Engineering Economics  C. 30.12 % what future amount is due at assume that you applied for a 12. Mr.
ssume that you applied for a
MCQs
1. First Benchmark
Publishing’s gross margin is
50% of sales. The operating
costs of the publishing are
estimated at 15% of sales. If
the company is within the
40% tax bracket, determine
the percent of sales is their
profit after taxes?
 A. 21 %
 B. 20 %
 C. 19 %
 D. 18 %
2. A farmer selling eggs at 50
pesos a dozen gains 20%. If
he sells the eggs at the same
price after the costs of the
eggs rises by 12.5%, how
much will be his new gain in
percent?
 A. 6.89 %
 B. 6.65 %
 C. 6.58 %
 D. 6.12 %
3. A feasibility study shows
that a fixed capital investment
of P10,000,000 is required for
a proposed construction firm
and an estimated working
capital of P2,000,000. Annual
depreciation is estimated to
be10% of the fixed capital
investment. Determine the
rate of return on the total
investment if the annual profit
is P3,500,000.
 A. 28.33 %
 B. 29.17 %
12. Mr. Jun Ramos was
 D. 30.78 %
4. The monthly demand for
ice cans being manufactured
by Mr. Camus is 3200 pieces.
With a manual operated
guillotine, the unit cutting
cost is P25.00. An electrically
operated hydraulic guillotine
was offered to Mr. Camus at a
price of P275,000.00 and
which cuts by 30% the unit
cutting cost. Disregarding the
cost of money, how many
months will Mr. Camus be able
to recover the cost of the
machine if he decides to buy
now?
 A. 10 months
 B. 11 months
 C. 12 months
 D. 13 months
5. Engr. Trinidad loans from a
loan firm an amount of
P100,000 with a rate of simple
interest of 20% but the
interest was deducted from
the loan at the time the
money was borrowed. If at the
end of one year, she has to
pay the full amount of
P100,000, what is the actual
rate of interest?
 A. 23.5 %
 B. 24.7 %
 C. 25.0 %
 D. 25.8 %
6. A loan of P5,000 is made
for a period of 15 months, at a
simple interest rate of 15%,
the end of the loan period?
 A. 5,937.50
 B. 5,873.20
 C. 5,712.40
 D. 5,690.12
7. Mr. Bacani borrowed money
from the bank. He received
from the bank P1,842 and
promised to repay P2,000 at
the end of 10 months.
Determine the rate of simple
interest.
 A. 12.19 %
 B. 12.03 %
 C. 11.54 %
 D. 10.29 %
8. A college freshman
borrowed P2,000 from a bank
for his tuition fee and
promised to pay the amount
for one year. He received only
the amount of P1,920 after
the bank collected the
advance interest of P80.00.
What was the rate of
discount?
 A. 3.67 %
 B. 4.00 %
 C. 4.15 %
 D. 4.25 %
9. It is the practice of almost
all banks in the Philippines
that when they grant a loan,
the interest for one year is
automatically deducted from
the principal amount upon
release of money to a
borrower. Let us therefore
loan with a bank and the
P80,000 was approved at an
interest rate of 14% of which
P11,200 was deducted and
you were given a check of
P68,800. Since you have to
pay the amount of P80,000
one year after, what then will
be the effective interest rate?
 A. 16.02 %
 B. 16.28 %
 C. 16.32 %
 D. 16.47 %
10. A man invested P110,000
for 31 days. The net interest
after deducting 20%
withholding tax is P890.36.
Find the rate of return
annually.
 A. 11.50 %
 B. 11.75 %
 C. 11.95 %
 D. 12.32 %
11. A investor wishes to earn
7% on his capital after
payment of taxes. If the
income from an available
investment will be taxed at an
average rate of 42%, what
minimum rate of return,
before payment of taxes,
must the investment offer to
be justified?
 A. 12.07 %
 B. 12.34 %
 C. 12.67 %
 D. 12.87 %
granted a loan of P20,000 by
his employer Excel First
Review and Training Center,
Inc. with an interest of 6% for
180 days on the principal
collected in advance. The
corporation would accept a
promissory note for P20,000
non-interest for 180 days. If
discounted at once, find the
proceeds of the note.
 A. P18,000
 B. P18,900
 C. P19,000
 D. P19,100
13. Miss Evilla borrowed
money from a bank. She
receives from the bank
P1,340.00 and promised to
pay P1,500.00 at the end of 9
months. Determine the
corresponding discount rate
or often referred to as the
“banker’s discount”.
 A. 13.15 %
 B. 13.32 %
 C. 13.46 %
 D. 13.73 %
14. The exact simple interest
of P5,000 invested from June
21, 1995 to December 25,
1995 is P100. What is the rate
of interest?
 A. 3.90 %
 B. 3.92 %
 C. 3.95 %
 D. 3.98 %
15. What is the ordinary  A. 12.35 %
interest on P1,500.50 for 182 compounded annually
days at 5.2%?
 B. 11.90 %
 A. P39.01 compounded annually
 B. P39.82  C. 12.20 %
compounded annually
 C. P39.45
 D. 11.60 %
 D. P39.99
compounded annually
16. A loan for P50,000 is to be
20. An amount of P1,000
paid in 3 years at the amount becomes P1,608.44 after 4
of P65,000. What is the
years compounded bimonthly.
effective rate of money?
Find the nominal interest.
 A. 9.01 %  A. 11.89 %
 B. 9.14 %
 B. 12.00 %
 C. 9.31 %
 C. 12.08 %
 D. 9.41 %
 D. 12.32 %
17. What is the effective rate
21. How long will it take
corresponding to 18%
money to double itself if
compounded daily? Take 1
invested at 5% compounded
year is equal to 360 days.
annually?
 A. 19.61 %  A. 13.7 years
 B. 19.44 %
 B. 14.7 years
 C. 19.31 %
 C. 14.2 years
 D. 19.72 %  D. 15.3 years
18. What rate of interest
22. By the condition of a will,
compounded annually is the the sum of P20,000 is left to a
same as the rate of interest of
girl to be held in trust fund by
8% compounded quarterly?
her guardian until it amounts
to P50,000. When will the girl
 A. 8.07 %
receive the money if fund
 B. 8.12 %
invested at 8% compounded
 C. 8.16 % quarterly?
 A. 11.23 years
 D. 8.24 %
 B. 11.46 years
19. Which of these gives the  C. 11.57 years
lowest effective rate of
interest?  D. 11.87 years
23. A sum of P1,000 is
invested now and left for eight
years, at which time the
principal is withdrawn. The
interest has accrued is left for
another eight years. If the
effective annual interest rate
is 5%, what will be the
withdrawal amount at the end
of the 16th year?
 A. P693.12
 B. P700.12
 C. P702.15
 D. P705.42
24. Mandarin Bank advertises
9.5% account that yields
9.84% annually. Find how
often the interest is
compounded.
 A. Monthly
 B. Bimonthly
 C. Quarterly
 D. Annually
25. A student plans to deposit
P1,500 in the bank now and
another P3,000 for the next 2
years. If he plans to withdraw
P5,000 three years from after
his last deposit for the
purpose of buying shoes,
what will be the amount of
money left in the bank after
one year of his withdrawal?
Effective annual interest rate
is 10%.
A. P1,549.64

 B. P1,459.64
 C. P1,345.98
 D. P1,945.64
26. You borrow P3,500.00 for
one year from a friend at an
interest rate of 1.5% per
month instead of taking a loan
from a bank at a rate of 18%
per year. How much lesser
you will pay by borrowing the
money from the bank?
 A. P 62.44
 B. P44.55
 C. P54.66
 D. P37.56
27. What is the present worth
of two P 100 payments at the
end of the third year and
fourth year? The annual
interest rate is 8%.
 A. P 150.56
 B. P 152.88
 C. P 153.89
 D. P 151.09
28. A firm borrows P2,000 for
6 years at 8%. At the end of 6
years, it renews the loan for
the amount due plus P2,000
more for 2 years at 8%. What
is the lump sum due?
 A. P 3,260.34
 B. P 3,280.34
 C. P 3,270.34
 D. P 3,250.34
29. In year zero, you invest P
10,000.00 in a 15% security
for 5 years. During that time,
the average annual inflation is
6%. How much in terms of
year zero pesos will be in the
account at maturity?
 A. P 15,030.03
 B. P 20,113.57
 C. P 18,289.05
 D. P 16,892.34
30. The institute of Electronics
and Communications
Engineers of the Philippines
(IECEP) is planning to put up
its own building. Two
proposals being considered
are:
A. The construction of the
building now to cost P
400,000
B. The construction of a
smaller building now to cost
P300,000 and at the end of 5
years, an extension to be
added to cost P 200,000.
By how much is proposal B
more economical than
proposal A if interest rate is
20% and depreciation to be
neglected?
 A. P 19,122.15
B. P 19,423.69

 C. P 19,518.03
 D. P 19,624.49
31. What is the present worth
of a P500 annuity starting at
the end of the third year and
continuing to the end of the
fourth year, if the annual
interest rate is 10 %?
 A. P 727.17
 B. P 717.17
 C. P 714.71
 D. P 731.17
32. What annuity is required
over 12 years to equate with
a future amount of P 20,000?
Assume i= 6% annually.
 A. P 1,290.34
 B. P 1,185.54
 C. P 1,107.34
 D. P 1,205.74
33. A factory operator bought
a diesel generator set for P
10,000.00 and agreed to pay
the dealer uniform sum at the
end of each year for 5 years
at 8% interest compounded
annually, that the final
payment will cancel the debt
for principal and interest.
What is the annual payment?
 A. P 2,500.57
 B. P 2,544.45
 C. P 2,540.56
 D. P 2,504.57
34. What is the present worth
of a year annuity paying P
3,000.00 at the end of each
year, with interest at 8%
compounded annually?
 A. P 7,654.04
 B. P 7,731.29
 C. P 7,420.89
 D. P 7,590.12
35. A man loans P 187,400
from a bank with interest at
5% compounded annually. He
agrees to pay his obligations
by paying 8 equal annual
payments, the first being due
at the end of 10 years. Find
the annual payments.
 A. P 43,600.10
 B. P 43,489.47
 C. P 43,263.91
 D. P 43,763.20
36. A person buys a piece of
lot for P 100,000
downpayment and 10
deferred semi-annual
payments of P 8,000 each,
starting three years from now.
What is the present value of
the investment if the rate of
interest is 12% compounded
semi-annually?
 A. P 142,999.08
 B. P 143,104.89
 C. P 142,189.67
 D. P 143,999.08
37. A young engineer
borrowed P 10,000 at 12%
interest and paid P 2,000 per
annum for the last 4 years.
What does he have to pay at
the end of the fifth year in
order to pay off his loan?
 A. P 6,999.39
 B. P 6,292.93
 C. P 6,222.39
 D. P 6,922.93
38. Miss Calledo deposited P
1,000, P 1,500 and P 2,000 at
the end of the 2nd year,
3rd year and 4th year,
respectively in a savings
account which earned 10%
per annum. How much is in
the account at the end of the
4th year?
 A. P 4,880.00
 B. P 4,820.00
 C. P 4,860.00
 D. P 4,840.00
39. A P 1,000,000 issue of 3%,
15-year bond was sold at
95%. What is the rate of
interest of this investment?
 A. 3.0%
 B. 3.4%
 C. 3.7%
 D. 4.0%
40. A P 1, 000, 6% bond pays
dividend semiannually and
will be redeemed at 110% on
June 21, 204. It is bought on
June 21, 2001 to yield 4%
interest. Find the price of the
bond.
 A. P 1,122.70
 B. P 1,144.81
 C. P 1,133.78
 D. P 1,155.06
41. A VOM has a selling price
of P 400. If its selling price is
expected to decline at a rate
of 10% per annum due to
obsolescence, what will be its
selling price after 5 years?
 A. P 222.67
 B. P 212.90
 C. P 236.20
 D. P 231.56
42. A machine costs of P
8,000 and an estimated life of
10 years with a salvage value
of P 500. What is its book
value after 8 years using
straight line method?
 A. P 2,000.00
 B. P 2,100.00
 C. P 2,200.00
 D. P 2,300.00
43. ABC Corporation makes it
a policy that for any new
equipment purchased, the
annual depreciation cost
should not exceed 20% of the
first cost at any time with no
salvage value. Determine the
length of service life
necessary if the depreciation
used is the SYD method.
 A. 7 eyars
 B. 8 years
 C. 9 years
 D. 10 years
44. An asset is purchased for
P 9,000.00. Its estimated
economic life is 10 years after
which it will be sold for P
1,000.00. Find the
depreciation in the first three
years using sum-of-years digit
method
 A. P 3,279.27
 B. P 3,927.27
 C. P 3,729.27
 D. P 3,792.72
45. Shell Philippines, a
multinational company, has a
total gross income for a
particular year of P
50,000,000. The taxable
income after taking all
deductions except for
depletion is P 18,500,000.
What is the allowable
depletion allowance for that
particular year? Take
percentage of gross income
for oil as 22%.
 A. P 9,358.41
 B. P 9,228.45
 C. P 9,250.00
 D. P 9,308.45
46. The Saudi Arabian Oil
Refinery developed an oil well
which is estimated to contain
5,000,000 barrels of oil at an
initial cost of $ 50,000,000.
What is the depletion charge
during the year where it
produces half million barrels
of oil? Use Unit or Factor
method in computing
depletion.
 A. $ 5,000,000.00
 B. $ 5,010,000.00
 C. $ 5,025,000.00
 D. $ 5,050,000.00
47. A manufacturer produces
certain items at a labor cost
of P 115 each, material cost of
P 76 each and variable cost of
P 2.32 each. If the item has a
unit price of P 600, how many
units must be manufactured
each month for the
manufacturer to break even if
the monthly overhead is
P428,000
 A. 1,033
 B. 1,037
 C. 1,043
 D. 1,053
48. A manufacturing firm
maintains one product
assembly line to produce
signal generators. Weekly
demand for the generators is
35 units. The line operates for
7 hours per day, 5 days per
week. What is the maximum
production time per unit in
hours required of the line to
meet the demand?
 A. 1.0 hour per unit
 B. 1.2 hours per unit
 C. 1.4 hours per unit
 D. 1.6 hours per unit
49. A telephone switchboard
100 pair cable can be made
up with either enameled wire
or tinned wire. There will be
400 soldered connections. The
cost of soldering a connection
on the enameled wire will be P
1.65 on the tinned wire, it will
be P 1.15. A 100- pair cable
made up with enameled wire
cost P 0.55 per linear foot and
those made up of tinned wire
cost P 0.75 per linear foot.
Determine the length of cable
run in feet so that the cost of
each installation would be the
same.
 A. 1,000 feet
 B. 1,040 feet
 C. 1,100 feet
 D. 1,120 feet
50. A leading shoe
manufacturer produces a pair
of Lebron James signature
shoes at a labor cost of P
900.00 a pair and a material
cost of P 800.00 a pair. The
fixed charges on the business
are P 5,000,000 a month and
the variable costs are P
400.00 a pair. Royalty to
Lebron James is P 1,000 per
pair of shoes sold. If the shoes
sell at P 5,000 a pair, how
many pairs must be produced
each month for the
manufacturer to break-even?
 A. 2.590
 B. 2,632
 C. 2,712
 D. 2,890
51. What is defines as the
analysis and evaluation of the
monetary consequences by
using the theories and
principles of economics to
engineering applications,
designs and projects?
 A. Economic Analysis
 B. Engineering cost
analysis
 C. Engineering
economy
 D. Design cost
analysis
52. What is considered as the
standard unit which forms the
basis of a country’s domestic
money supply?
 A. Monetary unit
 B. Currency
 C. Foreign exchange
 D. Cash or check
53. What is defined as any
tangible economic product
that contributes directly or
indirectly to the satisfaction of
human want?
 A. Services
 B. Goods
 C. Commodities
 D. Goods or
commodities
54. What is defined as any
tangible economic activity
that contributes directly or
indirectly to the satisfaction of
human want?
 A. Services
 B. Goods
 C. Commodities
 D. Goods or
commodities
55. What are the two
classifications of goods and
services?
 A. Local and imported
 B. Raw and finished
 C. Consumer and
producer
 D. Ready-made and
made-to-order
56. What refers to the goods
and services that are required
to support human life, needs
and activities?
 A. Producer products
 B. Consumer products
 C. Luxury
 D. Necessity
57. What refers to the goods
and services that are desired
by human and will be
acquired only after all the
needs have been satisfied?
 A. Producer products
 B. Consumer products
 C. Luxury
 D. Necessity
58. What refers to the
exchange mechanism that
brings together the sellers
and the buyers of a product,
factor of production or
financial security?
 A. Mall
 B. Market
 C. Store
 D. Office
59. What is considered as the
basic consuming or
demanding unit of a
commodity?
 A. Seller
 B. Manufacturer
 C. Producer
 D. Buyer or consumer
60. What is defined as an
entity which makes product,
good or services available to
buyer or consumer in
exchange of monetary
consideration?
 A. Seller
 B. Manufacturer
 C. Producer
 D. Buyer or consumer
61. What is a market situation
whereby there is only one
buyer of an item for which
there is no goods substitute?
 A. Monopsony
 B. Monopoly
 C. Oligopoly
 D. Oligopsony
62. What market situation
exists where there are few
sellers and few buyers?
 A. Oligopoly
 B. Oligopsony
 C. Bilateral oligopoly
 D. Bilateral
Oligopsony
63. What market situation
exists where there is only one
buyer and only one seller?
 A. Monopsony
 B. Monopoly
 C. Bilateral
monopsony
 D. Bilateral monopoly
64. What is the market
situation exist when there are
many buyers and many
sellers?
 A. Perfect competition
 B. Oligopoly
 C. Oligopsony
 D. Monopoly
65. If there is only one seller
and many buyers, the market
situation is ________ .
 A. Duopsony
 B. Oligopoly
 C. Oligopsony
 D. Monopoly
66. If there are many sellers
and few buyers, the market
situation is _________ .
 A. Duopsony
 B. Oligopoly
 C. Oligopsony
 D. Monopoly
67. Oligopoly exists when
there is/are:
  A. Few sellers and few product is supplied by a very
buyers large number of vendors and
there is no restriction against
 B. Few sellers and additional vendors from
many buyers
entering the market?
 C. Many sellers and A. Perfect competition
 situation where economies of
few buyers
 B. Oligopoly
 D. One seller and few
 C. Oligopsony
buyers
D. Monopoly
68. Duopsony is a market  single producer so that the
situation where there is/are:
72. Aside from many sellers
 A. Few sellers and few and many buyers, which one
buyers is a characteristic of perfect
competition?
 B. Few sellers and
many buyers  A. Homogeneous
product
 C. Many sellers and
few buyers  B. Free market entry
and exit
 D. One seller and few
buyers  C. Perfect information
and absence of all
69. Duopoly is a market economic friction
situation where there is/are:
 D. All of the above
 A. Few sellers and few
buyers 73. What is the opposite of
perfect competition?
 B. Few sellers and
many buyers  A. Monopsony
B. Oligopoly
 C. Many sellers and 
few buyers
 C. Oligopsony
 D. One seller and few
 D. Monopoly
buyers
74. Perfect monopoly exists
70. What is another term for
only if:
“perfect competition”?
 A. the single vendor
 A. Atomistic
can prevent the entry
competition
of all other vendors in
 B. No-limit the market
competition
 B. the single vendor
 C. Free-for-all gets the absolute
competition franchise of the
product
 D. Heterogeneous
market  C. the single vendor is
the only one who has
71. What refers to the market the permit to sell
situation in which any given
 D. the single vendor is
the only one who has
the knowledge of the
product
75. A ______ is a market
scale are so significant that
cost are only minimized when
the entire output of an
industry is supplied by a
supply costs are lower under
monopoly that under perfect
competition.
 A. Perfect monopoly
 B. Bilateral monopoly
 C. Natural monopoly
 D. Ordinary monopoly
76. “When one of the factors
of production is fixed in
quantity or is difficult to
increase, increasing the other
factors of production will
result in a less than
proportionate increase in
output”. This statement is
known as the:
 A. Law of diminishing
return
 B. Law of supply
 C. Law of demand
 D. Law of supply and
demand
77. What refers to the need,
want or desire for a product
backed by the money to
purchase it?
 A. Supply
 B. Demand
 C. Product
 D. Good
78. What refers to the amount
of a product made available
for sale?
 A. Supply
 B. Demand
 C. Product
 D. Good
79. “Under conditions of
perfect competition, the price
at which any given product
will be supplied and
purchased is the price that
will result in the supply and
the demand being equal.”
This statement is known as
the:
 A. Law of diminishing
return
 B. Law of supply
 C. Law of demand
 D. Law of supply and
demand
80. What do you call any
particular raw material or
primary product such as cloth,
wool, flour, coffee, etc.?
 A. Utility
 B. Necessity
 C. Commodity
 D. Stock
81. What is defined as the
interest on a load or principal
that is based only on the
original amount of the loan or
principal?
 A. Effective rate of
interest
 B. Nominal rate of
interest
 C. Compound interest
 D. Simple interest
82. Under ordinary simple
interest, how many days in
one year?
 A. 300
 B. 360
 C. 365
 D. 366
83. One banker’s year is
equivalent to ______ days.
 A. 300
 B. 360
 C. 365
 D. 366
84. What refers to the
cumulative effect of elapsed
time on the money value of
an event, based on the
earning power of equivalent
invested funds capital should
or will earn?
 A. Present worth
factor
 B. Interest rate
 C. Time value of
money
 D. Yield
85. The difference between
the present and future worth
of money at some time in the
future is called ______.
 A. Discount
 B. Deduction
C. Inflation

 D. Depletion
86. What refers to the present
worth of the probable future
net earnings?
 A. Total fair value
  B. Total market value
 C. Going concern
value
 D. Earning value
87. What refers to the amount
of money paid for the use of
borrowed capital?
 A. Interest
 B. Rate of interest
 C. Simple interest
 D. Principal
88. What refers to the ratio of
the interest payment to the
principal for a given unit of
time and usually expressed as
a percentage of the principal?
 A. Return of
investment
 B. Interest rate
 C. Yield
 D. Rate of return
89. What is defined as the
investment of loan or principal
which is based not only on the
original amount of the loan or
principal but the amount of
loaned or principal plus the
previous accumulated
interest?
 A. Effective rate of
interest
 B. Nominal rate of
interest
 C. Compound interest
 D. Simple interest
90. What refers to the cost of
borrowing money or the
amount earned by a unit
principal per unit time?
 A. Yield rate
 B. Rate of return
 C. Rate of interest
 D. Economic return
91. A uniform series of
payment occurring at equal
interval of time is called
______.
 A. Annuity
 B. Amortization
 C. Depreciation
 D. Bond
92. What is the term for an
annuity with a fixed time
span?
 A. Ordinary annuity
 B. Perpetuity
 C. Annuity certain
 D. Annuity due
93. What is the type of
annuity where the payments
are made at the end of each
period starting from the first
period?
 A. Ordinary annuity
 B. Perpetuity
 C. Annuity due
 D. Deferred annuity
94. What is the type of
annuity where the payments
are made at the beginning of
the each period starting from
the first period?
 A. Ordinary annuity
 B. Perpetuity
 C. Annuity due
 D. Deferred annuity
95. What is the type of
annuity that does not have a
fixed time span but continues
indefinitely or forever?
 A. Ordinary annuity
 B. Perpetuity
 C. Annuity due
 D. Deferred annuity
96. What is the type of
annuity where the first
payment does not begin until
some later date in the cash
flow?
 A. Ordinary annuity
 B. Perpetuity
 C. Annuity due
 D. Deferred annuity
97. Which is NOT an essential
element of an ordinary
annuity?
 A. The amounts of all
payments are equal.
 B. The payments are
made at equal
interval of time.
C. The first payment is

