COACHING DISCUSSION 03 ( ECONOMICS PROBLEMS) INSTRUCTION: Soe th towing rtm on oe oie oan 7. For a interest rate of 2% per month , the ettecive sem ‘annual rato ts closeat tox” aitss% 12.00%" Biz Dasa 8. It you deposit $1,000 now at an interest rate of 12% por Yyeat compounded monthly, the amount that will be {he savings account five years rom now is closest to: esti D.31, 005 8. An individual deposits $ 100 per month into an account ‘which paye interest at rate of 8% per year compounded. ‘monthly. The value of the account afer ive years 18 Closest to: A. s.5830, c.$6077* B $6210 Dse7e4 40. The costs associated with a particular are to be $6,000 per year for five years, at rate of cs, 745 $29,210, 1. The costs associated with a particular process sre ‘be. $8,000 per year for five yeas, ‘years from now. At an interest rate of the future worth i year eight at an 0% per year is closest . $56,923, $68, 615 20, ‘The machine with a fst cost of $26,000 is expected 10 have a § 6000 salvage value after § year depreciable Ie. The depreciation charge by the straight tine ‘method for year three fe closed to: ‘4.$.4000" ©. $5,000, B. $10,000 . $1000, 24, A\five year asset which had a first cost of $ 20,000 with 2 $ 2,000 salvage value was depreciated by the straight line method. The book value at the end of year four was: closestto: A 33600 ©. $4000 B $5600° 2. $16,400Soe SST ar ery eg Beatie iinaaticeramees see = ores oie set of 8; what 6 the are ost B Si3s- Pe eo aces ewecca eet eran Sted et ye Peirce, sot tn mss 2 > 2»: 27. You depost $1000 nto 29% account of two Years, you wil epost anothers Zana oe Yeats You pian a8 4000 purcnace, How meek account one Yer ate the purehooe? nse © sia4 BS iss2+ 5 Steet 2. You need $ 4000 per year for tour years to 90 college, Your fer bread 8 btn 7% secon er Your education whon you were born. you wirsw {the $ 4000 atthe end of 175 18. 18" and 2T" yours, how mich money willbe fin ‘ofyour21™ year? AS17100" ©. $2500 8 $3200 D $ 4000, 28, Afr borrows $ 2000 for six years at 8%. At the and of ‘hx years, I renews the loan forthe amount due plus § 2000 more for two years at 8%. What fs the ump sum ue? A0$5200 ©. $5754 8. $0035* 5 $6135 30, What is the annuity over a ten year period at 2% lnterest i equivalent to a present worth of § 100? AS12 o's 1880 B $1410 D. $1490" ae Cocramyatei amma feecretay i Sammons ‘ate (CR) per year. Ress parfoor ©. 404 peryor B S5115peryear 0. $5625 per year What is the effective annual interest rate on a foan the Mornin interest rate ts 12% pee year compounded ‘quartesty? B17 ©. 12% B 12.25% D. 1285%" Joan semiannually at @ 133. A person pays interest on @ fominal annual interest rate of 16 %. What is the {U. Asteel drum manutacturr incurs a yearly fixed cost of 4 donot Each dan sansincued cots $10 (0 Produce and ses for $200. What isthe manufactue’s break-even sales volume in drums per year? A. 1000. G. 1250 2500 1 5000* 38, A machine cons 720,000 today and has on estimated ‘Erp vale of 2.000 ter ‘honey invested 8 Now em money tate each your to replace te machine an berteat Rao e pszz00- 8. Paco, 5: Paarooo tyes eae ine Sine ati gal arin we sea Rpen00 B P18,200 i aeons > cng, seal Sa in tn sea gece a Pavo.o00, Year 2 ~ 900,000, Year 3—136,000- ean ae peas 4%. A product has a curen sling price of 7525.0, ‘Sling pce i expose to doen at the rate of 10% fer tum because of ebsolescence, what wit be its ching pice four years hence? i PmeTS , P213.23" 8 P0275, 1. P15600 42. 1 P5,000 is invested at the end of each year for six ‘years at an effective annual interest rate of 7%, what is {he total peso amount avallable upon the deposit of the ‘ith payment?4 11913500 x vata ot 6% on Janay ya 4, ow ‘much wl be accumulated by Jarry year 0" Rests’ B Pasi, = “48. 