Past Board Exam Problems In Engineering Economy PDF

Past Board Exam Problems 7. CE Board Exam November 1996 13. EE Board Exam October 1997 in Engineering Economy If P 500,000 is deposited at a rate of A man borrowed P 100,000 at the...

Past Board Exam Problems 7. CE Board Exam November 1996 13. EE Board Exam October 1997 in Engineering Economy If P 500,000 is deposited at a rate of A man borrowed P 100,000 at the 11.25% compounded monthly, interest rate of 12% per annum, SIMPLE AND COMPOUND INTEREST determine the compounded interest compounded quarterly. What is the 1. CE Board Exam May 1995 after 7 years and 9 months. effective rate? How long will it take money to A. P 660,592 A. 13% quadruple if it earns 7% compounded B. P 670,258 B. 13.2% semi-annually? C. P 680,686 C. 12% A. 20.15 years D. P 690,849 D. 12.5% B. 26.30 years C. 33.15 years 8. CE Board Exam May 1996 14. EE Board Exam October 1993 D. 40.30 years Two hundred thousand pesos was A bank pays 1% interest on savings deposited on January 1, 1988 at an accounts four times a year. The 2. CE Board Exam November 1999 interest rate of 24% compounded effective annual interest rate is Which of the following has the least semi-annually. How much would the A. 4.06% effective annual interest rate? sum be on January 1, 1993? B. 1.00% A. 12.5% compounded quarterly A. P 401,170 C. 2.04% B. 11.5% compounded monthly B. P 421,170 D. 3.36% C. 11.7% compounded semi- C. P 521,170 annually D. P 621,170 15. EE Board Exam June 1990 D. 12.2% compounded annually On his 6th birthday a boy is left an 9. CE Board Exam May 1999 inheritance. The inheritance will be 3. CE Board Exam November 1998 The tag price of a certain commodity paid in a lump sum of P 10,000 on his One hundred thousand pesos was is for 100 days. If paid in 31 days, 21st birthday. What is the present placed in a time deposit that earns there is a 3% discount. What is the value of the inheritance as of the 9% compounded quarterly, tax free. simple interest paid? boy’s 6th birthday, if the interest is After how many years would it be A. 12.15% compounded annually? Assume i = able to earn a total interest of fifty B. 6.25% 4%. thousand pesos? C. 22.32% A. P 6,500 A. 4.56 D. 16.14% B. P 8,600 B. 4.47 C. P 5,500 C. 4.32 10. CE Board Exam May 1996, D. P 7,500 D. 4.63 November 1996 If P 500,000 was deposited at a rate 16. EE Board Exam October 1997, ME 4. CE Board Exam May 1998 of 11.25% compounded monthly, Board Exam October 1995 What rate (%) compounded quarterly determine the compounded interest Mandarin Bank advertises 9.5% is equivalent to 6% compounded after 7 years and 9 months. account that yields 9.84% annually. semi-annually? A. P 660,550 Find how often the interest is A. 5.93 B. P 670,650 compounded. B. 5.99 C. P 680,750 A. Daily C. 5.96 D. P 690,850 B. Monthly D. 5.90 C. Bi-monthly 11. CE Board Exam November 1994 D. Quarterly 5. CE Board Exam November 2000 P 500,000 was deposited 20.15 P 1,000,000 was invested to an years ago at an interest rate of 7& 17. EE Board Exam September 2010 account earning 8% compounded compounded semi-annually. How Determine the ordinary simple continuously. What is the amount much is the sum now? interest on P 700 for 8 months and 15 after 20 years? A. P 2,000,000 days if the rate of interest is 15%? A. P 4,452,796.32 B. P 2,000,150 A. P 84.50 B. P 4,953,032.42 C. P 2,000,300 B. P 90.76 C. P 5,365,147.25 D. P 2,000,500 C. P 74.38 D. P 3,456,254.14 D. P 81.56 12. CE Board Exam May 1997 6. CE Board Exam May 2000 A time deposit of P 110,000 was 18. EE Board Exam September 2010 How long will take it for money to made for 31 days. The net interest Determine the exact simple interest quadruple itself if invested at 20% after deducting 20% withholding tax on P 500 for the period from January compounded quarterly? is P 890.36. Find the rate of return 10 to October 28, 2009 at 16% A. 10.7 years annually. interest. B. 6.3 years A. 11.95% A. P 63.83 C. 9.5 years B. 12.75% B. P 54.23 D. 7.1 years C. 11.75% C. P 95.34 D. 12.25% D. P 48.61 19. ECE Board Exam November 1998 D. P 30,546.01 trust fund by her guardian until it What will be the future worth of amounts to P 45,000. When will the money after 12 months, if the sum of 26. ECE Board Exam April 1999, girl receive the money if the trust fund P 25,000 is invested today at simple November 2000 is invested at 8% compounded interest rate of 1% per month? The amount of P 50,000 was quarterly? A. P 30,000 deposited in the bank earning at A. 7.42 years B. P 29,000 interest of 7.5% per annum. B. 7.25 years C. P 28,000 Determine the total amount at the C. 7 years D. P 27,859 end of 5 years, if the principal and D. 6.8 years interest were not withdrawn during 20. ECE Board Exam November 1998, the period? 32. ECE Board Exam April 1995 April 2001 A. P 71,781.47 A man expects to receive P 20,000 in The effective rate of 14% B. P 72,475.23 10 years. How much is that money compounded semi-annually is C. P 70,374.90 worth now considering interest at 6% A. 14.49% D. P 78,536.34 compounded quarterly? B. 12.36% A. P 11,025.25 C. 14.94% 27. ECE Board Exam November 1998 B. P 17,567.95 D. 14.88% At an interest rate of 10% C. P 15,678.45 compounded annually, how much will D. P 12,698.65 21. ECE Board Exam November 1996 a deposit of P 1,500 be in 15 years? The amount of P 2,825.00 in 8 years A. P 6,100.00 33. ECE Board Exam, March 1996 at 5% compounded continuously is B. P 6,234.09 What is the effective rate A. P 4,166.77 C. P 6,265.87 corresponding to 16% compounded B. P 4,188.56 D. P 6,437.90 daily? Take 1 year = 360 days. C. P 4,397.86 A. 16.5% D. P 4,203.97 28. ECE Board April 1999 B. 16.78% In how many years is required for P C. 17.35% 22. ECE Board Exam April 1999, 2,000 to increase by P 3,000 if D. 17.84% November 1999 interest is at 12% compounded semi- If you borrowed money from your annually? 34. ECE Board Exam November 1999, friend with simple interest of 12%, A. 8 April 2003 find the present worth of P 50,000, B. 9 Mr. J. Reyes borrowed money from a which is due at the end of 7 months. C. 10 bank. He received from the bank P A. P 46,200 D. 7 1,842 and promised to repay P 2,000 B. P 44,893 at the end of 10 months. Determine C. P 46,730 29. ECE Board Exam November 1998 the rate of simple interest. D. P 45,789 A man expects to receive P 25,000 in A. 19.45% 8 years. How much is that money B. 15.70% 23. ECE Board Exam April 1999 worth now considering interest at 8% C. 16.10% What is the corresponding effective compounded quarterly? D. 10.29% rate of 18% compounded semi- A. P 13,859.12 quarterly? B. P 13,958.33 35. ECE Board Exam April 2000 A. 19.25% C. P 13,675.23 What is the effective rate B. 19.48% D. P 13,265.83 corresponding to 18% compounded C. 18.46% daily? Take one year is equal to 360 D. 18.95% 30. ECE Board Exam April 1998, days. November 1995 A. 18.35% 24. ECE Board Exam April 1998 By the condition of a will, the sum of B. 19.72% The amount of P 12,800 in 4 years at P 20,000 is left to a girl to be held in C. 18.61% 5% compounded quarterly is trust fund by her guardian until it D. 19.39% A. P 14,785.34 amounts to P 50,000. When will the B. P 15,614.59 girl receive the money if the fund is 36. ECE Board Exam November 2000 C. P 16,311.26 invested at 8% compounded Find the present worth of a future D. P 15,847.33 quarterly? payment of P 80,000 to be made in A. 7.98 years six years with an interest of 12% 25. ECE Board Exam April 1999 B. 10.34 years compounded annually. Find the present worth of a future C. 11.57 years A. P 40,530.48 payment of P 100,000 to be made in D. 10.45 years B. P 45,222.45 10 years with an interest of 12% C. P 42,356.76 compounded quarterly. 