made at the
beginning of the first
period.
 D. Compound interest
is paid on all amounts
in the annuity.
98. What is defined as a
financial security note issued
by business or corporation
and by the government as a
means of borrowing long-term
fund?
 A. T-bills
 B. Securities
 C. Bond
 D. Bank notes
99. What refers to the present
worth of all the amount the
bondholder will receive
through his possession of the
bond?
 A. Par value of bond
 B. Face value of bond
 C. Redeemed value of
bond
 D. Value of bond
100. What is defined as the
certificate of indebtedness of
corporation usually for a
period not less than 10 years
and guaranteed by a
mortgage on certain assets of
a corporation?
 A. Bond
 B. T-bills
 C. Stock
 D. Promissory note
101. What refers to a
document that shows proof of
legal ownership of a financial
security?
 A. Bond
 B. Bank note
 C. Coupon
 D. Check
102. What type of bond is
issued jointly by two or more
corporations?
 A. Mortgage bond
 B. Joint bond
 C. Tie-up bond
 D. Trust bond
103. What type of bond whose
guaranty is in lien on railroad
equipment, such as freight
and passenger cars,
locomotives, etc.?
 A. Railroad bond
 B. Equipment
obligation bond
 C. Equipment bond
 D. Equipment trust
bond
104. A type of bond to which
are attached coupons
indicating the interest due
and the date when such
interest is to be paid is called
______.
 A. Registered bond
 B. Coupon bond
 C. Mortgage bond
 D. Collateral trust
bond
105. What bond whose
security is a mortgage on
certain specified assets of the
corporation?
 A. Registered bond
 B. Collateral trust
bond
 C. Mortgage bond
 D. Debenture bond
106. A bond without any
security behind them except a
promise to pay by the issuing
corporation is called ______.
 A. Joint bond
 B. Debenture bond
 C. Trust bond
 D. Common bond
107. A type of bond where the
corporation pledges securities
which it owns such as the
stock or bonds of one of its
subsidiaries.
 A. Mortgage bond
 B. Joint bond
 C. Security bond
 D. Collateral trust
bond
108. What type of bond where
the corporation’s owner name
are recorded and the interest
is paid periodically to the
owners with their asking for
it?
 A. Preferred bond
 B. Registered bond
 C. Incorporators bond
 D. Callable bond
109. What type of bond which
can be redeemed before
maturity date?
 A. Preferred bond
 B. Registered bond
 C. Incorporators bond
 D. Callable bond
110. What is the feature of
some bonds whereby the
issuer can redeem it before it
matures?
 A. Return clause
 B. Callability
 C. Recall clause
 D. Call class
111. The price at which the
callable bond will be
redeemed from the
bondholder is called ______.
 A. Par value
 B. Call value
 C. Face value
 D. Redemption value
112. What is defined as the
reduction or fall of the value
of an asset due to constant
use and passage of time?
 A. Depletion
 B. Inflation
 C. Depreciation
 D. Deflation
113. In what method of
computing depreciation where
it assumes that the loss in
value is directly proportional
to the age of the equipment
or asset?
 A. Straight line
method
 B. Sinking fund
method
 C. Sum-of-year digit
method
 D. Declining balance
method
114. In what method of
computing depreciation where
it assumes that a sinking fund
is established in which funds
will accumulate for
replacement purposes?
 A. Straight line
method
 B. Sinking fund
method
 C. Sum-of-year digit
method
 D. Declining balance
method
115. In what method of
computing depreciation where
it assumes that the annual
cost of depreciation is a fixed
percentage of the book value
at the beginning of the year?
 A. Straight line
method
 B. Sinking fund
method
 C. Sum-of-year digit
method
 D. Declining balance
method
116. In SYD method of
computing depreciation,
which of the following is the
formula in finding the sum of
years’ digits?
 A.
 B.
 C.
 D.
117. The declining balance
method is also known as
______.
 A. Double percentage
method
 B. Constant
percentage method
 C. Modified sinking
fund method
 D. Modified SYD
method
118. What type of
depreciation is due to the
reduction in the demand for
the function that the
equipment or asset was
designed to render?
 A. Functional
depreciation
 B. Design depreciation
 C. Physical
depreciation
 D. Demand
depreciation
119. What type of
depreciation is due to the
reduction of the physical
ability of an equipment or
asset to produce results?
 A. Functional
depreciation
 B. Design depreciation
 C. Physical
depreciation
 D. Demand
depreciation
120. The functional
depreciation is sometimes
called ______.
 A. Demand
depreciation
 B. Adolescence
 C. Life depreciation
 D. Failure depreciation
121. What is defined as the
reduction of the value of
certain natural resources such
as mines, oil, timber, quarries,
etc. due to the gradual
extraction of its contents?
 A. Depletion
 B. Inflation
 C. Depreciation
 D. Deflation
122. What are the common
methods of computing
depletion charge?
 A. Rational method
and irrational method
 B. Conservative
method and
conventional method
 C. Unit method and
percentage method
 D. Discrete method
and depletion
allowance method
123. Under the depletion
allowance method in
computing depreciation, the
depletion charge is equal to
either ______ whichever is
smaller.
 A. Fixed percentage of
gross income or the
net taxable income
 B. Fixed percentage of
gross income or 50%
of the net taxable
income
 C. 50% of the fixed
percentage of gross
income or 50% of the
net taxable income
 D. 50% of the fixed
percentage of gross
income or the net
taxable income
124. The depletion allowance
method of computing
depletion is commonly known
as ______.
 A. Unit method
 B. Percentage method
 C. Factor method
 D. Sinking fund
method
125. What is another term for
“unit method” for computing
depletion?
 A. Initial cost method
 B. Percentage method
 C. Factor method
 D. Sinking fund
method
126. Using factor method, the
depletion at any given year is
equal to:
 A. Initial cost of
property times
number of unit sold
during the year
divided by the total
units in property
 B. Initial cost of
property divided by
the number of units
sold during the year
 C. Initial cost of
property times
number of units sold
during the year
 D. Initial cost of
property divided by
the total units in
property
127. What do you call the
after-tax present worth of all
depreciation effects over the
depreciation period of the
asset?
 A. Asset recovery
 B. Depreciation
recovery
 C. Period recovery
 D. After-tax recovery
128. A mathematical
expression also known as the
present value of annuity of
one is called ______.
 A. Load factor
 B. Demand factor
 C. Sinking fund factor
 D. Present worth
factor
129. The amount of property
in which a willing buyer to a
willing seller for the property
when neither one is under the
compulsion to buy nor to sell
is called ______.
 A. Fair value
 B. Market value
 C. Good will value
 D. Book value
130. Salvage value is
sometimes known as ______.
 A. Scrap value
 B. Going value
 C. Junk value
 D. Second-hand value
131. What refers to the value
of an asset which a
disinterested third party,
different from the buyer and
seller, will determine in order
to establish a price acceptable
to both parties?
 A. Book value
 B. Market value
 C. Fair value
 D. Franchise value
132. What refers to the value
of an intangible item which
arises from the exclusive right
of a company to provide a
specified product and service
in a certain region of the
country?
 A. Company value
 B. Going value
 C. Goodwill value
 D. Franchise value
133. The first cost to be
incurred if the piece of
equipment now in place had
been bought for a second
hand dealer or some other
business is called ______.
 A. Material cost
 B. Fixed cost
 C. First cost
 D. In-place value
134. In computing
depreciation of an equipment,
which of the following
represents the first cost?
 A. The original
purchase price and
freight charges
 B. Installation
expenses
 C. Initial taxes and
permit fees
 D. All of the above
135. The process of
determining the value or
worth of a physical property
for specific reason is called
______.
 A. Investment
 B. Valuation
 C. Economy
 D. Depletion
136. The unrecovered
depreciation which results due
to poor estimates as to the
life of the equipment is called
______.
 A. Sunk cost
 B. Economic life
 C. In-place value
 D. Annuity
137. What refers to the
present worth of cost
associated with an asset for
an infinite period of time?
 A. Annual cost
 B. Increment cost
 C. Capitalized cost
 D. Operating cost
138. Capitalized cost of a
project is also known as
______.
 A. Infinite cost
 B. Life cycle cost
 C. Life cost
 D. Project cost
139. What is normally used to
compare alternatives that
accomplish the same purpose
but have unequal lives?
 A. Capitalized cost
method
 B. Present worth
method
 C. Annual cost
method
 D. MARR
140. What method is often
used in municipal project
evaluations where benefits
and costs accrue to different
segments of the community?
 A. Annual cost method
 B. Benefit-cost ratio
 C. Rate of return
method
 D. EUAC
141. What refers to an
imaginary cost representing
what will not be received if a
particular strategy is rejected?
 A. Opportunity cost
 B. Ghost cost
 C. Horizon cost
 D. Null cost
142. What is the main reason
why the sinking fund method
of computing depreciation is
seldom used in the industry?
 A. Unstable economy
 B. Rate of interest
cannot be exactly
determined
 C. The initial
deprecation is high
 D. The initial
depreciation is low
143. What is the factor name
of the formula (1+i)^-n?
 A. Uniform gradient
future worth
 B. Capital recovery
 C. Single payment
present worth
 D. Single payment
compound amount
144. What is the factor name
of the formula [i(1+i)^n]/
[((1+i)^n)-1]?
 A. Uniform series
sinking fund
 B. Capital recovery
 C. Single payment
present worth
 D. Uniform gradient
future worth
145. A form of business
organization in which a person
conducts his business alone
and entirely for his own profit,
being solely responsible for all
its activities and liabilities.
 A. Sole proprietorship
 B. Entrepreneurship
 C. Partnership
 D. Corporation
146. Is an artificial being
created by operation of law,
having the right of succession
and the process, attributes
and properties expressly
authorized by the law or
incident to its existence.
 A. Corporation
 B. Property
 C. Partnership
 D. Organization
147. What is the simplest
form of business organization?
 A. Sole proprietorship
 B. Partnership
 C. Enterprise
 D. Corporation
148. Double taxation is a
disadvantage of which
business organization?
 A. Sole proprietorship
 B. Partnership
 C. Corporation
 D. Enterprise
149. In case of bankruptcy of
a partnership,
 A. The partners are
not liable for the
liabilities of the
partnership
 B. The partnership
assets (excluding the
partners personal
assets) only will be
used to pay the
liabilities
 C. The partners
personal assets are
attached to the debt
of the partnership
 D. The partners nay
sell stock to generate
additional capital
150. Which is true about
partnership?
 A. It has a perpetual
life.
 B. It will be dissolved
if one of the partners
ceases to be
connected with the
partnership.
 C. It can be handed
down from one
generation of partners
to another.
 D. Its capitalization
must be equal for
each partner.
151. Which is true about
corporation?
 A. It is worse type of
business organization.
 B. The minimum
number of
incorporators to start
a corporation is three.
 C. Its life is dependent
on the lives of the
incorporators.
 D. The stock holders
of the corporation are
only liable to the
extent of their
investments.
152. Aggregation of
individuals formed for the
purpose of conducting a
business and recognized by
law as a fictitious person is
called ______.
 A. Partnership
 B. Investors
 C. Corporation
 D. Stockholders
153. An association of two or
more persons for the purpose
of engaging into a business
for profit is called ______.
 A. Entrepreneurship
 B. Partnership
 C. Proprietorship
 D. Corporation
154. What represents the
ownership of stockholders
who have a residual claim on
the assets of the corporation
after all other claims have
been settled?
 A. Authorized capital
stock
 B. Preferred stock
 C. Incorporator stock
 D. Common stock
155. What stock represents
ownership and enjoys certain
preferences than ordinary
stock?
 A. Authorized stock
 B. Preferred stock
 C. Incorporator’s stock
 D. Presidential stock
156. The amount of
company’s profit that the
board of directors of the
corporation decides to
distribute to ordinary
shareholders is called ______.
 A. Dividend
 B. Return
 C. Share of stock
 D. Equity
157. What refers to the
residual value of a company’s
assets after all outside
liabilities (shareholders
excluded) have been allowed
for?
 A. Dividend
 B. Equity
 C. Return
 D. Par value
158. What refers to the claim
of anyone to ownership?
 A. Proprietorship
 B. Assets
 C. Equity
 D. Liability
159. Cash money and credit
necessary to establish and
operate an enterprise are
generally called ______.
 A. Capital
 B. Funds
 C. Assets
D. Liabilities
 
160. What represents the
share of participation in
business organizations?
 A. Franchise
 B. Partnership
 C. Stock
D. Corporation
 
161. The profit derived from a
project or business enterprise
without consideration of
obligations to financial
contributors and claims of
others based on profit is
known as ______.
 A. Yield
 B. Economic return
 C. Earning value
 D. Gain
162. ______ is the element of
value which a business has
earned through the favorable
consideration and patronage
of its costumers arising from
its well known and well
conducted policies and
operations.
 A. Status company
 B. Big income
 C. Known owners
 D. Goodwill
163. Which of the following is
an example of intangible
asset?
 A. Cash
 B. Investment in
subsidiary companies
 C. Furnitures
 D. Patents
164. Lands, buildings, plants
and machineries are example
of what type of asset?
 A. Current asset
 B. Trade investment
asset
 C. Fixed asset
 D. Intangible asset
165. What refers to the
interest rate at which the
present work of the cash flow
on a project is zero of the
interest earned by an
investment?
 A. Economic return
 B. Yield
 C. Rate of return
 D. Return of
investment
166. What is another term for
“current assets”?
 A. Fixed assets
 B. Non-liquid assets
 C. Liquid assets
 D. Ccash
167. What is an accounting
term that represents an
inventory account
adjustment?
 A. Cost of goods sold
 B. Cost accounting 174. What is a measure of the  D. Certificate of
 C. Standard cost average speed with which deposit
 D. Overhead cost accounts receivable are 181. What denotes in the fall
168. What is the change in collected? in the exchange rate of one
cost per unit variable change  A. Current ratio currency in terms of the
called?  B. Quick ratio others? This term is usually
 A. Variable cost  C. Acid test ratio applies to the floating
 B. Incremental cost  D. Receivable exchange rate.
 C. Fixed cost turnover  A. Currency
 D. Supplemental cost 175. The ratio of the net appreciation
169. What is used to record income before taxes to net  B. Currency
historical financial sales is called ______. depreciation
transactions?  A. Current ratio  C. Currency
 A. Bookkeeping  B. Inventory turnover devaluation
system  C. Profit margin ratio  D. Currency float
 B. Ledger system  D. Price-earnings ratio 182. The deliberate lowering
 C. Balance check 176. What do you call a one- of the price of a nation’s
 D. General journal time credit against taxes? currency in terms of the
system  A. Due credit accepted standard (Gold,
170. What is a secondary  B. Tax credit American dollar or the British
book of accounts, the  C. Credible credit pound) is known as ______.
information of which is  D. Revenue credit  A. Currency
obtained from the journal is 177. What is used when a appreciation
called? quick estimate of the doubling  B. Currency
 A. Balanced sheet time for the invested money is depreciation
 B. Ledger needed?  C. Currency
 C. Worksheet  A. Rule of 48 devaluation
 D. Trial balance  B. Rule of 36  D. Currency float
171. The original record of a  C. Rule of 24 183. What refers to the saving
business transaction is  D. Rule of 72 which takes place because
recorded in this book. goods are not available for
178. What is the increase in
A. Work book consumption rather than
 the money value of a capital
consumer really want to save?
 B. Journal asset is called?
 A. Compulsory saving
C. Ledger  A. Profit
 B. Consumer saving
 D. Account book  B. Capital gain
 C. Forced saving
172. All the proceeds which  C. Capital expenditure
 D. All of the above
are received by the business  D. Capital stock
as a result of the sale of 184. The flow back of profit
179. What is the reduction in
goods is called ______. plus depreciation form a given
the money value of capital
A. Net income project is called ______.
 asset is called?
 A. Capital recovery
B. Gross income  A. Capital expenditure
 B. Cash flow
 C. Net revenue  B. Capital loss
 C. Economic return
 D. Total sales  C. Loss
 D. Earning value
173. All are classified under  D. Deficit
direct labor expenses EXCEPT 185. As applied to capitalized
180. What refers to the
one. Which one? asset, the distribution of the
negotiable claim issued by a
A. Inspection cost initial cost by a periodic
 bank in lien of a term deposit?
changes to operation as in
 B. Testing cost  A. Time deposit
depreciation or the reduction
 C. Assembly cost  B. Bond
of a debt by either periodic or
 D. Supervision cost  C. Capital gain
certificate
irregular prearranged
programs is called ______.
 A. Annuity
 B. Amortization
 C. Capital recovery
 D. Annuity factor
186. Capitalized cost of any
structure or property is
computed by which formula?
 A. First cost + interest
of first cost
 B. Annual cost –
interest of first cost
 C. First cost + cost of
perpetual
maintenance
 D. First cost + salvage
value
187. The true value of interest
rate computed by equations
for compound interest for a 1
year period is known as
______.
 A. Expected return
 B. Nominal interest
 C. Effective interest
 D. Economic return
188. Return on investment
ratio is the ratio of the:
 A. Net income to
owner’s equity
 B. Market price per
share to earnings per
share
 C. Cost of goods sold
to average cost of
inventory at hand
D. Net credit sales to
 
average net
receivable
189. Gross margin is the ratio
of the gross profit to ______.
 A. Net sale
 B. Owner’s equity
 C. Inventory turnover
 D. Quick assets
190. What is another term for
“acid-test ratio”?
 A. Current ratio
 B. Quick ratio
 C. Profit margin ratio
 D. Price-earnings ratio
191. What is a government
bond which has an indefinite
life rather than a specific
maturity?
 A. Coupon
 B. T-bill
 C. Debenture
 D. Consol
192. A form of business firm
which is owned and run by a
group of individuals for their
mutual benefit is called
______.
 A. Cooperative
 B. Corporation
 C. Enterprise
 D. Partnership
193. What is a stock of a
product which is held by a
trade body or government as
a means of regulating the
price of that product?
 A. Stock pile
 B. Hoard stock
 C. Buffer stock
 D. Withheld stock
194. The ability to meet debts
as they become due is known
as ______.
 A. Solvency
B. Leverage
 investment ratio
 C. Insolvency
 D. Liquidity
195. The ability to convert
assets to cash quickly is
known as ______.
A. Solvency
 B. Liquidity
 C. Leverage
 D. Insolvency
196. What is the basic
accounting equation?
 A. Assets = liability +
owner’s equity
 B. Liability = assets +
owners’ equity
 C. Owner’s equity =
assets + liability
 D. Owner’s equity =
liability – assets
197. The financial health of
the company is measured in
terms of:
 A. Liquidity
 B. Solvency
 C. Relative risk
 D. All of the above
198. What is an index of
short-term paying ability?
 A. Price-earnings ratio
 B. Current ratio
 C. Profit margin ratio
 D. Gross margin
199. The common ratio is the
ratio of:
 A. Net credit sales to
average net
receivable
 B. Current assets to
current liabilities
 C. Gross profit to net
sales
 D. Net income to
owner’s equity
200. What is defined as the
current assets minus
inventories and prepaid
expenses?
 A. Profit margin ratio
 B. Price-earnings ratio
 C. Return of
 D. Quick ratio
201. What is the ratio of the
quick assets to current
liabilities?
 A. Profit margin ratio
 B. Price-earnings ratio
 C. Return of
investment ratio
 D. Quick ratio
202. What is a measure of the
average speed with which
accounts receivable are
collected?
 A. Profit margin ratio
 B. Receivables
turnover
 C. Return of
investment ratio
 D. Average age of
receivables
203. Receivable turnover is
the ratio of:
 A. Net credit sales to
average net
receivables
 B. Market price per
share to earnings per
share
 C. Cost of goods sold
to average cost of
inventory on hand
 D. Common
shareholders’ equity
to number of
outstanding shares
204. What is the ratio of the
net income to owner’s equity?
 A. Gross margin
 B. Return of
investment ratio
 C. Book value per
share of common
stock
 D. Inventory turnover
205. What is the ratio of the
market price per share to
earnings per share called?
 A. Gross margin
 B. Price-earnings ratio
 C. Book value per
share of common
stock
 D. Inventory turnover
206. What is the profit margin
ratio?
 A. The ratio of the net
income before taxes
to net sales
 B. The ratio of gross
profit to net sales
 C. The ratio of
common
shareholders’ equity
to the number of
outstanding shares
 D. The ratio of cost
goods sold to average
cost of inventory on
hand
207. What is a gross margin?
 A. The ratio of net
income before taxes
to net sales
 B. The ratio of gross
profit to net sales
 C. The ratio of
common
shareholders’ equity
to the number of
outstanding shares
 D. The ratio of cost of
goods sold to average
cost of inventory on
hand
208. Which of the following is
a book value share of
common stock?
 A. The ratio of net
income before taxes
to net sales
 B. The ratio of gross
profit to net sales
 C. The ratio of
common
shareholders’ equity
to the number of
outstanding shares
 D. The ratio of cost of
goods sold to average
cost of inventory on
hand
209. What is an inventory
turnover?
 A. The ratio of net
income before taxes
to net sales
 B. The ratio of gross
profit to net sales
 C. The ratio of
common
shareholders’ equity
to the number of
outstanding shares
 D. The ratio of cost of
goods sold to average
cost of inventory on
hand
210. The average age of
receivables is computed using
which formula?
  A. 365 / receivable  D. Term of an
turnovers investment
 B. 365 / average net 215. Which of the following is
receivable an accelerated depreciation
 C. 365 / inventory method?
turnover  A. Straight line
 D. 365 / average cost method and sinking
of inventory on hand fund method
211. What is a method of  B. Straight line
determining when the value method and double
of one alternative becomes declining balance
equal to the value of another? method
 A. Specific  C. Double declining
identification method balance method and
 B. Average cost SYD method
method  D. SYD method and
 C. Break-even sinking fund method
analysis 216. What is an accelerated
 D. Incremental value depreciation method?
method  A. It is one that
212. The days supply of calculates a
inventory on hand is depreciation amount
calculated using which greater than a
formula? straight line amount
 A. 365 / receivable  B. It is one that
turnovers calculates a
 B. 365 / average net depreciation amount
receivable lesser than a straight
 C. 365 / inventory line amount
turnover  C. It is one that
 D. 365 / average cost calculates a
of inventory on hand depreciation amount
213. What is defined as the equal to straight line
length of time usually in amount
years, for cumulative net  D. It is one that
annual profit to equal the calculates a
initial investment? depreciation not in
 A. Return of any way related to
investment period straight line amount
 B. Turnover period 217. What refers to the
 C. Break-even period reduction in the level of a
D. Payback period national income and output
 net income to owner’s equity?
usually accompanied by a fall
214. What is defined as ratio
in the general price level?
of its return to its cost?
 A. Deflation
 A. Return of an
 B. Inflation
investment
 B. Value of an  C. Devaluation
investment  D. Depreciation
 C. Breakeven point of 218. A formal organization of
an investment producers within an industry
forming a perfect collusion
purposely formed to increase  B. Acid test ratio
profit and block new comers  C. Return on
form the industry is called investment
______.  D. Profit margin
 A. Monopoly 224. What refers to the
 B. Cartel buying or selling of goods
 C. Corporation between two or more markers
 D. Competitors in order to take profitable
219. The paper currency advantage of any differences
issued by the central bank in the prices quoted in these
which forms part of the markets?
country’s money supply is  A. Cartel
called ______.  B. Arbitrage
 A. T-bills  C. Black market
 B. Bank notes  D. A priori
 C. Check 225. The suspension of
 D. Coupon repayment of debt or interest
220. “When one of the factors for a specified period of time
of production is fixed in is called ______.
quantity or is difficult to  A. Moratorium
increase, increasing the other  B. Escrow
factors of production will  C. Numeraire
result in a less than  D. Porcupine
proportionate increase in 226. The discount of one unit
output”. of principal for one unit of
 A. Law of diminishing time.
return  a. Rate discount
 B. Law of supply  b. Nominal discount
 C. Law of demand c. Actual discount
 to establish a price good
 D. Law of supply and  d. Sales discount
demand
227. An annuity whereby the
221. What is the ratio of the
payment is postponed for a
market price per share to the certain period of time is?
earnings per share?  a. Ordinary annuity
 A. Inventory turnover  b. Suspended annuity
 B. Price-earnings  c. Deferred annuity
 C. Book value per  d. Annuity due
share of common 228. The actual interest
stock earned by a given principal is
 D. Profit margin known as?
222. What is the ratio of the  a. Compounded
interest
 A. Return on  b. Nominal interest
investment  c. Simple interest
 B. Inventory turnover  d. Effective interest
 C. Profit margin 229. A bond where the
 D. Price-earnings security behind it are the
223. What refers to the ration equipment of the issuing
of the net income before corporation.
taxes to net sales?  a. Debenture
 A. Receivable turnover  b. Mortgage
 c. Collateral
 d. Lien
230. Characterized by a few
supplies of a product/services
that the action by one will
almost inevitably result in the
similar action by the other.
 a. Monopoly
 b. Oligopoly
 c. Competition
 d. Necessity
231. It is the worth of a
property as shown on the
accounting records.
 a. Resale value
 b. Face value
 c. Book value
 d. Written value
232. The decrease in the
value of a property due to
gradual extraction of its
contents.
 a. Depreciation
 b. Depletion
 c. Devaluation
 d. Deviation
233. It is usually determined
by a disinterested third party
enough to both the seller and
the buyer.
a. Fair value

