exact simple interest on P1,000,000 invested for the period from
October 24, 1987 to January 7, 1990, if the rate of interest is 17%.
A. P97,385.079
B. P93,785.079
C. P98,375.079
D. P95,875.079
84. The amount of P20,000 was deposited in a bank earning an interest of 6.5% per
annum. Determine the total amount at the end of 17 years if the principal and interest
were not withdrawn during this period.
A. P53,480.93
B. P54,830.93
C. P58,403.93
D. P58,340.93
85. A loan for P170,000 is to be paid in three years at the amount of P185,000
compounded annually. What is the effective rate of money?
A. 2.859%
B. 3.859%
C. 4.859%
D. 5.859%
86. The amount of P150,000 was deposited in the bank earning an interest of 7.5% per
annum. Determine the total amount at the end of 16 years, if the principal and interest
were not withdrawn during the period.
A. P477,118.97
B. P471,718.97
C. P411,778.97
D. P487,711.97
87. Find the present worth of a future payment of P290,000 to be made in 4 years with
an interest of 9% compounded annually.
A. P254,043.31
B. P245,403.31
C. P205,344.31
D. P205,443.31
88. What nominal rate, compounded semi-annually, yields the same amount as 25%
compounded quarterly?
A. 25.78%
B. 27.58%
C. 28.57%
D. 24.78%
89. What rate of interest compounded annually is the same as the rate of interest of 8%
compounded quarterly?
A. 8.24%
B. 8.42%
C. 6.88%
D. 7.09%
90. By the condition of a will, the sum of P1500 is left to a boy to be held in trust by her
guardian until it amounts to P24,000, when will the boy receive the money if the fund is
invested at 7% compounded semi-annually?

A. 42.298 years
B. 41.298 years
C. 40.298 years
D. 39.298 years
91. If P26,500 shall accumulate for 5 years at 7% compounded bimonthly, find the
compounded interest at the end of 5 years.
A. 12,109.18
B. 10,219.18
C. 19,012.18
D. 11,029.18
92. A sum of P15,000 is invested now and left for eight years, at which time the principal
is withdrawn. The interest has accrued and is left for another eight years. If the affective
annual interest rate is 15%, what will be the withdrawal amount at the end of the 16th
year?
A. P94,487.97
B. P94,478.97
C. P94,748.97
D. P98,447.97
93. Kristel received inheritance of 100,000 from her grandfather, if he invested a big
money 25 years ago with a 25% interest. How much did the grandfather deposited?
A. P379.79
B. P377.79
C. P378.97
D. P397.79
94. A merchant puts in his P25,000 to a small business for a period of 12 years. With a
given interest rate on the investment of 1% compounded annually, how much will he
collect at the end of the sixth year?
A. P21,870.626
B. P28,701.626
C. P21,870.626
D. P28,170.626
95. When will an amount be tripled with an interest rate of 12%?
A. 9.4 years
B. 9.5 years
C. 9.6 years
D. 9.7 years
96. Jeffrey deposit P150 in the bank now and plans to withdraw P100 next year. What
will be the amount of money left in the bank after 10 years of his withdrawal?
Effective annual interest is 10%?
A. P166.59
B. P167.59
C. P168.59
 D. P169.59
97. How much must be invested on December 21, 2012 in order to accumulate
P65,4321 on December 21, 2017? Money is worth 7%.
A. P466,512.83
B. P466,521.83
C. Р466,152.83
D. P466,251.83
98. An businessman wishes to accumulate a total of P500,000 in a savings at the end of
50 years. The bank offers 1% compounded quarterly. What should be the initial
deposit?
A. P303,454.614
B. P304,543.614
C. P305,443.614
D. P304,543.614
99. You borrow 1,000,000 for one year from a friend at an interest rate of 1% per month
instead of taking a loan from a bank at a rate of 13% per year. Compare how much
money you will save or lose on the transaction.
