(Set-A)

Name

Section

Date

Score

Compute the Depreciation Cost and Book Value

1. On January 30, 2006 GSM Company purchased a machine worth $95,000.00 with an estimated life of 10
years and a salvage value of $ 10,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 9,500.00
Installation fee
$ 200.00
Unloading
$ 150.00
Freight-in
$ 150.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor
of 2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

2. On June 1, 2006 Legaspi Company purchased a machine worth $750,000.00 with an estimated life of 10
years and a salvage value of $ 100,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 7,500.00
Installation fee
$ 250.00
Unloading
$ 250.00
Freight-in
$ 450.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

3. On December 1, 2006 Espiritu Company purchased a machine worth $150,000.00 with an estimated life
of 10 years and a salvage value of $ 20,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 1,500.00
Installation fee
$ 500.00
Unloading
$ 250.00
Freight-in
$ 250.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Calculate the given problem and write the correct function and answer on the space provided
1. It assumes that you start a business at a cost of $7,500 - this amount was borrowed at a rate of 5%. You
net the following income for the first four years: $3,000, $5,000, $1,200, and $4,000. The net income was
reinvested at a rate of 8%.
Function _____________________________
Answer _______________________
2. How much do you have to save each month in a savings account that pays 3% to reach a goal of
$150,000.00 in 10 years?
Function _____________________________
Answer _______________________
3. How many monthly payments will you have to make a pay off a $ 70,000.00 salary loan at 2.5% annual
interest rate at $ 1,500.00 monthly payment?
Function _____________________________
Answer _______________________

4. If you inherit $ 20,000.00 and deposit it in a saving account that pay 7.5% annual interest and add another
$1,500.00 at the beginning of each subsequent year, what will be the saving account be worth in 10 years?
Function _____________________________
Answer _______________________
5. What initial deposit would you have to make to a money fund account that returns 5% per annum and must
be worth $50,000.00 after 5 years. You know you can afford to save $ 500.00 at the beginning of each
month.
Function _____________________________
Answer _______________________
6. What is the monthly interest rate of a five-year $75,000.000 loan with a beginning monthly payment of
$2,000.00?
Function _____________________________
Answer _______________________
7. If you save $ 5,000 a year for 10 years at 3.25%, how much will you have at the end of 10 years?
Function _____________________________
Answer _______________________
8. You are buying a $500,000.00 Honda car and making a down payment of 15%. You take out a 5% loan
on the balance which will be paid in monthly installments over 15 years. How much will your payment be?
Function _____________________________
Answer _______________________
9. Suppose you have an initial investment of $30,000.00 for five years at a rate of 5% interest. The first

year, you expect a loss of $22,000.00; the second year, a profit of $ 15,000.00; the third year, a profit of
$25,000.00; the fourth yea, a profit of $32,000.000; and the fifth year, a profit of $38,000.00.
Function _____________________________

Answer _______________________

10. It assumes that you start a business at a cost of $10,000 - this amount was borrowed at a rate of 6.5%. You

net the following income for the first three years: $3,400, $6,500, and $1,000. The net income was
reinvested at a rate of 10%.
Function _____________________________

Answer _______________________

11. Consider the following cash flows:

Cash Flow
= - $10,000.00
Cash Flow1
= +$ 5,000.00
Cash Flow2
= +$ 1,000.00
Cash Flow3
= +$ 2,000.00
Cash Flow4
= +$ 5,000.00
a. What is the internal rate of return for this set of cash flows?

_______________

b. If the discount rate is 5%, what is the net present value corresponding to these cash flows? __________
Calculate the given problem using Pmt, PPmt, IPmt and ISPmt and give the payment for the last month.
1. Suppose you borrow $75,000.000 for 20 years at.5 percent interest.
Pmt _____________________
IPmt _________________________
PPmt _____________________

ISPmt _________________________

2. A housing loan for $500,000.00 at 7.5% yearly interest for 30 years.

Pmt _____________________
IPmt _________________________
PPmt _____________________

SPmt _________________________

(Set-B)
Name

Section

Date

Score

Compute the Depreciation Cost and Book Value

1. On May 1, 2006 GSM Company purchased a machine worth $90,000.00 with an estimated life of 10 years
and a salvage value of $ 10,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 9,000.00
Installation fee
$ 200.00
Unloading
$ 150.00
Freight-in
$ 150.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor
of 2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