 b. Market value
 c. Common value
 d. Safe value
234. The exclusive right of a
company to provide a specific
product or services in a given
region of the country.
 a. Outlet
 b. Branch
 c. Extension
 d. Franchise
235. It is the sum of the first
cost and the present worth of
all costs or replacement,
operation and maintenance.
 a. Total cost
 b. Capitalized cost
 c. Initial cost
 d. Variable cost
236. A certificate of
indebtedness of a corporation
usually for a period not less
than 10 years and guaranteed
by a mortgage on certain
assets of the corporation or its
subsidiaries.
 a. Collateral
 b. Bond
 c. Mortgage
 d. Contract
237. What the property is
worth to the owner as an
operating unit.
 a. Utility value
 b. Present value
 c. Salvage value
 d. Resale value
238. Occurs when a
commodity or service is
supplied by a number of
vendors and there is nothing
to prevent additional vendors
entering the market.
 a. Free market
 b. Perfect competition
 c. Open market
 d. Law of supply and
demand
239. In making economy
studies a minimum required
profit on the invested capital
is included as a cost. A
method called as __________.
 a. Rate of return
 b. Annual cost pattern
 c. Present worth
pattern
 d. Capital cost
240. Annuity is required over
10 years to equate to a future
amount of P 15, 000 with
i=5%
 a. P 1, 192.57
 b. P 1, 912.75
 c. P 1, 219.60
 d. P 1, 921.65
241. A debt of P 1000 is to be
paid off in 5 equal yearly
payments, each combining an
amortization installment and
interest at 4% on the
previously unpaid balance of
the debt. What should be the
amount of each payment?
 a. P 220.50
 b. P 224.62
 c. P 242.61
 d. P 222.50
242. P 1000 is deposited in a
bank at 7% interest. What is
the value of the money after
25 years, assuming that
nothing was deposited after
the initial deposit?
 a. P 5, 247.63
 b. P 5, 437.34
 c. P 5, 427.43
 d. P 5, 720.51
243. What is the interest due
on a P 1500 note for 4 years
and 3 month, if it bears 12%
ordinary simple interest?
 a. P 756
 b. P 765
 c. P 675
 d. P 576
244. A P 1000-bond which will
mature in 10 years and with a
bond rate of 10% payable
annually is to be redeemed at
P 1040 at the end of this
period. If it is sold now at P
1,120. Determine the yield at
this price.
 a. 4.68 %
 b. 6.48 %
 c. 8.64 %
 d. 8.46 %
245. A company sets aside P
300,000 each year as a fund
for expansion. If the fund
earns 9% compounded
annually, determine how long
will it take before a building
costing P 3, 000, 000 can be
built?
 a. 7.34 years
 b. 7.44 years
 c. 7.20 years
 d. 7.54 years
246. Which is NOT an
essential element of an
ordinary annuity?
 A. The amounts of all
payments are equal.
 B. The payments are
made at equal
interval of time.
 C. The first payment is
made at the
beginning of each
period.
 D. Compound interest
is paid on all amounts
in the annuity.
247. An amortization of a debt
is in a form of a gradient
series of P5,000 on the first
year, P4,500 on the second
year, P4,000 on the third year,
P3,500 on the fourth year.
What is the equivalent
uniform periodic payment if
interest is 5%?
 A. P4,280.47
 B. P4,378.17
 C. P4,259.68
 D. P4,325.12
248. A method of depreciation
whereby the amount to
recover is spread uniformly
over the estimated life of the
asset in terms of the periods
or units of output.
 A. Straight line
method
 B. Sinking fund
method
 C. Declining balance
method
 D. SYD method
249. Which of the following
depreciation methods cannot
have a salvage value of zero?
 A. Declining balance
method
 B. Sinking fund
method
 C. Straight line
method
 D. SYD method
250. A method of depreciation
where a fixed sum of money is
regularly deposited at
compound interest in a real or
imaginary fund in order to
accumulate an amount equal
to the total depreciation of an
asset at the end of the asset’s
estimated life.
 A. Straight line
method
 B. Sinking fund
method
 C. Declining balance
method
 D. SYD method
251. A price tag of P1200 is
specified if paid within 60
days but offers a 3% discount
for cash in 30 days. Find the
rate of interest.
 A. 37.11%
 B. 40.21%
 C. 38.51%
 D. 39.31%
252. It is the practice of
almost all bank in the
Philippines that when they
grant a loan, the interest for 1
year is automatically
deducted from the principal
amount upon release of
money to a borrower. Let us
therefore assume that you
applied for a loan with the
bank and the P80000 was
approved at an interest rate
of 14% of which P11200 was
deducted and you were given
ac check of P68800. Since you
have to pay the amount of
P80000 one year after, what
then will be the effective
interest rate?
 A. 16.28%
 B. 17.30%
 C. 38.51%
 D. 39.31%
253. Mr. J. Dela Cruz borrowed
money from the bank. He
received from the bank
P1,340.00 and promised to
pay P1,500.00 at the end of 9
months. Determine the simple
interest rate and the
corresponding discount rate
or often referred to as the
“Banker’s Discount”.
 A. 15.92% ; 13.73%
 B. 12.95% ; 17.33%
 C.18.28% ; 13.12%
 D. 19.25% ; 13.33%
254. A man borrowed from
the bank under a promissory
note that he signed in the
amount of P25000.00 for a
period of 1year. He received
only the amount of
P21,915.00 after the bank
collected the advance interest
and an additional amount of
P85.00 for notarial and
inspection fees. What was the
rate of interest that the bank
collected in advance?
 A. 13.64%
 B. 16.43%
 C.18.37%
 D. 10.32%
255. Karen was granted a loan
of P20,000 by her employer
CPM Industrial Fabricator and
Construction Corporation with
an interest at 6% for 180days
on the principal collected in
advance. The corporation
would accept a promissory
note for P20,000 non-interest
for 180days. If discounted at
once, find the proceeds in the
note.
 A. P18,800
 B. P18,000
 C. P19,000
 D. P18,400
256. P4000 is borrowed for
75days at 16% per annum
simple interest. How much will
be due at the end of 75days?
 A. P4186.43
 B. P4133.33
 C. P5124.54
  D. P5625.43
257. Mr. Bautista made a
money market placement of
P1,000,000 for 30 days at
7.5% per year. If withholding
tax is 20%, what is the net
interest that Mr. Bautista will
receive at the end of the
month?
 A. P3,000
 B. P6,000
 C. P4,000
 D. P5,000
258. A bill for motorboat
specifies the cost as P1,200
due at the end of 100days but
offers a 4% discount for cash
in 30days. What is the highest
rate, simple interest at which
the buyer can afford to borrow
money in order to take
advantage of the discount?
 A. 18.4%
 B. 20.9%
 C. 19.6%
 D. 21.4%
259. In buying a computer
disk, the buyer was offered
the options of paying P250
cash at the end of 30days or
P270 at the end of 120days.
At what rate is the buyer
paying simple interest if he
agree to pay at the end of
120days?
 A. 32%
 B. 28%
 C.40%
 D. 25%
260. On March 1, 1996 Mr.
Sarmiento obtains a loan of
P1500 from Mr. Avila and
signs a note promising to pay
the principal and accumulated
simple interest at the rate of
5% at the end of 120days. On
May 15, 1996, Mr. Avila
discounts the note at the bank
whose discount rate is 6%.
What does he receive?
 A. P2,201.48
 B. P1,513.56
 C. P1,123.29
 D. P938.20
261. A deposit of P110,000
was made for 31days. The net
interest after deducting 20%
withholding tax is P890.36.
Find the rate of return
annually.
 A. 12.25
 B. 12.75
 C. 11.75
 D. 11.95
262. If you borrowed money
from your friend with simple
interest of 12%, find the
present worth of P50,000
which is due at the end of
7months.
 A. P46,200
 B. P46,729
 C. P44,893
 D. P45,789
263. A man borrowed P2000
from a bank and promise to
pay the amount for 1year. He
received only the amount of
P1,920 after the bank
collected an advance interest
of P80. What was the rate of
discount and the rate of
interest that the bank
collected in advance?
 A. 4% ; 4.17%
 B. 4% ; 4.71%
 C. 3% ; 3.17%
 D. 3% ; 3.71%
264. An engineer promised to
pay P36,000 at the end of
90days. He was offered a 10%
discount if he pays in 30 days.
Find the rate of interest.
 A. 64.6%
 B. 66.6%
 C. 65.6%
 D. 67.6%
265. A man is required to pay
P200 at the end of 160 days
or P190 at the end of 40 days.
Determine the rate of interest.
 A. 18.4%
 B. 15.8%
 C. 19.6%
 D. 16.4%
266. Compute the discount if
P2000 is discounted for 6
months at 8% simple interest.
 A. P29.67
 B. P76.92
 C. P67.29
 D. P92.76
267. The amount of P12800 in
4years at 5% compounded
quarterly is _____.
 A. P14,785.34
 B. P16,311.26
 C. P15,614.59
 D. P15,847.33
268. A man borrows money
from a bank which uses a
simple discount rate of 14%.
He signs a promissory note
promising to pay P500.00 per
month at the end of 4th, 6th,
and 7th month respectively.
Determine the amount of
money that he received from
the bank.
 A. P1403.68
 B. P1102.37
 C. P1340.38
 D. P1030.28
269. A nominal interest of 3%
compounded continuously is
given on the account. What is
the accumulated amount of
P10,000 after 10 years?
 A. P13,610.10
 B. P13,498.60
 C. P13,500.10
 D. P13,439.16
270. BY the condition of a will,
the sum of P2000 is left to a
girl to be held in trust fund by
her guardian until it amount
to P50000.00. When will the
girl receive the money of the
fund is invested at 8%
compounded quarterly?
 A. 7.98 years
 B. 11.57 years
 C. 10.34 years
 D. 10.45 years
271. A man expects to receive
P25,000 in 8 years. How much
is that worth now considering
interest at 8% compounded
quarterly?
 A. P13,859.12
 B. P13,675.23
 C. P13,958.33
 D. P13,265.83
272. P500,000 was deposited
at an interest of 6%
compounded quarterly.
Compute the compound
interest after 4 years and 9
months.
 A. P163,475.37
 B. P158,270.37
 C. P178,362.37
 D. P183,327.37
273. If the nominal interest
rate is 3%, how much is
P5000 worth in 10 years in a
continuously compounded
account?
 A. P5750
 B. P7500
 C. P6750
 D. P6350
274. P200,000 was deposited
for a period of 4 years and 6
months and bears on interest
of P85649.25. What is the rate
of interest if it is compounded
quarterly?
 A. 8%
 B. 7%
 C. 6%
 D. 5%
275. How many years will
P100,000 earn a compound
interest of P50,000 if the
interest rate is 9%
compounded quarterly?
 A. 3.25 years
 B. 5.86 years
 C. 4.55 years
 D. 2.11 years
276. A certain amount was
deposited 5 years and 9
months ago at an interest of
8% compounded quarterly. If
the sum now is P315,379.85,
how much was the amount
deposited?
 A. P200,000
 B. P240,000
 C. P180,000
 D. P260,000
For Problems 277-279:
When compounded Bi-
monthly, P15000 becomes
P22,318.30 after 5years.
277. What is the nominal rate
of interest?
 A. 7%
 B. 9%
 C. 8%
 D. 10%
278. What is the equivalent
rate if it is compounded
quarterly?
 A. 7.03%
 B. 9.03%
 C. 8.03%
 D. 10.03%
279. What is the effective rate
if it is compounded quarterly?
 A. 7.28%
 B. 9.28%
 C. 8.28%
 D. 10.28%
280. How will it take a money
to double itself if invested at
5% compounded annually?
 A. 12.2 years
 B. 14.2 years
 C. 13.2 years
 D. 15.2years
281. Compute the effective
annual interest rate which is
equivalent to 5% nominal
annual interest compounded
continuously.
 A. 5.13%
 B. 5.26%
 C. 4.94%
 D. 4.90%
282. Find the time required for
a sum of money to triple itself
at 5% per annum
compounded continuously.
  A. 21.97 years
 B. 18.23 years
 C. 25.34 years
 D. 23.36 years
283. A man wishes to have
P40,000 in a certain fund at
the end of 8 years. How much
should he invest in a fund that
will pay 6% compounded
continuously?
 A. P24,751.34
 B. P28,864.36
 C. P36,421.44
 D. P30,468.42
284. If the effective annual
interest rate is 4%, compute
the equivalent nominal annual
interest compounded
continuously.
 A. 3.92%
 B. 3.80%
 C. 4.10%
 D. 4.09%
285. What is the nominal rate
of interest compounded
continuously for 10 years if
the compound amount factor
is equal to 1.34986?
 A. 3%
 B. 5%
 C. 4%
 D. 6%
286. American Express Corp.
charges 1.5% interest per
month, compounded
continuously on the unpaid
balance purchases made on
this credit card. Compute the
effective rate of interest.
 A. 19.72%
 B. 21.20%
 C. 20.25%
 D. 19.90%
287. If the nominal interest is
12% compounded
continuously, compute the
effective annual rate if
interest.
 A. 12.75%
 B. 12.40%
 C. 11.26%
 D. 11.55%
288. Compute the difference
in the future amount of P500
compounded annually at
nominal rate of 5% and if it is
compounded continuously for
5 years at the same rate.
 A. P3.87
 B. P5.48
 C. P4.21
 D. P6.25
289. If the effective rate is
24%, what nominal rate of
interest is charged for a
continuously compounded
loan?
 A. 21.51%
 B. 23.25%
 C. 22.35%
 D. 21.90%
290. What is the nominal rate
of interest compounded
continuously for 8 years if the
present worth factor is equal
to 0.6187835?
 A. 4%
 B. 6%
 C. 5%
 D. 7%
291. What is the difference of
the amount 3 years from now
for a 10% simple interest and
10% compound interest per
year? (P5000 accumulated)
 A. P155
 B. same
 C. P100
 D. P50
292. Find the discount if
P2,000 is discounted for 6
months at 8% compounded
quarterly.
 A. P76.92
 B. P77.66
 C. P80.00
 D. P78.42
293. If a sum of money triples
in a certain period of time at a
given rate interest, compute
the value of the single
payment present worth factor.
 A. 0.333
 B. 0.292
 C. 3.000
 D. 1.962
294. If the single payment
amount factor for a period of
5 years is 1.33822. What is
the nearest value of the
interest rate?
 A. 8%
 B. 5%
 D. 7%
 D. 6%
295. If the single payment
present worth factor for a
period of 8 years is equal to
0.58201, compute the nearest
value of the rate of interest
for that period.
 A. 6%
 B. 5%
 C. 7%
 D. 8%
296. If money is worth 8%
compounded quarterly,
compute the single payment
amount factor for a period of
6 years.
 A. 1.60844
 B. 1.70241
 C. 0.62172
 D. 0.53162
297. A sum of P1,000 is
invested now and left for 8
years, at which time the
principal is withdrawn. The
interest has an accrued left
for another 8 years. If the
effective annual interest is
5%, what will be the
withdrawn amount at the end
of the 16th year?
 A. P507.42
 B. P750.42
 C. P705.42
 D. P425.07
For problems 298 - 300:
Compute the interest for an
amount of P200,000 for a
period of 8 years.
298. If it was made at a
simple interest rate of 16% .
 A. P274,000
 B. P256,000
 C. P265,000
 D. P247,000
299. If it was made at 16%
compounded bi-monthly.
 A. P507,267.28
 B. P407,283.01
 C. P507,365.96
 D. P459,923.44
300. If it was made at 16%
compounded continuously.
 A. P422,462.64
 B. P524,242.46
 C. P507,233.24
 D. P519,327.95
301. Find the value of x, (F/P,
x, 6) if F/P compounded
quarterly is equal
to 1.612226.
 A. 7%
 B. 5%
 C. 8%
 D. 6%
302. Find the value of y, (P/F,
6%, y) if P/F compounded bi-
monthly is equal
to 0.787566.
 A. 7 years
 B. 5 years
 C. 6 years
 D. 4 years
303. Find the rate of interest if
compound amount factor
compounded bi-monthly for 5
years is equal to 1.487887.
 A. 7%
 B. 5%
 C. 8%
 D. 6%
304. Compute the nominal
rate for a period of 6 years for
an effective rate of 8.33% if it
is compounded continuously.
 A. 7%
 B. 5%
 C. 8%
 D. 6%
305. Compute the
equivalent compound
amount factor if it is
compounded continuously.
 A. 1.61607
 B. 1.24532
 C. 1.24282
 D. 0.24245
306. Compute the equivalent
present worth factor if it is
compounded continuously.
 A. 1.249347
 B. 1.243248
 C. 1.214359
 D. 0.616783
307. A man loan P2000 from
the bank. How long would it
take in years for the amount
of the loan and interest to
equal P3280 if it was made
at 8% simple interest.
 A. 7 years
 B. 5 years
 C. 8 years
 D. 6 years
308. A man loan P2000 from
the bank. How long would it
take in years if it was made at
8% compounded quarterly.
 A. 5.25 years
 B. 7.25 years
 C. 6.25 years
 D. 8.25 years
309. A man loan P2000 from
the bank. How long would it
take in years if it was made
at 8% compounded
continuously.
 A. 7.18 years
 B. 5.18 years
 C. 8.18 years
 D. 6.18 years
310. An amount of P1000
becomes P1608.44 after 4
years compounded bi-
monthly. Find the nominal rate
of interest, the effective rate
of interest, and the equivalent
rate of interest if it is
compounded quarterly.
  A. 11% ; 12.623% ;
11.42%
 B. 12% ; 11.06% ;
12.724%
 C. 12% ; 12.616% ;
12.06%
 D. 11% ; 11.664% ;
11.93%
311. How long would it take
your money to double
itself if it is invested at 6%
simple interest, compounded
semi-quarterly, and
compounded continuously?
 A. 12.67 yrs ; 11.2
yrs ; 15.05 yrs
 B. 18.67 yrs ; 11.6 yrs
; 11.24 yrs
 C. 16.67 yrs ; 11.6 yrs
; 11.55 yrs
 D. 17.67 yrs ; 10.2 yrs
; 11.45 yrs
For problems 312 - 314:
An amount of P50,000 was
invested for 3 years.
312. Compute its interest at
the end of 3 years if it is
invested at 10% simple
interest.
 A. P16,550.00
 B. P15,000.00
 C. P17,492.94
 D. P14,242.15
313. Compute for its
compound interest if it is
invested at 10%
compounded annually.
 A. P16,550.00
 B. P15,000.00
 C. P17,492.94
 D. P14,242.15
314. Compute its interest if it
is invested at 10%
compounded continuously.
 A. P16,550.00
 B. P15,000.00
 C. P17,492.94
 D. P14,242.15
For Problems 315 - 317:
P200,000 was deposited for a
period of 4 yrs. And 6 months
and bears on interest of
P85,659.25.
315. What is the nominal rate
of interest if it is compounded
quarterly?
 A. 8.00%
 B. 7.00%
 C. 8.24%
 D. 7.96%
316. What is the actual rate of
interest?
 A. 8.00%
 B. 7.00%
 C. 8.24%
 D. 7.96%
317. What is the equivalent
nominal rate if it is
compounded semi-quarterly?
 A. 8.00%
 B. 7.00%
 C. 8.24%
 D. 7.96%
318. What is the value of (F/P,
8%, 6) if it is compounded
semi-quarterly.
 A. 0.524273541
 B. 1.487886717
C. 0.787566127
  D. 7.92%
 D. 1.612226000
319. What is the value of (P/F,
6%, 4) if it is compounded bi-
monthly.
 A. 0.524273541
 B. 1.487886717
 C. 0.787566127
 D. 1.612226000
320. What is the single
payment compound amount
factor for 8% compounded
bi-monthly for 5 years.
 A. 0.524273541
 B. 1.487886717
 C. 0.787566127
 D. 1.612226000
For Problems 321 - 323:
If money is invested at a
nominal rate of interest of 8%
for a period of 4 years.
321.) What is the effective
rate if it is compounded
continuously?
 A. 8.33%  D. 9.78%
 B. 9.33% 328.) What is the actual
 C. 8.93% interest rate of problem no.
 D. 9.93% 327?
322.) What is the value of  A. 7.24%
the compound amount  B. 7.92%
factor if it is compounded  C. 8.24%
continuously?  D. 8.87%
 A. 1.377128 329.) What is the equivalent
 B. 1.424231 rate if problem no. 327
 C. 0.214212 is compounded daily?
 D. 0.122416  A. 7.24%
323. What is the value of  B. 7.92%
the present worth factor if  C. 8.24%
it is compounded  D. 8.87%
continuously? For Problems 330 - 332:
 A. 1. 272441 A businessman loaned
 B. 0.272441 P500,000 from a local bank
 C. 1.726419 that charges an interest rate
 D. 0.726149 of 12%.
324. If the single payment 330. How much is he going to
amount factor for a period of pay at the end of 5 years if it
5 years is 1.33822, what is was made at 12% simple
the nominal rate of interest? interest?
 A. 6.00%  A. P800,000.00
 B. 7.00%  B. P911,059.20
 C. 6.92%  C. P823,243.09
 D. P907,009.21
331. How much is he going to
325. What is the effective
pay at the end of 5 years if it
rate of interest if it is
was made at 12% compound
compounded semi-annually of
problem no. 324? semi-quarterly?
 A. 5.00%  A. P800,000.00
 B. 7.24%  B. P911,059.20
 C. 6.92%  C. P823,243.09
 D. P907,009.21
 D. 6.09%
332. How much is he going to
326. What is the equivalent
pay at the end of 5 years if it
nominal rate if it is
was made at 12% compound
compounded quarterly of
problem no. 324? continuously?
 A. 6.12%  A. P800,000.00
 B. 4.24%  B. P911,059.20
 C. P823,243.09
 C. 5.43%
 D. P907,009.21
 D. 5.87%
333. P60,000 was deposited
327. Money was invested at x
at 6% compounded
% compounded quarterly. If it
takes money to quadruple in quarterly, tax free for 9
17.5 years, find the value of x. years and 3 months. How
 A. 6.23% much interest was earned at
 B. 8.00% the end of the period?
 A. P43,214.24
 C. 5.92%
 B. P44,086.60
 C. P43.242.24
 D. P44,215.60
334. P100,000 was placed in a
time deposit which earned
9% compounded
quarterly tax free. After how
many years would it be able
to earn a total interest of
P50,000?
 A. 4.56 years
 B. 3.45 years
 C. 4.23 years
 D. 3.64 years
335. P200,000 was placed in a
time deposit at x
% compounded
quarterly and was free of
taxes. After exactly 5 years,
the total interest earned was
P120,000. What is the value
of x?
 A. 9.5%
 B. 6.35%
 C. 8.21%
 D. 7.12%
336. Which of these gives the
lowest effective rate of
interest?
 A. 12.35%
compounded annually
 B. 12.2% compounded
quarterly
 C. 11.9% compounded
semi-annually
 D. 11.6%
compounded monthly
337. It takes 20.15 years to
quadruple your money if it is
invested at x% compounded
semi-annually. Find the value
of x.
 A. 8%
 B. 7%
 C. 6%
 D. 5%
338. It takes 13.87 years to
treble the money at the rate
of x% compounded
quarterly. Compute the
value of x.
  A. 5%  C. P33,000.00  C. 4.29% and 4.32% would the sum be on Jan. 1,  B. P110,297.27
 B. 7%  D. P30,546.01  D. 3.97% and 3.95% 1993?  C. P129,382.38
 C. 6% 343. An initial savings deposit 348. Convert 12% semi-  A. P421,170  D. P122,265.69
 D. 8% of P80,000 in a certain bank annually to compounded  B. P401,170 358. In year zero, you invest
339. Money was invested at x earns 6% interest per annum quarterly.  C. P521,170 P10,000.00 in a 15% security
% compounded quarterly. compounded monthly. If the  A. 19.23%  D. P621,170 for 5 years. During that time,
If it takes the money into earnings from the deposit are  B. 14.67% 354. If P500,000 is deposited the average annual inflation is
quadruple in 17.5 years, find subject to a 20% tax, what  C. 23.56% at a rate of 11.25% 6%. How much, in terms of
the value of x. would the net value of the  D. 11.83% compounded monthly, year zero will be in the
 A. 8% deposit be after three 349. What is the determine the compounded account atmaturity?
 B. 7% quarters? corresponding effective interest after 7 years and 9  A. P15,386.00
 C. 6%  A. P95,324.95 interest rate of 18% months.  B. P13,382.00
 D. 5%  B. P68743.24 compounded semi-quarterly?  A. P690,849  C. P15,030.00
340. Fifteen years ago  C. P82938.28  A. 19.25%  B. P680,686  D. P16,653.00
P1,000.00 was deposited in a  D. P56244.75  B. 18.46%  C. P670,258 359. A machine has been
bank account, and today it is 344. The effective rate of  C. 19.48%  D. P660,592 purchased and installed at a
worth P2.370.00. The bank interest of 14% compounded  D. 18.95% 355.) P200,000 was deposited total cost of P18,000.00. The
pays interest semi-annually. semi-annually is: 350.) If P5000 shall at an interest rate of machine will be retired at the
What was the interest rate  A. 14.49% accumulate for 10 years at 24% compounded semi- end of 5 years, at which time
paid on this account?  B. 14.94% 8% compounded quarterly, annually. After how many it is expected to have a scrap
 A. 4.9%  C. 14.36% find the compounded years will the sum be value of P2,000.00 based on
 B. 5.0%  D. 14.88% interest at the end of 10 P621,170? current prices. The machine
 C. 5.8% 345. The amount of P50,000 years.  A. 4 years will then be replaced with an
 D. 3.8% was deposited in a bank  A. P6,005.30  B. 5 years exact duplicate. The company
341. You borrow P3,500.00 for earning an interest of 7.5%  B. P6,040.20  C. 3 years plans to establish a reserve
one year from a friend at an per annum. Determine the  C. P6,000.00  D. 6 years fund to accumulate the
interest rate of 1.5% per total amount at the end of 5  D. P6,010.20 356. A bank is advertising capital needed to replace the
month instead of taking a loan years, if the principal and 9.5% accounts that machine. If an average
351. A couple borrowed
from a bank at a rate of 18% interest were not withdrawn yields 9.84% annually. How annual rate of inflation of 3%
P4,000 from a lending
per year. Compare how much during the period. often is the interest is anticipated, how much
company for 6 years at 12%.
money you will save or lose  A. P71,781.47 compounded? capital must be accumulated?
At the end of 6 years, it
on the transaction.  B. P70,374.90  A. monthly  A. P15,030.00
renews the loan for the
 A. pay P155 more if  C. P72,475.23 amount due plus P4,000 more  B. quarterly  B. P12,382.00
you borrowed from  D. P78,536.34 for 3 years at 12%. What is  C. bi-monthly  C. P18,548.39
the bank 346. What is the effective thelump sum due?  D. daily  D. P15,386.00
 B. save P55 by rate corresponding to 18%  A. P14,842.40 357. A marketing company 360. If the inflation rate is
borrowing from your compounded daily? Take 1  B. P12,316.40 established a program to 6%, cost of money is 10%,
friend year is equal to 360 days.  C. P16,712.03 replace the cars of its sales what interest rate will take
 C. pay P85 more if you  A. 18.35%  D. P15,382.60 representatives at the end of care of inflation and the cost
borrowed from the  B. 18.10% every 5 years. If the present of money?
352. How long (in years) will it
bank  C. 19.39% price of the approved type of  A. 16.6%
take the money to quadruple
 D. save P95 by  D. 19.72% if it earns 7% compounded car is P520,000.00 with a  B. 17.7%
borrowing from your 347. If P1,000 becomes semi-annually? resale value at the end of 5  C. 15.5%
friend P1,126.49 after 4 years when  A. 26.30 years years of 60% its present  D. 14.4%
342. Find the present worth of invested at a certain nominal  B. 33.15 years value, how much money must 361. A man bought a
a future payment of rate of interest compounded  C. 40.30 years the company accumulate for government bond which cost
P1000,000 to be made in 10 semi-annually, determine  D. 20.15 years 5 years if inflation P1000 and will pay P50
years with an interest of 12% the nominal rate and the annually is 10%. Release interest each year for 20
153. P200,000 was deposited
compounded quarterly. corresponding effective rate. value will also appreciate at years. The bond will mature at
on Jan. 1,1988 at an interest
 A. P30,444.44  A. 3.00% and 3.02% 10% yearly. the end of 20 years and he
rate of 24% compounded
 B. P30,655.68  B. 2.30% and 2.76%  A. P120,289.51 will receive the original
semi-annually. How much
P1000. If there is 2% annual
inflation during this period,
what rate of return will the
investor receive after
considering the effect of
inflation?
 A. 2.94%
 B. 4.25%
 C. 3.16%
 D. 5.16%
362.) The inflated present
worth of P2000 in two years is
equal to P1471.07. What is
the rate of inflation if the
interest rate is equal to 10%?
 A. 6%
 B. 7%
 C. 5%
 D. 4%
363. 12% rate of interest can
take care of the cost of money
and inflation. If the nominal
rate of interest is 6%, what
is the rate of inflation?
 A. 6.62%
 B. 7.67%
 C. 5.66%
 D. 4.64%
364. An engineer bought an
equipment for P500,000.
Other expenses including
installations amounted to
P30,000. At the end of its
estimated useful life of 10
years, the salvage value will
be 10% of the first cost.
Using straight line method
of depreciation, what is the
book value after 5 years?
 A. P291,500
 B. P242,241
 C. P282,242
 D. P214,242
365. A small machine costing
P80,000 has a salvage value
of x at the end of its life of 5
years. The book value at the
end of the 4th year is P22,400.
What is the value of x using
the straight line method
depreciation?
 A. P6000
 B. P8000
 C. P7000
 D. P9000
366. A machine has a salvage
value of P12,000 at the end of
its useful life of 6 years. The
book value at the end of 5
years is P30,833.33. Using
a straight line method of
depreciation,what is the first
cost of the machine?
 A. P125,500
 B. P125,000
 C. P135,500
 D. P135,000
367. A manufacturing plant
was built at a cost of P5M and
is estimated to have a life of
20 years with a salvage value
of P1M. A certain equipment
worth P570,000 was installed
at a cost of P80,000 is
expected to operate
economically for 15 years with
a salvage value of
P50,000. Determine
the book value of the plant
and equipment after 10 years,
use straight line depreciation
method.
 A. P3,250,000
 B. P4,250,000
 C. P3,750,000
 D. P4,500,000
368. A printing equipment
costs P73,500 has a life
expectancy of 8 years and has
a salvage value of P3,500 at
the end of its life. The book
value at the end of x years is
equal to P38,500.
Using straight line method
of depreciation, solve for
the value of x.
 A. 5 years
 B. 6 years
 C. 4 years
 D. 3 years
369. The cost of the printing
equipment is P500,000 and
the cost of handling and
installation is P30,000. If the
book value of the equipment
at the end of the 3rd year is
P242,000 and the life of the
equipment is assumed to be 5
years, determine the salvage
value of this equipment at
the end of 5 years.
 A. P50,000
 B. P53,000
 C. P60,000
 D. P64,000
370. An engineer bought an
equipment for P500,000. He
spent an additional amount of
P30,000 for installation and
other expenses. The salvage
value is 10% of the first cost.
If the book value at the end of
5 years will be P291,500
using straight line method
of depreciation, compute
the useful life of the
equipment in years.
 A. 10 years
 B. 6 years
 C. 8 years
 D. 15 years
371. The cost of equipment is
P500,000 and the cost of
installation is P30,000. If the
salvage value is 10% of the
cost of equipment at the end
of 5 years, determine
the book value at the end of
the fourth year. Use straight
line method.
 A. P155,000
 B. P146,000
 C. P140,000
 D. P132,600
For Problems 172-174:
The first cost of a machine is
P1,800,000 with a salvage
value of P300,000 at the end
of its life of 5 years.
Determine the total
depreciation after 3 years.
372. Using Straight Line
Method
 A. P800,000
 B. P900,000
 C. P600,000
 D. P700,000
373. Using Sum of Years Digit
Method
 A. P1,150,000
 B. P1,300,000
 C. P1,200,000
 D. P1,350,600
374. Using Constant
Percentage Method
 A. P1,355,024.24
 B. P1,246,422.53
 C. P1,185,769.76
 D. P1,432,624.84
375. An asset is purchased for
P9,000.00. Its estimated
economic life is 10 years after
which it will be sold for
P1,000.00. Find
the depreciation in the first
three years using straight
line method.
 A. P2,500
 B. P3,000
 C. P2,400
 D. P2,000
376. The purchase of a motor
for P6000 and a generator for
P4000 will allow the company
to produce its own energy.
The configuration can be
assembled for P500. The
service will operate for 1600
hours per year for 10 years.
The maintenance cost is P300
per year, and cost to operate
is P0.85 per hour for fuel and
related cost. Using straight
line depreciation, what is
the annual cost for the
operation? There is a P400
salvage value for the system
at the end of 10 year.
 A. P2,710
 B. P2,630
 C. P2,480
 D. P2,670
377. A machine has an initial
cost of P50,00.00 and a
salvage value of P10,000.00
after 10 years. What is
the straight line method
depreciation rate as a
percentage of the initial cost?
 A. 10%
 B. 12%
 C. 8%
 D. 9%
378. A machine has an initial
cost of P50,00.00 and a
salvage value of P10,000.00
after 10 years. What is
the book value after 5
years using straight line
method depreciation rate?
 A. P35,000
 B. P15,500
 C. P25,000
 D. P30,000
379. A machine has a first of
P80,000 and a salvage of
P2,000 at the end of its life of
10 years. Find the book
value at the end of the
6th year using straight line
method of depreciation.
 A. P33,200
 B. P34,300
 C. P35,400
 D. P32,900
380. An asset is purchased for
P90,000.00. Its estimated life
is 10 years after which it will
be sold for P1,000.00. Find
the book value during the
first year if Sum of the Years
Digits(SYD) depreciation is
used.
 A. P7,545.45
 B. P5,245.92
 C. P2,980.24
 D. P6,259.98
381. A telephone company
purchased a microwave radio
equipment for P6M. Freight
and installation charges
amounted to 3% of the
purchased price. If the
equipment shall be
depreciated over a period of 8
years with a salvage value of
5%, determine the
depreciation charge during
the 5th year using the Sum of
Year Digit Method.
 A. P756,632.78
 B. P652,333.33
 C. P957,902.56
 D. P845, 935.76
382. A consortium of
international communications
companies contracted for the
purchase and installation of a
fiber optic cable linking two
major Asian cities at a total
cost of P960M. This amount
includes freight and
installation charges at 10% of
the above total contract price.
If the cable depreciated over
a period of 15 years with zero
salvage value, what is
thedepreciation
charge during the 8th year
using the sum of year digits
method?
 A. P64 M
 B. P80 M
 C. P23 M
 D. P76 M
383. A machine cost P7,350
has a life of 8 years and has a
salvage value of P350 at the
end of 8 years. Determine
its book value at the end of
4 years using sum years digit
method.
 A. P3,476.90
 B. P6,543.21
 C. P2,294.44
 D. P5,455.01
384. A certain equipment
costs P7,000 has an economic
life of n years and a salvage
value P350 at the end of n
years. If the book value at the
end of 4 years is equal to
P2197.22, compute for
the economic life of the
equipment using the sum of
years digit method.
 A. 10 years
 B. 8 years
 C. 16 years
 D. 11 years
385. A company purchased an
asset for P10000 and plans to
keep it for 20 years. If the
salvage value is zero at the
end of the 20th year, what is
the depreciation in the third
year? Use sum of years digit
method.
 A. P1000
 B. P938
 C. P857
 D. P747
386. An equipment costs
P7000 and has a life of 8
years and salvage value of x
after 8 years. If the book
value of the equipment at the
4th year is equal to P2197.22,
compute the salvage value
x using the sum of years digit
method.
 A. P594
 B. P350
 C. P430
 D. P290
387. ABC Corporation makes
it policy that for every new
equipment purchased, the
annual depreciation should
not exceed 20% of the first
cost at any time without
salvage value. Determine
the length of service if the
depreciation used is the SYD
Method.
 A. 9 years
 B. 12 years
 C. 10 years
 D. 19 years
388. A machine having a
certain first cost has a life of
10 years and a salvage value
of 6.633% of the first cost at
the end of 10 years. If it has a
book value of P58,914 at the
end of the 6thyear, how much
is the first cost of the machine
if the constant percentage
of declining value is used in
the computation for its
depreciation.(Matheson’s
Method)
 A. P600,000
 B. P100,000
 C. P300,000
 D. P900,000
389. A machine costing
P720,000 is estimated to have
a life of 10 years. If the annual
rate of depreciation is 25%,
determine the total
depreciation using a
constant percentage of the
declining balance method.
 A. P679,454.27
 B. P532,825.73
 C. P432,725.45
 D. P764,243.33
390. An earth moving
equipment that cost P90,000
will have an estimated
salvage value of P18,000 at
the end of 8 years. Using
double-declining balance
method, compute the book
value and the total
depreciation at the end of the
5th year.
 A. P21,357.42 ;
P68,642.58
 B. P24,362.48 ;
P65,637.52
 C. P15,830.34 ;
P74,169.66
 D. P19,442.78 ;
P70,557.22
391. A certain office
equipment has a first cost of
P20,000 and has a salvage
value of P1,000 at the end of
10 years. Determine
the depreciation at the end
of the 6th year using Sinking
fund method at 3% interest.
 A. P10,720
 B. P11,680
 C. P12,420
 D. P9,840
392. An equipment which cost
P200,000 has a useful life of 8
years with a salvage value of
P25,000 at the end of its
useful life. If the depreciation
at the first year is P21,875,
what method is used in the
calculation of depreciation?
 A. Straight Line
 B. Declining Balance
 C. Sinking Fund
 D. Sum of Years Digit
393. An equipment costs
P8,000 has an economic life
of 8 years and salvage value
of P400 at the end of 8 years.
The first year depreciation
amounts to P1,688.89. What
method is used in the
calculation of
the depreciation?
 A. Straight Line
 B. Declining Balance
 C. Sinking Fund
 D. Sum of Years Digit
394. The original cost of a
certain machine is P150,000
and has an economic life of 8
years with a salvage value of
P9,000 at that time. If the
depreciation of the first year
is equal to P44,475, what
method is used in the
calculation of the
depreciation?
 A. Straight Line
 B. Declining Balance
 C. Sinking Fund
 D. Sum of Years Digit
395. A machine has a first
cost of P140,000 and a life of
8 years with a salvage value
of P10,000 at the end of its
useful life. If the depreciation
at the first year amounts to
P35,000, what method is used
in the calculation of
depreciation?
 A. Double Declining
Balance
 B. Straight Line
 C. Declining Balance
 D. Sum of Years Digit
396. A hydraulic machine cost
P180,000 and has a salvage
value of P15,000 at the end of
its useful life which is 12
years. If the depreciation at
the first year is P9,780.71,
what method is used in
computing the depreciation.
Assume money is worth 6%
annually.
 A. Straight Line
 B. Declining Balance
 C. Sinking Fund
 D. Sum of Years Digit
397. An equipment costs
P480,000 and has a salvage
value of 10% of its cost at the
end of its economic life of
35,000 operating hours. In the
first year, it was used for
4,000 hours. Determine
its book value at the end of
the first year.
 A. P430,629.00
 B. P418,360.00
 C. P380,420.00
 D. P376,420.00
398. An equipment costs
P480,000 and has a salvage
value of 10% of its cost at the
end of its economic life of
36,000 operating hours in a
period of 5 years. In the first
year of service, it was used
for 12,000 hours. If at the end
of the 2nd year it was used for
15,000 hours, find
the depreciation at the
second year.
 A. P180,000
 B. P190,000
 C. P160,000
 D. P150,000
399. A certain machine cost
P40,000 and has a life of 4
years and a salvage value of
P5000. The production output
of this machine in units per
year is 1000 units for the first
year, 2000 units for the
second year, 3000 units for
the third year, and 4000 units
for the fourth year. If the units
produced are in uniform
quality, what is
the depreciation charge at
the end of the fourth year.
 A. P14,000
 B. P15,000
 C. P13,000
 D. P16,000
400. A lathe machine costs
P300,000 brand new with a
salvage value of x pesos. The
machine is expected to last
for 28500 hours in a period of
5 years. In the first year of
service it was used for 8000
hours. If the book value at the
end of the first year is
P220,000, compute for
the salvage value x in pesos.
 A. P15,000
 B. P12,000
 C. P18,000
 D. P20,000
401. It is defined to be the
capacity of a commodity to
satisfy human want
 A. Necessity
 B. Utility
 C. Luxuries
 D. Discount
402. It is the stock that has
prior to dividends. It usually
does not bring voting right to
the owners and the dividend
is fixed and cannot be higher
than the specified amount.
 A. Common stock
 B. Voting stock
 C. Pretend stock
 D. Non par value
stock
403. It is an amount which a
willing buyer will pay to a
willing seller for the property
where each has equal
advantage and is under no
compulsion to buy or sell.
 A. Book value
 B. Market value
 C. Use value
 D. Fair value
404. ____ is the loss of value
of the equipment with use
over a period of time. It could
mean a difference in value
between a new asset and the
use asset currently in a
service.
 A. Loss
 B. Depreciation
 C. Extracted
 D. Gain
405. An economic condition in
which there are so few
suppliers of a particular
product that one supplier’s
actions significantly affect
prices and supply.
 A. Oligopoly
 B. Monopsony
 C. Monopoly
 D. Perfect competition
406. A market whereby there
is only one buyer of an item
for when there are no goods
substitute.
 A. Monosony
 B. Monopoly
 C. Oligopoly
 D. Oligopsony
407. It is the worth of a
property as recorded in the
book of an enterprise.
 A. Salvage value
 B. Price
 C. Book value
 D. Scrap value
408. Reduction in the level of
nation income and output
usually accompanied by a fall
in the general price level.
 A. Devaluation
 B. Deflation
 C. Inflation
 D. Depreciation
409. A formal organization of 416. The value of the stock as  B. Gratuitous
producers within industry stated on the stocks  C. Concealed
forming a perfect collusion certificate  D. Private
purposely formed to increase  A. Stock value 423. The sum of all the costs
profit and block new comers  B. Par value necessary to prepare a
from the industry.  C. Interest construction project for
 A. Cartel  D. Maturity value operation.
 B. Monopoly 417. A market situation in  A. Operation costs
 C. Corporation which two competing buyers  B. Construction cost
 D. Competitors exert controlling influence  C. Depletion cost
410. A market situation where over many sellers.  D. Production cost
there is only one seller with  A. Bilateral monopoly 424. The amount received
many buyer.  B. Oligopoly from the sale of an addition
 A. Monopoly  C. Duopsony unit of a product.
 B. Monophony  D. Duopoly  A. Marginal cost
 C. Oligopoly 418. A market situation in  B. Marginal revenue
 D. Perfect competition which two powerful groups or  C. Extra profit
411. A market situation where organizations dominate  D. Prime cost
there is one seller and buyer. commerce in one business 425. The amount that the
 A. Bilateral monopoly market or commodity. property would give if sold for
 B. Monopoly  A. Oligopoly junk.
C. Oligopoly  B. Duopoly
  A. Junk value
C. Duopsony
 D. Bilateral Monopoly   B. Salvage value
412. Reduction in the level of  D. duopoly  C. Scrap value
national income and output 419. The type of annuity  D. Book value
usually accompanied by a fall where the first payment is 426. The worth of the
in the general price level. made after several periods, property which is equal to the
 A. Deflation after the beginning of the original cost less the amount
 B. Inflation payment. which has been charged to
C. Devaluation  A. Perpetuity
 depreciation.
 B. Ordinary annuity
 D. Depreciation  A. Scrap value
 C. Annuity due
413. A series of equal  B. Salvage value
D. Deferred annuity
payments made at equal   C. Book value
interval of time. 420. The condition in which  D. Market value
 A. Annuity the total income equals the 427. The sum of the direct
 B. Amortization total operating expenses. labor cost incurred in the
C. Depreciation  A. Tally
 factory and the direct material
 B. Par value
 D. Bonds cost of all materials that go
C. Check and balance
414. The money paid for the  into production is called
use of borrowed capital.  D. Break even  A. Net cost
 A. Interest 421. The amount which has  B. Maintenance cost
 B. Amortization been spent or capital invested  C. Prime cost
 C. Annuity which for some reasons  D. Operating cost
cannot be retrieved.
 D. Bonds 428. The difference between
 A. Sunk cost
415. The place where buyers the present value and the
 B. Fixed costs
and sellers come together. worth of money at some time
C. Depletion cost
 A. Maker  in the future is called
 B. Store  D. Construction cost  A. Market value
 C. Bargain center 422. An obligation with no  B. Net value
 D. Port condition attach is called  C. Discount
 A. Personal  D. Interest
429. The addition cost of
producing one more unit is
 A. Prime cost
 B. Marginal cost
 C. Differential cost
 D. Sunk cost
430. A written contract by a
debtor to pay final redemption
value on an indicated date or
maturity date and pay a
certain sum periodically.
 A. Annuity
 B. Bond
 C. Amortization
 D. Collateral
431. Estimated value of the
property at the useful life.
 A. Market value
 B. Fair value
 C. Salvage value
 D. Book value
432. Determination of the
actual quantity of the
materials on hand as of a
given date.
 A. Physical inventory
 B. Counting principle
 C. Stock assessment
 D. Periodic material
update
433. This consists of a cash
and account receivable during
the next period or any other
material which will be sold.
 A. Fixed assets
 B. Deferred charges
 C. Current asset
 D. Liability
434. A wrong act that causes
injury to a person or property
and for which allows a claim
by the injured party to recover
damages.
 A. Fraud
 B. Tort
 C. Libel
 D. Scam
435. A series of uniform
payment over an infinite
period of time
 A. Depletion
 B. Capitalized cost  D. Joint venture 448. The length of time which demand for the generators is
 C. Perpetuity 442. Parties whose consent or the property may be operated 35 units. The line operates for
 D. Inflation signature in a contract is not at a profit. 7 hours per day, 5 days per
436. These are products or considered intelligent.  A. Life span week. What is the maximum
services that are required to  A. Dummy person  B. Economic life production time per unit in
support human life and  B. Minors  C. Operating life hours required of the line to
activities that will be  C. Demented persons  D. Profitable life meet the demand?
purchased in somewhat the  D. Convict 449. The right and privilege  A. 1 hour
same quantity event though 443. It is defined as the granted to an individual or  B. 1 hour and 10
the price varies considerably. capacity of a commodity to corporation to do business in minutes
 A. Commodities satisfy human want. a certain region.  C. 1 hour and 15
 B. Necessities  A. Satisfaction  A. Permit minutes
 C. Demands  B. Luxury  B. Royalty  D. 1 hour and 30
 D. Luxury  C. Necessity  C. License minutes
437. The quantity of a certain  D. Utility  D. Franchise 454. Froyd Corporation’s gross
commodity that is offered for 444. This occurs in a situation 450. The worth of an asset as margin is 45% of sales.
sale at a certain price at a where a commodity or service shown in the accounting Operating expenses such as
given place and time. is supplied by a number of records of an enterprise. sales and administration are
 A. Utility vendors and there is nothing  A. Fair value 15% of sales. Froyd
 B. Supply to prevent additional vendors  B. Par value Corporation is in 40% tax
 C. Stocks entering the market. C. Market value bracket. What percent of sales

