A suspension bridge was constructed for 24M. The annual maintenance cost is P500 000.

If the rate of
interest is 6%, compute the capitalized cost of the bridge including maintenance.

P32, 333, 333.33

How long will it take for the money to double itself if invested at 5% compounded annually?

14 years

Refer to the paragraph below to answer the question

An executive receives an annual salary of P600, 000 and his secretary a salary of P180, 000. A certain
task can be performed by the executive working alone in four hours. If he delegates the task to his
secretary wit will require him 30 minutes to explain the work a d another 45 minutes to check the work.
Due to the unfamiliarity of the secretary to do the task, it takes her an additional time of 6 hours after
being instructed. Considering salary cost only, determine the cost of performing the task by each
method, if the secretary works 2400 hours a year and the executive 3000 hours a year.

Cost of performing the task:Secretary working with executive

P737.50

A man decided to paint his house himself after office hours. He can paint 25sq.m per hr on the average.
It takes him 15mins to prepare his materials after painting. If there are 900sq.m to be painted, how long
it will take him it paint his house if he devotes 2.5hrs each day.

18.75 days

Refer to the paragraph below to answer the question

An industrial engineer has designed two alternative methods of accomplishing a production job. Both
methods involve the acquisition of the same working place and other capital equipment to be used for
this job only. Method A calls for a crew consisting of three men each costing P30000 per hour. This
method will result in the production of 10 units per hour of which two will be rejects.

Method B calls for a crew of two men each costing P35.00 per hour and should result in the production
of eight units per hour of which one will be reject.

The cost of the direct material lost in each reject is P20.00. If a certain total number of units is to be
produced, find which method is more economical.

Therefore method A is more economical than method B. ( pinili ko dito ung pangalawa magkatulad kasi
sila ng choices)

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 Determine the exact interest on P1200 for the period from January 16 to November 26, 1992, if the rate
of interest is 24%. Note the year 1992 is a leap year.

P247.87

An advertisement of an investment firm states that if you invest P500 in their firm today you will get
P1,000 at the end of 4,5 years. What nominal rate is implied if interest is compounded quarterly?
Determine also the effective rate of interest.

The nominal rate is 16.70% and the effective rate of interest is 17.65%. (MALI)

A contract calls for semiannual payments of P40,000 for the next ten years and an additional payment of
P250,000at the end of the term. Find the equivalent cash value of the contract at 7% compounded
semiannually.

P694,138

A machine part to be machined may be made either from an alloy of aluminum or steel. There is an
order for 8000 units. Steel costs P3.80 per kg. while aluminum costs P8.70 per kg. If steel is used, the
steel per unit weighs 110grams, for aluminum, 30 grams. When steel is used, 50 units can be produced
per hour, for aluminum, 80 units per hour with aid of tool costing P640, which will be useless after the
8,000 units are finished. The cost of the machine and the operator is P10.80 per hour. How much is the
cost per unit if steel is used?

The total cost of steel is P0.634/unit

A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may
choose to get a single lump sum payment at the end of 4 years. How much is the lump sum if the cost of
money is 14% compounded quarterly.

P3,702,939.73.

The president of a growing engineering firms wishes to give each of 50 employees holiday bonus. How
much is needed to invest monthly for a year at 12% nominal interest rate compounded monthly so that
each employees will received a P1,000 bonus.

P3,942.44.

A man will deposit P200 with savings and loan association at the beginning of each 3 months for 9 years.
If the association pays interest at the rate of 5.5% compounded quarterly, find the sum to his credit just
after the last deposit.

P93, 630.00

refer to the paragraph below to answer the question

An industrial engineer has designed two alternative methods of accomplishing a production job. Both
methods involve the acquisition of the same working place and other capital equipment to be used for

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 this job only. Method A calls for a crew consisting of three men each costing P30000 per hour. This
method will result in the production of 10 units per hour of which two will be rejects.

Method B calls for a crew of two men each costing P35.00 per hour and should result in the production
of eight units per hour of which one will be reject.

The cost of the direct material lost in each reject is P20.00. If a certain total number of units is to be
produced, find which method is more economical.

Method B:

Per unit cost = 12.86

Determine the ordinary simple interest on P10,000 for 9 months and 10 days if the rate of interest is 12%

P933.33

Find the present worth of the future payment P300,000 to be made in 5 years with an interest rate of 8%
per annum.

P204,174.96

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