A. P3,175 will be saved from borrowing from a friend
B. P2,175 will be saved from borrowing from the bank
C. P2,157 will be saved from borrowing from a friend
D. P3,157 will be saved from borrowing from the bank
100. A deposit of P20,000 is made in a bank account that pays 8% interest
compounded annually. Approximately how much money will be in the account after 15
years?
A. P64,433
B. P63,443
C. P64,334
D. P64,343
101. How many years will it take money to quadruple if it earns 10% compounded semi-
annually?
A. 12
B. 13
C. 14
D. 15
102. How much should you put into a 1% savings account in order to have P1,000 in
five years?
A. P951.5
B. P915.5
C. P916.5
D. P961.5
103. P2000 was deposited 20 years ago at an interest rate of 8% compounded semi-
annually. How much is the sum now?
A. P9,602
B. P9,260
C. P9,620
D. P9,026
104. John expects to receive Php 20,000 in 10 years. How much is the money worth
now considering interest at 6% compounded quarterly?
A. Php 11,025.25
B. Php 10,052.52
C. Php 12,500.55
D. Php 13,250.25
105. A couple decided that for every child that will be born to them they will place a
deposit in the bank so that on the child's 18th birthday, the child will receive the amount
of P150,000. If the bank will pay an interest of 16% compounded yearly, how much
deposit will the couple have to make on the birth of a child to them?
A. P10,372
B. P11,372
C. P12,372
D. P13,372
106. On his 4th birthday a boy is left an inheritance. The inheritance will be paid in a
lump sum of P100,000 on his 21* birthday. What is the present value of the inheritance
as of the boy's 6th birthday, if the interest is compounded annually? i=4%.
A. P53,137.32
B. P57,331.32
C. P51,337.32
D. P53,317.32
107. A man who won P500,000 in a lottery decided to place 10750% of his winning in a
trust fund for the collear education of his son. If the money will earn 14% per year
compounded quarterly, how much will the man have at the end of 10 years when his
son will be starting his college education?
A. P998,815
B. P898,815
C. P989,815
D. P889,815
108. 500 years ago, Rajah Salayog deposited P0.01 with an interest rate of 5% per
annum. Now the bank discovered that you are the only left in the clan and entitled to
receive the money. How much is it?
A. P339,223,618.3
B. P393,232,618.3
C. P393,618,232.3
D. P339,618,223.3
109. Suppose that P200,000.00 is invested at a certain rate of interest compounded
annually for two years. If the accumulated interest at the end of 2 years is P42,000.00,
find the rate of interest.
A. 8%
B. 9%
C. 10%
D. 11%
110. Rex borrowed a certain amount on October 1990 from Jason. Two years later, Rex
borrowed again from Jason an amount of P500. Rex paid P200 on October 1993 and
discharged his balance by paying P700 on October 1995. What was the amount
borrowed by Rex on October 1990 if the interest rate is 8% compounded annually?
A. P260.51
B. P216.51
C. P206.51
D. P261.51
111. Engr. Lipata plans to purchase a new office building costing P1,000,000. He can
raise the building by issuing 10%, 30-year bond that would pay P150,000 interest per
year and repay the face amount at maturity. Instead of buying the new building, he can
lease it for P140,000 per year, first payment being due one year from now. The building
has an expected life of 30 years. Ignoring effects on income tax, what is the difference
between buying the building and leasing the building?
A. P115, 578
B. P151,758
C. P115,758
D. P151,578
112. Don Manao plans to purchase a new house costing P500,000. He can raise the
building by issuing a 10%, 25 year old bond that would pay P150,000 interest per year
and repay the face amount at maturity. Instead of buying the new house he has the
option of leasing it for P140,000 per year, the first payment due one year from now. The
building has an expected life of 25 years. If interest charge for leasing is 8%, which is
more favorable for Don Manao, borrow and buy or lease?