D. Goods  A. Perfect competition is their profit after taxes?
  D. Book value
B. Monophony  A. 21%
438. It is sometimes called 
the second hand value C. Monopoly  B. 20%
 451. A bookstore purchased a
 A. Scrap value  D. Cartel best-selling book at P200.00  C. 19%
 B. Salvage value 445. These are products or per copy. At what price should  D. 18%
 C. Book value services that are desired by this book be sold so that by 455. In determining the cost
 D. Par value human and will be purchased giving a 20% discount, the involved in fabricating sub-
if money is available after the profit is 30%. assembly B within a company,
439. Decreases in the value of
required necessities have  A. P200.00 the following data have been
a physical property due to the
been obtained.  B. P300.00 gathered:
passage of time.
 A. Commodities C. P400.00 Direct material - P0.30 per
 A. Deflation 
B. Necessities unit
 B. Depletion   D. P500.00
Direct labor - P0.50 per unit
 C. Declination  C. Luxuries 452. A businessman wishes to
Testing set-up - P300.00 per
 D. Depreciation  D. Supplies earn 7% on his capital after
set-up
440. An association of two or 446. Grand total of the assets payment of taxes. If the
It is decided to subcontract
more individuals for the and operational capability of a income from an available
the manufacturing of
purpose of engaging business corporation. investment will be taxed at an
assembly B to an outside
for profit.  A. Authorized capital average of 42%, what
company. For an order of 100
 A. Single  B. Paid off capital minimum rate of return,
units, what is the cost per unit
proprietorship  C. Subscribed capital before payment of taxes,
that is acceptable to the
 B. Party  D. Investment must the investment offer to
company?
 C. Corporation 447. It is where the original be justified?
 A. P3.80
 D. Partnership record of a business  A. 13.02%
 B. P4.00
441. The simplest form of transaction is recorded.  B. 12.07%
 C. P4.10
business organization where  A. Ledger  C. 10.89%
 D. P4.20
in the business is own entirely  B. Spreadsheet  D. 11.08%
456. By selling balut at P5 per
by one person.  C. Journal 453. A manufacturing firm
dozen, a vendor gains 20%.
 A. Partnership  D. Logbook maintains one product
The cost of the eggs rises by
 B. Proprietorship assembly line to produce
12.5%. If he sells at the same
 C. Corporation signal generators. Weekly
price as before, find his new
gain in %.
 A. 6.89%
 B. 6.67%
 C. 6.58%
 D. 6.12%
457. An equipment
installation job in the
completion stage can be
completed in 50 days of 8
hour/day work, with 50 men
working. With the contract
expiring in 40 days, the
mechanical engineer
contractor decided to add 15
men on the job, overtime not
being permitted.
If the liquidated damages is
P5,000 per day of delay, and
the men are paid P150 per
day, how much money would
he save with the additional
workers?
 A. P43,450
 B. P43,750
 C. P44,250
D. P44,750
 fourth of one per cent per day
458. In a certain department
store, the monthly salary of a
saleslady is partly constant
and partly varies as the value
of her sales for the month.
When the value of her sales
for the month is P10,000.00,
her salary for the month is
P900.00. When her monthly
sales go up to P12,000.00, her
monthly salary goes up to
P1,000.00. What must be the
value of her sales so that her
salary for the month will be
P2,000.00?
 A. P30,000
 B. P31,000
 C. P32,000
D. P33,000
 tile is P200.00 per square
459. Jojo bought a second-
hand Betamax VCR and then
sold it to Rudy at a profit of
40%. Rudy then sold the VCR
to Noel at a profit of 20%. If
Noel paid P2,856 more than it
costs Jojo, how much did Jojo
pay for the unit?
 A. P4,100
 B. P3,900
 C. P4,000
 D. P4,200
460. The selling price of a TV
set is double that of its net
cost. If the TV set is sold to a
customer at a profit of 25% of
the net cost, how much
discount was given to the
customer?
 A. 37.5%
 B. 37.9%
 C. 38.2%
 D. 38.5%
461. A Mechanical Engineer
who was awarded a P450,000
contract to install the
machineries of an oil mill
failed to finish the work on
time. As provided for in the
contract, he has to pay a daily
penalty equivalent to one
for the first 10 days and 0.5%
per day for the next 10 days
and one per cent per day for
everyday thereafter. If the
total penalty was P60,750.00,
how many days was the
completion of the contract
delayed?
 A. 26 days
 B. 27 days
 C. 28 days
 D. 29 days
462. The quarrying cost of
marble and granite blocks
plus delivery cost to the
processing plant each is
P2,400.00 per cubic meter.
Processing cost of marble into
meter and that of the granite
into tiles also is P600.00 per
square meter.
If marble has a net yield of 40
square meters of tile per cubic
meter of block and sells P400
per square meter, and granite
gives a net yield of 50 square
meters of tiles per cubic
meter of block and sells at
P1000 per square meter.
Considering all other costs to
be the same, the granite is
more profitable than the
marble by how much?
 A. P12,000 per cubic
meter
 B. P13,000 per cubic
meter
 C. P14,000 per cubic
meter
 D. P15,000 per cubic
meter
463. A man would like to
invest P50,000 in government
bonds and stocks that will
give an overall annual return
of about 5%. The money to be
invested in government bonds
will give an annual return of
4.5% and the stocks of about
6%. The investments are in
units of P100.00 each. If he
desires to keep his stock
investment to minimum in
order to reduce his risk,
determine how many stocks
should be purchased.
 A. 165
 B. 166
 C. 167
 D. 168
464. A 220 V 2 hp motor has
an efficiency of 80%. If power
costs P3.00 per kw-hr for the
first 50 kw-hr, 2.90 per kw-hr
for the second 50 kw-hr,
P2.80 for the third kw-hr and
so on until a minimum of
P2.50 per kw-hr is reached.
How much does it cost to run
this motor continuously for 7
days?
 A. P800
 B. P820
 C. P840
 D. P860  C. P5.90
465. An 8-meter concrete  D. P6.30
road pavement 500 meters 467. An engineer bidding on
long is desired to be the asphalting of 7 km stretch
constructed over a well- of road is confronted with a
compacted gravel road, problem of choosing between
together with the necessary two possible sites on which to
concrete curbs and gutters on set-up the asphalt-mixing
both sides. In order to put the machine.
subgrade on an even level S
grade, a 500 cubic meters of Average hauling distance 2
sand filling is necessary, over Monthly rental P
which the 10 inch concrete Installing and dismantling of
pavement will be placed? machine P
Assume the following data: At Site A, it would be
A. Sand fill, including rolling necessary to hire 2 flagmen at
and watering = P100 per P150 per working day. The job
cubic meter can be completed in 32 weeks
B. Concrete pavement, 10 in working 6 days a week. The
thick (labor and materials) project requires 16,670 cubic
including curing = P220 per meter of asphalt mix per
sq. Meter kilometre of road. If the
C. Curbs and gutters = P12 asphalt mix is to be hauled by
per linear meter a contractor at P42 per cubic
How much will the project meter per km of haul. How
cost allowing 15% for much is site B more
contingency? expensive than site A?
 A. P1,207,000  A. P949,645
 B. P1,207,500  B. P962,101
 C. P1,208,000  C. P956,807
 D. P1,208,500  D. P974,090
466. An electric utility 468. A fixed capital
purchases 2,300,000 kw-hr investment of P10,000,000 is
per month of electric energy required for a proposed
from National Power manufacturing plant and an
Corporation at P2.00 per kw- estimated working capital of
hr and sells all this to P2,000,000. Annual
consumers after deducting depreciation is estimated to
distribution losses of 20%. At be 10% of the fixed capital
what average rate per kw-hr investment. Determine the
should this energy be sold to rate of return on the total
break even if the following are investment if the annual profit
other monthly expenses in its is P2,500,000.
operation:  A. 28.33%
Taxes 2.5 % of gross revenue
B. 29.34%
Salaries P750,000  C. 30.12%
Depreciation P2,250,000  D. 30.78%
Interest P700,000 469. A call to bid was
Maintenance P300,000 advertised in the Philippine
Miscellaneous P200,000 Daily Inquirer for the
 A. P4.90 construction of a transmission
 B. P5.20 line from a mini-hydroelectric
power plant to the substation
which is 5.035 kilometers
away. The tanalized timber
electrical posts must be
placed at an interval of 50 m.
The electrical posts must be
30 feet long, 8 inches in
diameter at the tip and 12
inches in diameter at the butt.
The power house is 15 m from
the first electric post and the
substation is 20 m from the
last electric post. Compute
the estimated cost for the
project using the following
data:
Cost of one tanalized timber
post 30 feet long is P5,000
including delivery to the site.
Labourer at P180 per day and
5 laborers can dig and erect 3
posts per day. Electrician at
P250 per day and 4
electricians can strung wires
complete 150 meters per day.
Electric wire cost P4.00 per
meter. Use only 5 laborers
and 4 electricians for the
project and is supervised by a
foreman which is paid at P400
per day. Contingency is 10%
and profit is 25%.
 A. P745,890.23
 B. P817,692.00
 C. P789,120.80
 D. P829,592.50
470. Upon the retirement
after 44 years in government
service, Mrs. Salud Araoarao
was able to get a retirement
lump sum of P2,300,000. As a
hedge against inflation, she
decided to use a part of it
invested in real state at
Pagadian City and the
remainder were invested as
follows:
A. 30% in T-bills earning 12%
interest
B. 35% in money market
placement earning 14%
C. 35% in blue chip stock
earning 13%
If her annual earnings from
the T-bills, money market and
stock is P50,000, How much
did she invests in real estate?
 A. P2,091,639.12
 B. P1,916,858.24
 C. P1,856,120.53
 D. P1,790,274.78
471. The monthly demand for
ice cans being manufactured
by Mr. Alarde is 3200 pieces.
With a manual operated
guillotine, the unit cuffing cost Inc. has shipped only 30 tons
is P25.00. An electrically
operated hydraulic guillotine
was offered to Mr. Alarde at a
price of P275,000.00 and
which cuts by 30% the unit
cuffing cost. Disregarding the
cost of money, how many
months will Mr. Alarde be able
to recover the cost of the
machine if he decides to buy
now?
 A. 10 months
 B. 11 months
 C. 12 months
 D. 13 months
472. In a new gold mining
area in Southern Leyte the ore
contains on the average of
ten ounces of gold per ton.
Different methods of
processing are tabulated as
follows:
Processing Method
Cost per ton
A P5,500
B P2,500
C P400
If gold can be sold at P4,000
per ounce, which method of
processing yield the biggest
return?
 A. Processing method
A
 B. Processing method
B of interest that the bank
 C. Processing method
C 
 D. Either of the
processing methods B
or C
473. JRT Motors Inc. has been
shipping its Suzuki engines in
containers to avoid the
necessary crating of the
engines. JRT Motors Inc. will
pay freight on container load
of 40 tons, regardless of
whether or not the container
is completely filled with
engines. Record shows that
due to engine size, JRT Motors
per container. Freight of
container cost P3.00 per
kilograms.
If the engines are crated so
that they can be shipped at
the rate of P3.50 per hundred
kilograms with the freight bill
computed only on the actual
weight shipped. The cost of
crating would be P50 per
engine and would increase
the shipping weight from
1500 kg to 1520 kg per
engine. How much more
economical shipping the
engine in crates than in
containers?
 A. P670 per engine
 B. P630 per engine
 C. P650 per engine
 D. P610 per engine
474. A paint manufacturing
company uses a sand mill for
fine grinding of paint with an
output of 100 liters per hour
using glass beads as grinding
media. Media load in the mill
is 25 kg costing P200.00 per
kg and is fully replenished in 2
months time at 8 hours per
day operation, 25 days a
month. A ceramic grinding
media is offered to this paint
company, costing P400 per kg
and needs 30 kg load in the
sand mill, but guarantees an
output of 120 liters per hour
and full replenishment of
media in 3 months. If profit on
paint reduction is P15 per liter
how much is a difference in
profit between the two media?
 A. P436,900
 B. P462,000
 C. P473,000
 D. P498,200
475. If P1000 accumulates to
P1500 when invested at a
simple interest for three
years, what is the rate of
interest?
 A. 14.12%
 B. 15.89%
 C. 16.67%
 D. 16.97%
476. You loan from a loan firm
an amount of P100,000 with a
rate of simple interest of 20%
but the interest was deducted
from the loan at the time the
money was borrowed. If at the
end of one year, you have to
pay the full amount of
P100,000, what is the actual
rate of interest?
 A. 23.5%
 B. 24.7%
 C. 25.0%
 D. 25.8%
477. A loan of P5,000 is made
for a period of 15 months, at a
simple interest rate of 15%,
what future amount is due at
the end of the loan period?
 A. P5,937.50
 B. P5,873.20
 C. P5,712.40
 D. P5,690.12
478. If you borrowed money
from your friend with simple
interest at 12%, find the
present worth of P50,000,
which is due at the end of 7
months.
 A. P46,728.97
 B. P47,098.12
 C. P47,890.12
 D. P48,090.21
479. Mr. J. Reyes borrowed
money from the bank. He
received from the bank
P1,842 and promised to repay
P2,000 at the end of 10
months. Determine the rate of
simple interest.
 A. 12.19%
 B. 12.03%
 C. 11.54%
 D. 10.29%
480. If you borrowed P10,000
from a bank with 18% interest
per annum, what is the total
amount to be repaid at the
end of one year?
 A. P10,900
 B. P11,200
 C. P11,800
 D. P12,000
481. A price tag of P1,200 is
payable in 60 days but if paid
within 30 days it will have a
3% discount. Find the rate of
interest.
 A. 35.45%
 B. 35.89%
 C. 36.18%
 D. 37.11%
482. A man borrowed P2,000
from a bank and promised to
pay the amount for one year.
He received only the amount
of P1,920 after the bank
collected an advance interest
of P80.00. What was the rate
of discount?
 A. 3.67%
 B. 4.00%
 C. 4.15%
 D. 4.25%
483. A man borrowed P2,000
from a bank and promised to
pay the amount for one year.
He received only the amount
of P1,920 after the bank
collected an advance interest
of P80.00. What was the rate
collected in advance?
A. 4.00%
  B. 4.07%
 C. 4.17%
 D. 4.25%
484. What will be the future
worth of money after 12
months if the sum of P25,000
is invested today at simple
interest rate of 1% per year?
 A. P25,168
 B. P25,175
 C. P25,189
 D. P25,250
485. What will be the future
worth of money after 12
months if the sum of P25,000
is invested today at simple
interest rate of 1% per
month?
A. P28,000
 minimum rate of return,
 B. P28,165
 C. P28,289
 D. P28,250
486. 480 It is the practice of
almost all banks in the
Philippines that when they
grant a loan, the interest for
one year is automatically
deducted from the principal
amount upon release of
money to a borrower. Let us
therefore assume that you
applied for a loan with a bank
and the P80,000 was
approved at an interest rate
of 14% of which P11,200 was
deducted and you were given
a check of P68,800. Since you
have to pay the amount of
P80,000 one year after, what
then will be the effective
interest rate?
 A. 16.02%
 B. 16.28%
 C. 16.32%
 D. 16.47%
487. A deposit of P110,000
was made for 31 days. The
net interest after deducting
20% withholding tax is
P890.36. Find the rate of
return annually.
 A. 11.50%
 B. 11.75%
 C. 11.95%
 D. 12.32%
488. P5,000 is borrowed for
75 days at 16% per annum
simple interest. How much will
be due at the end of 75 days?
 A. P5,066.67
 B. P5,133.33
 C. P5,050.00
 D. P5,166.67
489. A businessman wishes to
earn 7% on his capital after
payment of taxes. If the
income from an available
investment will be taxed at an
average rate of 42%, what
before payment of taxes,
must the investment offer to
be justified?
 A. 12.07%
 B. 12.34%
 C. 12.67%
 D. 12.87%
490. A man borrowed
P20,000 from a local
commercial bank which has a
simple interest of 16% but the
interest is to be deducted
from the loan at the time that
the money was borrowed and
the loan is payable at the end
of one year. How much is the
actual rate of interest?
 A. 19.05%
 B. 19.34%
 C. 19.67%
 D. 19.87%
491. P4,000 is borrowed for
75 days at 16% per annum
simple interest. How much will
be due at the end of 75 days?
 A. P4,033.33
 B. P4,333.33
 C. P4,133.33
 D. P4,666.67
492. Agnes Abanilla was
granted a loan of P20,000 by
her employer CPM Industrial
Fabricator and Construction
Corporation with an interest
rate of 6% for 180 days on the
principal collected in advance.
The corporation would accept
a promissory note for P20,000
non-interest for 180 days. If
discounted at once, find the
proceeds of the note.
 A. P18,800
 B. P18,900
 C. P19,000
 D. P19,100
493. If you borrow money
from your friend with simple
interest of 12%, find the
present worth of P20,000
which is due at the end of
nine months.
 A. P18,992.08
 B. P18,782.18
 C. P18,348.62
D. P18,120.45

494. A man borrowed from a
bank under a promissory note
that he signed in the amount
of P25,000.00 for a period of
one year. He receives only the
amount of P21,915.00 after
the bank collected the
advance interest and an
additional of P85.00 for
notarial and inspection fees.
What was the rate of interest
that the bank collected in
advance?
 A. 13.05%
 B. 13.22%
 C. 13.46%
 D. 13.64%
495. Mr. Danilo Conde
borrowed money from a bank.
He received from the bank
P1,340.00 and promised to
pay P1,500.00 at the end of 9
months. Determine rate of
simple interest.
 A. 15.92%
 B. 15.75%
 C. 15.45%
 D. 15.08%
496. Mr. J. Dela Cruz borrowed
money from a bank. He
receives from the bank
P1,340.00 and promised to
pay P1,500.00 at the end of 9
months. Determine the
corresponding discount rate
or often referred to as the
“banker’s discount.”
 A. 13.15%
 B. 13.32%
 C. 13.46%
 D. 13.73%
497. Annie buys a television
set from a merchant who ask
P1,250.00 at the end of 60
days. Annie wishes to pay
immediately and the
merchant offers to compute
the cash price on the
assumption that money is
worth 8% simple interest.
What is the cash price?
 A. P1,124.67
 B. P1,233.55
 C. P1,289.08
 D. P1,302.67
498. A man borrowed money
from a loan shark. He receives
from the loan shark and
amount of P1,342.00 and
promised to repay P1,500.00
at the end of 3 quarters. What
is the simple interest rate?
 A. 15.47%
 B. 15.69%
 C. 15.80%
 D. 15.96%
499. Determine the exact
simple interest on P5,000
invested for the period from
January 15,1996 to October
12,1996, if the rate interest is
18%.
 A. P664.23
 B. P664.89
 C. P665.21
 D. P666.39
500. The exact simple interest
of P5,000 invested from June
21,1995 to December
25,1995 is P100. What is the
rate of interest?
 A. 3.90%
 B. 3.92%
 C. 3.95%
 D. 3.98%
Choose the letter of the
best answer in each
questions.
501. On her recent birthday,
April 22, 2001, Nicole was
given by her mother a certain
sum of money as birthday
present. She decided to invest
the said amount on 20% exact
simple interest. If the account
will mature on Christmas day
at an amount of P10,000.00,
how much did Nicole receive
from her mother on her
birthday?
 A. P8,807.92
 B. P8,827.56
 C. P8,832.17
 D. P8,845.78
502. What is the ordinary
interest on P1,500.50 for 182
days at 5.2%?
 A. P39.01
 B. P39.45
 C. P39.82
 D. P39.99
503. Nicole has P20,400 in
cash. She invested it at 7%
from March 1, 2006 to
November 1, 2006 at 7%
interest. How much is the
interest using the Banker’s
Rule?
 A. P972.12
 B. P970.78
 C. P973.12
 D. P971.83
504. The amount of P20,000
was deposited in a bank
earning an interest of 6.5%
per annum. Determine the
total amount at the end of 7
years if the principal and
interest were not withdrawn
during this period?
 A. P30,890.22
 B. P30,980.22
 C. P31,079.73
 D. P31,179.37
505. A loan for P50,000 is to
be paid in 3 years at the
amount of P65,000. What is
the effective rate of money?
 A. 9.01%
 B. 9.14%
 C. 9.31%
 D. 9.41%
506. The amount of P50,000
was deposited in the bank
earning an interest of 7.5%
per annum. Determine the
total amount at the end of 5
years, if the principal and
interest were not withdrawn
during the period.
 A. P71,781.47
 B. P71,187.47
 C. P71,817.47
 D. P71,718.47
507. Find the present worth of
a future payment of P80,000
to be made in six years with
an interest of 12%
compounded annually.
 A. P40,540.49
 B. P40,450.49
 C. P40,350.49
 D. P40,530.49
508. What is the effective rate
corresponding to 18%
compounded daily? Take 1
year is equal to 360 days.
 A. 19.61%
 B. 19.44%
 C. 19.31%
 D. 19.72%
509. What nominal rate,
compounded semi-annually,
yields the same amount as
16% compounded quarterly?
 A. 16.09%
 B. 16.32%
C. 16.45%
 
