1.

A mother on the day the child is born wishes to determine what lump sum would
have to be paid into an account bearing interest at 15% compound annually, in
order to withdraw P29,000 each on the child’s 18th, 19th, 20th and 21st birthday.
A. P7,693.74 B. P7936.74 C. P7369.47 D. P7693.47

2. A man borrowed P40,000 and promise to pay the amount annually for 11years,
at the beginning of each period with interest rate of 15% compounded annually.
Find the annual amount.
A. P6,465.9 B. P6,645.9 C. P6,546.8 D. P6,646.9

3. Mr. Gomez deposit P74,000 and withdraw P10,000 per year at the beginning of
each period with interest rate of 10%. In how many years will a deposit become
zero?
A. 11 yrs. B. 11.72 yrs. C. 12 yrs. D. 13 yrs.

4. Ms. Villamor, her annual payment was P7,000, becomes P470,123 in 15 years at
beginning of each. Find the annual interest of the investment.
A. 15% B. 16.7% C. 17.25% D.18%

5. A president borrowed P40,000 and promised to pay amount annually for 20

years at the beginning of each period with interest rate of 17% compounded
semi-annually. Find the annual amount.
A. P6,261.39 B. P6,621.93 C. P6,162.39 D. P6,712.93

6. A local firm is establishing a sinking fund for the purpose of accumulating

sufficient capital to retire its outstanding bonds at maturity. The bonds are
redeemable 11 years, and their maturity values P160,000. How much deposited
each year if the fund pats interest at the rate of 4%.
A. P10,867.33 B. P11,863.84 C. P12,893.78 D. P11,263.09

7. How much money must you invest today in order to withdraw 2000/year for 11
years if the interest rate 10%.
A. P11,783.98 B. P12,894.94 C. P12,990.12 D. P13,894.87

8. The president of a growing engineering firm wishes to give each of 60 employees

a holiday bonus. How much is needed to invest monthly for a year at 11%
interest rate, compounded monthly, so that each employee will receive a P2,000
bonus.
A. P9,754.8 f0r 60employee C. P9,875.9 f0r 60employee
B. P6,869.9 f0r 60employee D. P9,505.8 f0r 60employee
9. An employee is about to receive the sum 400 at the end of each year for 5 years.
One year prior to the receipt of the first sum. He decides to discount all 5 sums. If
the rate is 7%. What proceeds will he obtain.
A. P1640.08 B. P1753.78 C. P1712.79 D. P1687.98

10. A fixture that cost 800 will save P0.07 per item produce. Maintenance will be at
50 annually. 3600 units are produced annually. What is the payback period at
11%.
A. 4.8 years B. 5 years C. 5.48 years D. 5.9 years