31. ECE Board Exam November 1995, D. P 41,246.50 A. P 30,444.44 November 1998 B. P 33,000.00 By the conditions of a will, the sum of C. P 30,655.68 P 25,000 is left to a girl to be held in a 37. ECE Board Exam April 2001 A. P 9,321 C. 14.36% The amount of P 20,000 was B. P 9,221 D. 12.00% deposited in a bank earning an C. P 9,248 interest of 6.5% per annum. D. P 9,500 48. ECE Board Exam November 1997 Determine the total amount at the Fifteen (15%) when compounded end of 7 years if the principal and 43. ECE Board Exam November 2001 semi-annually will have an effective interest were not withdrawn during In how many years will the amount of rate of this period. P 10,000 triple if invested at an A. 15.93% A. P 29,500 interest rate of 10% compounded per B. 18.78% B. P 31,080 year? C. 16.02% C. P 30,550 A. 6 D. 15.56% D. P 35,510 B. 5 C. 7 49. ECE Board Exam November 2002 38. ECE Board Exam April 2001 D. 8 In how many years will P 1,000 A loan of P 50,000 is to be paid in 3 double if interest is 10% years at the amount of P 65,000. 44. ECE Board Exam November 2002 compounded per year? What is the effective rate of money? The parents planned for their son to A. 9 A. 10% receive P 50,000 ten years from now. B. 6 B. 15% What amount in pesos should they C. 8 C. 13% invest now if it will earn interest of D. 7 D. 12% 12% compounded annually for the first five years and 15% compounded 50. ECE Board Exam November 2002 39. ECE Board Exam April 2001 quarterly during the next five years? In how many years will it take money If P 1,000 accumulates to P 1,500 A. P 12,750.66 to quadruple if invested at 8% when invested at a simple interest for B. P 15,000.00 compounded semi-annually? three years, what is the rate of C. P 14,476.70 A. 18.55 interest? D. P 13,586.82 B. 19.67 A. 16.67% C. 15.12 B. 16.33% 45. ECE Board Exam November 2001, D. 17.70 C. 13.36% April 2004 D. 13.33% A customer buys an electric fan from 51. ECE Board Exam April 2005 a store that charges P 1,500 at the A man deposited P 5,000 on the date 40. ECE Board Exam November 2001 end of 90 days. The customer wishes his son celebrated his 1st birthday. If Today an investor withdraws P to pay cash. What is the cash price if the money is worth 10% 50,000 representing the accrued the money is worth 10% simple compounded semi-annually, what is amount of his investment that interest? the maximum amount the son can matured. If he invested at 10% A. P 1,615.45 withdraw on his 21st birthday? compounded semi-annually for 10 B. P 1,463.41 A. P 35,500 years, how much did he invest? C. P 1,510.50 B. P 35,800 A. P 18,844.00 D. P 1,750.30 C. P 35,200 B. P 21,500.00 D. P 36,750 C. P 20,000.00 46. ECE Board Exam November 1996 D. P 17,800.00 Find the nominal rate that if 52. ECE Board Exam April 2005 converted quarterly could be used What will be the value of P 6,000 four 41. ECE Board Exam November 2001 instead for 15% compounded semi- and one-half years from now if A man invested part of P 20,000 at annually? invested at 15% compounded 18% and the rest at 16%. The annual A. 14.93% quarterly? income from 16% investment was P B. 14.72% A. P 10,052 620 less than three times the annual C. 15.56% B. P 11,640 income from 18% investment. How D. 15.90% C. P 11,218 much did he invest at 18%? D. P 10,813 A. P 5,546.45 47. ECE Board Exam April 2003 B. P 5,231.15 A man borrows P 15,000 from Hong 53. ECE Board Exam November 1997 C. P 5,343.12 Kong Bank. The rate of simple What rate of interest compounded D. P 5,457.14 interest is 12%, but the interest is to annually is the same as the rate of be deducted from the loan at the time interest of 8% compounded 42. ECE Board Exam November 1997, the money is borrowed. At the end of quarterly? November 2001 one year he has to pay back P A. 8.24% What is the accumulated amount 15,000. What is the actual rate of B. 8.42% after three years of P 6,500 invested interest? C. 6.88% at the rate of 12% per year A. 13.46% D. 7.90% compounded semi-annually? B. 13.64% 54. ECE Board Exam November 1997 interest of 8% compounded approved at an interest rate of 14% of What interest rate, compounded quarterly? which P 11,200 was deducted and monthly is equivalent to 10% A. 6.48% you were given a check of P 68,800. effective rate? B. 8.42% Since you have to pay the amount of A. 9.75% C. 8.24% P 80,000 one year after, what then B. 9.50% D. 6.88% will be the effective interest rate? C. 9.68% A. 15.90% D. 9.57% 61. ECE Board Exam November 1998 B. 16.28% A loan of P 5,000 is made for a C. 16.30% 55. ECE Board Exam November 1997 period of 15 months at a simple D. 16.20% How long will it take money to triple interest rate of 15%. What future itself if invested at 10% compounded amount is due at the end of a loan 66. ME Board Exam October 1998 semi-annually? period? An interest rate is quoted as being A. 13.3 years A. P 5,637.50 7.5% compounded quarterly. What is B. 11.3 years B. P 5,900.90 the effective annual interest rate? C. 11.9 years C. P 5,937.50 A. 7.71% D. 12.5 years D. P 5,842.54 B. 7.22% C. 15.75% 56. ECE Board Exam November 1997 62. ME Board Exam April 1995 D. 21.81% A man wishes his son to receive P If P 4,000 is borrowed for 75 days at 500,000.00 ten years from now. What 16% per annum simple interest, how 67. ME Board April 1993 amount should he invest now if it will much will be due at the end of 75 Alexander Michael owes P 25,000 earn interest of 12% compounded days? due in 1 year and P 75,000 due in 4 annually during the first 5 years and A. P 4,133.33 years. He agrees to pay P 50,000 15% compounded quarterly during B. P 4,333.33 today and the balance in 2 years. the next 5 years? C. P 4,166.67 How much must he pay at the end of A. P 135,868.19 D. P 4,150.00 two years if money is worth 5% B. P 134,678.90 compounded semi-annually? C. P 123,433.23 63. ME Board Exam April 1993 A. P 38,025.28 D. P 145,345.34 Agnes Abanilla was granted a loan of B. P 35,021.25 P 20,000 by her employee CPM C. P 30,500.25 57. ECE Board Exam November 1998 Industrial Fabricator and Construction D. P 39,021.28 At an interest rate 10% compounded Corporation with an interest of 6% for annually, how much will a deposit of 180 days on the principal collected in 68. ME Board April 1996 P 1,500 amount in 15 years? advance. The corporation would Consider a deposit of P 600 to be A. P 6,100.00 accept a promissory note for P paid in one year by 700. What are the B. P 6,234.09 20,000 non-interest for 180 days. If conditions on the rate of interest, i% C. P 6,265.87 discounted once, find the proceeds of per year compounded annually such D. P 6,437.90 the note. that the net present worth of the A. P 18,600 investment is positive. Assume i ≥ 0. 