 D. 16.78%
510. What rate of interest
compounded annually is the
same as the rate of interest of
8% compounded quarterly?
 A. 8.07%
 B. 8.12%
 C. 8.16%
 D. 8.24%
511. Find the nominal rate,
which if converted quarterly
could be used instead of 12%
compounded semi-annually.
 A. 11.83%
 B. 11.09%
 C. 11.65%
 D. 11.25%
512. Which of these gives the
lowest effective rate of
interest?
 A. 12.35%
compounded annually
 B. 11.90%
compounded semi-
annually
 C. 12.20%
compounded
quarterly
 D. 11.60%
compounded monthly
513. Find the compound
amount if P2,500 is invested
at 8% compounded quarterly
for 5 years and 6 months.
 A. P3,864.95
 B. P3,846.59
 C. P3,889.95
 D. P3,844.95
514. An amount of P1,000
becomes P1,608.44 after 4
years compounded bimonthly.
Find the nominal interest.
 A. 11.89%
 B. 12.00%
 C. 12.08%
 D. 12.32%
515. If P5,000 shall
accumulate for 10 years at
8% compounded quarterly,
then what is the compound
interest at the end of 10
years?
 A. P6,080.40
 B. P6,020.40
 C. P6,040.20
 D. P6,060.20
516. What is the
corresponding effective rate
of 18% compounded semi-
quarterly?
 A. 19.24%
 B. 19.48%
 C. 19.84%
 D. 19.92%
517. Find the present worth of
a future payment of P100,000
to be made in 10 years with
an interest of 12%
compounded quarterly.
 A. P30,555.68
 B. P30,656.86
 C. P30,556.86
 D. P30,655.68
518. In how many years is
required for P2,000 to
increase by P3,000 if interest
at 12% compounded semi-
annually?
 A. 7.86 years
 B. 7.65 years
 C. 7.23 years
 D. 8.12 years
519. The amount of P150,000
was deposited in the bank
earning an interest of 7.5%
per annum. Determine the
total amount at the end of 5
years, if the principal and
interest were not withdrawn
during the period.
 A. P215,344.40
 B. P213,544.40
 C. P234,153.40
 D. P255.443.10
520. How long will it take
money to double itself if
invested at 5% compounded
annually?
 A. 13.7 years
 B. 14.2 years
C. 14.7 years
 
D. 15.3 years
521. What is the
corresponding effective
interest rate of 18%
compounded semi-monthly?
 A. 19.35%
 B. 19.84%
 C. 19.48%
 D. 19.64%
522. What is the effective rate
of 14% compounded semi-
annually?
 A. 14.49%
 B. 14.59%
 C. 14.69%
 D. 14.79%
523. At an interest rate of
10% compounded annually,
how much will a deposit of
P1,500 be in 15 years?
 A. P6,265.87
 B. P6,256.78
 C. P6,526.87
 D. P6,652.78
524. A man expects to receive
P25,000 in 8 years. How much
is that money worth now
considering interest at 8%
compounded quarterly?
 A. P13,256.83
 B. P13,655.28
 C. P13,625.83
 D. P13,265.83
525. About how many years
will P100,000 earn a
compound interest of P50,000
if the interest rate is 9%
compounded quarterly?
 A. 4 years
 B. 5 years
 C. 6 years
 D. 7 years
526. Compute the equivalent
rate of 6% compounded semi-
annually to a rate
compounded quarterly.
 A. 5.12%
 B. 5.96%
 C. 5.78%
D. 6.12%
527. What is the amount of
P12,800 in 4 years at 5%
compounded quarterly?
 A. P15,461.59
 B. P15,146.95
 C. P15,641.59
 D. P15,614.59
528. By the condition of a will,
the sum of P20,000 is left to a
girl to be held in trust fund by
her guardian until it amounts
to P50,000. When will the girl
receive the money if the fund
is invested at 8%
compounded quarterly?
 A. 11.23 years
 B. 11.46 years
 C. 11.57 years
 D. 11.87 years
529. If P50,000 shall
accumulate for 10 years at
4% compounded quarterly,
find the compounded interest
at the end of 10 years.
 A. P2,333.32
 B. P2,444.32
 C. P2,555.32
 D. P2,666.32
530. A sum of P1,000 is
invested now and left for eight
years, at which time the
principal is withdrawn. The
interest has accrued is left for
another eight years. If the
effective annual interest rate
is 5%, what will be the
withdrawal amount at the end
of the 16th year.
 A. P693.12
 B. P700.12
 C. P702.15
 D. P705.42
531. P1,500.00 was deposited
in a bank account, 20 years
ago. Today, it is worth
P3,000.00. Interest is paid
semi-annually. Determine the
interest rate paid on this
account.
 A. 2.9%
 B. 3.0%
  C. 3.2%
 D. 3.5%
532. A merchant puts in his
P2,000.00 to a small business
for a period of six years. With
a given interest rate on the
investment of 15% per year,
compounded annually, how
much will he collect at the
end of the sixth year?
 A. P4,626.12
 B. P4,262.12
 C. P4,383.12
 D. P4,444.12
533. A man borrowed
P100,000 at the interest rate
of 12% per annum,
compounded quarterly. What
is the effective rate?
 A. 12.75%
 B. 12.55%
 C. 12.45%
 D. 12.35%
534. Mandarin Bank
advertises 9.5% account that
yields 9.84% annually. Find
how often the interest is
compounded.
 A. Monthly
 B. Bimonthly
 C. Quarterly
 D. Annually
535. When will an amount be
tripled with an interest of
11.56%?
 A. 9 years
 B. 10 years
 C. 11 years
 D. 12 years
536. A student plans to
deposit P1,500.00 in the bank
now and another P3,000.00
for the next 2 years. If he
plans to withdraw P5,000.00
three years from after his last
deposit for the purpose of
buying shoes, what will be the
amount of money left in the
bank after one year of his
withdrawal? Effective annual
interest rate is 10%.
 A. P1,549.64
 B. P1,459.64
 C. P1,345.98
 D. P1,945.64
537. How much must be
invested on January 1, 1998 in
order to accumulate P2,000
on January 1, 2003? Money is
worth 6%.
 A. P1,509.34
 B. P1,249.64
 C. P1,378.98
 D. P1,494.52
538. A nominal interest of 3%
compounded continuously is
given on the account. What is
the accumulated amount of
P10,000 after 10 years?
 A. P13,498.59
 B. P13,489.59
 C. P13,789.98
 D. P13,494.52
539. A mechanical engineer
wishes to accumulate a total
of P10,000 in a savings
account at the end of 10
years. If the bank pays only
4% compounded quarterly,
what should be the initial
deposit?
 A. P6,176.35
 B. P6,761.35
 C. P6,716.53
 D. P6,167.35
540. Funds are deposited in a
savings account at an interest
of 8% per annum. What is the
initial amount that must be
deposited to yield a total of
P10,000 in 10 years?
 A. P4,196.30
 B. P4,721.39
 C. P4,796.03
 D. P4,631.93
541. If P500,000 is deposited
at a rate of 11.25%
compounded monthly,
determine the compounded
interest after 7 years and 9
months.
 A. P690,848.73
 B. P670,651.23
 C. P680,649.56
 D. P685,781.25
542. An interest rate is quoted
as being 7.5% compounded
quarterly. What is the
effective annual interest rate?
 A. 7.91%
 B. 7.51%
 C. 7.71%
 D. 7.31%
543. You borrow P3,500.00 for
one year from a friend at an
interest rate of 1.5% per
month instead of taking a loan
from a bank at a rate of 18%
per year. How much lesser
you will pay by borrowing the
money from the bank?
 A. P53.89
 B. P54.66
 C. P53.78
 D. P54.98
544. A deposit of P1,000 is
made in a bank account that
pays 8% interest compounded
annually. Approximately how
much money will be in the
account after 10 years?
 A. P2,187.39
 B. P2,145.78
 C. P2,176.45
 D. P2,158.92
545. Fifteen years ago
P1,000.00 was deposited in a
bank account, and today it is
worth P2,370.00. The bank
pays interest semi-annually.
What was the interest rate
paid in this account?
 A. 5.72%
 B. 5.78%
 C. 5.84%
 D. 5.90%
546. P200,000 was deposited
on January 1, 1988 at an
interest rate of 24%
compounded semi-annually.
How much would the sum be
on January 1, 1993?
 A. P631,627.78
 B. P612,890.76
 C. P621,169.64
 D. P611,672.18
547. What is the present
worth of two P100 payments
at the end of the third year
and fourth year? The annual
interest rate is 8%.
 A. P150.56
 B. P152.88
 C. P153.89
 D. P151.09
548. Consider a deposit of
P600.00 to be paid back in
one year by P700.00. What is
the rate of interest, i% per
year compounded annually
such that the net present
worth of the investment is
positive? Assume i ≥ 0.
 A. 16.50%
 B. 16.75%
 C. 16.33%
 D. 16.67%
549. A firm borrows P2,000 for
6 years at 8 %. At the end of 6
years, it renews the loan for
the amount due plus P2,000
more for 2 years at 8%. What
is the lump sum due?
 A. P3,260.34
 B. P3,280.34
 C. P3,270.34
 D. P3,250.34
550. A machine has been
purchased and installed at a
total cost of P18,000.00. The
machine will retire at the end
of 5 years, at which time it is
expected to have a scrap
value of P2,000.00 based on
current prices. The machine
will then be replaced with an
exact duplicate. The company
plans to establish a reserve
funds to accumulate the
capital needed to replace the
machine. If an average annual
rate of inflation of 3% is
anticipated, how much capital
must be accumulated?
 A. P18,854.38
 B. P18,548.38
 C. P18,458.38
 D. P18,845,38
551. What is the effective rate
corresponding to 16%
compounding daily? Take 1
year = 360 days.
 A. 17.35%
 B. 17.45%
 C. 17.55%
 D. 17.65%
552. By the condition of a will,
the sum of P25,000 is left to a
girl to be held in a trust fund
by her guardian until it
amounts to P45,000. When
will the girl receive the money
if the fund is invested at 8%
compounded quarterly?
 A. 7.42 years
 B. 7.67 years
 C. 7.85 years
 D. 7.98 years
553. P200,000 was deposited
at an interest rate of 24%
compounded semi-annually.
After how many years will the
sum be P621,170?
 A. 4 years
 B. 5 years
 C. 6 years
 D. 7 years
554. In year zero, you invest
P10,000.00 in a 15% security
for 5 years. During that time,
the average annual inflation is
6%. How much, in terms of
year zero pesos will be in the
account at maturity?
 A. P15,030.03
 B. P20,113.57
 C. P18,289.05
 D. P16,892.34
555. A company invests
P10,000 today to be repaid in
5 years in one lump sum at
12% compounded annually.
How much profit in present
day pesos is realized?
 A. P7,563.29
  B. P7,498.20
 C. P7,340.12
 D. P7,623.42
556. How long (in nearest
years) will it take money to
quadruple if it earns 7%
compounded semi-annually?
 A. 20 years
 B. 18 years
 C. 21 years
 D. 19 years
557. How much should you
put into a 10% savings
account in order to have
P10,000.00 in five years?
 A. P6,216.21
 B. P6,212.12
 C. P6,218.21
 D. P6,209.21
558. A man expects to receive
P20,000 in 10 years. How
much is that money worth
now considering interest at
6% compounded quarterly?
 A. P11,042.89
 B. P11,035.12
 C. P11,025.25
 D. P11,012.52
559. P500,000 was deposited
20.15 years ago at an interest
rate of 7% compounded semi-
annually. How much is the
sum now?
 A. P2,000,033.33
 B. P2,000,166.28
 C. P2,001,450.23
 D. P2,002,820.12
560. A bank pays one percent
interest on savings accounts
four times a year. What is the
effective annual interest rate?
 A. 4.06%
 B. 4.12%
 C. 4.16%
 D. 4.28%
561. Alexander Michael owes
P25,000.00 due in 1 year and
P75,000 due in 4 years. He
agrees to pay P50,000.00
today and the balance in 2
years. How much must he pay
at the end of two years if
money is worth 5%
compounded semi-annually?
 A. P39,015.23
 B. P39,026.25
 C. P39,056.21
 D. P39,089/78
562. Find the difference
between simple interest and
compound interest on a
savings deposit of P50,000 at
10% per annum for 3 years.
 A. P1,510
 B. P1,530
 C. P1,550
 D. P1,570
563. If money is worth 5%
compounded quarterly, find
the equated time for paying a
loan of P150,000 due in 1
year and P280,000 due in 2
years.
 A. 1.52 years
 B. 1.64 years
 C. 1.69 years
 D. 1.72 years
564. For a loan acquired six
years ago, a man paid out the
amount of P75,000.00. The
interest was computed at 18%
compounded annually. How
much was the borrowed
amount?
 A. P27,367.28
 B. P27,278.36
 C. P27,782.36
 D. P27,872.63
565. A couple decided that for
every child that will be born to
them they will place a deposit
in the bank so that on the
child’s 18th birthday, the child
will receive the amount of
P300,000.00. If the bank will
pay an interest of 18%
compounded yearly, how
much deposit will the couple
have to make on the birth of a
child to them?
 A. P15,367.18
 B. P15,249.13
 C. P15,722.16
 D. P15,482.64
566. On his 6th birthday a boy
is left an inheritance. The
inheritance will be paid in a
lump sum of P10,000 on his
21st birthday. What is the
present value of the
inheritance as of the boy’s
6th birthday, if the interest is
compounded annually?
Assume i = 4%.
 A. P5,552.64
 B. P5,549.10
 C. P5,522.12
 D. P5,582.63
567. A man who won
P300,000 in a lottery decided
to place 50% of his winning in
a trust fund for the college
education of his son. If the
money will earn 14% per year
compounded quarterly, how
much will the man have at the
end of 10 years when his son
will be starting his college
education?
 A. P593,120.12
 B. P593,452.12
 C. P592,739.96
 D. P593,888.96
568. If the sum of P15,000 is
deposited in an account
earning 4% per annum
compounded quarterly, what
will be the deposited amount
at the end of 5 years?
 A. P18,302.85
 B. P18,450.89
 C. P18,512.83
 D. P18,638.29
569. The Philippine Society of
Mechanical Engineers is
planning to put up its own
building. Two proposals being
considered are:
a. The construction of the
building now to cost
P400,000.
b. The construction of a
smaller building now to cost
P300,000 and at the end of 5
years, an extension to be
added to cost P200,000.
By how much is proposal
B more economical
than proposal A if interest
rate is 20% and depreciation
is to be neglected?
 A. P19,122.15
 B. P19,423.69
 C. P19,518.03
 D. P19,624.49
570. A credit plan charges
interest rate of 36%
compounded monthly. Find its
effective rate.
 A. 42.21%
 B. 42.30%
 C. 42.41%
 D. 42.57%
571. A master card
compounds monthly and
charges an interest of 1.5%
per month. What is the
effective interest rate per
year?
 A. 19.23%
 B. 19.45%
 C. 19.56%
 D. 19.65%
572. A man expects to receive
P20,000 in 10 years. If
interest is computed at 6%
compounded quarterly, how
much is it worth today?
 A. P11,025.25
 B. P11,035.25
 C. P11,045.25
 D. P11,055.25
573. Microsoft CEO, billionaire
Bill Gates willed that a sum of
$25 million be given to a child
but will be held in trust by the
child’s mother until it
amounts to $45 million. If the
amount is invested and earns
8% compounded quarterly,
when will the child receive the
money?
 A. 8.11 years
 B. 7.90 years
 C. 7.42 years
 D. 7.24 years
574. Find the present value of
installment payments of
P1,000 now, P2,000 at the
end of the first year, P3,000 at
the end of the second year,
P4,000 at the end of the third
year and P5,000 at the end of
the fourth year, if money is
worth 10% compounded
annually.
 A. P11,411.10
 B. P11,530.98
 C. P11,621.67
 D. P11,717.85
575. How long will it take
money to triple itself if
invested at 8% compounded
annually?
 A. 14.27 years
 B. 14.56 years
 C. 14.78 years
 D. 14.98 years
576. Two hundred years ago,
your great, great, great
grandfather deposited P1 in a
savings account. Today, the
bank notified you that you are
the sole heir to this account.
How much is the account
today if it earns 8% per
annum?
 A. P4,002,450.78
 B. P4,102,405.90
 C. P4,838,949.58
 D. P4,909,289.45
577. What is the present
worth of a future payment of
P200,000 to be made in 10
years with an interest of 10%
compounded annually?
 A. P76,901.21
 B. P77,108.66
 C. P78,109.32
 D. P79,667.32
578. A deposit of P1,000.00 is
made in a bank account that
pays 8% interest compounded
annually. How much money
will be in the account after 10
years?
 A. P2,374.21
 B. P2,158.92
 C. P2,734.12
 D. P2,400.12
579. What nominal rate
compounded annually would
quadruple the principal in 4
years?
 A. 41.42%
 B. 40.81%
 C. 41.79%
 D. 40.45%
580. Five years ago, you paid
P34,000 for a residential lot.
Today you sell it at P50,000.
What is your annual rate of
appreciation?
 A. 8.12%
 B. 8.00%
 C. 7.92%
 D. 8.32%
581. Suppose that P100,000 is
invested at a certain rate of
interest compounded annually
for 2 years. If the
accumulated interest at the
end of 2 years is P21,000.
Find the rate of interest.
 A. 10.12%
 B. 10.00%
 C. 10.92%
 D. 10.32%
582. An investment of
P20,000 will be required at
the end of the year. The
project would terminate at the
end of the 5th year and the
assets are estimated to have
a salvage value of P25,000 at
that time. What is the rate of
interest for this project to
break even?
 A. 5.74%
 B. 5.43%
 C. 5.91%
 D. 5.67%
583. Robin Padilla possesses a
promissory note, due in 2
years hence, whose maturity
value is P3,200. What is the
discount value of this note,
based on an interest rate of
7%?
 A. P2,795.00
 B. P2,975.00
 C. P2,579.00
 D. P2,759.00
584. JM borrowed a certain
amount on June 1990 from DJ.
Two years later, JM borrowed
again from DJ an amount of
P5,000. JM paid P1,000 on
June 1993 and discharged his
balance by paying P7,500 on
June 1995. What was the
amount borrowed by JM on
June 1990 if the interest is 8%
compounded annually?
 A. P1,511.61
 B. P1,611.51
 C. P1,711.41
 D. P1,811.31
585. Dr. Gary Sy invests
P50,000 in a time deposit that
yields 10% for his retirement
30 years from now. If the
inflation rate is 5%, what will
be the value of the account at
maturity in terms of today’s
peso.
 A. P201,689.91
 B. P201,571.91
 C. P201,345.91
 D. P201,869.91
586. First Benchmark
Publisher Inc. invests
P100,000 today to be repaid
in five years in one lump sum
at 12% compounded annually.
If the rate of inflation is 4%
compounded annually, how
much profit, in today’s pesos,
is realized over the five-year
period?
 A. P44,512.89
 B. P44,672.10
 C. P44,851.64
 D. P44,901.23
587. A manufacturing firm
contemplates retiring an
existing machine at the end of
2002. The new machine to
replace the existing one will
have an estimated cost of
P400,000. This expense will
be partially defrayed by the
sale of the old machine as
scrap for P30,000. To
accumulate the balance of the
required capital, the firm will
deposit the following sum in
an account earning interest at
5% compounded quarterly:
P60,000 at the end of 1999
P60,000 at the end of 2000
P80,000 at the end of 2001
What cash disbursement will
be necessary at the end of
2002 to purchase the new
machine?
 A. P155,890.12
 B. P153,085.56
 C. P154,200.12
 D. P156,930.38
588. On June 1, 1998, Ms.
Brenda Marcial purchased
stock of San Miguel
Corporation at a total cost of
P144,000. She then received
the following semiannual
dividends:
P4,200 on December 1, 1998
P4,400 on June 1, 1999
P4,400 on December 1, 1999
P4,000 on June 1, 2000
After receiving the last
dividend, Ms. Marcial sold her
stock, receiving P152,000
after deduction of brokerage
fees. What semiannual rate
did this dividend realize on
her investment?
 A. 4.26%
 B. 4.54%
 C. 4.87%
 D. 4.91%
589. Engr. Narito has P13,760
in cash and he would like to
invest it in business. His
estimates of the year-by-year
receipts and disbursements
for all purposes are shown in
the tabulation below:
Year Receipts
0 0
4 P5,000
5 P6,200
6 P7,500
7 P8,800
He estimates that his
equipment will have a salvage If the two parties agree on a
value of P2,000 at the end of
useful life. Find the rate of
return of the prospective
equipment.
 A. 10.11%
 B. 11.80%
 C. 11.10%
 D. 10.51%
590. What interest rate,
compounded monthly, is
equivalent to a 10% effective
rate?
 A. 9.45%
 B. 9.26%
 C. 9.65%
 D. 9.56%
591. Froyd Wess Network Inc.
plans to purchase a piece of
land and to build a school
building on this land.
However, since the school
building is not an immediate
requirement, the institute is
considering whether it should
purchase this land and build
the building now or defer this
action for 3 years. The current semiannually until the end of
costs are as follows:
Land: P800,000 Building:
P12,000,000
The purchase price of the land semiannually. What will be the
and the cost of the school
building are expected to
appreciate at the rate of 15%
and 4% per annum,
respectively. What will be the
total cost of the land and
structure 3 years hence?
 A. P14,520,120
 B. P14,715,068
 C. P14,902,189
 D. P15,021,781
592.) Mr. Jimenez owes Mr.
Disbursements
Padua the following amounts:
- P13,760
P40,000 due 2 years hence
+ P1,000
P60,000 due 3 years hence
+ P1,200
P72,000 due 4 years hence
+ P1,500
Having won the lottery, Mr.
+ P1,800
Jimenez decided to liquidate
the debts at the present time.
5% interest rate, what sum
must Mr. Jimenez pay?
 A. P147,520.20
 B. P147,346.02
 C. P147,902.89
 D. P147,021.81
593. Mr. John Bongat working
in the United States planned
of returning to the Philippines
at the end of 2001. He
established a fund starting in
1995 with the following
recorded deposits and
withdrawals.
January 1, 1995 Deposit of
P40,000
January 1, 1997 Deposit of
P80,000
July 1, 1997 Withdrawal of
P12,000
July 1, 1998 Deposit of
P64,000
January 1, 1999 Withdrawal of
P48,000
His fund earned interest at
the rate of 3.5% compounded
1997. At that date, the
interest was augmented to
4% compounded
principal in the fund at the
end of 2001?
 A. P146,323.08
 B. P146,992.99
 C. P146,846.92
 D. P146,022.82
594. JRT Publishers is
contemplating of installing a
labor-saving printing
equipment. It has a choice
between two different models.
Model A will cost P1,460,000
while model B will cost
P1,452,000. The anticipated
repair costs for each model
are as follows:
Model A: P60,000 at the end
of 5th year
P80,000 at the end
of 10th year
Model B: P152,000 at the end
of 9th year
The two models are alike in all
other respects. If the
publisher is earning a 7%
return of its capital, which
model should be purchased?
How much savings will be
accrued if the publisher will
purchase the more
economical model?
 A. P8,769.18
 B. P8,918.23
 C. P9,012.53
 D. P9,341.11
595. What is the future
amount of P50,000 if the
single payment compound
amount factor of this
investment is 1.23%
 A. P61,700
 B. P61,900
 C. P61,200
 D. P61,500
596. An investment indicates
a single compound amount
factor of 1.32 if invested for
“n” years. If the interest rate
is 4.73% per annum, find the
value of “n.”
 A. 4
 B. 5
 C. 6
 D. 7
597. Mr. Mondragon invests
P50,000 today. Several years
later, it becomes P60,000.
What is the single payment
present worth factor of this
investment? If the amount
was invested for 5 years, what
is the rate of interest?
 A. 3.1%
 B. 3.3%
 C. 3.5%
 D. 3.7%
598. Money is deposited in a
certain account for which the
interest is compounded
continuously. If the balance
doubles in 6 years, what is the
annual percentage rate?
 A. 11.55%
 B. 11.66%
 C. 11.77%
 D. 11.88%
599.) On January 1, 1999, Ms.
Angel Locsin opened an
account at Bank of Philippine
Islands with an initial deposit
of P1,000,000.00. On March 1,
2000, she opened an
additional P1,000,000.00. If
the bank pays 12% interest
compounded monthly, how
much will be in the account
on April 1, 2000?
 A. P2,180,968.95
 B. P2,190,968.95
 C. P2,160,968.95
 D. P2,170,968.95
600. The paper currency
issued by the Central Bank
which forms part of the
country’s money supply.
 A. T-bills
 B. Bank note
 C. Check
 D. Coupon
601. Reduction in the level of
national income and output
usually accompanied by the
fall in the general price level.
 A. Devaluation
 B. Deflation
 C. Inflation
 D. Depreciation
602. It is a series of equal
payments occurring at equal
interval of time.
 A. Annuity
 B. Debt
 C. Amortization
 D. Deposit
603. The place where buyers
and sellers come together.
 A. Market
 B. Business
 C. Recreation center
 D. Buy and sell
section
604. A market whereby there
is only one buyer of an item
for which there are no goods
substitute
A. Monopsony
 
