Name:_____________________________ with simple interest of 12%, find the

Section: ___________________________ present worth of 50,000php, which is due at

the end of 7 months.
Engineering Economy A. 27,173.91php
Pre-Board Exam Problems B. 22,617.46php
Instructions: Write the letter of the correct answer C. 46,801.47php
before the number. D. 46, 728.97php
6. What will be the future amount of money
1. Nasi Foods Inc. gross margin is 45% of sales.
after 12 months, if the sum of 25,000php is
Operating expenses such as sales and
invested today at a simple interest rate of
administration are 15% of sales. Nasi Foods
1% per year.
Inc. is in 40% tax bracket. What percent of
A. 22,520php
sales is their profit after taxes.
B. 27,500php
A. 18%
C. 25,250php
B. 25%
D. 28,000php
C. 30%
7. 5,000php is borrowed for 75days at 16%
D. 32%
per year simple interest. How much will be
2. A fixed capital investment of 10,000,000Php
due at the end of 75 days?
is required for a proposed manufacturing
A. 65,000.00php
plant and an estimated working capital of
B. 5,164.38php
2,000,000Php. Annual depreciation is
C. 5,166.67php
estimated to be 10% of the fixed capital
D. 5,041.67php
investment. Determine the rate of return
8. If you borrowed money from your friend
on the total investment if the annual profit
with simple interest of 12%, find the
is 2,500,000Php.
present worth of 20,000php, which is due at
A. 15.35%
the end of 9months.
B. 18.90%
A. 18,348.62php
C. 28.33%
B. 9,615.38php
D. 27.84%
C. 18,370.31php
3. If 1000php accumulates to 1500php when
D. 7,212.2php
invested at a simple interest for 3 years,
9. Determine the exact simple interest on
what is the rate of interest?
5,000php invested for the period from
A. 14.47%
January 15, 1996 to October 12, 1996, if the
B. 15.89%
rate of interest is 18%.
C. 16.67%
A. 663.93php
D. 17.76%
B. 665.75php
4. If you borrowed 10,000php from a bank
C. 668.22php
with 18% simple interest per annum, what
D. 666.39php
is the total amount to be repaid at the end
10. The exact simple interest of 5,000php
of one year?
invested from June 21,1995 to December
A. 10,500php
25, 1995 is 100php. What is the rate of
B. 10,800php
interest?
C. 11,000php
A. 3.88%
D. 11,800php
B. 3.90%
C. 3.85%
5. If you borrowed money from your friend
D. 3.92%
11. What is the effective rate corresponding to A. 7.55%
18% compounded daily? B. 7.71%
A. 1.19% C. 8.21%
B. 19.27% D. 9.21%
C. 19.72% 18. Mr. Choco Brown owes 25,000php due in 1
D. 20.00% year and 75,000php due in 4 years. He
12. Which of these gives the lowest effective agrees to pay 50,000php today and the
rate the lowest effective rate of interest? balance in 2years. How much must he pay
A. 12.35% compounded annually at the end of two years if money is worth
B. 11.90% compounded semi-annually 5% compounded semi-annually?
C. 12. 20% compounded quarterly A. 39,026.25php
D. 11.60% compounded monthly B. 35,079.78php
13. A man borrowed from a loan shark. He C. 35,089.79php
receives from the loan shark an amount of D. 36,079.78php
1,342php and promised to repay 1,500php 19. A person buys a piece of lot for 100,000Php
at the end of 3 quarters. What is the simple downpayment and 10 deferred semi-annual
interest rate? payments of 8,000php each, starting three
A. 3.92% years from now. What is the present value
B. 9.32% of the investment if the rate of interest is
C. 15.69% 12% compounded semi-annually?
D. 18.32% A. 140,999.08php
14. What rate of interest compounded annually B. 143,999.08php
is the same as the rate of interest of 8% C. 145,999.08php
compounded quarterly? D. 147,999.08php
A. 8.24% 20. How much must you invest today in order
B. 8.16% to withdraw 2,000php annually for 10 years
C. 9.16% if the interest rate is 9%?
D. 8.19% A. 11,594.99php
15. Find the compound amount and interest if B. 12,203.88php
2,500php is invested at 8% compounded C. 12, 835.32php
quarterly for 5 years and 6 months. D. 13,203.88php
A. 3895.69php 21. A parent on the day the child is born wishes
B. 3864.95php to determine what lump sum would have to
C. 2793.19php be paid into account bearing interest at 5%
D. 3817.43php compounded annually, in order to withdraw
16. If 5,000php shall accumulate for 10 years at 20,000php each on the childs 18th, 19th, 20th,
8% compounded quarterly, find the and 21st birthdays. How much is the lump
compounded interest at the end of 10 sum amount?