58. ECE Board Exam November 1999 B. P 18,800 A. 0 ≤ i ≤ 14.3% Find the nominal rate which if C. P 19,000 B. 0 ≤ i ≤ 16.7% converted quarterly could be used D. P 19,200 C. 12.5% ≤ i ≤ 14.3% instead of 12% compounded semi- D. 16.7% ≤ i ≤ 100% annually? 64. ME Board Exam April 1998 A. 14.02% A bank charges 12% simple interest 69. ME Board Exam October 1995 B. 21.34% on a P 300.00 loan. How much will be A company invests P 10,000 today to C. 11.29% repaid if the loan is paid back in one be repaid in 5 years in one lump sum D. 11.83% lump sum after three years? at 12% compounded annually. How A. P 408.00 much profit in present day pesos is 59. ECE Board Exam November 1999, B. P 415.00 realized? April 2003 C. P 551.00 A. P 7,623 What nominal, compounded semi- D. P 450.00 B. P 7,236 annually, yields the same amount as C. P 7,326 16% compounded quarterly? 65. ME Board Exam April 1998 D. P 7,362 A. 16.64% It is the practice of almost all banks in B. 16.18% the Philippines that when they grant a 70. ME Board Exam April 1996 C. 16.32% loan, the interest for one year is A firm borrows P 2,000 for 6 years at D. 16.00% automatically deducted from the 8%. At the end of 6 years, it renews principal amount upon release of the loan for the amount plus P 2,000 60. ECE Board Exam November 1999 money to a borrower. Let us therefore more for 2 years at 8%. What is the What rate of interest compounded assume that you applied for a loan lump sum due? annually is the same as the rate of with a bank and the P 80,000 was A. P 5,355  B. P 5,892 76. ME Board Exam April 1998 81. ME Board Exam October 1997 C. P 6,035 A merchant puts in his P 2,000 to a If the interest rate on an account is D. P 6,135 small business for a period of six 11.5% compounded yearly, how years. With a given interest rate on many years will it take to triple the 71. ME Board Exam October 1996 the investment of 15% per year, amount? A deposit of P 1,000 is made in a compounded annually, how much will A. 11 years bank account that pays 8% interest he collect at the end of the 6th year? B. 10.09 years compounded annually, how much A. P 4,400 C. 9 years money will be in the account after 10 B. P 4,390 D. 12 years years? C. P 4,200 A. P 1,925 D. P 4,626 82. ME Board Exam October 1997 B. P 1,860 How much must be invested on C. P 2,345 77. ME Board Exam October 1995 January 1, year 1, in order to D. P 2,160 In year zero, you invest P 10,000 in a accumulate P 2,000 on January 1, 15% security for 5 years. During that year 6 at 6%. 72. ME Board Exam October 1996 time, the average inflation rate is 6%. A. P 1,295.00 Fifteen years ago, P 1,000 was How much, in terms, zero pesos will B. P 1,695.00 deposited in a bank account, and be in the account at maturity? C. P 1,495.00 today it is worth P 2,370. The bank A. P 12,020 D. P 1,595.00 pays interest semi-annually. What B. P 13,030 was the interest rate paid in this C. P 14,040 83. ME Board Exam October 1997 account? D. P 15,030 A savings association pays 4% A. 3.8% interest quarterly. What is the B. 4.9% 78. ME Board Exam October 1996 effective annual interest rate? C. 5.0% You borrow P 3,500 for one year from A. 18.045% D. 5.8% a friend at an interest rate of 1.5% B. 17.155% per month instead of taking a loan C. 16.985% 73. ME Board Exam April 1998 from a bank at a rate of 18% per D. 17.230% If P 5,000 shall accumulate for 10 year. Compare how much money you years at 8% compounded quarterly, will save or lose from the transaction. 84. ME Board Exam October 1997 find the compounded interest at the A. You will pay P 155 more if you A bank offers 1.2% effective monthly end of 10 years. borrowed from the bank interest. What is the effective annual A. P 6,005.30 B. You will save P 55 by borrowing rate with monthly compounding? B. P 6,000.00 from your friend A. 15.4% C. P 6,040.20 C. You will pay P 85 more if you B. 8.9% D. P 6,010.20 borrowed from the bank C. 14.4% D. You will pay P 55 less if you D. 7.9% 74. ME Board Exam April 1998 borrowed from the bank A sum of P 1,000 is invested now and 85. ME Board Exam October 1997 left for eight years, at which time the 79. ME Board Exam April 1996 What is the present worth of P 27,000 principal is withdrawn. The interest What is the present worth of two P due in 6 years if money is worth 13% has accrued is left for another eight 100 payments at the end of the third and is compounded semi-annually? years. If the effective annual interest year and fourth year? The annual A. P 12,681.00 rate is 5%, what will be the interest rate is 8%. B. P 13,500.00 withdrawal amount at the end of the A. P 153 C. P 15,250.00 16th year? B. P 160 D. P 21,931.00 A. P 706 C. P 162 B. P 500 D. P 127 86. ME Board Exam October 1997 C. P 774 A student deposits P 1,500 in a 9% D. P 799 80. ME Board Exam October 1997 account today. He intends to deposit A student has money given by his another P 3,000 at the end of two 75. ME Board Exam April 1998 grandfather in the amount of P years. He plans to purchase in five The amount of P 1,500 was 20,000. How much money in the form years his favourite shoes worth P deposited in a bank account, 20 of interest will he get if the money is 5,000. Calculate the money that will years ago. Today it is worth P 3,000. put in a bank that offers 8% rate be left in his account one year after Interest is paid semi-annually. compounded annually, at the end of the purchase. Determine the interest rate paid on 7 years? A. P 1,280.00 his account. A. P 34,276.48 B. P 1,250.00 A. 3% B. P 34,270.00 C. P 1,300.00 B. 2.9% C. P 36,276.40 D. P 1,260.00 C. 3.5% D. P 34,266.68 D. 4% 87. ME Board Exam April 1998 B. 8.3 years B. 14% If the nominal rate of interest rate is C. 9 years C. 10% 3%, how much is P 5,000 worth in 10 D. 10.2 years D. 19% years in a continuously compounded amount? 94. ME Board Exam October 2000 100. ECE Board Exam November 1998 A. P 5,750.00 A savings association pays 1.5% You loan from a loan firm an amount B. P 7,500.00 interest quarterly. What is the of P 100,000 with the rate of simple C. P 6,750.00 effective annual interest rate? interest of 20%, but interest was D. P 6,350.00 A. 6.14% deducted from the loan at the time B. 8.54% the money was borrowed. If at the 88. ME Board Exam October 1995 C. 7.32% end of one year, you have to pay the A bank advertising 9.5% accounts D. 6.45% full amount of P100,000, what is the that yield 9.84% annually. How often actual rate of interest? is the interest compounded? 