1IF YOU CAN SOLVE THESE PROBLEMS IN 1 HR, THEN YOU ARE A CAL TECH EXPERTPROBLEMS TAKEN FROM 1ST 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?S-1Mr. 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. Determine the following3. Simple interest 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 3rd 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. What 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 )

 2S -5Mr 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 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 quarterlyb. 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 2000Year 2 5000Year 3 8000and so on until year 20, If i = 12% 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 Salvage Value is 150,000 Economic Life = 12 years34. 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 is39. USING MATHESONS METHOD, the Matheson’s constant is 40. The sunk cost after 3 years using MATHESONS formula is41. The total depreciation after 7 years

is (MATHESONS FORMULA )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 after 6 years is (SINKING FUND METHOD )45. The total depreciation after 5 years is46. The depreciation on the 4th

 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 349. 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 80,000Gross Income 25,000 per yearOperating Cost P 6,000 per yearSalvage Value 0Life of Project 10 yearsRate 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 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 Capitalized 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 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 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?Show me more about this

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