 B. Oligopoly
 C. Monopoly
 D. Oligopsony
605. It is a series of equal
payments occurring at equal
interval of time where the first
payment is made after several
periods, after the beginning of
the payment.
 A. Perpetuity
 B. Ordinary annuity
 C. Annuity due
 D. Deferred annuity
606. The total income equals
the total operating cost.
 A. Balanced sheet
 B. In-place value
 C. Check and balance
 D. Break even – no
gain no loss
607. Kind of obligation which
has no condition attached.
 A. Analytic
 B. Pure
 C. Gratuitous
 D. Private
608. Direct labor costs
incurred in the factory and
direct material costs are the
costs of all materials that go
into production. The sum of
these two direct costs is
known as:
 A. GS and A expenses
 B. Operating and
maintenance costs
 C. Prime cost
 D. O and M costs
609. An index of short term
paying ability is called:
 A. Receivable turn-
over
 B. Profit margin ratio
 C. Current ratio
 D. Acid-test ratio
610. Artificial expenses that
spread the purchase price of
an asset or another property
over a number of years.
 A. Depreciation
B. Sinking fund
 C. Amnesty
 D. Bond
611. Estimated value at the
end of the useful life.
 A. Market value
 B. Fair value
 C. Salvage value
 D. Book value
612. Consists of the actual
counting or determination of
the actual quantity of the
materials on hand as of a
given date.
 A. Physical inventory
 B. Material update
 C. Technological
assessment
 D. Material count
613. Additional information of
prospective bidders on
contract documents issued
prior to bidding date.
 A. Delict
 B. Escalatory
 C. Technological
assessment
 D. Bid bulletin
614. A series of uniform
accounts over an infinite
period of time.
 A. Depreciation
 B. Annuity
 C. Perpetuity
 D. Inflation
615. What is the present
worth of a P500 annuity
starting at the end of the third
year and continuing to the
end of the fourth year, if the
annual interest rate is 10%?
 A. P727.17
 B. P717.17
 C. P714.71
 D. P731.17
616. Today, a businessman
borrowed money to be paid in
10 equal payments for 10
quarters. If the interest rate is
10% compounded quarterly
and the quarterly payment is
P2,000, how much did he
borrow?
 A. P17,304.78
 B. P17,404.12
 C. P17,504.13
 D. P17,604.34
617. What annuity is required
over 12 years to equate with
a future amount of P20,000?
Assume i = 6% annually.
 A. P1,290.34
 B. P1,185.54
 C. P1,107.34
 D. P1,205.74
618. Find the annual payment
to extinguish a debt of
P10,000 payable for 6 years
at 12% interest annually.
 A. P2,324.62
 B. P2,234.26
 C. P2,432.26
 D. P2,342.26
619. A manufacturer desires
to set aside a certain sum of
money to provide funds to
cover the yearly operating
expenses and the cost of
replacing every year the dyes
of a stamping machine used
in making radio chassis as
model changes for a period of
10 years.
Operating cost per year =
P500.00
Cost of dye = P1,200.00
Salvage value of dye =
P600.00
The money will be deposited
in a savings account which
earns 6% interest. Determine
the sum of money that must
be provided, including the
cost of the initial dye.
 A. P8,626.02
 B. P8,662.02
 C. P8,226.02
 D. P8,666.22
620. A factory operator
bought a diesel generator set
for P10,000.00 and agreed to
pay the dealer uniform sum at
the end of each year for 5
years at 8% interest
compounded annually, that
the final payment will cancel
the debt for principal and
interest. What is the annual
payment?
 A. P2,500.57
 B. P2,544.45
 C. P2,540.56
 D. P2,504.57
621. A man paid 10%
downpayment of P200,000 for
a house and lot and agreed to
pay the 90% balance on
monthly installment for 60
months at an interest rate of
15% compounded monthly.
Compute the amount of the
monthly payment.
 A. P42,821.86
 B. P42,128.67
 C. P42,218.57
 D. P42,812.68
622. What is the present
worth of a 3 year annuity
paying P3,000.00 at the end
of each year, with interest at
8% compounded annually?
 A. P7,654.04
 B. P7,731.29
 C. P7,420.89
 D. P7,590.12
623. What is the accumulated
amount of five-year annuity
paying P6,000 at the end of
each year, with interest at
15% compounded annually?
 A. P40,519.21
 B. P40,681.29
 C. P40,454.29
 D. P40,329.10
624. A debt of P10,000 with
10% interest compounded
semi-annually is to be
amortized by semi-annual
payment over the next 5
years. The first due in 6
months. Determine the semi-
annual payment.
 A. P1,234.09
 B. P1,255.90
 C. P1,275.68
 D. P1,295.05
625. A man borrowed
P300,000 from a lending
institution which will be paid
after 10 years at an interest
rate of 12% compounded
annually. If money is worth 8%
per annum, how much should
he deposit to a bank monthly
in order to discharge his debt
10 yrs. hence?
 A. P5,174.23
 B. P5,162.89
 C. P5,190.12
 D. P5,194.23
626. A man loans P187,400
from a bank with interest at
5% compounded annually. He
agrees to pay his obligations
by paying 8 equal annual
payments, the first being due
at the end of 10 years. Find
the annual payments.
 A. P43,600.10
 B. P43,489.47
C. P43,263.91
 payments of P750 per year for
D. P43,763.20
 15 years. What is the annual
627. Money borrowed today is
to be paid in 6 equal
payments at the end of 6
quarters. If the interest is 12%
compounded quarterly, how
much was initially borrowed if
quarterly payment is
P2,000.00?
 A. P10,834.38
 B. P10,278.12
 C. P10,450.00
 D. P10,672.90
628. A person buys a piece of
lot for P100,000
downpayment and 10
deferred semi-annual
payments of P8,000 each,
starting three years from now.
What is the present value of
the investment if the rate of
interest is 12% compounded
semi-annually?
 A. P142,999.08
 B. P143,104.89
 C. P142,189.67
 D. P143,999.08
629. How much must you
invest today in order to
withdraw P2,000 annually for
10 years if the interest rate is
9%?
 A. P12,835.32
 B. P12,992.22
 C. P12,562.09
 D. P12,004.59
630. How much must be
deposited at 6% each year
beginning on January 1, year
1, in order to accumulate
P5,000 on the date of the last
deposit, January 1, year 6?
 A. P728.99
 B. P742.09
 C. P716.81
 D. P702.00
631. A piece of machinery can
be bought for P10,000 cash or
for P2,000 down and
interest rate for the time
payments?
 A. 4.61%
 B. 4.71%
 C. 4.41%
 D. 4.51%
632. A company issued 50
bonds of P1,000.00 face value
each, redeemable at par at
the end of 15 years to
accumulate the funds
required for redemption. The
firm established a sinking
fund consisting of annual
deposits, the interest rate of
the fund being 4%. What was
the principal in the fund at the
end of the 12th year?
 A. P38,120.00
 B. P37,520.34
 C. P37,250.34
 D. P37,002.00
633. A house and lot can be
acquired by a downpayment
of P500,000 and a yearly
payment of P100,000 at the
end of each year for a period
of 10 years, starting at the
end of 5 years from the date
of purchase. If money is worth
14% compounded annually,
what is the cash price of the
property?
 A. P806,899.33
 B. P807,100.12
 C. P807,778.12
 D. P808,835.92
634. A parent on the day the
child is born wishes to
determine what lump sum
would have to be paid into an
account bearing interest at
5% compounded annually, in
order to withdraw P20,000
each on the child’s 18th, 19th,
20th and 21st birthdays. How
much is the lump sum
amount?
 A. P30,119.73
 B. P30,941.73
 C. P30,149.37
 D. P30,419.73
635. An instructor plans to
retire in exactly one year and
want an account that will pay
him P25,000 a year for the
next 15 years. Assuming a 6%
annual effective interest rate,
what is the amount he would
need to deposit now? (The
fund will be depleted after 15
years).
 A. P242,860.22
 B. P242,680.22
 C. P242,608.22
 D. P242,806.22
636. A manufacturing firm
wishes to give each 80
employees a holiday bonus.
How much is needed to invest
monthly for a year at 12%
nominal interest rate
compounded monthly, so that
each employee will receive a
P2,000 bonus?
 A. P12,615.80
 B. P12,516.80
 C. P12,611.80
 D. P12,510.80
637. A man purchased on
monthly installment a
P100,000 worth of land. The
interest rate is 12% nominal
and payable in 20 years. What
is the monthly amortization?
 A. P1,101.08
 B. P1,202.08
 C. P1,303.08
 D. P1,404.08
638. A young engineer
borrowed P10,000 at 12%
interest and paid P2,000 per
annum for the last 4 years.
What does he have to pay at
the end of the fifth year in
order to pay off his loan?
 A. P6,999.39
 B. P6,292.93
 C. P6,222.39
 D. P6,922.93
639. An investment of
P350,000 is made today and
is equivalent to payments of
P200,000 each year for 3
years. What is the annual rate
of return on investment for
the project?
 A. 32.7%
  B. 33.8%
 C. 33.2%
 D. 33.6%
640. Maintenance cost of an
equipment is P200,000 for 2
years, P40,000 at the end of 4
years and P80,000 at the end
of 8 years. Compute the semi-
annual amount that will be set
aside for this equipment.
Money worth 10%
compounded annually.
 A. P7,425.72
 B. P7,329.67
 C. P7,245.89
 D. P7,178.89
641. Mr. Cruz plans to deposit
for the education of his 5
years old son, P500 at the end
of each month for 10 years at
12% annual interest
compounded monthly. The
amount that will be available
in two years is:
 A. P13,100.60
 B. P13,589.50
 C. P13,982.80
 D. P13,486.70
642. A small machine has an
initial cost of P20,000, a
salvage value of P2,000 and a
life of 10 years. If your cost of
operation per year is P3,500
and your revenues per year is
P9,000, what is the
approximate rate of return
(ROR) on the investment?
 A. 24.2%
 B. 24.8%
 C. 25.1%
 D. 25.4%
643. An employee is about to
receive the sum of P300.00 at
the end of each year for 5
years. One year prior to the
receipt of the first sum, he
decides to discount all 5 sum.
If the interest rate is 6%, what
proceeds will he obtain?
 A. P1,298.00
 B. P1,231.09
 C. P1,221.62
 D. P1,263.71
644. The president of a
growing engineering firm
wishes to give each of 50
employees a holiday bonus.
How much is needed to invest
monthly for a year at 12%
nominal rate compounded
monthly, so that each
employee will receive a
P1,000.00 bonus?
 A. P3,942.44
 B. P3,271.22
 C. P3,600.12
 D. P3,080.32
645. Mr. Padilla plans a
deposit of P500 at the end of
each month for 10 years at
12% annual interest,
compounded monthly. What
will be the amount that will be
available in 2 years?
 A. P13,941.44
 B. P13,272.22
 C. P13,486.73
 D. P13,089.32
646. Mr. Ramirez borrowed
P15,000 two years ago. The
terms of the loan are 10%
interest for 10 years with
uniform payments. He just
made his second annual
payment. How much principal
does he still owe?
 A. P13,841.34
 B. P13,472.22
 C. P13,286.63
 D. P13,023.52
647. 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 this lump
sum of the cost of money is
14% compounded quarterly?
 A. P3,702,939.73
 B. P3,607,562.16
 C. P3,799,801.23
 D. P3,676,590.12
648. A man paid 10% down
payment of P200,000 for a
house and lot and agreed to
pay the balance on monthly
installments for “x” years at
an interest rate of 15%
compounded monthly. If the
monthly installment was
P42,821.87, find the value
of x?
 A. 3
 B. 4
 C. 5
 D. 6
649. You need P4,000 per
year for four years to go to
college. Your father invested
P5,000 in 7% account for your
education when you were
born. If you withdraw P4,000
at the end of your 17th, 18th,
19th and 20th birthday, how
much will be left in the
account at the end of the
21st year?
 A. P1,666.98
 B. P1,699.86
 C. P1,623.89
 D. P1,645.67
650. Mr. Ayala borrows
P100,000 at 10% effective
annual interest. He must pay
back the loan over 30 years
with uniform monthly
payments due on the first day
of each month. What does Mr.
Ayala pay each month?
 A. P839.19
 B. P842.38
 C. P807.16
 D. P814.75
651. A machine is under
consideration for investment.
The cost of the machine is
P25,000.00. Each year it
operates, the machine will
generate a savings of
P15,000.00. Given the
effective annual interest rate
of 18%, what is the
discounted payback period, in
years, on the investment of
the machine?
 A. 3.15
 B. 1.75
 C. 2.15
 D. 2.75
652. A machine costs
P20,000.00 today and has an
estimated scrap value of
P2,000.00 after 8 years.
Inflation is 2% per year. The
effective annual interest rate
earned on money invested is
8%. How much money needs
to be set aside each year to
replace the machine with an
identical model 8 years from
now?
 A. P3,345.77
 B. P3,389.32
 C. P3,489.11
 D. P3,573.99
653. Engr. Santos borrows
P100,000.00 at 10% effective
annual interest. He must pay
back the loan over 30 years
with uniform monthly
payment due on the first day
of each month. What does
Engr. Santos pay each month?
 A. P838.86
 B. P849.12
 C. P850.12
 D. P840.21
654. Instead of paying
P100,000.00 in annual rent for
office space at the beginning
of each year for the next 10
years, an engineering firm has
decided to take out a 10-year
P1,000,000.00 loan for a new
building at 6% interest. The
firm will invest P100,000.00 of
the rent saved and earn 18%
annual interest on that
amount. What will be the
difference between the firm’s
annual revenue and
expenses?
 A. P10,200.12
 B. P10,205.13
 C. P10,210.67
 D. P10,215.56
655. A service car whose cash
price was P540,000 was
bought with a downpayment
of P162,000 and monthly
installment of P10,874.29 for
5 years. What was the rate of
interest if compounded
5monthly?
 A. 20%
 B. 24%
 C. 21%
 D. 23%
656. What uniform annual
amount should be deposited
each year in order to
accumulate P100,000.00 at
the end of the 5th annual
deposit if money earns 10%
interest?
 A. P16,002.18
 B. P15,890.12
 C. P16,379.75
  D. P15,980.12
657. In five years, P18,000
will be needed to pay for a
building renovation. In order
to generate this sum, a
sinking fund consisting of
three annual payments is
established now. For tax
purposes, no further payment
will be made after three
years. What payments are
necessary if money worth
15% per annum?
 A. P3,919.52
 B. P3,871.23
 C. P3,781.32
 D. P3,199.52
658. Find the present value in
pesos, of a perpetuity of
P15,000 payable semi-
annually if money is worth 8%
compounded quarterly.
 A. P371,719.52
 B. P371,287.13
 C. P371,670.34
 D. P371,802.63
659. If P500.00 is invested at
the end of each year for 6
years, at an annual interest
rate of 7%, what is the total
peso amount available upon
the deposit of the sixth
payment?
 A. P3,671.71
 B. P3,712.87
 C. P3,450.12
 D. P3,576.64
660. How many years must
you invest today in order to
withdraw P1,000.00 per year
for 10 years if the interest
rate is 12%?
 A. P5,467.12
 B. P5,560.22
 C. P5,650.22
 D. P5,780.12
661. A man paid a 10% down
payment of P200,000 for a
house and lot and agreed to
pay the balance on monthly
installments for 5 years at an
interest rate of 15%
compounded monthly. What
was the monthly installment
in pesos?
 A. P42,821.87
 B. P42,980.00
 C. P43,102.23
 D. P43,189.03
662. A man inherited a
regular endowment of
P100,000.00 every end of 3
months for x years. However,
he may choose to get a single
lump sum of P3,702,939.80 at
the end of 4 years. If the rate
of interest was 14%
compounded quarterly, what
is the value of x?
 A. 10
 B. 11
 C. 12
 D. 13
663. If you obtain a loan of
P1M at the rate of 12%
compounded annually in order
to build a house, how much
must you pay monthly to
amortize the loan within a
period of 10 years?
 A. P13,994.17
 B. P14,801.12
 C. P13,720.15
 D. P14,078.78
664. Rej Averion borrowed
P50,000.00 from Social
Security System, in the form
of calamity loan, with interest
at 8% compounded quarterly
payable in equal quarterly
installments for 10 years. Find
the quarterly payments.
 A. P1,590.83
 B. P1.609.23
 C. P1,778.17
 D. P1,827.79
665. For having been loyal,
trustworthy and efficient, the
company has offered a
supervisor a yearly gratuity
pay of P20,000.00 for 10
years with the first payment
to be made one year after his
retirement. The supervisor,
instead, requested that he be
paid a lump sum on the date
of his retirement less interact
that the company would have
earned if the gratuity is to be
paid on the yearly basis. If
interest is 15%, what is the
equivalently lump sum that he
could get?
 A. P100,357.37
 B. P100,537.73
 C. P100,375.37
 D. P100,735.37
666. In anticipation of a much
bigger volume of business
after 10 years, a fabrication
company purchased an
adjacent lot for its expansion
program where it hopes to put
up a building projected to cost
P4,000,000.00 when it will be
constructed 10 years after, To
provide the required capital
expense, it plans to put up a
sinking fund for the purpose.
How much must the company
deposit each year if interest
to be earned is computed at
15%?
 A. P194,089.17
 B. P195,780.12
 C. P196,801.56
 D. P197,008.25
667. A man purchased a car
with a cash price of P350,000.
He was able to negotiate with
the seller to allow him to pay
only a downpayment of 20%
and the balance payable in
equal 48 end of the month
installment at 1.5% interest
per month. Once the day he
paid the 20th installment, he
decided to pay monthly
payment. How much is his
monthly payment?
 A. P8,929.29
 B. P8,225.00
 C. P8,552.00
 D. P8,008.20
668. A man purchased a car
with a cash price of P350,000.
He was able to negotiate with
the seller to allow him to pay
only a downpayment of 20%
and the balance payable in
equal 48 end of the month
installment at 1.5% interest
per month. Once the day he
paid the 20th installment, he
decided to pay monthly
payment. What is the
remaining balance that he
paid?
 A. P186,927.24
 B. P188,225.00
 C. P187,701.26
 D. P185,900.20
669. A company purchased
for a cash price of
P500,000.00 a machine which
is estimated to have a salvage
value of P50,000.00 at the
end of its 10 years economic
life. How much yearly deposit
must the company deposit in
a sinking fund that will pay
18% interest, compounded
yearly, to accumulate the
needed fund to purchase the
new machine at the end of
the 10th year economic life of
the machine it purchased if a
new machine will cost 75%
more by that time?
 A. P34,859.78
B. P35,890.12

 C. P35,074.58
 D. P34,074.85
670. A car dealer advertises
the sale of a car model for a
cash price of P280,000. If
purchased on installment, the
regular downpayment is 15%
and balance payable in 18
equal monthly installments at
an interest rate of 1.5% per
month. How much will be
required monthly payments?
 A. P15,185.78
B. P15,289.12
 located along Butuanon river
 C. P15,783.90
 D. P15,632.11
671. A machinery supplier is
offering a certain machinery
on a 10% downpayment and
the balance payable in equal
end of the year payments
without interest for 2 years.
Under this arrangement, the
price is pegged to be
P250,000. However, for cash
purchase, the machine would
only cost P195,000. What is
the equivalent interest rate
that is being charged on the
2-year payment plan if
interest is compounded
quarterly?
 A. 18.47%
 B. 19.21%
 C. 19.47%
 D. 19.74%
672. A company has approved
a car plan for its six senior
officers in which the company
will shoulder 25% of the cost
and the difference payable by
each officer to a financing
company in 48 equal end of
the month installments at an
interest rate of 1.5% per
month. If the cost of each car
is P350,000, determine the
amount each officer has to
pay the financing company
per month?
 A. P7,523.90
 B. P7,619.22
 C. P7,190.00
 D. P7,710.94
673. If P10,000 is deposited
each year for 9 years, how
much annuity can a person
get annually from the bank
every year for 8 years starting
1 year after the 9th deposit is
made. Cost of money is 14%.
 A. P34,467.21
 B. P34,567.81
 C. P34,675.18
 D. P34,867.37
674. An employee is earning
P12,000.00 a month and he
can afford to purchase a car
which will require a
downpayment of P10,000.00
and a monthly amortization of
not more than 30% of his
monthly salary. What should
be the maximum cash value
of a car he can purchase if the
seller will agree to a
downpayment of P10,000.00
and the balance payable in
four years at 18% per year
payable on monthly basis?
The first payment will be due
at the end of the first month?
 A. P135,267.21
 B. P135,507.42
 C. P135,605.48
 D. P135,807.30
675. A new company
developed a program in which
the employees will be allowed
to purchase shares of stocks
of the company at the end of
its fifth year of operation,
when the company’s thought
to have gained stability
already. The stock has a par
value of P100.00 per share.
Believing in the good potential
of the company, an employee
decided to save in a bank the
amount of P8,000.00 at the
end of every year which will
earn for him 9% interest,
compounded annually.
How much shares of stocks
will he be able to purchase at
the end of the fifth year of his
yearly deposits?
 A. 476
 B. 478
 C. 480
 D. 482
676. Mr. Juan dela Cruz
borrows P100,000 at 10%
compounded annually,
agreeing to repay the loan in
twenty equal annual
payments. How much of the
original principal is still unpaid
after he has made the tenth
payment?
 A. P69,890.42
 B. P72,000.80
 C. P72,173.90
 D. P72,311.44
677. A debt of P12,000 with
an interest of 20%
compounded quarterly is to
be amortized by equal semi-
annual payments over the
next three years, the first due
in 6 months. How much is the
semi-annual payments?
 A. P2,775.50
 B. P2,662.89
 C. P2,590.04
D. P2,409.78

678. A fund donated by a
benefactor to PICE to provide
annual scholarships to
deserving CE students. The
fund will grant P5,000 for
each of the first five years,
P8,000 for the next five years
and P10,000 each year
thereafter. The scholarship
will start one year after the
fund is established. If the fund
earns 8% interest, what is the
amount of the donation?
 A. P99,490.00
 B. P99,507.35
 C. P99,601.71
 D. P99,723.54
679. If a low cost house and
lot worth P87,000 were
offered at 10% downpayment
and P500 per month for 25
years, what is the effective
monthly interest rate on the
diminishing balance?
 A. 0.492%
 B. 4.92%
 C. 0.0492%
 D. 49.2%
680. The average annual cost
of damages caused by floods
at Dona Rosario Village
is estimated at P700,000. To
build a gravity dam to protect
the area from the floods,
would cost P2,500,000 and
would involve an annual
maintenance cost of P20,000.
With interest at 8%
compounded annually, how
many years will it take for the
dam to pay for itself?
 A. 4.0 years
 B. 4.5 years
 C. 5.0 years
 D. 5.5 years
681. A businessman borrowed
P10,000.00 from a bank at
12% interest, and paid
P2,000.00 per annum for the
first 4 years. What does he
pay at the end of the fifth
year in order to pay-off the
loan?
 A. P6,812.54
 B. P6,782.31
 C. P6,917.72
 D. P6,660.90
682. Engr. Rodel Narito agreed
to pay the loan he is
borrowing from a
development bank in six
annual end-of-the-year
payments of P71,477.70.
Interest is 18% per annum
compounded annually and is
included in the yearly amount
he will be paying the bank.
How much money Engr. Narito
is borrowing from the bank?
 A. P250,000
 B. P260,000
 C. P270,000
 D. P280,000
683. Rona wishes to purchase
a 29-inch flat-screened
colored TV at Bodega
Appliance Center an amount
of P20,000.00. She made a
downpayment of P5,000.00
and the balance payable in 24
equal monthly installments. If
financing charge is 12% for
each year computed on the
total balance to be paid by
installment and interest rate
12%, how much would Rona
pay every month for the
colored TV? What will be the
actual cost of the money?
 A. 36.71%
 B. 36.21%
 C. 35.89%
 D. 35.23%
684. Engr. Bacolongan of Main
Engineering decided to
purchase a machine which is
to be used for their
refrigeration and
airconditioning works at an
amount of P1,200,000. The
useful life of the machine is
estimated to be 5 years with a
salvage value of P80,000 as
based on current prices. The
average annual rate of
inflation during the next 5
years will be 7%. The machine
will be replaced with a
duplicate and the firm will
accumulate the necessary
capital by making equal end-
of-year deposits in a reserve
fund that earns 6% per
annum. Determine the annual
deposit.
 A. P277,189.56
 B. P278,664.54
 C. P279,180.00
 D. P280,673.12
685. Engr. Bacolongan of Main
Engineering decided to
purchase a machine which is
to be used for their
refrigeration and air-
conditioning works at an
amount of P1,200,000. The
useful life of the machine is
estimated to be 5 years with a
salvage value of P80,000 as
based on current prices. The
average annual rate of
inflation during the next 5
years will be 7%. The machine
will be replaced with a
duplicate and the firm will
accumulate the necessary
capital by making equal end-
of-year deposits in a reserve
fund. If money is worth 6%
per annum, determine the
annual deposit.
 A. P367,890.12
 B. P366,062.33
 C. P365,089.34
 D. P364,890.43
686. Because of the peso
devaluation, a car costing
P150,000 is to be purchased
through a finance company
instead of paying cash. If the
buyer is required to pay
P40,000 as downpayment and
P4,000 each month for 4
years, what is the effective
interest rate on the
diminishing balance?
 A. 35.28%
 B. 35.82%
 C. 34.89%
 D. 34.29%
687. Engr. Edwin Astorga
plans to purchase a new office
building costing P1,000,000.
He can raise the building by
issuing 10%, 20-year bond
that would pay P150,000
interest per year and repay
the face amount at maturity.
Instead of buying the new
building, he can least it for
P140,000 per year, first
payment being due one year
from now. The building has an
expected life of 20 years.
Ignoring effects on income
tax, what is the difference
between buying the building
and leasing the building?
 A. P233,779.27
 B. P233,070.12
 C. P234,070.34
 D. P234,560.12
688. Triple J Construction Firm
had put up for sale of some of
their heavy equipments for
construction works. There
were two interested buyers
submitting their respective
bids for the heavy
equipments. The bids are as
follows:
Buyer A offers P10,000,000
payable 20% downpayment,
the balance payable
P1,000,000 annually for 8
years. Buyer B offers
P9,000,000 payable
P2,000,000 down payment,
the balance payable P500,000
semi-annually for 7 years.
How much is the difference
between the two bids if
money is worth 10%
effective?
 A. P346,520.05
 B. P346,980.12
 C. P347,019.45
 D. P347,733.29
689. Froyd Review & Training
Center Inc. is expanding its
school facilities starting 2001.
The program requires the
following estimated
expenditures:
P1,000,000 at the end of 2001
P1,200,000 at the end of 2002
P1,500,000 at the end of 2003
To accumulate the required
funds, it establish a sinking
fund constituting of 15
uniform annual deposits, the
first deposit has been made at
the end of 1992. The interest
rate of the fund is 2% per
annum. Calculate the annual
deposit.
 A. P217,520.05
 B. P216,980.12
 C. P217,679.01
 D. P216,733.29
690. Froyd Review & Training
Center Inc. is expanding its
school facilities starting 2001.
The program requires the
following estimated
expenditures:
P1,000,000 at the end of 2001
P1,200,000 at the end of 2002
P1,500,000 at the end of 2003
To accumulate the required
funds, it establish a sinking
fund constituting of 15
uniform annual deposits, the
first deposit has been made at
the end of 1992. The interest
rate of the fund is 2% per
annum. Calculate the balance
in the fund on January 1,
2002.
 A. P2,185,902.11
 B. P2,195,600.03
 C. P2,165,399.54
 D. P2,175,380.00
691. Padilla Pawnshop sells
jewelries on either of the
following arrangements:
Cash Price: Discount of 10% of
the marked price
Installment: Downpayment of
20% of the marked price and
the balance payable in equal
annual installments for the
next 4 years.
If you are buying a necklace
with a marked price of P5,000,
how much is the difference
between buying in cash and
buying in installment? Assume
that money is worth 5%.
 A. P40.76
 B. P41.90
 C. P43.54
 D. P45.95
692. Lim Bon Fing Y Hermanos
Inc has offered for sale its
two-storey building in the
commercial district of Cebu
City. The building contains two
stores on the ground floor and
a number of offices on the
second floor.
A prospective buyer estimates
that if he buys this property,
he will hold it for about 10
years. He estimates that the
average receipts from the
rental during this period to be
P350,000.00 and the average
expenses for all purpose in
connection with its ownership
and operation (maintenance
and repairs, janitorial
services, insurance, etc.) to
be P135,000.00. He believes
that the property can be sold
for a net of P2,000,000 at the
end of the 10th year. If the rate
of return on this type of
investment is 7%, determine
the cash price of this property
for the buyer to recover his
investment with a 7% return
before income taxes.
 A. P2,526,768.61
 B. P2,490,156.34
 C. P2,390,189.00
 D. P2,230,120.56
693. Bicol Hardware Inc is
considering two alternative
strategies for a new power
tool. According to Jun Ramos
who is introducing the power
tool, the new product will
require an outlay of P30,000
with a low price strategy. The
product will generate cash
proceeds of P20,000 per year
and will have a life to two
years. With a high price
strategy, the product will
generate cash proceeds of
P36,000 but will have a life of
only one year. The cost of
money for the company is
10%. Determine the net
present value of the low price
strategy.
 A. P34,389.12
 B. P34,490.10
 C. P34,518.89
 D. P34,710.74
694. Bicol Hardware Inc is
considering two alternative
strategies for a new power
tool. According to Jun Ramos
who is introducing the power
tool, the new product will
require an outlay of P30,000
with a low price strategy. The
product will generate cash
proceeds of P20,000 per year
and will have a life to two
years. With a high price
strategy, the product will
generate cash proceeds of
P36,000 but will have a life of
only one year. The cost of
money for the company is
10%. Determine the net
present value of the high
price strategy.
 A. P32,727.27
 B. P33,737.34
 C. P33,747.20
 D. P33,757.89
695. John Smith plans to
purchase a new house costing
P1,000,000. He can raise the
building by issuing a 10%, 20
year old bond that would pay
P150,000 interest per year
and repay the face amount at
maturity. Instead of buying
the new house, Jan Michael
has an option of leasing it for
P140,000 per year, the first
payment due one year from
now. The building has an
expected life of 20 years. If
interest charge for leasing is
12%, which of the following is
true?
 A. Lease is more
economical than
borrow and buy.
 B. Lease has same
result with borrow and
buy.
 C. Borrow and buy is
half the value than
lease.
 D. Borrow and buy is
economical by almost
a hundred thousand
than lease.
696. Engr. Edward Zuela is
considering establishing his
own business. An investment
of P100,000 will be required
which must be recovered in
15 years. It is estimated that
sales will be P150,000 per
year and that annual
operating expenses will be as
follows:
Materials
Labor
Overhead
Selling expenses
Engr. Zuela will give up his
regular job paying P15,000
per year and devote full time
to the operation of the
business. This will result in
decreasing labor cost by
P10,000 per year, material
cost by P7,000 per year and
overhead cost by P8,000 per
year. If he expects to earn at
least 20% of his capital, is
investing in this business a
sound idea?
 A. Yes, it is a sound
idea
 B. No, it is not a sound
idea
 C. Neither yes nor no
because it simply
breakeven
 D. It depends on the
current demand of the
market.
697. A housewife bought a
brand new washing machine
costing P12,000 if paid in
cash. However, she can
purchase it on installment
basis to be paid within 5
years. If money is worth 8%
P40,000
compounded annually, what is
her yearly amortization if all
payments are to be made at
the beginning of each year?
P70,000
 A. P2,617.65
 B. P2,782.93
P10,000 + 10% of sales
 C. P2,890.13
 D. P2,589.90
P5,000
698. A Civil Engineering
student borrowed P2,000.00
to meet college expenses
during his senior year. He
promised to repay the loan
with interest at 4.5% in 10
equal semi-annual
installments, the first
payment to be made 3 years
after the date of the loan.
How much will this payment
be?
 A. P252.12
B. P261.89

 C. P273.90
 D. P280.94
699. A father wishes to
provide P40,000 for his son on
his son’s 21st birthday. How
much should he deposit every
6 months in a savings account
which pays 3% compounded
semi-annually, if the first
deposit was made when the
son was 3 ½ years old?
 A. P829.68
 B. P815.80
 C. P830.12
 D. P846.10
700. A group of Filipino
Mechanical Engineers formed
a corporation and the
opportunity to invest
P8,000,000 in either of the
two situations. The first is to
expand a domestic operation.
It is estimated that this
investment would return a net
year end cash flow of
P2,000,000 each year for 10
years and at the end of that
time, the physical assets,
which would no longer be
needed, could be sold at
P5,000,000. The alternative
opportunity would involve
building and operating a plant
in a foreign country. This
operation would involve no
net cash flow during the first
3 years, but it is believed that,
beginning with the end of the
fourth year, an annual flow of
P4,000,000 would be
received, running through the
end of the 10th year. After that
time, it is believed that the
operation and facilities might
be expropriated, with little, if
any, compensation, being
paid. Which of the following is
true?
 A. Foreign operation
yields bigger rate of
return.
 B. Domestic and
foreign operations
yield the same rate of
return.
 C. Domestic operation
has double the rate of
return of the foreign
operation.
 D. Foreign operation
yields approximately
3% less rate of return
than domestic
operation.
701. A house costs P400,000
cash. A purchaser will pay
P90,000 cash, P60,000 at the
end of 2 years and a
sequence of 6 equal annual
payments starting with one at
the end of 4 years, to
discharge all his liabilities as
to the principal and interest at
7% compounded annually.
Find the annual payment
which must be made for 6
years.
 A. P66,204.14
 B. P65,701.67
 C. P67,901.34
 D. P68,900.12
702. Two years ago, the rental
for the use of equipment and
facilities as paid 5 years in
advance, with option to renew
the rent for another years by
payment of P15,000 annually
at the start of each year for
the renewal period. Now, the
lessor asks the lessee if it
could be possible to prepay
the rental that will be paid
annually in the renewed 5
years period. If the lessee will
consider the request, what
would be the fair prepayment
to be made to the lessor if
interest is now figured at 8 %?
 A. P51,843.90
 B. P51,346.58
 C. P52,002.45
 D. P52,740.20
703. NSN Builders plans to
construct an additional
building at the end of 10
years for an estimated cost of
P5,000,000.00. To accumulate
the amount, it will have equal
year end deposits in a fund
earning 13%. However, at the
end of the 5th year, it was
decided to have a larger
building that originally
intended to an estimated cost
of P8,000,000.00. What
should be the annual deposit
for the last 5 years?
 A. P734,391.48
 B. P742,890.10
 C. P738,900.45
 D. P740,010.86
704. The quantity of a certain
commodity that is offered for
sale at a certain price at a
given place and time.
 A. Demand
 B. Supply
 C. Stocks
 D. Goods
705. Work-in process is
classified as:
 A. An asset
 B. A liability
 C. An expenses
 D. An owner’s equity
706. What is the highest
position in the corporation?
 A. President
 B. Board of Directors
 C. Chairman of the
Board
D. Stockholders