95. ME Board Exam October 2000 A. 25.0% A. daily A bank offers 0.5% effective monthly B. 27.5% B. monthly interest. What is the effective annual C. 30.0% C. bi-monthly rate with monthly compounding? D. 18.8% D. quarterly A. 6.2% B. 6% ANNUITY 89. ME Board Exam October 2000 C. 7.2% 101. CE Board Exam May 2000 If you borrow money from your friend D. 7% Five thousand pesos is deposited at with simple interest of 12%, find the the end of each year for 15 years into present worth of P 20,000, which is 96. ME Board Exam October 2000 an account earning 7.5% due at the end of 9 months What nominal rate converted compounded continuously. Find the A. P 18,688.20 quarterly could be used instead of amount after 15 years. B. P 18,691.50 12% compounded semi-annually? A. P 133,541.30 C. P 18,518.50 A. 10.72% B. P 152,754.20 D. P 18,348.60 B. 11.43% C. P 148,365.90 C. 11.82% D. P 112,854.10 90. ME Board Exam October 2000 D. 11.97% A businessman needs to have P 102. CE Board Exam November 1996 100,000 in five years. How much 97. ME Board Exam October 2000 A man inherited a regular endowment money must he put into his 10% A sum of money was deposited now of P 100,000 every end of 3 months account in the bank now? in a savings account. The effective for 10 years. However, he may A. P 72,085.60 annual interest rate is 12%. How choose to get a single lump sum B. P 62,092.10 much money must be deposited to payment at the end of 4 years. How C. P 70,654.10 yield P 500 at the end of 11 months? much is the lump sum if the cost of D. P 60,345.20 A. P 153.00 money is 14% compounded B. P 144.00 quarterly? 91. ME Board Exam October 2000 C. P 446.00 A. P 3,802,862 What is the present worth of P 54,000 D. P 451.00 B. P 3,702,939 due in five years if money is worth C. P 3,502,546 11% compounded semi-annually? 98. ME Board Exam October 2000 D. P 3,602,431 A. P 30,367.12 What amount of money would have B. P 28,654.11 to be invested to have P 40,000 at 103. CE Board Exam November 1995 C. P 31,613.25 the end of three years at a 10% Find the present value of perpetuity D. P 34,984.32 compounded interest rate? of P 15,000 payable semi-annually if A. P 30,052.59 money is worth 8%, compounded 92. ME Board Exam October 2000 B. P 28,456.79 quarterly. The interest on an account is 13% C. P 32,871.12 A. P 327,537 compounded annually. How many D. P 34,908.33 B. P 374,977 years approximately will it take to C. P 373,767 triple the amount? BANKER’S DISCOUNT D. P 371,287 A. 8 years 99. EE Board Exam April 1996 B. 8.5 years A man borrowed P 20,000.00 from a 104. CE Board Exam May 1998 C. 9.5 years local commercial bank which has a A man loans P 187,400 from a bank D. 9 years simple interest of 16% but the with interest at 5% compounded interest is to be deducted from the annually. He agrees to pay his 93. ME Board Exam October 2000 loan at the time that the money was obligations by paying 8 equal When will an investment of P 4,000 borrowed and the loan is payable at payments, the first being due at the double if the effective rate is 8% per the end of one year. How much is the end of 10 years. Find the annual annum? actual rate of interest. payments. A. 8.4 years A. 12% A. P 44,982.04  B. P 56,143.03 110. CE Board Exam November 1998 114. EE Board Exam April 1997 C. P 62,334.62 A debt of x pesos, with interest rate of Mr. Cruz plans to deposit for the D. P 38,236.04 7% compounded annually will be education of his 5 year old son, P 500 retired at the end of 10 years through at the end of each month for 10 years 105. CE Board Exam November 1996 the accumulation of deposit in the at 12% annual interest compounded A man paid 10% down-payment of P sinking fund invested at 6% monthly. The amount that will be 200,000 for a house and lot and compounded semi-annually. The available in two years is agreed to pay the balance on deposit in the sinking fund every end A. P 13,000 monthly instalments for “x” years at of six months is P 21,962.68. What is B. P 14,500 an interest arte of 15% compounded the value of x? C. P 13,500 monthly. If the monthly instalment A. P 300,000 D. P 14,000 was P 42,821.84, find the value of x. B. P 250,000 A. 11 C. P 350,000 115. EE Board Exam October 1997 B. 9 D. P 400.000 A man purchased on monthly C. 5 instalment a P 100,000 worth of land. D. 7 111. EE Board Exam October 1999 The interest rate is 12% nominal and A manufacturer desires to set aside a payable in 20 years. What is the 106. CE Board Exam November 2000 certain sum of money to provide monthly amortization rate? A man made a year-end payment of funds to cover the yearly operating A. P 1,101.08 P 100,000 to an account earning 8% expenses and the cost of replacing B. P 1,121.01 annually for 10 years. How much is in every year the dyes of a stamping C. P 1,152.15 the account after 20 years? machine used in making radio D. P 1,128.12 A. P 3,127,540.18 chassis as model changes for a B. P 4,075,458.99 period of 10 years. 116. ECE Board Exam November 1998, C. P 3,327,452.36 Operating cost per year = P 500 November 1999, April 2001 D. P 3,247,111.25 Cost of dye = P 1,200 What is the accumulated amount of a Salvage value of dye = P 600 five year annuity paying P 6,000 at 107. CE Board Exam May 1996 The money will be deposited in a the end of year, with interest at 15% A service car whose cash price was savings account which earns 6% compounded annually? P 540,000 was bought with a down- interest. Determine the sum of money A. P 40,454.29 payment of P 162,000 and monthly that must be provided, including the B. P 41,114.29 amortization of P 10,874.29 for 5 cost of the initial dye. C. P 41,454.29 years. What was the rate of interest if A. P 8,266.20 D. P 40,544.29 compounded monthly? B. P 8,220.66 A. 20% C. P 8,626.02 117. ECE Board Exam November 1996 B. 26% D. P 8,882.10 If money is worth 8%, determine the C. 24% present value of a perpetuity of P D. 22% 112. EE Board Exam October 1997 1,000 payable annually, with the first A young engineer borrowed P 10,000 payment due at the end of 5 years. 108. CE Board Exam May 1998 at 12% interest and paid P 2,000 per A. P 9,187.87 The present value of an annuity of R annum for the last 4 years. What B. P 9,178.87 pesos, payable annually for 8 years, does he have to pay at the end of the C. P 9,272.64 with the first payment at the end of 10 fifth year in order to pay of his loan? D. P 9,272.46 years, is P 187,481.25. Find the A. P 6,918 value of R if money is worth 5%. B. P 5,674 118. ECE Board Exam November 1998, A. P 45,000 C. P 6,074 ME Board Exam April 1998 B. P 44,000 D. P 3,296 How much must be deposited at 6% C. P 42,000 each year beginning on January 1, D. P 43,000 113. EE Board Exam October 1999 year 1, in order to accumulate P A factory operator bought a diesel 5,000 on the date of the last deposit, 109. CE Board Exam May 1999, May generator set for P10,000 and agreed January 1, year 6? 1995 to pay the dealer uniform sum at the A. P 751.00 A man paid 10% down-payment of P end of each year for 5 years at 8% B. P 717.00 200,000 for a house and lot and interest compounded annually, that C. P 715.00 agreed to pay the balance on the final payment will cancel the debt D. P 725.00 monthly instalments for 60 months at for principal and interest. What is the an interest rate of 15% compounded annual payment? 119. ECE Board Exam November 1995 monthly. Determine the required A. P 2,504.57 An employee obtained a loan of P monthly payment. B. P 2,780.56 10,000 at the rate of 6% compounded A. P 40,282.00 C. P 2,389.17 annually in order tom repair a house. B. P 42,822.00 D. P 2,129.00 How much must he pay monthly to C. P 58,477.00 amortize the loan within a period of D. P 5,848.00 10 years?  