years. A. 30,941.73php
A. 11,040.20php B. 32,478.22php
B. 5412.1608php C. 35,395.31php
C. 6,040.20php D. 36,478.31php
D. 5,750.23php 22. A man purchased on the monthly
17. An interest rate is quoted as being 7.5% installment a 100,000php worth of land.
compounded quarterly. What is the The interest rate is 12% nominal and
effective annual interest rate? payable in 20 years. What is the monthly
 amortization? D. 120,948.48php
A. 1,101.08php 28. A Saudi Arabian Oil refinery developed an
B. 1,201.08php oil well which is estimated to contain
C. 1,301.80php 5,000,000 barrels of oil at an initial cost of
D. 1,308.01php 50,000,000php. What is the depletion
23. Steel drum manufacturer incurs a yearly charge during the year where it produces
fixed operating cost of 200,000php. Each half million barrels of oil? Use the Factor
drum manufactured costs of 160php to method in computing depletion.
produce and sells 200php. What is the A. 2,500,000php
manufacturers break-even sales volume in B. 3,500,000php
drums per year? C. 4,000,000php
A. 2,200drums D. 5,000,000php
B. 3,500drums 29. The initial cost of paint sand mill, including
C. 4,000drums its installation, is 800,00php. The BIR
D. 5,000drums approved life of this machine is 10 years for
24. The annual maintenance cost of a machine depreciation. The estimated salvage value
shop is 69,994php. If the cost of making a of the mill is 50,000php and the cost of
forging is 56php per unit and its selling price dismantling is estimated to be 15,000php.
is 135php per forged unit, find the number Using Straight line method, what is the
of units to be forged to break-even. book value of the machine at the end of six
886 units years?
25. Apple iphone 5s has a selling price of A. 359,000php
32,000php. If the selling price is expected to B. 341,000php
decline at a rate of 10% per year due to C. 326,000php
obsolescence, what will be its selling price D. 350,000php
after 5 years? 30. An asset is purchased for 120,000php. Its
A. 16,000php estimated life is 10 years, after which it will
B. 16,892.88php be sold for 12,000php. Find the
C. 17,892.88php depreciation for the second year using the
D. 18,895.68php sum-of-years digit method.
26. A 1,000,000php issue of 3%, 15-year bond A. 16,424.55php
was sold at 95%. What is the rate of interest B. 17,332.53php
of this investment? C. 17,672.73php
A. 2% D. 18,323.89php
B. 3%
C. 4%
D. 5%
27. A newly acquired equipment requires an
annual maintenance costs of 10,000php. If
the annual maintenance costs is increased
by 20% each year every year for 10 years,
what is the estimated present worth of the
31. A machine costing 45,000php is estimated
maintenance cost if money is worth 15%?
to have a book value of 4,350php when
A. 106,101.37php
retired at the end of 6 years. Depreciation
B. 110,239.84php
cost is computed using a constant
C. 114,232.22php
 percentage of the declining book value. C. Bank note
What is the annual rate of depreciation in D. Money Coupon
%? 38. A market whereby there is only one buyer
A. 29.25% of an item for which there are no goods
B. 30.20% substitute.
C. 32.25% A. Monopoly
D. 35.32% B. Monogamy
32. A company purchases an asset for C. Monopsony
10,000php and plans to keep it for 20years. D. Oligopoly
If the salvage value is zero at the end of 20th 39. Gross profit, sales less cost of goods sold, as
year, what is the depreciation in the third a percentage of sales is called
year? Use SYD method. A. Profit margin
A. 807.19php B. Gross margin
B. 857.14php C. Net income
C. 901.19php D. Amnesty
D. 912.42php 40. The provision in contract that indicates the
33. An artificial expense that spreads the possible adjustment of material
purchase price of an asset or another A. Escalatory Clause
property over a number of years. B. Contingency Clause
A. Sinking Fund C. Disclaimer Section
B. Artexpense D. Primary Article
C. Amnesty
D. Depreciation
34. Grand total of the assets and operational
capability of the corporation.
A. Ultimate Stock
B. Authorized Capital
C. Money Market
D. Grande Monet
35. The quantity of commodity that is bought at
a certain price at a given time and place.
A. Supply
B. Demand
C. Stocked Products
D. Goods
36. A type of bond issued jointly by two or
more corporations.
A. Double Venture Bond
B. Joint Bond
C. Partnered Trust Bond
D. Registered Bond
37. The paper currency issued by the central
bank which forms part of the countrys
money supply.
A. P-bills
B. Papered money