707. Type of ownership in
business where individuals
exercise and enjoy the right in
their own interest.
 A. Equitable
 B. Public
 C. Private
 D. Pure
708. Decrease in the value of
a physical property due to the
passage of time.
 A. Inflation
 B. Depletion
 C. Recession
 D. Depreciation
709. An association of two or
more individuals for the
purpose of operating a
business as co-owners for
profit.
 A. Sole proprietorship
 B. Company
 C. Partnership
 D. Corporation
710. We may classify an
interest rate, which specifies
the actual rate of interest on
the principal for one year as:
 A. Nominal rate
 B. Rate of return
 C. Exact interest rate
D. Effective rate

711. It is defined to be the
capacity of a commodity to
satisfy human want.
 A. Discount
 B. Luxury
 C. Necessity
 D. Utility
712. It is the amount which a
willing buyer will pay to a
willing seller for a property
where each has equal
advantage and is under no
compulsion to buy or sell.
 A. Fair value
 B. Market value
 C. Book value
 D. Salvage value
713. This occurs in a situation
where a commodity or service
is supplied by a number of
vendors and there is nothing
to prevent additional vendors
entering the market.
 A. Perfect competition
 B. Oligopoly
 C. Monopoly
 D. Elastic demand
714. These are products or
services that are desired by
human and will be purchased
if money is available after the
required necessities have
been obtained.
 A. Utilities
 B. Necessities
 C. Luxuries
 D. Products, goods
and services
715. These are products or
services that are required to
support human life and
activities, that will be
purchased in somewhat the
same quantity even though
the price varies considerably.
 A. Utilities
 B. Necessities
 C. Luxuries
 D. Products, goods
and services
716. A condition where only
few individuals produce a
certain product and that any
action of one will lead to
almost the same action of the
others.
 A. Oligopoly
 B. Semi-monopoly
 C. Monopoly
 D. Perfect competition
717. Grand total of the assets
and operational capability of a
corporation.
 A. Authorized capital
 B. Investment
 C. Subscribed capital
 D. Money market
718. The worth of the
property equals to the original
cost less depreciation.
 A. Scrap value
 B. Face value
 C. Market value
 D. Book value
719. Money paid for the use of
borrowed capital.
 A. Discount
 B. Credit
 C. Interest
D. Profit
 
720. Liquid assets such as
cash, and other assets that
can be converted quickly into
cash, such as accounts
receivable and merchandise 724. Gross profit, sales less 728. A market situation where
are called: cost of goods sold, as a there are few sellers and few
percentage of sales is called: buyers.
 A. Total assets
 A. Profit margin  A. Oligopoly
 B. Fixed assets
 B. Gross margin  B. Oligopsony
 C. Current assets
 C. Net income  C. Bilateral oligopoly
 D. None of the above
 D. Rate of return  D. Bilateral oligopsony
721. The length of time which
the property may be 725. Worth of the property as 729. A market situation where
considered at a profit. shown in the accounting there is one seller and one
records of an enterprise. buyer.
 A. Physical life
 A. Fair value  A. Monopoly
 B. Economic life
 B. Market value  B. Monopsony
 C. Operating life
 C. Salvage value  C. Bilateral monopoly
 D. All of the above
 D. Book value  D. Bilateral
monopsony
722. The provision in the
contract that indicates the 726. Those funds that are
possible adjustment of required to make the 730. A market situation where
material cost and labor cost. enterprise or project a going there are only two buyers with
concern. many sellers.
 A. Secondary cause
 A. Initial investment  A. Duopoly
 B. Escalatory clause
 B. Current accounts  B. Oligopoly
 C. Contingency clause
 C. Working capital  C. Duopsony
 D. Main clause
 D. Subscribed capital  D. Oligopsony
723. The present worth of all
depreciation over the 727. A market situation where 731. The cumulative effect of
economic life of the item is there is only one seller with elapsed time on the money
called many buyer. value of an event, based on
the earning power of
equivalent invested funds
 A. Book value  A. Monopoly capital should or will learn.
 B. Capital recovery  B. Monopsony
C. Depreciation  C. Oligopoly  A. Present worth
recovery factor
 D. Oligopsony
 D. Sinking fund  B. Interest rate
 C. Time value of
money
  D. Yield
732. Defined as the future
value minus the present
value.
 A. Interest
 B. Rate of return
 C. Discount
 D. Capital
733. The flow back of profit
plus depreciation from a given
project is called:
 A. Capital recovery
 B. Cash flow
 C. Economic return
 D. Earning value
734. An investment consisting
of deposits of P1,000, P1,500
and P2,000 are made at the
end of the 2nd year, 3rd year
and 4th year, respectively. If
money is worth 10%, what is
the equivalent present worth
of the investment?
 A. P3,129.89
 B. P3,319.45
 C. P3,372.12
 D. P3,490.09
735. Miss Marcial deposited
P1,000, P1,500 and P2,000 at
the end of the 2nd year,
3rd year and 4th year,
respectively in a savings
account which earned 10%
per annum. How much is in
the account at the end of the
4th year?
 A. P4,880.00
 B. P4,820.00
 C. P4,860.00
 D. P4,840.00
736. Miss Santos deposited
P1,000, P1,500 and P2,000 at
the end of the 2nd year,
3rd year and 4th year,
respectively in a savings
account which earned 10%
per annum. What is the
equivalent uniform deposit for
the uniform gradient only?
 A. P670.81
 B. P690.58
 C. P660.53
 D. P680.12
737. An amortization of a debt
is in a form of a gradient
series of P5,000 on the first
years, P4,500 on the second
year, P4,000 on the third year
and P3,500 on the fourth year.
What is the equivalent
present worth of the debt if
interest is 5%?
 A. P15,093.28
 B. P15,178.34
 C. P15,890.12
 D. P15,389.82
738. An amortization of a debt
is in a form of a gradient
series of P5,000 on the first
year, P4,500 on the second
year, P4,000 on the third year,
P3,500 on the fourth year.
Determine future amount of
the amortization if interest is
5%.
 A. P18,030.56
 B. P18,290.12
 C. P18,621.89
 D. P18,449.37
739. An amortization of a debt
is in a form of a gradient
series of P5,000 on the first
year, P4,500 on the second
year, P4,000 on the third year,
P3,500 on the fourth year.
What is the equivalent
uniform periodic payment if
interest is 5%?
 A. P4,280.47
 B. P4,378.17
 C. P4,259.68
 D. P4,325.12
740. An NBA Basketball
superstar, playing for Los
Angeles Lakers is earning an
average annual salary of
$5,000,000 for 10 years.
Chicago Bulls ball club would
like to acquire his services as
a replacement of the retired
Michael Jordan, offered him an
initial annual salary of
$3,000,000 but is increasing
at the rate of $400,000
annually. If he can still play in
the NBA for 10 years and
money is worth 10%, which
one is true?
 A. Chicago Bulls’ offer
is smaller than that of
LA Lakers’
 B. Chicago Bulls’ offer
is exactly the same as
LA Lakers’
 C. Chicago Bulls’ offer
is just few dollars
more per year than
that of LA Lakers’
 D. Chicago Bulls’ offer
is over $150,000 per
year than that of LA
Lakers’
741. John Grisham, author of
the best-selling novel “The
Chamber” sold its copyright
to Warner Bros. for the rights
to make it into a motion
picture. Mr. Grisham’s has
options between the following
Warner Bros. proposals:
A. An immediate lump sum
payment of $5,000,000.
B. An initial payment of
$2,500,000 plus 4% of the
movie’s gross receipts for the
next 5 years which is
forecasted as follows:
End of
year Gross receipt
1 $10,000,000.00
2 $8,000,000.00
3 $6,000,000.00
4 $4,000,000.00
5 $2,000,000.00
If money is worth 10% and Mr.
Grisham will not receive any
royalty after the fifth year of
exhibition of the movie, by
how much is proposal
A bigger than proposal B?
 A. P1,532,630
 B. P1,390,090
 C. P1,478,100
 D. P1,289,450
742. Two sisters, Joan and
Jocelyn decided to save
money in funds that earns
14% compounded annually
but on different ways. Joan
decided to save by making an
end-of-year deposit of P1,000
on the first year, P1,100 on
the second year, P1,210 on
the third year and so on
increasing the next year’s
deposit by 10% of the deposit
in the preceding year until the
end of the 10th year. Jocelyn
decided to save by just
making an equal deposit of
P1,400 annually for 10 years.
Who has more savings at the
end of 10 years and by how
much bigger compared to the
other sister?
 A. Jocelyn, P671.18
 B. Jocelyn, P763.27
 C. Joan, P671.18
 D. Joan, P763.27
743. Engr. Maragat, believing
that life begins at 40, decided
to retire and start enjoying life
at age 40. He wishes to have
upon his retirement the sum
of P5,000,000. On his
21st birthday, he deposited a
certain amount and increased
his deposit by 15% each year
until he will be 40. If the
money is deposited in a super
savings account which earns
15% interest compounded
annually, how much was his
initial deposit?
 A. P17,253.18
 B. P17,566.33
 C. P17,672.77
 D. P17,490.21
744. A newly-acquired
equipment requires an annual
maintenance costs of
P10,000. If the annual
maintenance cost is increased
by 20% each year every year
for 10 years, what is the
estimated present worth of
the maintenance costs if
money is worth 15%?
 A. P105,712.33
 B. P106,101.37
 C. P107,490.12
 D. P108,890.11
745. The profit derived from a
project or business enterprise
without consideration of
obligations to financial
contributors or claims of other
based on profit.
 A. Economic return
 B. Yield
 C. Earning value
 D. Expected yield
746. The payment for the use
of borrowed money is called:
 A. Loan
 B. Maturity value
 C. Interest
 D. Principal
747. The interest rate at
which the present work of the
cash flow on a project is zero
of the interest earned by an
investment.
 A. Effective rate
 B. Nominal rate
 C. Rate of return
 D. Yield
748. The ratio of the interest
payment to the principal for a
given unit of time and usually
expressed as a percentage of
the principal.
 A. Interest
 B. Interest rate
 C. Investment
 D. All of the above
749. The true value of interest
rate computed by equations
for compound interest for a 1
year period is known as:
 A. Expected return
 B. Interest
 C. Nominal interest
 D. Effective interest
750. The intangible item of
value from the exclusive right
of a company to provide a
specific product or service in a
stated region of the country.
 A. Market value
 B. Book value
 C. Goodwill value
 D. Franchise value
751. The recorded current
value of an asset is known as:
 A. Scrap value
 B. Salvage value
 C. Book value
 D. Present worth
752. Scrap value of an asset
is sometimes known as:
 A. Book value
 B. Salvage value
 C. Replacement value
 D. Future value
753. What is sometimes
called second-hand value?
 A. Scrap value
 B. Salvage value
 C. Book value
 D. Going value
754. An intangible value
which is actually operating
concern has due to its
operation.
 A. Book value
 B. Fair value
 C. Goodwill value
 D. Going value
755. A company issued 50
bonds of P1,000.00 face value
each, redeemable at par at
the end of 15 years. To
accumulate the funds
required for redemption the
firm established a sinking
fund consisting of annual
deposits, the interest rate of
the fund being 4%. What was
the principal in the fund at the
end of the 12th year?
 A. P37,002.54
 B. P37,520.34
 C. P38,010.23
 D. P38,782.34
756. A local firm is
establishing a sinking fund for
the purpose of accumulating a
sufficient capital to retire its
outstanding bonds at
maturity. The bonds are
redeemable in 10 years and
their maturity value is
P150,000.00. How much
should be deposited each
year if the fund pays interest
at the rate of 3%?
 A. P13,084.58
 B. P13,048.85
 C. P13,408.58
 D. P13,480.58
757. A P1,000,000 issue of
3%, 15-year bond was sold at
95%. What is the rate of
interest of this investment?
 A. 3.0%
 B. 3.4%
 C. 3.7%
 D. 4.0%
758. A man was offered a
Land Bank certificate with a
face value of P100,000 which
is bearing interest of 6% per
year payable semiannually
and due in 6 years. If he
wants to earn 8%
semiannually, how much must
he pay the certificate?
 A. P90,123.09
 B. P90,614.93
 C. P90,590.12
 D. P90,333.25
759. A P1,000 bond which will
mature in 10 years and with a
bond rate of 8% payable
annually is to be redeemed at
par at the end of this period.
It is sold at P1,030. Determine
the yield at this price.
 A. 7.56%
 B. 7.65%
 C. 7.75%
 D. 7.86%
760. You purchase a bond at
P5,100. The bond pays P200
per year. It is redeemable for
P5,050 at the end of 10 years.
What is the net rate of
interest on your investment?
 A. 3.56%
 B. 3.85%
 C. 3.75%
 D. 3.68%
761. A P1,000, 6% bond pays
dividend semiannually and
will be redeemed at 110% on
June 21, 2004. It is bought on
June 21, 2001 to yield 4%
interest. Find the price of the
bond.
 A. P1,122.70
 B. P1,144.81
 C. P1,133.78
 D. P1,155.06
762. The value which a
disinterested third party,
different from the buyer and
seller, will determine in order
to establish a price acceptable
to both parties.
 A. Market value
 B. Goodwill value
 C. Fair value
 D. Franchise value
763. A type of annuity where
the payments are made at the
end of each payment period
starting from the first period.
 A. Ordinary annuity
 B. Annuity due
 C. Deferred annuity
 D. Perpetuity
764. It is a series of equal
payments occurring at equal
intervals of time where the
first payment is made after
several periods, after the
beginning of the payment.
 A. Deferred annuity
 B. Delayed annuity
 C. Progressive annuity
 D. Simple annuity
765. A type of annuity where
the payments are made at the
start of each period,
beginning from the first
period.
 A. Ordinary annuity
 B. Annuity due
 C. Deferred annuity
 D. Perpetuity
766. Which is NOT an
essential element of an
ordinary annuity?
 A. The amounts of all
payments are equal.
 B. The payments are
made at equal
interval of time.
 C. The first payment is
made at the
beginning of each
period.
 D. Compound interest
is paid on all amounts
in the annuity.
767. A is a periodic payment
and I is the interest rate, then
present worth of a perpetuity
=
 A. Ai
 B. Ain
 C. An/i
 D. A/i
768. A mathematical
expression also known as the
present value of an annuity of
1 is called
 A. Load factor
 B. Demand factor
 C. Sinking fund factor
 D. Present worth
factor
769. As applied to a
capitalized asset, the
distribution of the initial cost
by a periodic changes to
operation as in depreciation
or the reduction of a debt by
either periodic or irregular
prearranged program is called
 A. Annuity
 B. Capital recovery
 C. Annuity factor
 D. Amortization
770. The reduction of the
value of an asset due to
constant use and passage of
time.
 A. Scrap value
 B. Depletion
 C. Depreciation
 D. Book value
771. A method of computing
depreciation in which the
annual charge is a fixed
percentage of the depreciated
book value at the beginning of
the year which the
depreciation applies.
 A. Straight line
method
 B. Sinking fund
method
 C. SYD method
 D. Declining balance
method
772. A VOM has a selling price
of P400. If its selling price is
expected to decline at a rate
of 10% per annum due to
obsolescence, what will be its
selling price after 5 years?
 A. P222.67
 B. P212.90
 C. P236.20
 D. P231.56
773. A machine costs P8,000
and an estimated life of 10
years with a salvage value of
P500. What is its book value
after 8 years using straight
line method?
 A. P2,000.00
 B. P2,100.00
 C. P2,200.00
 D. P2,300.00
774. A telephone company
purchased a microwave radio
equipment for P6 million,
freight and installation
charges amounted to 4% of
the purchased price. If the
equipment will be depreciated
over a period of 10 years with
a salvage value of 8%,
determine the depreciation
cost during the 5th year using
SYD.
 A. P626,269.09
 B. P623,209.09
 C. P625,129.09
 D. P624,069.89
775. ABC Corporation makes
it a policy that for any new
equipment purchased, the
annual depreciation cost
should not exceed 20% of the
first cost at any time with no
salvage value. Determine the
length of service life
necessary if the depreciation
used is the SYD method.
 A. 7 years
 B. 8 years
 C. 9 years
 D. 10 years
776. A company purchases an
asset for P10,000.00 and
plans to keep it for 20 years. If
the salvage value is zero at
the end of the 20th year, what
is the depreciation in the third
year? Use SYD method.
 A. P857.14
  B. P862.19
 C. P871.11
 D. P880.00
777. An asset is purchased for
P500,000.00. The salvage
value in 25 years is
P100,000.00. What is the total
depreciation in the first three
years using straight-line
method?
 A. P45,000.00
 B. P46,000.00
 C. P47,000.00
 D. P48,000.00
778. A machine has an initial
cost of P50,000 and a salvage
value of P10,000 after 10
years. What is the book value
after 5 years using straight
line depreciation?
 A. P30,000.00
 B. P31,000.00
 C. P30,500.00
 D. P31,500.00
779. An asset is purchased for
P9,000.00. Its estimated life is
10 years after which it will be
sold for P1,000.00. Find the
book value during the first
year if SYD depreciation is
used.
 A. P7,545.45
 B. P7,320.11
 C. P7,490.00
 D. P7,690.12
780. The cost of equipment is
P500,000 and the cost of
installation is P30,000. If the
salvage value is 10% of the
cost of equipment at the end
of years, determine the book
value at the end of the fourth
year. Use straight-line
method.
 A. P146,320.50
 B. P146,000.00
 C. P146,230.50
 D. P146,023.50
781. An asset is purchased for
P20,000.00. Its estimated life
is 10 years after which it will
be sold for P12,000.00. Find
the depreciation for the first
year using SYD method.
A. P1,545.45
 installation, is P800,000. The
 B. P1,454.54
 C. P1,344.21
 D. P1,245.45
782. A machine has an initial
cost of P50,000 and a salvage
value of P10,000 after 10
years. Find the book value
after 5 years using straight-
line depreciation.
 A. P31,000.00
 B. P31,500.00
 C. P30,000.00
 D. P30,500.00
783. A machine has an initial
cost of P50,000.00 and a
salvage value of P10,000.00
after 10 years. What is the
straight line method
depreciation rate as a
percentage of the initial cost?
 A. 10%
 B. 8%
 C. 7%
 D. 9%
784. A machine costing
P45,000 is estimated to have
a book value of P4,350 when
retired at the end of 6 years.
Depreciation cost is computed
using a constant percentage
of the declining book value.
What is the annual rate of
depreciation in %?
 A. 32.50%
 B. 32.25%
 C. 32.00%
 D. 32.75%
785. An asset is purchased for
P120,000.00. Its estimated life
is 10 years, after which it will
be sold for P12,000.00. Find
the depreciation for the
second year using the sum-of-
years’ digit method.
 A. P17,578.13
 B. P17,412.43
 C. P17,344.67
 D. P17,672.73
786. A machine costing
P720,000 is estimated to have
a book value of P40,545.73
when retired at the end of 10
years. Depreciation cost is
computed using a constant
percentage of the declining
book value. What is the
annual rate of depreciation in
%?
A. 25%
 depreciation. The estimated
 B. 26%
C. 27%

 D. 28%
787. An asset is purchased for
P9,000.00. Its estimated
economic life is 10 years after
which it will be sold for
P1,000.00. Find the
depreciation in the first three
years using straight line
method.
 A. P2,400.00
 B. P2,412.34
 C. P2,250.00
 D. P2,450.00
788. An engineer bought an
equipment for P500,000. He
spent an additional amount of
P30,000 for installation and
other expenses. The
estimated useful life of the
equipment is 10 years. The
salvage value is x% of the
first cost. Using the straight
line method of depreciation,
the book value at the end of 5
years will be P291,500. What
is the value of x?
 A. 0.2
 B. 0.4
 C. 0.3
 D. 0.1
789. The initial cost of a paint
sand mill, including its
installation, is P800,000. The
BIR approved life of this
machine is 10 years for
salvage value of the mill is
P50,000 and the cost of
dismantling is estimated to be
P15,000. Using straight-line
depreciation, what is the
annual depreciation charge?
 A. P75,500.00
 B. P76,000.00
 C. P76,500.00
 D. P77,000.00
790. The initial cost of a paint
sand mill, including its
BIR approved life of this
machine is 10 years for
depreciation. The estimated
salvage value of the mill is
P50,000 and the cost of
dismantling is estimated to be
P15,000. Using straight-line
depreciation, what is the book
value of the machine at the
end of six years?
 A. P341,000.00
 B. P343,000.00
 C. P340,000.00
 D. P342,000.00
791. A unit of welding
machine cost P45,000 with an
estimated life of 5 years. Its
salvage value is P2,500. Find
its depreciation rate by
straight-line method.
  A. 18.89%
 B. 19.21%
 C. 19.58%
 D. 19.89%
792. A tax and duty free
importation of a 30 hp
sandmill for paint
manufacturing cost
P360,000.00. Bank charges
arrastre and brokerage cost
P5,000.00. Foundation and
installation costs were
P25,000.00. Other incidental
expenses amount to
P20,000.00. Salvage value of
the mill is estimated to be
P60,000 after 20 years. Find
the appraisal value of the mill
using straight line
depreciation at the end of 10
years.
 A. P234,000.00
 B. P235,000.00
 C. P234,500.00
 D. P235,500.00
793. An equipment costs
P10,000 with a salvage value
of P500 at the end of 10
years. Calculate the annual
depreciation cost by sinking-
fund method at 4% interest.
 A. P791.26
 B. P792.61
 C. P726.17
 D. P771.26
794. A machine initially worth
P50,000 depreciates in value
each year by 20% of its value
at the beginning of that year.
Find its book value when it is
9 years old.
 A. P6,710.89
 B. P6,400.89
 C. P6,666.89
 D. P6,512.78
795. A consortium of
international
telecommunications
companies contracted for the
purchase and installation of
fiber optic cable linking Manila
City and Cebu City at a total
cost of P960 million. This
amount includes freight and
installation charges estimated
at 10% of the above total
contract price. If the cable
shall be depreciated over a
period of 15 years with zero
salvage value and money is
worth 6% per annum, what is
the annual depreciation
charge?
 A. P41,044,903.40
 B. P41,211,158.40
 C. P41,254,000.40
 D. P41,244,253.40
796. An asset is purchased for
P9,000.00. Its estimated
economic life is 10 years after
which it will be sold for
P1,000.00. Find the
depreciation in the first three
years using sum-of-years’
digit method.
 A. P3,279.27
 B. P3,927.27
 C. P3,729.27
 D. P3,792.72
797. A radio service panel
truck initially cost P560,000.
Its resale value at the end of
the 5th year of the useful life is
estimated at P150,000. By
means of declining balance
method, determine the
depreciation charge for the
second year.
 A. P99,658.41
 B. P99,128.45
 C. P99,290.00
 D. P99,378.45
798. Shell Philippines, a
multinational company, has a
total gross income for a
particular year of
P50,000,000. The taxable
income after taking all
deductions except for
depletion is P18,500,000.
What is the allowable
depletion allowance for that
particular year? Take
percentage of gross income
for oil as 22%.
 A. P9,358.41
 B. P9,228.45
 C. P9,250.00
 D. P9,308.45
799. The Saudi Arabian Oil
Refinery developed an oil well
which is estimated to contain
5,000,000 barrels of oil at an
initial cost of $50,000,000.
What is the depletion charge
during the year where it
produces half-million barrels
of oil? Use Unit or Factor
method in computing
depletion.
 A. $500,000,000
 B. $510,000,000
 C. $525,000,000
 D. $550,000,000
800. The first cost of a certain
equipment is P324,000 and a
salvage value of P50,000 at
the end of its life of 4 years. If
money is worth 6%
compounded annually, find
the capitalized cost.
 A. P540,090.34
 B. P541,033.66
 C. P540,589.12
 D. P541,320.99
801. An item is purchased for
P100,000. Annual cost is
P18,000. Using interest rate of
8%, what is the capitalized
cost of perpetual service?
 A. P310,000
 B. P315,000
 C. P320,000
 D. P325,000
802. A corporation uses a
type of motor which costs
P5,000 with 2 life years and
final salvage value of P800.
How much could the
corporation afford to pay for
another type of motor of the
same purpose whose life is 3
years a with a final salvage
value of P1,000. Money is
worth 4%.
 A. P7,892.13
 B. P7,157.40
 C. P7,489.21
 D. P7,300.12
803. A motorcycle costs
P50,000 and has an expected
life of 10 years. The salvage
value is estimated to be
P2,000 and annual operating
cost is estimated at P1,000.
What is the appropriate rate
of return on the investment if
the annual revenue is
P10,000?
 A. 12.12%
 B. 12.54%
 C. 12.72%
 D. 12.99%
804. At 6%, find the
capitalized cost of a bridge
whose cost is P250M and life
is 20 years, if the bridge must
be partially rebuilt at a cost of
P100M at the end of each 20
years.
 A. P297,308,323.10
 B. P298,308,323.10
 C. P296,308,323.10
 D. P295,308,323.10
805. A new broiler was
installed by a textile plant at a
total cost of P300,000 and
projected to have a useful life
of 15 years. At the end of its
useful life, it is estimated to
have a salvage value of
P30,000. Determine its
capitalized cost if interest is
18% compounded annually.
 A. P323,500.33
B. P322,549.33
 P2.32 each. If the item has a
 C. P332,509.33
 D. P341,240.33
806. A man planned of
building a house. The cost of
construction is P500,000 while
annual maintenance cost is
estimated at P10,000. If the
interest rate is 6%, what is the
capitalized cost of the house?
 A. P666,000.00
 B. P666,666.67
 C. P633,333.33
 D. P650,000.00
807. An untreated electrical
wooden pole that will last 10
years under a certain soil
condition, costs P1,200.00. If
a treated pole will last for 20
years, what is the maximum
justifiable amount that can be
paid for the treated pole, if
the maximum return on
investment is 12%. Consider
annual taxes and insurance
amount to be 1% of the first
cost.
 A. P1,612.01
 B. P1,559.50
 C. P1,789.23
 D. P1,409.38
808. A granite quarry
purchased for P1,600,000 is
expected to be exhausted at
the end of 4 years. If the
resale value of the land is
P100,000, what annual
income is required to yield an
investment rate of 12%? Use
a sinking fund rate of 3%.
 A. P550,540.57
 B. P551,540.57
 C. P552,540.57
 D. P553,540.57
809. A manufacturer produces
certain items at a labor cost
per unit of P315, material cost
per unit is P100, variable cost
of P3.00 each. If the item has
a selling price of P995, how
many units must be
manufactured each month for
the manufacturer to
breakeven if the monthly
overhead is P461,600?
 A. 782
 B. 800
 C. 806
 D. 812
810. The annual maintenance
cost of a machine shop is
P69,994. If the cost of making
a forging is P56 per unit and
its selling price is P135 per
forged unit, find the number
of units to be forged to break-
even.
 A. 892
 B. 870
 C. 886
 D. 862
811. A manufacturer produces
certain items at a labor cost
of P115 each, material cost of
P76 each and variable cost of
unit price of P600, how many
units must be manufactured
each month for the
manufacturer to break even if
the monthly overhead is
P428,000.
 A. 1,033
 B. 1,037
 C. 1,043
 D. 1,053
812. Steel drum manufacturer
incurs a yearly fixed operating
cost of $200,000. Each drum
manufactured cost $160 to
produce and sells $200. What
is the manufacturer’s break-
even sales volume in drums
per year?
 A. 5,031
 B. 5,017
 C. 5,043
 D. 5,000
813. XYZ Corporation
manufactures bookcases that
sell for P65.00 each. It costs
XYZ corporation P35,000 per
year to operate its plant. This
sum includes rent,
depreciation charges on
equipment, and salary
payments. If the cost to
produce one bookcase is
P50.00, how many cases must
be sold each year for XYZ to
avoid taking a loss?
 A. 2,334
 B. 2,443
 C. 2,223
 D. 2,322
814. A company which
manufactures electric motors
has a production capacity of
200 motors a month. The
variable costs are P150.00 per
motor. The average selling
price of the motors is
P275.00. Fixed costs of the
company amount to P20,000
per month which includes
taxes. Find the number of
motors that must be sold each
month to breakeven.
 A. 160
 B. 157
 C. 153
 D. 163
815. The annual maintenance
cost of a machine is P70,000.
If the cost of making a forging
is P56 and its selling price is
P125 per forged unit. Find the
number of units to be forged
to breakeven.
 A. 1,000
 B. 1,012
 C. 1,015
 D. 1,018
816. A manufacturing firm
maintains one product
assembly line to produce
signal generators. Weekly
demand for the generators is
35 units. The line operates for
7 hours per day, 5 days per
week. What is the maximum
production time per unit in
hours required of the line to
meet the demand?
 A. 1.0 hours per unit
B. 1.2 hours per unit