A. Lease
B. Borrow and buy
C. Either
D. Neither
113. What is the effective rate corresponding to 18% compounded daily? Take 1 year is
equal to 360 days.
A. 18.35%
B. 19.72%
C. 18.61%
D. 19.39%
114. A scientific calculator has a selling price of P850. If its selling price is expected to
decline at a rate of 10% per annum due to obsolescence, what will be its selling price
after 5 years?
A. P401.92
B. P501.92
C. P601.92
D. P701.92
115. A machine costs P70,000 and an estimated life of 10 years with a salvage value of
P500. What is its book value after 7 years using straight line method?
A. P24,500
B. В. P25,500
C. С. Р26,500
D. P27,500
116. A company purchases an asset of P15,000 and plans to keep it for 20 years. If the
salvage value is zero at the end of 20 years, what is the depreciation in third year? Use
SYD method.
A. 1,256
B. 1,266
C. 1,276
D. 1,286
117. A machine is purchased for P55,000. The salvage value in 20 years is P10,000.
What is the depreciation in the first 3 years using straight line method?
A. 6,750
B. 6,850
C. 6,570
D. 6,580
118. An asset has an initial cost of P15000 and a salvage value of P1000 after 10
years. What is the book value after 5 years using straight line depreciation?
A. P7,000
B. P8,000
C. P9,000
D. P10,000
119. Renan loan from a loan firm an amount of Php 100,000 with the 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, you have to pay the full amount of Php 100,000,
what is the actual rate of interest?
A. 25.0%
B. 27.5%
C. 22.3%
D. 20.0%
120. An asset is purchased for P50,000. Its estimated life is 10 years after which it will
be sold for P12,000. Find the depreciation for the first year using sum of years digit
method.
A. 6,099.1
B. 9,960.1
C. 9,690.1
D. 6,909.1
121. An item is purchased for P125,000. Annual cost is P18,500. Using interest rate of
8%, what is the capitalized cost of perpetual service?
A. P365,250
B. P356,520
C. P356,250
D. P365,520
122. A man planned of building a house. The cost of construction is P800,000 while
annual maintenance cost is estimated at P15,000. If the interest rate is 6%, what is the
capitalized cost of the house?
A. P1,050,000
B. В. P1,500,000
C. P1,005,000
 D. P1,000,500
123. The annual maintenance cost of a machine shop is P12,345. If the cost of making
a forging is P71 per unit and its selling price is P180 per forged unit, find the number of
units to be forged to break-even.
A. 114 units
B. 115 units
C. 116 units
D. 117 units
124. A manufacturer produces certain items at a labor cost of P55 each, material cost of
P82 each and variable cost of P1.75 each. If the item has a unit price of P700, how
much number of units must be manufactured each month for the manufacturer to break-
even if the monthly overhead is P432,000?
A. 767 units
B. 765 units
C. 770 units
D. 769 units
125. Steel container manufacturer incurs a yearly fixed operating cost of P300,000.
Each container manufactured costs P250 to produce and sells P500. What is the
manufacturer's break-even sales volume in containers per year?
A. 1000 containers
B. 1100 containers
C. 1200 containers
D. 1300 containers
126. A motor company has production capacity of 1200 motors a month. The variable
costs are P1150 per motor. The average selling price of the motors is P1275. Fixed
costs of the company amount to P50,000 per month which includes taxes. Find the
number of motors that must be sold each month to break-even.
A. 43
B. 44
C. 45
D. 46
127. DRC Electronics manufactures automatic voltage regulators at a labor cost of P25
per unit and material cost of P125 per unit. The fixed charges on the business are
P15,000 per month and the variable costs are P20 per unit. If the automatic voltage
regulators are sold to retailers at P750 each, how many units must be produced and
sold per month to break-even?
A. 25
B. 26
C. 27
D. 28
128. The direct labor cost and material cost of a certain product are P100 and P400 per
unit, respectively. Fixed charges are P100,000 per month and other variable costs are
P75 per unit. If the product is sold at P1,200 per unit, how many units must be produced
and sold to break-even?