172,500 wes invested at 6% on January 1, yoar 4, what ‘Squal year end wiharawats could be made each Yeat for to years, leaving nothing inthe fund after te tenth switcrawal? xpi po @ Ps 5 ato 148. How much could be accumlated in a fund earning 6% tte end often years 1 P1,000,000 le deposited at the nd ofeach year for 10 years? 'prensoaoo G.17.100.000 & piztenon —-. Pt3.1a0000" 450. Winat amount should be deposited at 6% In order 10 ‘draw out 20,000 at the end of each year for seven ‘and leave nothing nthe fund at te end? x" Pae.ss0 P1080, 8. PrT3680" B. P2050 51. P25,000 is Invested now, P35,000 two ye ‘Row, and 48,000 four years from now all 4), ‘willbe the total amourt in ten years? A prate80" C. Prat.aso . P161,850. 3 Pr7as0. 152, What is the compounded amount of 27,00 tet for eight ‘Yours with inferest a nominal 6% compounded sem- Sua mage © 44550" 8 Stoo Be) 53. A savings certificate that costs P2500 now which pay zTEo im fve years. What i the interest ate? hee ©. 10.0% 8 9.05% D.84s%* cs atage vale 1. Anasct ie purchase or 2,00 08 Sig i te 3b are 8,00 00, vat ie me ‘aot eee ar tne sort tee tS veil vu i tu tative sel a a Sag ona page bite one ts neces ate 1 8 BEET Sep 1. yet stn ce it 05 oe Best Feloea wou! neve PCR ferchaoe? aot o. 24028 ects 520.828 260 24. The total cost of producing 240, aad aR Treitl coct o.oo, respecvely What Incremental cos per unit? vw be fate of return (real) is 12 % per yea fate is 10 Inthree R288 8. $355: 67. person deposits § 5000 n to a money market account Ara aa oct is most nearly: A $2702 8.310795" 8. $8000 L$ 12165 68, A small company wants to deposit a tmoney now so that wll have enough packers truck costing $80,000 ive yeare fom news Wate my cn deposed noon scout which yet the amount that mus beferia cruzprrowed 60,000 wo uae aan The = Payee. He Jest sce acco enn ro nee oes Eas ——— Senate oars oa an ee Saas lores of 6% cormpounand Gunter ote We yo i compounded Semana ring he ae eee cas Bip 12000 74, To secure a return of 4 % at what price shoulda bond be purchased i tztedeerabte at P1000 In 10 years Pedpayearacenss #35007 sp bas Pars: B poms Sires 76. A geneaing Set ha oft con of P 50000, 4 years Atte aang ie of © yours: tin anger SRRAEE ists penance. exirave rep ae Serene Cl operting snd maitenance cot Tieton sof dit the te & yore ahd WIP Soe curd the nox 2 Joos Te tm of he Oye any twa ot be ooo, butte savage vue Seg et aca ny son, wa anount mayo srk Treats ney le morn 128-7 pene pate" apse Bie 76. A man with deposit P 200 wih savings and 03h AEoetation at the beginning of each 3 months for & att assaciation pays interest at the rate of Yon ately, Rnd he surn to his creat ust ater the ‘deposi. p9g36 P9509 P93 DPgoe Se eers and hes 8 cancy opof sie, The book vale “guar to F38e00, Using ate O18? ‘an, About how long wi tke for a depont to wile Re Sct snd oneness? 13, At 6%, find the captatzed cost ofa dae ON , fe the captain’ wget 6 Amarrcing company estes 2 OST oer man wishes his son t receive F609,000 fon Jens, ‘nv yes 200 Ae et 20 years he Bale, we die abut ott con of? 0 M at Saves? a bas 5B Zo ‘pinacetig ntesreprosemsvor ate Sy : i approved Pe ot car on cant pice of he SPENT Te of ” L2F Sols wnt resale vue othe Ig ez a00 wn rv, ow uC ane cay Setpany accumulate fo § Yea ‘ore Roca valve net39209 51" Biprzzse BPH a6. Aprjet cont 100,000 Donate * A pole ce grat ¢ yews ig eal 10 Fs teges Year ped ot 2c am mam ne. aba neon a a S10 Sie 6. An asset ie purchased for PH ‘Sonoraic ef 10 years, ater whlch Sree tne aoprecition fr te first year Using Sumotinesyearsaigh (S0YD)- 20000 CP 21,080 8 P18.400 5 P1986" ‘a. i P 500000 is deposited at rate. of 11.26% Lmounded monthly, determine the Interest ater 7 years and'9 month Pesos 'o: 690 849" 5 Poros D.Pesosas 5% obtain the present value of 8 Tenmuatly when the fist B P2139 3. The effective rate of 14% is R14d% * 8 1230% c.1498% D.1480% a, eine aloo et ca na! ‘son get each year starting | A8to 22" birthday? A.P 15079 BP 17/004 Cea ig DP 25.055jie ih ae egeegs bby ee Hsbes bay di =