Questions and Answers
What is the future amount after 5 years and 5 months using ordinary simple interest on a deposit of P10,000 at 12 percent?
What is the principal amount in a loan with 20% simple interest where the future amount is P2,000 more than the principal after one year?
Determine the money a worker has borrowed if he promised to pay P18,000 on March 4, 1996, with 16% interest, after borrowing on April 20, 1995.
What is the nominal interest if an amount of P1,000 becomes P1,608.44 after 4 years compounded bimonthly?
Signup and view all the answers
How much must be invested on January 1, 1998, in order to accumulate P2,000 on January 1, 2003, if money is worth 6%?
Signup and view all the answers
What is the effective annual interest rate for an interest rate quoted as 7.5% compounded quarterly?
Signup and view all the answers
How much did a businessman borrow if he is to pay in 10 equal payments of P2,000 for 10 quarters at a 10% interest rate compounded quarterly?
Signup and view all the answers
What will be the amount available in two years if Jason plans a deposit of P500 at the end of each month for 10 years at 12% annual interest, compounded monthly?
Signup and view all the answers
What does Gabriel pay each month if he borrows P100,000.00 at 10% effective annual interest over 30 years with uniform monthly payments?
Signup and view all the answers
What is the book value after 8 years of a machine that costs P8,000 and has an estimated life of 10 years with a salvage value of P500 using the straight-line method?
Signup and view all the answers
What is the total depreciation in the first three years using the straight-line method for an asset purchased for P500,000 with a salvage value of P100,000 over 25 years?
Signup and view all the answers
What is the book value after 5 years if a machine has an initial cost of P50,000 and a salvage value of P10,000 after 10 years using straight-line depreciation?
Signup and view all the answers
What is the book value at the end of the fourth year for equipment costing P500,000 with an installation cost of P30,000 and a salvage value of 10% of equipment cost after 5 years using the straight-line method?
Signup and view all the answers
What is the straight-line depreciation rate as a percentage of initial cost for a machine with an initial cost of P50,000 and a salvage value of P10,000 after 10 years?
Signup and view all the answers
Study Notes
Simple Interest and Future Amounts
- Future amount of P10,000 at 12% simple interest after 5 years and 5 months is P16,500.
- In a loan with 20% simple interest, if the future amount exceeds the principal by P2,000 after one year, the principal is P10,000.
- A worker borrowed and must pay back P18,000 with 16% interest in less than a year, indicating he borrowed P15,791.75.
Compounding and Interest Rates
- An investment of P1,000 grows to P1,608.44 in 4 years with bimonthly compounding; the nominal interest is 12.00%.
- To accumulate P2,000 by January 1, 2003, an investment of P1,494.52 on January 1, 1998, is necessary at a 6% interest rate.
- The effective annual interest rate for 7.5% compounded quarterly is 7.71%.
Loan Repayment
- A businessman’s loan of P2,000 quarterly repayments at 10% compounded quarterly totals P17,504.13.
- Gabriel’s monthly payment on a P100,000 loan at 10% effective annual interest over 30 years is P838.86.
Depreciation and Asset Valuation
- The book value of a machine costing P8,000 with a salvage value of P500 after 8 years using straight-line method is P2,000.
- Total depreciation of a P500,000 asset with a salvage value of P100,000 in 3 years is P48,000.
- A machine initially costing P50,000 with a salvage value of P10,000 has a book value of P30,000 after 5 years using straight-line depreciation.
- The book value of equipment costing P500,000 and installation of P30,000 after 4 years is P146,000 with straight-line method.
- The straight-line depreciation rate of a P50,000 machine with a P10,000 salvage value is 8%.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your understanding of simple interest calculations with these problems. You'll encounter scenarios involving deposits, loans, and future amounts. Determine the correct answers and strengthen your financial math skills.
