University Of Cebu

College of Engineering
SEATWORK

Name:

ENCIRCLE THE CORRECT ANSWERS……..SHOW YOUR SOLUTIONS IN A SEPARATE PAPERS AND SUBMIT IT AS PICTURE
FILE.
1) A person deposits $5000 into a money market account which pays interest at a rate of 8% per yr. The amount that
would be in the account at the end of ten yrs is most nearly.
A. $2,792 B. $9,000 C.$10,795 D. $12,165
2) A small company wants to deposit a single amount of money now so that it will have enough to purchase a new
truck costing $50,000 five yrs from now. If the money can be deposited into an account which earns interest at 10%
per yr, the amount that must be deposited is most nearly.
A. $10,000 B. @31,050 C. $33,250 D. $319,160
3) A small company want to have enough money saved to purchased a new $200,000 warehouse in five yrs. If the
company can invest money at 18% per year, the amount that must be invested each yr is closed to.
A. $27,960 B. $36,920 C. $49,650 D. $63,96
4) For an interest rate of 12% per yr compounded quarterly the effective interest rate per year is closed to;
A. 4% B. 12% C. 12.55% D. 12.68%
5) If you deposit $1,000 now at an interest rate of 12% per yr compounded monthly, the amount that will be in the
savings account five yr from now is closed to;
A. $1,600 B. $1,762 C. $1,817 D. $1,905
6) If P 2,500 was invested at 6% on January 1, year 1, what equal year equal year-end withdrawals could be made each
year for 10 years, leaving nothing in the fund after the tenth withdrawal?
A. P140 B. P240 C. P 340 D. P440
7) If P25,000 is invested now P35,000 two years from now, and P45,000 four years from now(all at 4%), what will be
the total amount in ten years?
A. P141,850 B. P151,850 C. P161,850 D. P171,850
8) What is the compounded amount of 27,500 left for eight years with interest at nominal 6% compounded semi-
annually.
A. 40,000 B. 44,150 C. 50,000 D. 32,000
9) A saving certificate that costs P2500 now which pay P3750 in five years. What is the interest
rate? A. 6.45% B. 10.25% C. 9.05% D. 8.45%
10) What is the effective annual rate of a credit card plan charges 1.5% per month on an unpaid
balance? A. 19.56% B. 18.56% C. 17.56% D. 16.56%
11) A business man wants to have P500,000 four years from now. What amount he invest now if it will earn interest of
6% compounded quarterly for the first two years and 8% compounded semi-annually during the next two years
A. P379,409,60 B. P561,895.55 C. P420,539.68 D. P510,485.45
12) Compute the nominal interest rate of a continuously compounded loan if the effective interest rate is
25% A. e1.25 B. e0.25 C. loge0.25 D. loge1.25
13) For how many years must an investment of P63,000 provide a continuous flow of funds at the rate of P16,000 per
year so that a nominal interest rate of 10% continuously compounded will be earned?
A. 2 years B. 3 years C. 5 years D. 7 years
14) Credit cards usually charge interest at a rate of 1.5 percent per month. This amount is a nominal rate of 18 percent.
What is the effective rate?
A. 19.65% B. 16.20% C. 12.56% D. 23.81%
15) A firm borrows $2000 for six years at 8%. At the end of six years, it renews the loan for the amount due plus
$2000 more for two years at 8%. What is the lump sum due?
A. $5280 B. $5754 C. $6035 D. $6135
16.)Find the simple interest on Rs. 68,000 at 16(2/3)% per annum for a period of 9 months?

A) P 8500 B) P 3200 C) P 2100 D) P 4300

17.) In what time period will P. 10,000 earn an interest of P 2,000 at 10 % simple interest.?
 University Of Cebu
College of Engineering
SEATWORK

Name:

a) 5 yearsb) 6 yearsc) 3 yearsd) 7 years

18.) A four year Indira Vikas certificate with a maturity value of P 700 is purchased for P 500.
The rate % simple interest is

a) 15 %b) 7 1/2 %c) 10 %d) 7 %

19.) If P 4 becomes P 10 in 50 years at simple interest, the rate %. is

a) 5 %b) 2 1/2 %c) 3 1/3 %d) 3 %e) 6 %

20.) Anoop borrowed P 800 at 6 % simple interest & P 1200 at 7 % simple interest for the same duration. He had to pay P
1584 in all as interest. Find the time period.
a) 10 yearsb) 11 yearsc) 12 yearsd) 13 yearse) 15 years