601: MATHEMATICS QUIZ 4 SEPTEMBER 7, 2019

Situation: Situation:
A ship “A” started sailing N 42032’ E at the rate of 3 mph. After 2 hours, 14. A telephone company purchased a microwave equipment for P6
ship “B” started from the same port going S 45018’ E at the rate of 4 M with a salvage value of P600,000, over a period of 5 years and
mph. pay a lump sum of P400,000 for the maintenance cost. Minimum
1. After how many hours will the second ship be exactly south of “A”. attractive rate of return is 16% annually. Compute the annual cost
a. 4.38 b. 5.30 c. 3.85 d. 2.65 of investment of purchasing the microwave equipment.
2. After how many hours will the second ship be S 8040’ W of “A”. a. 1.87M b. 1.76M c. 1.65M d. 1.54M
a. 2.31 b. 1.65 c. 1.92 d. 2.65
3. What is the direction of ship “B” from “A” 3 hours after B start from Situation:
the same port. 15. Maintenance expenditures for the Mananga Bridge in Tabunok,
Talisay with a 20-yr life will come as periodic outlays of P1000 at
a. S1030’E b. S3031’W c. S2036’W d. S1021’E the end of the 5th yr, P2000 at the end of the 10th yr. and P3000
at the end of the 15th yr. With interest at 10%, what is the
Situation: equivalent uniform annual cost of maintenance for the 20-yr
Northwest Airlines flew from Tokyo whose latitude is 14 036’ N and period?
longitude of 121005’ E on a course S 300 W and maintaining a uniform
latitude. a. P215 b. P226 c. P237 d. P248
4. What will be its course at the point where it crosses the equator.
Situation:
a. S28056’W b. S22036’W c. S25024’W d. S21043’W 16. A machine costing P1,000,000 is expected to produce 10,000
5. Determine the longitude when it crosses the equator. units of steel pipe during the entire life before being replaced. At
a. 101046’ b. 121044’ c. 112048’ d. 110048’ the end of its life, it will have a scrap value of P50,000. The cost
6. At what time it crosses the equator if it leaves Tokyo at 7:20 AM of housing the machine is P25,000 a year. The power
at a constant speed of 550 nautical miles per hour. consumption per unit is P9 and the maintenance of the machine
a. 6:10 AM b. 9:10 AM c. 8:10 AM d. 10:10 AM per unit will be P7. Labor costs P35 per unit. If depreciation of the
machine is P198,772.71 per year, determine the total production
Situation: cost per unit. The annual production is 2,500 units.
7. A besiege fortress is held by 5700 men who have provision for 66 a. P113.51 b. P122.51 c. P131.51 d. P140.51
days. If the garrison loses 20 men each day, for how many days
can the provision hold out? Situation:
a. 60 b. 72 c. 76 d. 82 17. Toyota Motors makes and sells certain automobile parts. Present
sales volume is 500,000 units a year at a selling price of P0.50
Situation: per unit. Fixed expenses are P80,000 per year. Compute the
8. If one third of the air in the tank is removed by each stroke of an present break-even point in pesos.
air pump, what fractional part of the total air is removed in 6 a. P0.16 b. P0.25 c. P0.34 d. P0.43
strokes?
a. 0.9122 b. 0.0877 c. 0.8211 d. 0.7145 Situation:
18. Determine the appropriate sized of an annual payment needed to
Situation: retire P70,000,000 in bonds issued by a city to build a dam. The
9. If seven coins are tossed simultaneously, find the probability that bonds must be repaid over a 50-yr period and they can earn
will just have three heads. interest at an annual rate of 6% compounded annually.
a. 33/128 b. 35/128 c. 30/129 d. 37/129 a. P2.2M b. P3.2M c. P4.2M d. P5.2M

Situation: Situation:
10. The area bounded by the curve y2 = 12x and the line x = 3 is 19. Find the present value in pesos, of a perpetuity of P15,000
revolved about the line x = 3. What is the volume generated? payable semi-annually if money is worth 8% compounded
quarterly.
a. 179 b. 181 c. 184 d. 186
a. P351,267 b. P361,277 c. P371,287 d. P381,297
Situation:
11. The first cost of a certain equipment is P324,000 and a salvage Situation:
value of P50,000 at the end of its life of 4 years. Find the 20. An equipment costs P1,200,000. At the end of its economic life of
capitalized cost if money is worth 6% compounded annually. 5 years its salvage value is P300,000. Using sum of years’ digit
method, what will be its book value on the 3rd year.
a. 1.45M b. 1.37M c. 1.20M d. 1.15M
a. P380,000 b. P480,000 c. P580,000 d. P680,000
Situation:
12. A machine which costs P50,000 when new has a 10-year lifetime Situation:
and a salvage value equal to 10% of its original value. Determine 21. The first cost of a machine is P1,800,000 with a salvage value of
the capital recovery based upon an interest rate of 8% per year, P300,000 at the end of its life of 5 years. Determine the total
compounded annually. depreciation after 3 years using constant percentage method.
a. P6,005 b. P7,105 c. P8,205 d. P9,305 a. P1.19 M b. P1.28 M c. P1.37 M d. P1.46 M

Situation: Situation:
13. A construction equipment is badly needed for a certain project so 22. A small entrepreneur invested a capital of P80,000 for a buy and
as to shorten the time of completion of the project. The equipment sell business. He estimated to have a gross income of P25,000
cost P1.2M and has a life of 5 years with a salvage value of annually and on operating cost of P6,000 annually. It is assumed
P200,000 at the end of its life. The machine can be bought with the business to have a life over 10 years. If the rate of interest is
money borrowed at an interest rate of 20% per annum. Annual 12%, compute the benefit cost ratio.
operating cost is P10,000. Find the annual investment cost of a. 1.01 b. 1.12 c. 1.23 d. 1.34
using the equipment.
a. P351,350 b. P362,360 c. P373,370 d. P384,380 Situation:
23. A businessman wants to earn 7% on his capital after payment
of taxes. If the income from an available investment will be
601: MATHEMATICS QUIZ 4 SEPTEMBER 7, 2019
taxed at an average rate of 42%, what minimum rate of return
before payment of taxes must the investment offer to be
justified?
a. 11.06% b. 12.07% c. 13.08% d. 14.09%

Situation:
24. In 5 years, P1.8M will be needed to pay for the building
renovation. In order to generate this sum, a sinking fund
consisting of three annual payments is established now. For tax
purposes, no further payments will be made after 3 years. What
payments are necessary if money is worth 15% per annum?
a. P361,654 b. P371,754 c. P381,854 d. P391,954

Situation:
25. An engineer has just borrowed P41,000 from a local bank at the
rate of 1% per month on the unpaid balance. His contract states
that he must repay the loan in 35 equal monthly installments. How
much money must be repaid each month?
a. P1293.2 b. P1394.2 c. P1495.2 d. P1596.2