A. P 110.22 125. ECE Board Exam November 2003, investment if the rate of interest is B. P 112.22 November 2000 12% compounded semi-annually? C. P 111.22 What annuity is required over 12 A. P 134,666.80 D. P 109.22 years to equate with a future amount B. P 143,999.08 of P 20,000. Assume i = 6% annually. C. P 154,696.80 120. ECE Board Exam April 1998, A. P 1,185.54 D. P 164,969.80 November 2000 B. P 1,305.20 How much money must you invest C. P 1,210.62 131. ME Board Exam October 1996 today in order to withdraw P 2,000 D. P 1,135.52 You need P 4,000 per year for four annually for 10 years if the interest years to go to college. Your father rate is 9%? 126. ECE Board Exam April 2001, April invested P 5,000 in 7% account for A. P 12,853.32 2003 your education when you were born. B. P 12,881.37 Today a businessman borrowed If you withdraw P 4,000 at the end of C. P 12,385.32 money to be paid in 10 equal your 17th, 18th, 19th and 20th birthday, D. P 12,835.32 payments for 10 quarters. If the how much will be left on the account interest rate is 10% compounded at the end of the 21st year? 121. ECE Board Exam April 1998 quarterly and the quarterly payment is A. P 1,700 Money borrowed today is to be paid 2,000 pesos, how much did he B. P 2,500 in 6 equal payments at the end of 6 borrow? C. P 3,400 quarters. If the interest is 12% A. P 19,700.00 D. P 4,000 compounded quarterly. How much B. P 18,795.00 was initially borrowed if quarterly C. P 20,500.00 132. ME Board Exam October 1996 payment is P 2,000? D. P 17,500.00 Mr. Ayala borrows P 100,000 at 10% A. P 10,834.38 effective annual interest. He must B. P 10.382.90 127. ECE Board Exam April 2001 pay back the loan over 30 years with C. P 10,586.90 What is the present worth of a P 500 uniform monthly payments due on D. P 10,200.56 annuity starting at the end of the third the first day of each month. How year and continuing at the end of much does Mr. Ayala pay each 122. ECE Board Exam November 1998 fourth year, if the annual interest rate month? A debt of P 10,000 with 10% interest is 10%? A. P 870 compounded semi-annually is to be A. P 717.16 B. P 846 amortized by semi-annual payment B. P 781.12 C. P 878 over the next 5 years. The first is due D. P 839 C. P 771.16 in 6 months. Determine the semi- D. P 777.16 annual payment. 133. ME Board Exam April 1998 A. P 1,200 A house and lot can be acquired by a 128. ECE Board Exam November 2002 B. P 1,295 down-payment of P 500,000 and a What is the amount of an annuity of C. P 1,193 yearly payment of P 100,000 at the P 5,000 per year at the end of each D. P 1,400 end of each year for a period of 10 year for 7 years at 5% interest years, starting at the end of 5 years compounded annually? 123. ECE Board Exam April 1998 from the date of purchase. If money A. P 41,510 How much must you invest today in is worth 14% compounded annually, B. P 40,710 order to withdraw P 2,000 annually what is the price of the property? for 10 years if the interest rate is 9%? C. P 44,710 A. P 810,100 A. P 12,853.32 D. P 42,612 B. P 808,835 B. P 12,881.37 C. P 801,900 C. P 12,385.32 129. ECE Board Exam November 2003 D. P 805,902 D. P 12,835.32 A merchant loaned P 500,000 payable in 10 years at an interest 134. ME Board Exam October 1994 124. ECE Board Exam November 2000 rate of 12% compounded annually. If you obtain a loan of P 1,000,000 at Find the annual payment to What is the monthly amortization for the rate of 12% compounded extinguish a debt of P 10,000 10 years? annually in order to build a house, payable for 6 years at 12% interest A. P 7,750 how much must you pay monthly to annually. B. P 5,450 amortize the loan within a period of A. P 2,282.24 C P 8,575 10 years? B. P 1,342.46 D. P 6,996 A. P 13,994.17 C. P 2,432.26 B. P 12,955.21 D. P 1,824.52 130. ECE Board Exam April 1998 C. P 15,855.45 A person buys a piece of lot for P D. P 12,900.25 100,000 down-payment and 10 deferred semi-annual payments of P 135. ME Board Exam April 1998 8,000 each, starting three years from A piece of machinery can be bought now. What is the present value of the for P 10,000 cash or for P 2,000  down-payment and payments of P 140. ME Board Exam October 2000 compounded annually, calculate the 750 per year for 15 years. What is the A P 10,000 loan is to be paid off in 10 cash price of the car. annual interest rate for the time equal annual payments. The annual A. P 455,875.00 payments? interest rate is 15%. How much B. P 567,539.75 A. 4.61% interest will be paid in the first two C. P 678,519.75 B. 3.81% years? D. P 345,539.75 C. 5.71% A. P 2,926.12 D. 11% B. P 2,970.11 146. ME Board Exam October 1997 C. P 2,195.87 A steel mill estimates that one of its 136. ME Board Exam April 1998 D. P 2,950.62 furnaces will require maintenance of A parent on the day the child is born P 20,000 at the end of 2 years, P wishes to determine what lump sum 141. ME Board Exam October 1995 40,000 at the end of 4 years and P would have to be paid into an How much money must you invest 80,000 at the end of 8 years. What account bearing interest at 5% today in order to withdraw P 1,000 uniform semi-annual amounts could it compounded annually, in order to per year for 10 years if interest rate is set aside over the next eight years at withdraw P 20,000 each on the 12%? the end of each period to meet these child’s 18th, 19th, 20th and 21st A. P 5,650.00 requirements of maintenance cost if birthdays. How much is the lump sum B. P 6,550.00 all the funds would earn interest at amount? C. P 5,560.00 the rate of 6% compounded semi- A. P 35,941.73 D. P 7,550.00 annually? B. P 33,941.73 A. P 7,897.35 C. P 30,941.73 142. ME Board Exam October 1996 B. P 9,397.35 D. P 25,941.73 What is the present worth of a P 100 C. P 8,897.35 annuity starting at the end of the third D. P 6,897.35 137. ME Board Exam April 1998 year and continuing to the end of the An instructor plans to retire in exactly fourth year, if the annual interest rate DEPRECIATION one year and want an account that is 8%. 147. CE Board Exam November 1997 will pay him P 25,000 a year for the A. P 153.44 The cost of equipment is P 500,000 next 15 years. Assuming a 6% B. P 152.89 and the cost of installation is P annual effective interest rate, what is C. P 154.99 30,000. If the salvage value is 10% of the amount he would need to deposit D. P 156.33 the cost of equipment at the end of 5 now? (The fund would be depleted years, determine the book value at after 15 years). 