2. On September 1, 2006 Legaspi Company purchased a machine worth $700,000.00 with an estimated life
of 10 years and a salvage value of $ 90,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 7,000.00
Installation fee
$ 250.00
Unloading
$ 250.00
Freight-in
$ 450.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

3. On January 1, 2006 Espiritu Company purchased a machine worth $120,000.00 with an estimated life of
10 years and a salvage value of $ 15,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 1,200.00
Installation fee
$ 500.00
Unloading
$ 250.00
Freight-in
$ 250.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Calculate the given problem and write the correct function and answer on the space provided
1. How many monthly payments will you have to make a pay off a $ 85,000.00 salary loan at 2.5% annual
interest rate at $ 1,500.00 monthly payment?
Function _____________________________

Answer _______________________

2. If you save $ 12,000 a year for 10 years at 5%, how much will you have at the end of 10 years?
Function _____________________________
Answer _______________________
3. It assumes that you start a business at a cost of $9,500 - this amount was borrowed at a rate of 3.5%. You
net the following income for the first four years: $5,000, $7,000, $4,200, and $5,000. The net income was
reinvested at a rate of 5%.
Function _____________________________
Answer _______________________
4. What is the monthly interest rate of a five-year $95,000.000 loan with a beginning monthly payment of
$2,500.00?
Function _____________________________
Answer _______________________
5. Suppose you have an initial investment of $40,000.00 for five years at a rate of 4.5% interest. The first

year, you expect a loss of $22,000.00; the second year, a profit of $ 15,000.00; the third year, a profit of
$25,000.00; the fourth yea, a profit of $32,000.000; and the fifth year, a profit of $38,000.00.
Function _____________________________

Answer _______________________

6. It assumes that you start a business at a cost of $20,000 - this amount was borrowed at a rate of 5%. You net

the following income for the first three years: $3,400, $6,500, and $1,000. The net income was reinvested at
a rate of 10%.
Function _____________________________

Answer _______________________

7. What initial deposit would you have to make to a money fund account that returns 5% per annum and must
be worth $60,000.00 after 5 years. You know you can afford to save $ 600.00 at the beginning of each
month.
Function _____________________________
Answer _______________________
8. How much do you have to save each month in a savings account that pays 3.5% to reach a goal of
$100,000.00 in 10 years?
Function _____________________________
Answer _______________________
9. You are buying a $600,000.00 Honda car and making a down payment of 5%. You take out a 5% loan on
the balance which will be paid in monthly installments over 15 years. How much will your payment be?
Function _____________________________
Answer _______________________
10. If you inherit $ 30,000.00 and deposit it in a saving account that pay 5% annual interest and add another
$1,500.00 at the beginning of each subsequent year, what will be the saving account be worth in 10 years?
Function _____________________________
Answer _______________________

11. Consider the following cash flows:

Cash Flow
= - $20,000.00
Cash Flow1
= +$ 6,000.00
Cash Flow2
= +$ 4,000.00
Cash Flow3
= +$ 3,000.00
Cash Flow4
= +$ 5,000.00
a. What is the internal rate of return for this set of cash flows?

_______________

b. If the discount rate is 5%, what is the net present value corresponding to these cash flows? __________
Calculate the given problem using Pmt, PPmt, IPmt and ISPmt and give the payment for the last month
1. Suppose you borrow $85,000.000 for 20 years at 5 percent interest.
Pmt _____________________
IPmt _________________________
PPmt _____________________

ISPmt _________________________

2 A housing loan for $700,000.00 at 5% yearly interest for 30 years.

Pmt _____________________
IPmt _________________________
PPmt _____________________

SPmt _________________________

(Set-C)
Name

Section

Date

Score

Compute the Depreciation Cost and Book Value

1. On April 1, 2006 Espiritu Company purchased a machine worth $150,000.00 with an estimated life of
10 years and a salvage value of $ 20,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 1,500.00
Installation fee
$ 500.00
Unloading
$ 250.00
Freight-in
$ 250.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