A. 160
B. 170
 C. 180
D. 190
129. The following data for year 2011 are accounted:
Unit selling price P80
Unit variable cost P40
Unit contribution margin P40
Total fixed costs P200,000
What is the break-even point in units for the current year?
A. 10000
B. 5000
C. 15000
D. 8000
130. The cost of producing a small transistor radio set consists of P350 for labor and
P250 for material. The fixed charges in operation the plant is P1,000,000 per month.
The variable cost is P10 per set. The radio set can be sold for P750 each. Determine
how many sets must be produced per month to break-even?
A. 5143
B. 6143
C. 7143
D. 8143
131. An investor has an option to purchase a tract of land that will be worth P20,000 in
seven years. If the value of the land increases at 9% each year, how much should the
investor be willing to pay now for this property?
A. P9,341
B. P10,941
C. P11,521
D. P12,015
132. Suppose that you make 12 equal annual deposits of P2,000 each into a bank
account paying 8% interest per year. The first deposit will be made one year from today.
How much money can be withdrawn from this bank account immediately after the 12th
deposit?
A. P35,492
B. P36,218
C. P37,954
D. P38,755
133. What is the effective rate of interest if P1000 is invested at a nominal rate of 15%
compounded quarterly?
A. 15.86%
B. 16.86%
C. 17.86%
D. 18.86%
134. A man purchased a house for P425,000. In the first month that he owned the
house, he spent P75,000 on repairs and remodeling. Immediately after the house was
remodeled, he was offered P545,000 to sell the house. After some consideration, he
decided to keep the house and have it rented for P4,500 per month starting two months
after the purchase. He collected rent for 15 months and then sold the house for
P600,000, if the interest rate was 1.5% per month, how much extra money did he make
or lose by not selling the house immediately after it was remodeled?
A. P3,000
B. P4,000
C. P5,000
D. P6,000
135. On the day his grandson was born, a man deposited to a trust company a sufficient
amount of money so that the boy could receive five annual payments of P20,000 each
for his college tuition fees, starting with his 18th birthday. Interest at the rate of 12$ per
annum was to be paid on all amounts on deposit. There was also a provision that the
grandson could elect to withdraw no annual payments and receive a single lump
amount on his 25th birthday. The grandson chose this option. How much did the
grandfather deposit?
A. P9,500
B. P10,500
C. P11,500
D. P12,500
136. A man bought an equipment costing P30,000 payable in 12 quarterly payments,
each installment payable at the beginning of each period. The rate of interest is 24%
compounded quarterly. What is the amount of each payment
A. P1,700
B. P2,700
C. P3,700
D. P4,700
137. A telecommunication company purchased an equipment for P53,000 and paid
P1,500 for freight and delivery charges to the job site. The equipment has a normal life
of 10 years with a trade-in value of P5,000 against the purchase of a new equipment at
the end of the life. Determine the annual depreciation cost by the sinking fund method.
Assume interest at 6.5% compounded annually.
A. P2,543
B. P3,668
C. P4,215
D. P5,956
138. Fernandez corporation bought a machine for P200,000 and used it for 10 years,
the life span of the equipment. What is the book value of the machine after 5 years of
use? Assume a scrap value of P20,000. Use double declining balance method.
A. P43,648
B. P59,425
C. P65,536
D. P70,923
139. A nominal interest of 3% compounded continuously is given on the account. What
is the accumulated amount of Php 10,000 after 10 years?
A. Php 18,256.31
B. Php 13,498.60
C. Php 12,125.36
D. Php 10,147.36
140. A man wishes to have Php 40,000 in a certain fund at the end of 8 years. How
much should he invest in fund that will pay 6% compounded continuously?
A. Php 27,857.34
B. Php 24,751.34
C. Php 24,000.05
D. Php 25,770.00