143. ME Board Exam October 1995 the end of fourth year. Use straight A. P 240,000.00 If P 500 is invested at the end of year line method. B. P 242,806.00 for 6 years, at an effective annual A. P 155,000 C. P 248,500.00 interest rate of 7%, what is the total B. P 140,000 D. P 250,400.00 amount available upon the deposit of C. P 146,000 the 6th payment? D. P 132,600 138. ME Board Exam April 1998 A. P 3,455.00 A manufacturing firm wishes to give B. P 3,544.00 148. CE Board Exam May 2000 each 80 employees a holiday bonus. C. P 3,577.00 A machine costing P 480,000 has a How much is needed to invest D. P 3,688.00 life expectancy of 12 years with a monthly for a year at 12% nominal salvage value of 10% of the first cost. interest rate compounded monthly, 144. ME Board Exam April 1996 What is the book value after five so that each employee will receive a In five years, P 18,000 will be needed years using declining balance P 2,000 bonus? to pay for a building renovation. In method? A. P 12,608 order to generate this sum, a sinking A. P 183,892 B. P 12,615 fund consisting of three annual B. P 152,758 C. P 12,600 payments is established now. For tax C. P 196,432 D. P 12,300 purposes, no further payments will be D. P 214,785 made after three years. What 139. ME Board Exam October 2000 payment is necessary if money is 149. CE Board Exam May 2000 A sinking fund consists of 15 annual worth 15% per annum? A certain copier machine costs P deposits of P 1,000 each, with A. P 3,345.65 150,000 with a trade-in value of P interest earned at the rate of 4% B. P 3,789.34 15,000 making 800,000 copies. compounded annually. What is the C. P 3,919.53 Using the declining balance method, principal in the fund at its terminal D. P 3,878.56 what is the book value when the date? machine had made 300,000 copies? A. P 25,115.00 145. ME Board Exam October 1997 A. P 68,111 B. P 20,023.59 A car was bought on instalment basis B. P 64,896 C. P 29,546.37 with a monthly instalment of P 10,000 C. P 62,531 D. P 28,105.00 for 60 months. If interest is 12% D. P 63,254 150. CE Board Exam November 1995 A. P 30,000 B. P 4,500 A machine costing P 720,000 is B. P 28,000 C. P 5,000 estimated to have a book value of P C. P 32,000 D. P 6,500 40,545.73 when retired at the end of D. P 26,000 10 years. Depreciation cost is 160. ECE Board Exam November 2003 computed using a constant 155. ECE Board Exam November 1997, Ten years ago a businessman percentage of the declining book November 1999 purchased a machine for P 50,000 value. What is the annual rate of A machine costs P 8,000.00 and an with an expected life of 20 years depreciation in percentage? estimated life of 10 years with a based on straight line depreciation. A. 28 salvage value of P 500.00. What is its Today, he decided to replace it with a B. 25 book value after 8 years using modern one that costs P 120,000. If C. 16 straight line method? the salvage value of the old unit is P D. 30 A. P 2,500.00 20,000, how much more will he raise B. P 4,000.00 to buy the new machine? 151. CE Board Exam May 1996 C. P 3,000.00 A. P 75,000 A machine costing P 45,000 is D. P 2,000.00 B. P 90,000 estimated to have a book value of P C. P 45,000 4,350 when retired at the end of 6 156. ECE Board Exam November 1998 D. P 55,000 years. Depreciation cost is computed ABC Corporation makes it a policy using a constant of the declining that for any new equipment 161. ECE Board Exam April 2004 book value. What is the annual rate purchased, the annual depreciation A heavy duty copying machine was of depreciation in percentage? cost should not exceed 20% of the procured for P 100,000 with an A. 33.25% first cost at any time with no salvage estimated salvage value of P 10,000 B. 32.25% value. Determine the length of after 10 years. What is the book C. 35.25% service life in years necessary if the value after 5 years? (Assume D. 34.25% depreciation used is the SYD straight line depreciation). method. A. P 55,000 152. CE Board Exam November 1997, A. 9 years B. P 90,000 November 1994 B. 10 years C. P 60,000 An engineer bought an equipment for C. 12 years D. P 45,000 P 500,000. Other expenses including D. 19 years installation amounted to P 30,000. At 162. ECE Board Exam April 2004 the end of its estimated useful life of 157. ECE Board Exam November 2002 Based on its purchased price a 10 years, the salvage value will be What is the book value of an machine is expected to depreciate at 10% of its first cost. Using straight equipment purchased three years a uniform rate of 18 percent annually line method of depreciation, what is ago for P 15,000 if it is depreciated until it has zero salvage value. its book value after 5? using the sum of the years digit Approximate the useful life of the A. P 281,500.00 method? The expected life is 5 machine using the SYD method? B. P 291,500.00 years. A. 9 years C. P 301,500.00 A. P 4,000 B. 10 years D. P 271,500.00 B. P 3,000 C. 11 years C. P 3,050 D. 12 years 153. CE Board Exam November 1997 D. P 5,000 A machine having first cost of P 163. ECE Board Exam April 1998, April 60,000 will be retired at the end of 8 158. ECE Board Exam November 2003 1999 years. Depreciation cost is computed A brand new machine is estimated to A telephone company purchased a using a constant percentage of the have a salvage value of P 10,000 microwave radio equipment for P 6 declining book value. What is the after ten years and a book value of P million. Freight and installation total cost of depreciation up to the 30,000 after 5 years, what is the charges amounted to 4% of the time the machine is retired if the initial cost of the machine? (Assume purchased price. If the equipment will annual rate of depreciation is straight line depreciation). be depreciated over a period of 10 28.72%? A. P 50,000 years with a salvage value of 8%, A. P 56,000 B. P 65,000 determine the depreciated cost B. P 57,000 C. P 60,000 during the 5th year using SYD. C. P 58,000 D. P 55,000 A. P 626,269.10 D. P 59,000 B. P 622,708.07 159. ECE Board Exam November 2003 C. P 638,272.08 154. EE Board Exam April 1997 A machine was brought for P 50,000 D. P 627,987.06 A machine has an initial cost of P with an estimated useful life of 10 50,000 and a salvage value of P years and a salvage value of P 5,000. 164. ECE Board Exam November 1999, 10,000 after 10 years. Find the book What is its annual depreciation April 2000 value after 5 years using straight line assuming straight line trend? A VOM has a current selling price of method. A. P 3,500 P 400. If its selling price is expected  to decline at a rate of 10% per annum 169. ME Board Exam April 1998 value after 5 years using straight line due to obsolescence, what will be its An asset is purchased for P method. selling price after 5 years? Use 9,000.00. It estimated life is 10 years A. P 30,000 Matheson’s formula. after which it will be sold for P B. P 28,000 A. P 213.10 1,000.00. Find the book value during C. P 32,000 B. P 249.50 the first year if sum-of-years’ digit D. P 26,000 C. P 236.20 (SYD) depreciation method is used. D. P 200.00 A. P 8,000 BREAKEVEN ANALYSIS B. P 6,500 175. CE Board Exam May 1998, May 165. ECE Board Exam April 2001 C. P 7,545 1999 A copying machine has a useful life D. P 6,000 A manufacturer produces certain of 3 years and a salvage value of P items at a labor cost of P 115 each, 20,000 was bought for P 135,000. If 170. ME Board Exam April 1998 material cost of P 76 each and the owner decides to sell after using An asset is purchased for P variable cost of P 2.32 each. If the it for 2 years, how