2. On March 1, 2006 GSM Company purchased a machine worth $90,000.00 with an estimated life of 10

years and a salvage value of $ 10,000.00

Additional expenses incurred on acquisition date were:
Insurance
$ 9,000.00
Installation fee
$ 200.00
Unloading
$ 150.00
Freight-in
$ 150.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor
of 2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

3. On October 1, 2006 Legaspi Company purchased a machine worth $750,000.00 with an estimated life of
10 years and a salvage value of $ 100,000.00
Additional expenses incurred on acquisition date were:
Insurance
$ 7,500.00
Installation fee
$ 250.00
Unloading
$ 250.00
Freight-in
$ 450.00
Compute the annual depreciation for year 5 using the following methods: SLN, SYD, DB, DDB factor of
2 and DDB factor of 1.5
Methods
SLN
SYD
DB
DDB factor of 2
DDB factor of 1.5

Annual Depreciation
___________________________________
___________________________________
___________________________________
___________________________________
___________________________________

Book Value
_________________________________
_________________________________
_________________________________
_________________________________
_________________________________

Calculate the given problem and write the correct function and answer on the space provided
1. It assumes that you start a business at a cost of $20,000 - this amount was borrowed at a rate of 5%. You net

the following income for the first three years: $3,400, $6,500, and $1,000. The net income was reinvested at
a rate of 10%.
Function _____________________________

Answer _______________________

2. If you inherit $ 20,000.00 and deposit it in a saving account that pay 7.5% annual interest and add another
$1,500.00 at the beginning of each subsequent year, what will be the saving account be worth in 10 years?
Function _____________________________
Answer _______________________
3. Suppose you have an initial investment of $30,000.00 for five years at a rate of 5% interest. The first

year, you expect a loss of $22,000.00; the second year, a profit of $ 15,000.00; the third year, a profit of
$25,000.00; the fourth yea, a profit of $32,000.000; and the fifth year, a profit of $38,000.00.
Function _____________________________

Answer _______________________

4. How much do you have to save each month in a savings account that pays 3% to reach a goal of
$150,000.00 in 10 years?
Function _____________________________
Answer _______________________
5. If you save $ 5,000 a year for 10 years at 3.25%, how much will you have at the end of 10 years?
Function _____________________________
Answer _______________________
6. It assumes that you start a business at a cost of $7,500 - this amount was borrowed at a rate of 5%. You
net the following income for the first four years: $3,000, $5,000, $1,200, and $4,000. The net income was
reinvested at a rate of 8%.
Function _____________________________
Answer _______________________
7. You are buying a $500,000.00 Honda car and making a down payment of 15%. You take out a 5% loan on
the balance which will be paid in monthly installments over 15 years. How much will your payment be?
Function _____________________________
Answer _______________________
8. How many monthly payments will you have to make a pay off a $ 70,000.00 salary loan at 2.5% annual
interest rate at $ 1,500.00 monthly payment?
Function _____________________________
Answer _______________________
9. It assumes that you start a business at a cost of $10,000 - this amount was borrowed at a rate of 6.5%. You

net the following income for the first three years: $3,400, $6,500, and $1,000. The net income was
reinvested at a rate of 10%.
Function _____________________________

Answer _______________________

10. What initial deposit would you have to make to a money fund account that returns 5% per annum and must
be worth $50,000.00 after 5 years. You know you can afford to save $ 500.00 at the beginning of each
month.
Function _____________________________
Answer _______________________

11 Consider the following cash flows:

Cash Flow
= - $30,000.00
Cash Flow1
= +$ 8,000.00
Cash Flow2
= +$ 2,000.00
Cash Flow3
= +$ 4,000.00
Cash Flow4
= +$ 8,000.00
a. What is the internal rate of return for this set of cash flows?

_______________

b. If the discount rate is 4.5%, what is the net present value corresponding to these cash flows? _________
Calculate the given problem using Pmt, PPmt, IPmt and ISPmt and give the payment for the last month
1. Suppose you borrow $95,000.000 for 20 years at 7.5 percent interest.
Pmt _____________________
IPmt _________________________
PPmt _____________________

ISPmt _________________________

2 A housing loan for $900,000.00 at 3.5% yearly interest for 30 years.

Pmt _____________________
IPmt _________________________
PPmt _____________________

SPmt _________________________