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IF YOU CAN
SOLVE THESE
PROBLEMS IN 1 HR,
THEN YOU ARE A CAL
TECH
EXPERTPROBLEMS TAK
EN FROM 1
ST
MEETING REFRESHER
AT TOLENTINO AND
ASSOCIATES..
1. A deposit of P110, 000
was made for 31 days.

The net interest after

deducting 20%
withholding tax is
P890.36.Find the rate of
return annually.
2. P5, 000 is borrowed for
75 days at 16% per
annum simple interest.
How much will be due at
the end of 75 days?S1Mr. J de la Cruz
borrowed money from
a bank. He received from
the bank P1, 340.00 and
promised to payP1,

500.00 at the end of 9

months. Dete
rmine the
following3. Simple interes
t rate.
4. The corresponding
discount rate or often
referred to as the
Bankers Discount.
S-2John borrowed P50,
000.00 from the bank
at 25% compounded
semi-annually.5. What is
the equivalent effective
rate of interest?6. How

much must he pay if he

pay after 5 years?7.
When will the money
double ?8. If
he pay 10,000 after 1
year and 10,000 on the
next year , how much
must he pay on the 3
rd
year to wipe outhis loan?
9. Convert the
interest rate
to compounded
quarterly10. Convert the
interest rate to

compounded
monthly.11. Convert the
interest rate to
compounded
continuously .12. Find the
present worth of a future
payment of P100, 000 to
be made in 10 years with
an interest of
12%compounded
quarterly.13. If P5,
000.00 shall accumulate
for 10 years at 8%
compounded quarterly.
Find the compounded

interest at theend of 10
years.14. By the
condition of a will, the
sum of P2, 000 is left to a
girl to be held in trust
fund by her guardian
until itamounts to P50,
000, when will the girl
received the money if the
fund is invested at 8%
compounded quarterly?
15. A Mechanical
Engineer wishes to
accumulate a total of
P10, 000 in a savings

account at the end of 10

years. Ifthe bank pays
only 4% compounded
quarterly, what should be
the initial deposit?
Mr X borrowed P 100,000
at en
effective interest of 8% in
a bank. He will pay the
loan monthly for
5 years16. Convert
interest to compounded
monthly17. What should
be the monthly payment?
18. If he decides to pay

on a quarterly basis,
convert the interest rate
to compounded
quarterly.19. What must
be the quarterly
payment?20. If he
decides to pay on a
semiannual basis,
convert the interest rate
to compounded
seminannually.21. What
should be the
semiannual payment?22.
Convert the interest
rate to compounded

continuously.Mr Y
deposited P 1,000 at
the end of every month
in an account
that earns 12%
effective interest.23. Wha
t is the monthly interest
rate?24. What will be
the amount of money
after 5 years?25. If Mr Y
deposited P 1,000 at the
beginning of each year,
what will be the amount
in 5 years. (There will be
only60 deposits )

2
S
-5Mr Z borrowed P 300,0
00 from a
bank. The bank charges 1
6% 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 1
st
payment happened at
theend 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 quar
terlyb. 11.88%
compounded
seminuallyc.

11.99 % compounded
monthlyd. 12.02%
compounded
continuouslyS-6Given the
series of payments at the
end of
each year:Year 1 2000Yea
r 2 5000Year 3 8000and s
o on until year 20, If i = 1
2% per annum31. 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.S

7Given the first cost of a

machine FC = 500,000 S
alvage Value is 150,000 E
conomic Life = 12 years3
4. USING straight line
method , the annual
depreciation is35. USING
Straight line method, the
book value after 5 years
is36. USING SOYD, the
book value after 3 years
is37 USING SOYD, the

maximum depreciation
in any year is38. 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
is41. The
total depreciation after 7
years
is (MATHESONS FORMUL

A )42. USING DOUBLE

DECLINING BALANCE
METHOD , the book value
after 3 years is43. USING
SINKING FUND
METHOD , with i = 8% ,
the annual depreciation
is44. The book value afte
r 6 years is (SINKING FUN
D METHOD )45. The
total depreciation after 5
years is46. The
depreciation on the 4
th

year isS-8Find the

present value of a
perpetuity of P 15,000
payable semiannually if
money is worth 8%
compoundedquarterly47.
The interest rate every
six months is48. The
present value of the
given perpetuity is
3
49. A man invest in a
medium scale business
that cost him P

57,000.00. The net

annual return is
estimated at P14,000 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
projectProject Cost P 80,0
00Gross Income 25,000 p
er yearOperating Cost P 6
,000 per yearSalvage Val
ue 0Life of Project 10 yea
rsRate 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 continuousl
y for 5 years. How
much money must hepay
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 bepartially 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 isworth

4%55. Find the annual
investment56. The Capita
lized Cost isS-1057. The
cost of producing a
certain commodity
consist of P 45 per unit
for labor and material
cost and P 15 per unitfor
other variable cost. The
fixed cost per month is P
450,000. If
the commodity is sold at
P 250 per unit57. 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.
Usingthe 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 3
rd
and the 4
th
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
compoundedaccount?62.
If P 500,000 is deposited
at a rate of 11.25%
compounded monthly,

what will be the amount

after 7 years and
9months?63. In year
zero, you invest P 10,000
in a 15% security for 5
years. During the time,
the average inflation is
6%. Howmuch in terms of
year zero pesos will
be the account at the
maturity?
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