much should the 500,000.00. The salvage value in 25 item has a unit price of P 600, how selling price be so that he will not years is P 100,000.00. What is the much number of units must be lose or gain if the interest is 5%. total depreciation in the first three manufactured each month for the (Hint: apply the Sinking Fund years using straight line method? manufacturer to break even if the method) A. P 48,000 monthly overhead is P 428,000. A. P 90,000 B. P 24,000 A. 1053 B. P 74,750 C. P 32,000 B. 1138 C. P 60,220 D. P 16,000 C. 946 D. P 80,000 D. 1232 171. ME Board Exam October 1997 166. ME Board Exam April 1992 Factory equipment has an initial cost 176. CE Board Exam November 2000 A unit of welding machine cost P of P 200,000. Its salvage value after The cost of producing a certain 45,000 with an estimated life of 5 ten years is P 20,000. As a commodity consists of P 45 per unit years. Its salvage value is P 2,500. percentage of the initial cost, what is for labour and material cost and P 15 Find its depreciation rate by straight the straight line depreciation rate of for other variable cost. The fixed cost line method. the equipment? per month amounts to P 450,000. If A. 17.75% A. 5% the commodity is sold at P 250 each, B. 19.88% B. 6% what is the break-even quantity? C. 18.89% C. 9% A. 2014 D. 15.56% D. 8% B. 2178 C. 2589 167. ME Board Exam October 1992 172. ME Board Exam October 1997 D. 2367 The initial cost of a paint sand mill, An asset is purchased for P 120,000. including the installation, is P Its estimated economic life is 10 177. EE Board Exam October 1997 800,000. The BIR approved life of years, after which it will be sold for P The annual maintenance cost of a this machine is 10 years for 12,000. Find the depreciation for the machine is P 70,000. If the cost of depreciation. The estimate salvage first year using the sum-of-the-years’ making a forging is P 56 and its value of the mill is P 50,000 and the digit method. selling price is P 125 per forged unit. cost of dismantling is estimated to be A. P 20,000.00 Find the number of units to be forged P 15,000. Using straight line method, B. P 18,400.00 to break even. what is the annual depreciation C. P 21,080.00 A. 1015 units charge and what is the book value of D. P 19,636.00 B. 985 units the machine at the end of six years? C. 1100 units A. P 74,500 and P 340,250 173. ME Board Exam October 1997 D. 1000 units B. P 76,500 and P 341,000 An asset is purchased for P 9,000.00. C. P 76,500 and P 342,500 It estimated life is 10 years after 178. EE Board Exam October 1998 D. P 77,500 and P 343,250 which it will be sold for P 1,000.00. The annual maintenance cost of a Find the book value during the third machine shop is P 69,994. If the cost 168. ME Board Exam April 1998 year if sum-of-years’ digit (SYD) of making a forging is P 56 per unit A company purchased an asset for P depreciation method is used. and its selling price is P 135 per 10,000 and plans to keep it for 20 A. P 6,100 forged unit, find the number of units years. The salvage value is zero at B. P 5,072 to be forged to break even. the end of 20th year, what is the C. P 4,500 A. 886 units depreciation in the third year? Use D. P 4,800 B. 885 units SYD method. C. 688 units A. P 1,000 174. ME Board Exam April 1998 D. 668 units B. P 857 A machine has an initial cost of P C. P 937 50,000 and a salvage value of P D. P 747 10,000 after 10 years. Find the book 179. ME Board Exam April 1998 183. ME Board Exam April 1998 A. P 245.3 million A company which manufactures XYZ Corporation manufactures B. P 215 million electric motors has a production bookcases that it sells for P 60 each. C. P 210 million capacity of 200 motors a month. The It costs XYZ P 35,000 per year to D. P 220 million variable costs are P150 per motor. operate its plant. This sum includes The average selling price of the rent, depreciation charges on 188. CE Board Exam May 1997 motors is P 275. Fixed costs of the equipment, and salary payments. If A corporation uses a type of truck company amount to P 20,000 per the cost to produce one bookcase is which costs P 2 million, with life of 3 month which includes taxes. The P 50, how many cases must be sold years and final salvage value of P number of motors that must be sold each year for XYZ to avoid taking a 320,000. How much could the each month to break even is closest loss? corporation afford to pay for another to A. 2334 cases truck of the same purpose whose life A. 40 B. 750 cases is 4 years with a final salvage value B. 160 C. 539 cases of P 400,000? Money is worth 4%. C. 80 D. 2333 cases A. P 2,565,964.73 D. 180 B. P 2,855,964.73 COMPARISON OF ALERNATIVES C. P 2,585,964.73 180. ME Board Exam April 1996 184. CE Board Exam November 1996 D. P 2,585,864.73 Steel drum manufacturer incurs a At 6%, find the capitalized cost of a yearly fixed operating cost of $ bridge whose cost is P 250 million 189. CE Board Exam May 1995 200,000. Each drum manufactured and life is 20 years, if the bridge must An investor pays P 1,100,000 for a cost $ 160 to produce and sells $ be partially rebuilt at a cost of P 100 mine which will yield a net income of 200. What is the manufacturer’s million at the end of each 20 years. P 200,000 at the end of each year for break-even sales volume in drums A. P 275.3 million 10 years and then will become per year? B. P 265.5 million useless. He accumulates a A. 1250 C. P 295.3 million replacement fund to recover his B. 2500 D. P 282.1 million capital by annual investments at C. 5000 4.5%. At what rate (%) does he D. 1000 185. CE Board Exam May 1997 receive interest on his investment at A corporation uses a type of motor the end of each year? 181. ME Board Exam October 1990 truck which costs P 5,000 with life of A. 10.04% Compute for the number of blocks 2 years and final salvage value of P B. 8.5% that an ice plant must be able to sell 800. How much could the corporation C. 11.5% per month to break even based on afford to pay for another truck of the D. 17.5% the following data: same purpose whose life is 3 years Cost of electricity per block = P 20.00 with a final salvage value of P 1,000? 190. CE Board Exam May 1997 Tax to be paid per block = P 2.00 Money is worth 4%. Machine cost = $ 15,000; life = 8 Real Estate Tax = P 3,500 per month A. P 8,450.66 years; salvage value = $ 3,000. What Salaries and Wages = P 25,000 per B. P 7,164.37 minimum cash return would the month C. P 6,393.24 investor demand annually from the Others = P 12,000 per month D. P 9,034.56 operation of this machine if he Selling price of ice = P 55.00 per desires interest annually at the rate of block 186. CE Board Exam November 1999 8% on his investment and A. 1228 To maintain his newly acquired accumulated a capital replacement B. 1285 equipment, the company needs P fund by investing annual deposits at C. 1373 40,000 per year for the first five years 5%? D. 1312 and P 60,000 per year for the next A. $ 5,246.66 five years. In addition, an amount of B. $ 2,546.66 182. ME Board Exam October 2000 P 140,000 would also be needed at C. $ 2,456.66 A factory is running at 80% efficiency the end of the fifth and the eight D. $ 4,256.66 with a fixed cost of P 78,000, variable years. At 6%, what is the present cost per unit of P 130, selling price worth of these costs? 