1.

An employee borrowed P700, 000 with 12% interest compounded semi-annually

promised to pay every 6 months for 8 years starting today. What amount should
be pay semi-annually?
a. P65,000 b. P63,029.5 c. P70,100.25 d. P50,123.65

2. A machine needs P5, 000 semi-annually for its maintenance during its perpetual
life. If effective interest is 16%, find the present worth of maintenance.
a. P62,500 b. P65,200 c. P63,500 d. P65,300

3. A farmer bought an equipment costing P12, 000. The equipment may be

purchased by installment for 5 years at 8% compounded annually. Find the
annual payments if all payments are made at the beginning of each year.
a. P3,782.85 b. P4,745.45 c.P2,782.85 d. P1,232.78

4. What is the present worth of a 4 year annuity paying P4, 000 at the end of each
year, with interest at 10% compounded annually?
a. P12,679.46 b. P15,607.86 c. P12,697.5 d. P16,679.5

5. The maintenance cost of a machine this year is expected to be P5, 000. The cost
will increase P1, 000 each year for the subsequent 4 years. The interest is 15%
compounded annually. What is the approximate worth of maintenance for the
machine over the full 5 years?
a. P32,535.91 b. P22,535.91 c. P42,535.91 d. P52,535.91

6. A machine needs P15, 000 annually for its maintenance during its perpetual life.
Find the present amount of maintenance if the interest is 4%.
a. P375, 000 b.P735, 000 c. P573, 000 d. P375, 000

7. What is the effective interest rate per year of a machine having a present amount
of P900, 000 with P890 amount of maintenance during its perpetual life.
a. 0.08% b. 0.098% c. 0.06% d. 0.05%

8. A car needs P5, 000 quarterly for its maintenance during its perpetual life. If the
effective interest is 28%, find the present amount of maintenance.
a. P26,000 b. P71,428.57 c. P56,123.78 d. P69,123.87

9. A contractor bought a concrete mixer at P150,000 if paid in cash. The mixer may
also be purchased by installment to be paid within 7 years. If money worth 9%.
The amount of each annual payment, if all payments made at the beginning of
each year, is?
 a. P27,342.73 b.P26,546.32 c. P66,123.78 d. P79,123.87

10. The maintenance cost of a machine this year is expected to be P500. The cost
will increase P150 each year for the subsequent 4 years. The interest is 8%
compounded annually. What is the approximate worth of maintenance for the
machine over the full 5 years?
a. P6,000 b. P3,102.22 c. P5,123.78 d. P9,123.87