191. EE Board Exam April 1997 per unit of P 416, and production A. P 689,214 A small machine has an initial value capacity of 5,000 units. What is the B. P 512,453 of P 20,000, a salvage value of P current profit of the factory if all C. P 549,812 2,000 and a life of 10 years. If your product manufactured are sold? D. P 586,425 cost of operation per year is P 3,500 A. P 1,066,000 and your revenue per year is P 9,000, B. P 1,456,000 187. CE Board Exam November 1996 what is the approximate rate of return C. P 1,213,000 At 6%, find the capitalized cost of a (ROR) on the investment? D. P 1,146,000 bridge whose cost is P 200 million A. 20.56% and life is 20 years, if the bridge must B. 21.90% be partially rebuilt at a cost of P 100 C. 23.76% million at the end of each 20 years D. 24.80% 192. EE Board Exam October 1997 for the operation? There is P 400 in Batch An investment of P 350,000 is made salvage value for the system at the Initial Cost P 50,000 to be followed by payments of P end of 10 years. Maintenance cost/year P 10,000 200,000 each year for 3 years. What A. P 2,670 Salvage value P 6,000 is the annual rate of return on B. P 2,760 Life 5 years investment for the project? C. P 2,567 Capacity (units/year) 1,000,000 A. 41.7% D. P 2,657 B. 32.7% Continuous C. 51.1% 197. ME Board Exam October 1997 Initial Cost P 100,000 D. 15% A fixture that costs P 700 will save P Maintenance cost/year P 36,000 0.06 per item produced. Maintenance Salvage value P 12,000 193. EE Board Exam April 1997 will be P 40 annually, 3,500 units are Life 5 years The maintenance cost for a sewing produced annually. What is the Capacity (units/year) 2,000,000 machine this year is expected to be P payback period at 10%? 500. The cost will increase P 50 each A. 4.12 years The company uses straight line year for the subsequent 9 years. The B. 4.65 years depreciation, pays 48% of its net interest is 8% compounded annually. C. 5.57 years income as income tax, and has an What is the approximate present D. 4.85 years after-tax minimum attractive rate of worth of maintenance for the return of 15%. The company has an machine over the full 10-year period? 198. ME Board Exam October 1997 infinite market and can sell all of the A. P 4,700 A company puts P 25,000 down and products it produces at P 0.50 per B. P 5,300 will pay P 5,000 every year for the life unit. Which process is more C. P 4,300 of the machine for 10 years. If the economically beneficial for the D. P 5,500 salvage value is zero and the interest company to use? rate is 10% compounded annually, A. Batch processing 194. ME Board Exam October 1995 what is the present value of the B. Continuous processing A company must relocate one of its machine? factories in three years. Equipment A. P 56,200 BONDS for the loading dock is being B. P 55,723 201. ECE Board Exam November 2001 considered for the purchase. The C. P 55,100 If the authorized capital stock of a original cost is P 20,000 and the D. P 55,300 corporation is P 2,000,000 how much salvage value of the equipment after must the paid-capital be? three years is P 8,000. The 199. ME Board Exam October 1997 A. P 62,500 company’s rate of return on money is The balance sheet of Oriental B. P 100,000 10%. Determine the capital recovery Services, Inc. is as follows: C. P 125,000 rate per year. D. P 200,000 A. P 5,115 Asset B. P 4,946 Cash P 10,000 202. ECE Board Exam November 1996 C. P 5,625 Receivables P 12,000 A man wants to make 14% nominal D. P 4,805 Inventory P 7,000 interest compounded semi-annually Capital Equipment P 20,000 on a bond investment. How much 195. ME Board Exam October 1997 Total P 49,000 should the man be willing to pay now An item is purchased for P 100,000. for a 12%, P 10,000 bond that will Annual costs are P 18,000. Using Liabilities mature in 10 years and pays interest 8%, what is the capitalized cost of Payables P 17,000 semi-annually? perpetual service? Notes due P 6,000 A. P 2,584.19 A. P 350,000 Long term debt P 3,000 B. P 3,118.05 B. P 335,000 Owner’s equity P 23,000 C. P 8,940.50 C. P 320,000 Total P 49,000 D. P 8,067.82 D. P 325,000 What is the acid ratio? 203. ME Board Exam April 1998 196. ME Board Exam April 1995 A. 0.846 A company issued 50 bonds of P The purchase of a motor for P 6,000 B. 1.115 1,000.00 face value each, and a generator for P 4,000 will allow C. 0.592 redeemable at par at the end of 15 a company to produce its own D. 0.385 years to accumulate the funds energy. The configuration can be required for redemption, the firm assembled for P 500. The service will 200. ME Board Exam October 1997 established a sinking fund consisting operate for 1,600 hours per year for A plastic manufacturing company of annual deposits, the interest rate 10 years. The maintenance cost is P produces a product from polystyrene. of the fund being 4%. What was the 300 per year and the cost to operate Two mixing processes, batch and principal in the fund at the end of the is P 0.85 per hour for fuel and other continuous are available with the 12th year? related cost. Using straight line following data for each process: A. P 35,983.00 depreciation, what is the annual cost B. P 38,378.00  C. P 41,453.00 B. big income D. account book D. P 37,520.00 C. known owners D. goodwill 217. EE Board Exam April 1994 OBJECTIVE TYPE QUESTIONS It is the process of determining the 204. EE Board Exam April 2010 211. EE Board Exam October 1993, value or worth of a physical property What do you call the market situation October 1994 for specific reason. whereby there is only one buyer of an It is the difference between the A. investment item for which there is no goods present and future worth of money at B. valuation substitute? some time in the future. C. economy A. Monopsony A. discount D. depletion B. Monopoly B. deduction C. Oligopoly C. inflation 218. EE Board Exam April 1994 D. Oligopsony D. arithmetic progression These are all the proceeds which are received by the business as a result 205. EE Board Exam April 2010 212. EE Board Exam October 1993 of the sale of goods. What is defined as the future value The simplest and extensively A. net income minus the present value? employed method in computing B. gross income A. Yield depreciation C. net revenue B. Rate of Return A. sinking fund method D. total sales C. Capital B. sum of integers method D. Discount C. straight line method 219. EE Board Exam April 1994 D. fixed percentage method It is the price a buyer is willing to pay 206. EE Board Exam April 2010 a willing seller for the stock. What is the simplest form of business 213. EE Board Exam October 1993 A. bond value organization? It is an artificial being created by B. scrap value A. Sole proprietorship operation of law, having the right of C. market value B. Partnership succession and the process, D. stock value C. Corporation attributes and properties ex