 C. 1.4 hours per unit
 D. 1.6 hours per unit
817. Compute the number of
blocks that an ice plant must
be able to sell per month to
break even based on the
following data:
Cost of electricity per block -
P20.00
Tax to be paid per block -
P2.00
Real Estate Tax - P3,500.00
per month
Salaries and Wages -
P25,000.00 per month
Others - P12,000.00 per
month
Selling price of ice - P55.00
per block
 A. 1,220
 B. 1,224
  C. 1,228
 D. 1,302
818. JRT Industries
manufactures automatic
voltage regulators at a labor
cost of P85.00 per unit and
material cost of P350.00 per
unit. The fixed charges on the
business are P15,000 per
month and the variable costs
are P20.00 per unit. If the
automatic voltage regulators
are sold to retailers at
P580.00 each, how many
units must be produced and
sold per month to breakeven?
 A. 120
 B. 124
 C. 128
 D. 130
819. General Electric
Company which manufactures
electric motor has a capacity
of producing 150 motors a
month. The variable costs are
P4,000.00 per month, the
average selling price of the
motor is P750.00 per motor.
Fixed costs of the company
amount to P78,000.00 per
month which includes all
taxes. Determine the number
of motors to be produced per
month to breakeven.
 A. 100
 B. 104
 C. 110
 D. 112
820. A telephone switchboard
100 pair cable can be made
up with either enamelled wire
or tinned wire. There will be
400 soldered connections. The
cost of soldering a connection
on the enamelled wire will be
P1.65, on the tinned wire, it
will be P1.15. A 100-pair cable
made up with enamelled wire
cost P0.55 per linear foot and
those made up of tinned wire
cost P0.75 per linear foot.
Determine the length of cable
run in feet so that the cost of
each installation would be the
same.
 A. 1,000 feet
 B. 1,040 feet
 C. 1,100 feet
 D. 1,120 feet
821. A local factory
assembling calculators
produces 400 units per month
and sells them at P1,800
each. Dividends are 8% on the
8,000 shares with par value of
P250 each. The fixed
operating cost per month is
P25,000. Other costs are
P1,000 per unit. If 200 units
were produced a month,
determine the profit or loss.
 A. Profit of
P121,666.67
 B. Profit of P21,666.67
 C. Loss of
P121,666.67
 D. Loss of P21,666.67
822. Nike shoes manufacturer
produces a pair of Air Jordan
Shoes at a labor cost of
P900.00 a pair and a material
cost of P800.00 a pair. The
fixed charges on the business
are P5,000,000 a month and
the variable costs are P400.00
a pair. Royalty to Michael
Jordan is P1,000 per pair of
shoes sold. If the shoes sell at
P5,000 a pair, how many pairs
must be produced each
month for the manufacturer to
breakeven?
 A. 2,590
 B. 2,632
 C. 2,712
 D. 2,890
823. In a steel fabrication
shop located somewhere in
Cebu, various size rivet holes
must be made in structural
members. This may be done
by laying out the position of
the hole on the members and
using a drill press for this
method, a machinist wage
rate is P20.25 per hour and he
can drill 27 holes per hour. An
alternative method is by the
use of the multiple punch
machine. In this process, the
machinist wage rate is P20.00
per hour and he can complete
8 holes per minute. This
method requires P0.50 per
holes to set the multiple
punch machine and an
installation cost of P2,000.00.
If all other costs are the same,
for what number of rivet holes
will the multiple punch
machine pay for itself?
 A. 9,601
 B. 9,592
 C. 9,581
 D. 9,566
824. A new civil engineer
produces a certain
construction material at a
labor cost of P16.20 per piece,
material cost of P38.50 per
piece and variable cost of
P7.40 per piece. The fixed
charge on the business is
P100,000.00 per month. If he
sells the finished product at
P95.00 each, how many
pieces must be manufactured
in each month to breakeven?
 A. 3,045
 B. 3,035
 C. 3,030
 D. 3,040
825. The Asian Transmission
Co. makes and sells certain
automotive parts. Present
sales volume is 500,000 units
per year at a selling price of
fifty centavos (P0.50) per unit.
Fixed expenses total
P80,000.00 per year. What is
the present total profit for a
year?
 A. P168,000
 B. P170,000
 C. P172,000
 D. P174,000
826. The Asian Transmission
Co. makes and sells certain
automotive parts. Present
sales volume is 500,000 units
per year at a selling price of
fifty centavos (P0.50) per unit.
Fixed expenses total
P80,000.00 per year. What is
the present breakeven point
in units?
 A. 160,000
 B. 162,000
 C. 165,000
 D. 170,000
827. A factory engaged in the
fabrication of an automobile
part with a production
capacity of 700,000 units per
year is only operating at 62%
of capacity due to
unavailability of the necessary
foreign currency to finance
the importation of their raw
materials. The annual income
is P430,000.00. Annual fixed
costs are P190,000.00 and the
variable costs are P0.348 per
unit. What is the current profit
or loss?
 A. P87,450
 B. P88,960
 C. P88,450
 D. P87,960
828. A factory engaged in the
fabrication of an automobile
part with a production
capacity of 700,000 units per
year is only operating at 62%
of capacity due to
unavailability of the necessary
foreign currency to finance
the importation of their raw
materials. The annual income
is P430,000.00. Annual fixed
costs are P190,000.00 and the
variable costs are P0.348 per
unit. What is the breakeven
point?
 A. 294,560
B. 291,000
 Unit contribution margin -
 C. 290,780
 D. 295,490
829. A certain firm has the
capacity to produce 650,000
units of product per year. At
present, it is operating at 62%
capacity. The firm’s annual
income is P4,160,000.00.
Annual fixed costs are
P1,920,000.00 and the
variable costs are equal to
P3.56 per unit of product.
What is the firm’s annual
profit or loss?
 A. P814,320
 B. P815,230
 C. P816,567
 D. P817,239
830. A certain firm has the
capacity to produce 650,000
units of product per year. At
present, it is operating at 62%
capacity. The firm’s annual
income is P4,160,000.00.
Annual fixed costs are
P1,920,000.00 and the
variable costs are equal to
P3.56 per unit of product.
What volume of sales does
the firm breakeven?
 A. P3,354,680
 B. P3,534,880
 C. P3,155,690
 D. P3,254,680
831. A small shop in Bulacan
fabricates threshers for palay
producers in the locality. The
shop can produce each
thresher at a labor cost of
P1,800.00. The cost of
materials for each unit is
P2,500.00. The variable costs
amounts to P650.00 per unit
while fixed charges incurred
per annum totals P69,000.00.
If the portable threshers are
sold at P7,800.00 per unit,
how many units must be
produced and sold per annum
to breakeven?
 A. 28
 B. 25
 C. 26
 D. 27
832. The direct labor cost and
material cost of a certain
product are P300 and P400
per unit, respectively. Fixed
charges are P100,000 per
month and other variable
costs are P100 per unit. If the
product is sold at P1,200 per
unit, how many units must be
produced and sold to
breakeven?
 A. 280
 B. 250
 C. 260
 D. 270
833. The following data for
year 2000 are available for
Cagayan Automotive
Company which manufactures
and sells a single automotive
product line:
Unit selling price - P40.00
Unit variable cost - P20.00
P20.00
Total fixed costs - P200,000.00
What is the breakeven point in
units for the current year?
 A. 10,000
 B. 10,100
 C. 10,050
 D. 10,200
834. The cost of producing a
small transistor radio set
consists of P230.00 for labor
and P370.00 for material. The
fixed charges is operating the
plant is P1,000,000.00 per
month. The variable cost is
P10.00 per set. The radio set
can be sold for P750.00 each.
Determine how many sets
must be produced per month
to breakeven.
 A. 7,123
 B. 7,133
 C. 7,143
 D. 7,153
835. An item which can be
sold for P63.00 per unit
wholesale is being produced
with the following cost data:
Labor cost - P10.00 per unit
Material cost - P15.00 per unit
Fixed charges - P10,000.00
Variable cost - P8.00 per unit
What is the breakeven point
sales volume if one out of
every 10 units produced is
defective and is rejected with
only full recovery on
materials?
 A. P25,011
 B. P25,111
 C. P25,121
 D. P25,132
836. A method of depreciation
whereby the amount to
recover is spread uniformly
over the estimated life of the
asset in terms of the periods
or units of output.
 A. Straight line
method
 B. Sinking fund
method
 C. Declining balance
method
 D. SYD method
837. Which of the following
depreciation methods cannot
have a salvage value of zero?
 A. Declining balance
method
 B. Sinking fund
method
 C. Straight line
method
 D. SYD method
838. A method of depreciation
where a fixed sum of money is
regularly deposited at
compound interest in a real or
imaginary fund in order to
accumulate an amount equal
to the total depreciation of an
asset at the end of the asset’s
estimated life.
 A. Straight line
method
B. Sinking fund

method
 C. Declining balance
method
 D. SYD method
839. The function of interest
rate and time that determines
the cumulative amount of a
sinking fund resulting from
specific periodic deposits.
 A. Sinking fund factor
 B. Present worth
factor
 C. Capacity factor
 D. Demand factor
840. The first cost of any
property includes:
 A. The original
purchase price and
freight and
transportation
charges
  B. Installation
expenses
 C. Initial taxes and
permits fee
 D. All of the above
841. In SYD method, the sum
of years digit is calculated
using which formula with n =
number of useful years of the
equipment.
 A. n(n – 1)/2
 B. n(n + 1)/2
 C. n(n+1)
 D. n(n-1)
844. Is the simplest form of
business organization.
 A. Sole proprietorship
 B. Partnership
 C. Enterprise
 D. Corporation
845. An association of two or
more persons for a purpose of
engaging in a profitable
business.
 A. Sole proprietorship
 B. Enterprise
 A. Sole proprietorship
 B. Corporation
 C. Enterprise
 D. Partnership
849. What is the minimum
number of incorporators in
order that a corporation be
organized?
 A. 3
 B. 5
 C. 10
D. 7
 interval of time is;
depreciation of an asset at the
end of the asset’s estimated
life is known as;
 A. straight line
method
 B. SYD method
C. Declining balance

method
 D. Sinking fund
method
852. The term used to express
the series of uniform
payments occurring at equal
or irregular prearranged
program is called
 A. amortization
 B. annuity
 C. depreciation
 D. capital recovery
855. Those funds that are
required to make the
enterprise or project going on.
 A. banking
 B. accumulated
amount

842. Capitalized cost of any  C. Partnership  C. working capital

property is equal to the:
 A. Annual cost
 B. First cost + Interest
of the first cost
 C. First cost + Cost of
perpetual
maintenance
 D. First cost + Salvage
value
843. The lessening of the
value of an asset due to the
decrease in the quantity
available (referring to the
natural resources, coal, oil,
etc).
 A. Depreciation
 B. Depletion
 C. Inflation
 D. Incremental cost
 D. Corporation
846. A distinct legal entity
which can practically transact
any business transaction
which a real person could do.
 A. Sole proprietorship
 B. Enterprise
 C. Partnership
 D. Corporation
847. Double taxation is a
disadvantage of which
business organization?
 A. Sole proprietorship
 B. Partnership
 C. Corporation
 D. Enterprise
848. Which is NOT a type of
business organization?
850. In case of bankruptcy of
a partnership,
 A. The partners are
not liable for the
liabilities of the
partnership
 B. The partnership
assets (excluding the
partners’ personal
assets) only will be
used to pay the
liabilities.
 C. The partners’
personal assets are
attached to the debt
of the partnership
 D. The partners may
sell stock to generate
additional capital.
851. The method of
depreciation where fixed sum
of money is regularly
deposited at compound
interest in a real or imaginary
fund in order to accumulate
an amount equal to the total
 A. compound interest
 B. annuity
 C. perpetuity
 D. depreciation
853. The profit derived from a
project or business enterprise
without consideration of
obligations to financial
contributors and claims of
others based on profit is
known as;
 A. yield
 B. earning value
 C. economic return
 D. expected yield
854. As applied to capitalized
asset, the distribution of the
initial cost by periodic
changes to operation as in
depreciation or the reduction
of the depth by either periodic
 D. principal or present
worth
856. These are product or
services that are desired by
humans and will be purchased
if money is available after the
required necessities have
been obtained
 A. utilities
 B. necessities
 C. luxuries
 D. producer good and
services
857. These are product or
services that are required to
support human life and
activities, that will be
purchased in somewhat the
same quantity even though
the price varies considerably.
 A. utilities
  B. necessities
 C. luxuries
 D. producers goods
and services
858. A condition where only a
few individuals produce a
certain product and that any
action of one will lead to
almost the same action of the
others.
 A. oligopoly
 B. semi-monopoly
 C. monopoly
 D. perfect competition
859. This occurs in a situation
where a commodity or service
is supplied by a number of
vendors and there is nothing
to prevent additional vendors
entering the market.
 A. perfect competition
 B. monopoly
 C. oligopoly
 D. elastic demand
860. It is the amount that a
willing buyer will pay to a
willing seller for a property
where each has equal
advantage and is under no
compulsion to buy or sell.
 A. fair value
 B. use value
C. market value
 classified as?
 D. book value
861. It is defined to be the
capacity of a commodity to
satisfy human want.
A. discount’
 865. Which of the following is
 B. luxuries
 C. utility
 D. necessity
862. A form a summary of
assets, liabilities and net
worth;
 A. balance method
 B. break-even point
 C. balance sheet
 D. production
863. The worth of a property,
which is equal to the original
cost less depreciation, is
known as;
 A. earning value
 B. scrap value
C. book value
 annual cash flows
 D. face value
864. When using net present
worth calculation to compare
two projects, which of the
following could invalidated the
calculations?
 A. mutually exclusive
projects
 B. evaluation over
different periods
 C. non-conventional
cash flows
 D. difference in the
magnitude of the
projects
a form of business/company
ownership?
 A. partnership
 B. corporation
 C. single
proprietorship
 D. all of these
866. What must two
investments with the same
present worth and unequal
lives have?
 A. identical salvage
value
 B. different salvage
value
 C. identical equivalent
uniform annual cash
flows
 D. different equivalent
867. What is the formula for a
straight-line depreciation
rate?
 A. (100% - %net
salvage
value)/Estimated
service life
 B. %net salvage
value/Estimated
service life
 C. 100%net salvage
value/estimated
service life
 D. average net  A. an asset
salvage
 B. liability
value/estimated
service life  C. an expense
 D. owner's equity
868. The amount received
from the sale of an additional
unit of a product is termed as: 872. Which is a form of
business/company ownership?
 A. marginal cost
 A. partnership
 B. marginal utility
 B. corporation
C. marginal unit

 C. single
 D. marginal revenue proprietorship
 D. all of the list
869. An accounting book
where the original record of all
873. The decrease in value of
transaction is ordinarily
recorded. a physical property due to the
passage of time;
 A. journal
 A. inflation
 B. credit entry
 B. depletion
 C. debit entry
 C. recession
 D. transaction record
 D. depreciation
870. An interest-earning fund
in which equal deposits are 874. We may classify an
made at equal intervals of interest rate, which specifies
time for the purpose of the actual rate an interest on
the principal for one year as:
gradually accumulating a
specific sum of money
required at some future date.
 A. Nominal rate
 B. Rate of return
 A. amortization
 C. Exact interest rate
 B. sinking fund
 D. Effective rate
 C. annuity
 D. capitalized cost
875. This law states that
“When the use of one of the
871. What is work-in-process factors of production is
limited, either in increasing
cost or by absolute quantity, a
point will be reached beyond
which an increase in the
variable factors will result in
less than proportionate
increase in output.”
 A. Law of Supply and
Demand
 B. Law of Diminishing
Return
 C. Law of Gravity
 D. Law of diminishing
Utility
876. The difference between
the present worth and the
worth at some future time is:
 A. Discount
 B. Profit
 C. Credit
D. Debit
 equal to the quantity the
877. The act of charging two
or more buyers or sellers
different prices for the same
product where the elasticities
of supply or demand at each
price level differ among
market is known as:
 A. Price optimization
 B. Price discrimination
 C. Price manipulation
 D. Price war
878. A formal organization of
producers within an industry
forming a perfect collision
purposely formed to increase
profit and block newcomers
from the industry, is termed
as;
 A. Oligopoly
 B. Monopoly
 C. Corporation
 D. Cartel
879. A situation in which rival
firms drive prices down
through attempts to undercut
each other’s price is called;
 A. Price war
 B. Price discrimination
price
 C. Price Leadership
 D. Oligopolistic
monopoly
880. The price that the
quantity per unit time that the
buyers want to buy is just
sellers want to sell is called;
 A. Break-even price
 B. Equilibrium price
 C. Minimum price
 D. Maximum price
881. The length of time during
which a property is capable of
performing the function for
which it was designed and
manufactured is termed as;
 A. economic life
 B. Life span
 C. Eternal life
 D. Physical life
882. It is a distinct legal
entity, separate from
individuals who own it and
which can engage in
practically any business
transaction which real person
can do.
 A. Partnership
 B. Single
proprietorship
 C. Eternal Life
 D. Physical life
883. A market whereby there
is only one buyer of an item
for which there are no goods
substitute.
 A. Monopoly
 B. Oligopoly
 C. Oligopsony
 D. Monopsony
884. This form of business
ownership is a legal entity
possessing many of the legal
powers of individuals. It can
hold title to property, sue and
be sued in its own name. It is
called:
 A. corporation
 B. company
 C. general partnership
 D. individual
proprietorship
885. The balance sheet is a
statement showing the
financial status of the
company at any given time.
Which of the statements is
not a part of the balance
sheet.
 A. liabilities
 B. assets
 C. cost of goods sold
 D. net worth
886. Refers to cost of
merchandise which excludes
freight and insurance cost;
 A. freight-on-board
 B. sunk cost
 C. debentures
 D. book value
887. A fund into which annual
deposits of A are made in
order to accumulate fund F at
n years in the future.
 A. Amortization
 B. Annuity
 C. Depreciation
 D. Sinking fund
888. Cash money credit
necessary to establish and
operate an enterprise.
 A. funds
 B. capital
 C. liabilities
 D. assets
889. The worth of property
which is equal to the original
cost less depreciation;
 A. scrap value
 B. earning value
 C. book value
 D. face value
890. Intangible assets of a
corporation or company
A. dacion-en-pago

 B. investment
 C. patents
 D. equity
891. Additional information to
prospective bidders on
contract documents issued to
bidding date;
 A. escalatory clause
 B. delicts
 C. technological
assessments
 D. bid bulletin
892. A civil wrong committed
by one person causing
damage to another person or
his property or reputation;
 A. tort
 B. negligence
 C. material breach
 D. fraud
893. What is an annuity?
 A. A series of equal
payments at equal
time periods.
  B. The cost of
manufacturing a
product
C. An investment that
 
yields an equal
amount of interest
each year
 D. The overhead cost
per unit of production
894. Consist of the actual
counting or determination of
the actual quantity of the
materials on hands as of a
given date;
 A. Physical inventory
 B. Technological
assessment
 C. Material update
 D. Material count
895. An artificial expense that
spreads the purchase price of
an assets or other property
over a number of years
 A. Depreciation
amnesty
 B. Sinking fund
 C. Bond
 D. None of the above
896. Estimated value at the
end of the useful life;
 A. salvage value
 B. economic life
 C. balance sheet
 D. compounded
annually
897. The recorded current
value of an asset is known as:
A. scrap value
 B. book value
 C. salvage value
 D. present worth
898. The ratio of the interest
payment to the principal for a
given unit of time and is
usually expressed as
percentage of the principal is
known as:
 A. investment
 B. nominal interest
 C. interest
 D. interest rate
899. A method of depreciation
whereby the amount to
recover is spread over the
estimated life of the asset in
terms of the periods or units
of output is called
 A. SOYD method
 B. Declining balance
method
 C. Straight line
method
 D. Sinking fund
method
900. The interest rate at
which the present worth of
cash flow of project is zero, or
the interest earned by an
investment.
 A. Rate of return  A. Compound interest  D. All of the above
 B. Effective rate  B. Simple interest
909. An annuity where the
 C. Nominal rate  C. Annuity
payments periods extend
 D. Yield  D. Perpetuity forever or the periodic
payments continue
indefinitely.
905. It is rate quoted in
901. It is the amount of describing a given variety of
money earned by given compound interest.  A. Perpetuity
capital.
 B. Interest
 A. nominal rate
 C. Rate
 A. Interest
 B. effective rate  D. Annuity
 B. Annuity
 C. simple rate
 C. Cash flow
 D. compound rate 910. The payment is made at
 D. None of the above the end of each period
starting from the first period.
906. It is the actual interest
902. Which of the following is earned in one year period.
a type of simple interest;  A. Ordinary annuity
 A. Nominal rate  B. Deferred annuity
 A. Ordinary
 B. Effective rate  C. Annuity due
 B. Exact  D. All of the above
 C. Simple rate
 C. Both A and B
 D. Compound rate
 D. None of the above 911. The first payment is
deferred a certain number of
907. A series of uniform periods after the first.
903. The interest earned by payments made at equal
the principal competed at the intervals of time.
end of the investment period,  A. Ordinary annuity
it varies directly with time.
 A. perpetuity  B. Deferred annuity
 C. Annuity due
 A. Compound interest  B. interest
 D. None of the above
 B. Simple interest  C. rate
 C. Annuity  D. annuity
912. The payment is made at
 D. Perpetuity the beginning of each period
908. Which of the following is starting from the first period.
type of annuity.
904. The interest is completed
every end of each interest  A. Ordinary annuity
 A. Ordinary
period and the interest earned
 B. Deferred annuity
for the period is added to the  B. Deferred
principal.  C. Annuity due
 C. Annuity due
 D. None of the due
913. It is an application of
perpetuity.
 A. Capitalized cost
 B. Machine cost
 C. Manpower cost
 D. Equipment cost
914. It refers to the decrease
in the value of an asset due to
usage of passage of time.
 A. Interest
 B. Annuity
 C. Depreciation
 D. Perpetuity
915. Which of the following is
the method of computing
depreciation
 A. Straight line
depreciation
 B. Sinking fund
method
 C. Sum of the years
method
 D. All of the above.
916. The most common
method used in computing
depreciation;
 A. Straight line
depreciation
 B. Sinking fund
method
 C. Sum of the years
digit method
 D. Declining balance
method
917. The depreciation charge
in this method is assumed to
vary directly to the number of
years and inversely to the
sum of the year’s digit.
 A. Straight line
depreciation
 B. Sinking fund
method
 C. Sum of the year’s
digit method
 D. Declining balance
method
918. It is invested yearly at a
rate of I to amount to (FC –SV)
at the end of the life to the
property.
 A. Straight line
depreciation
 B. Sinking fund
method
 C. Sum of the years
digit method
 D. Declining balance
method
919. A written contract to pay
a certain redemption value on
a specified redemption date
and to pay equal dividends
periodically.
 A. Bond
 B. Capital
 C. Interest
 D. Annuity
920. A method of determining
when cost exactly equal to
revenue.
 A. Experimental
method
 B. Break-even method
 C. Break-add method
 D. None of the above
921. Find the interest on
P6,800.00 for 3 years at 11%
simple interest.
 A. P 1,875.00
 B. P 1,987.00
 C. P 2,144.00
 D. P 2,244.00
922. A man borrowed
P10,000.00 from his friend
and agrees to pay at the end
of 90 days under 8% simple
interest rate. What is the
required amount?
 A. P 10,200.00
 B. P 11,500.00
C. P 9,500.00

 D. P 10,700.00
923. Annie buys a television
set from a merchant who
offers P25,000.00 at the end
of 60days. Annie wished to
pay immediately and the
merchant offers to compute
the required amount on the
assumption that the money is
worth 14% simple interest.
What is the required amount?
 A. P 20,234.87
 B. P 19,222.67
 C. P 24,429.97
 D. P 28,456.23
924. What is the principal
amount if the amount of
interest at the end of 2 1/2
year is P4,500.00 for a simple
interest of 6% per annum?
 A. P 35,000.00
 B. P 30,000.00
 C. P 40,000.00
 D. P 45,000.00
925. How long must a
P40,000 note bearing 4%
simple interest run to amount
to P41,350.00?
 A. 340days
 B. 403 days
 C. 304 days
 D. 430 days
926. If P16,000 earns P480 in
9monnths, what is the annual
rate of interest?
 A. 1%
 B. 2%
 C. 3%
 D. 4%
927. A man lends P6,000 at
6% simple interest for 4
years. At the end of this time
he invest the entire amount
(principal plus interest)at 5%
compounded annually for 12
years. How much will he have
at the end of the 16-year
period.?
 A. P 13,361.20
 B. P 13,633.20
 C. P13,333.20
 D. P16,323.20
928, A time deposit of
P110,000 for 31days earns
P890.39 on maturity date
after deducting the 20%
withholding tax on interest
income. Find interest per
annum.
 A. 12.5%
 B. 11.95%
 C. 12.25%
 D. 11.75%
929. A bank charges 12%
simple interest on a P300.00
loan. How much will be repaid
if the loan is paid back in one
lump sum after three years.
 A. P 408.00
 B. P 551.00
 C. P415.00
 D. P450.00
930. A tag price of a certain
commodity is for 100 days. If
paid in 31 days, there is
3%discount. What is the
simple interest paid?
  A. 12.5%  C. P10,987.90
 B. 6.25%  D. P7,876.87
 C. 22.32%
935. How long it will take
 D. 16.14%
P1,000 to amount to P1,346 if
invested at 6% compounded
931. Accumulate P5,000.00 quarterly.
for 10 years at 8%
compounded quarterly.
 A. 3 years
 B. 4 years
 A. P 12,456.20
 C. 5 years
 B. P 13,876.50
 D. 6 years
 C. P10,345.80
 D. P11,040.20
936. How long will it take for
an investment to double its
932. Accumulate P5,000.00 amount if invested at an
for 10 years at 8% interest rate of 6%
compounded semi-annually. compounded bi-monthly
 A. P 10,955.61  A. 10 years
 B. P 10,233.67  B. 12 years
 C. P9,455.67  C. 13 years
 D. P11,876.34  D. 14 years
933. Accumulate P5,000.00 937. If the compound interest
for 10 years at 8% on P3,000.00 in years is
compounded monthly P500.00 then the compound
interest on P3,000.00 in 4
years is:
 A. P 15,456.75
 B. P 11,102.61  A. P 956.00
 C. P10,955.61  B. P 1,083.00
 D. P10,955.61  C. P1,125.00
 D. P1,526.00
934. Accumulate P5,000.00
for 10 years at 8%
compounded annually. 938. The salary of Mr. Cruz is
increased by 30%every 2
years beginning January 1,
 A. P 10,794.62 1982. Counting from that
date, at what year will his
 B. P 8,567.97
salary just exceed twice his
original salary?
 A. 1988
 B. 1989
 C. 1990
 D. 1991
939. If you borrowed P10,000
from the bank with 18%
interest per annum, what is
the total amount to be repaid
at the end of one year.
 A. P 11,800.00
 B. P 19,000.00
 C. P28,000.00
 D. P10,180.00
940. What is the effective rate
for an interest rate at 12%
compounded continuously?
 A. 12.01%
 B. 12.89%
 C. 12.42%
 D. 12.75%
Answer: D
941. How long it will take for
an investment to fivefold its
amount if money is worth
14%compounded
semiannually.
 A. 11
 B. 12
 C. 13
 D. 14
942. An interest of 8%
compounded semiannually is
how many percent if
compounded quarterly?
 A. 7.81%
 B. 7.85%
 C. 7.92%
 D. 8.01%
943. A man is expecting to
receive P450,000.00 at the
end of 7 years. If money is
worth 14% compounded
quarterly how much is it worth
at present?
 A. P 125,458.36
 B. P 147,456.36
 C. P162,455.63
 D. P171,744.44
944. A man has a will of
P650,000.00 from his father. If
his father deposited an
amount of P450,000 in a trust
fund earning 8% compounded
annually, after how many
years will he man receive his
will?
 A. 4.55 years
 B. 4.77 years
 C. 5.11 years
 D. 5.33 years
945. Mr. Adam deposited
P120,000.00 in a bank who
offers 8%interest
compounded quarterly. If the
interest is subject to a 14%
tax, how much will he receive
after 5 years?
A. P 178,313.69

B. P 153,349.77

 C. P 170,149.77
 D. P 175,343.77
946. What interest
compounded monthly is
equivalent to an interest rate
of 14% compounded quarterly
 A. 1.15%
 B. 13.84%
 C. 10.03%
 D. 11.52%
947. What is the worth of two
P100,000 payments at the
end of the third and the fourth
year? The annual interest rate
is 8%.
 A. P 152.87
 B. P 112.34
 C. P 187.98
 D. P 176.67
948. A firm borrows P2,000.00
for 6years at 8%. At the end
of 6 years, it renews the loan
for the amount due plus
P2,000 more for 2 years at
8%. What is the lump sum
due?
 A. P 5,679.67
 B. P 6,789.98
  C. P 6,034.66  B. P 34,270.00
 D. P 5,888.77  C. P 36,276.40
 D. P 34,266.68
949. At an annual rate of
return of 8%, what is the
future worth ofP1,000 at the
end of 4 years?

 A. P 1,388.90
 B. P 1,234.56
 C. P 1,765.56
 D. P 1,360.50

950. A student has money

given by his grandfather in
the amount of P20,000.00.
How much money in the form
of interest will he get if the
money is put in a bank that
offers 8% rate compounded
annually at the end of 7
years?

 A. P 34,276.48
1. 21 % 21. 14.2 years 42. P 2,000.00 58. Market 70. Atomistic 79. Law of 92. Annuity 104. Coupon 115. Declining
2. 6.65 % 22. 11.57 years 43. 9 years 59. Buyer or competition supply and certain bond balance
3. 29.17 % 23. P705.42 44. P 3,927.27 consumer 71. Perfect demand 93. Ordinary 105. Mortgage method
4. 12 months 24. Quarterly 45. P 9,250.00 60. Producer competition 80. Commodity annuity bond 116.
5. 25.0 % 25. P1,549.64 46. $ 61. Monopsony 72. All of the 81. Simple 94. Annuity due 106. Debenture
6. 5,937.50 26. P54.66 5,000,000.00 62. Bilateral above interest 95. Perpetuity bond
7. 10.29 % 27. P 152.88 47. 1,053 oligopoly 73. Monopoly 82. 360 96. Deferred 107. Collateral 117. Constant
8. 4.00 % 28. P 3,260.34 48. 1.0 hour 63. Bilateral 74. the single 83. 360 annuity trust bond percentage
9. 16.28 % 29. P 15,030.03 per unit monopoly vendor can 84. Time value 97. The first 108. Registered method
10. 11.75 % 30. P 19,624.49 49. 1,000 feet 64. Perfect prevent the of money payment is bond 118. Functional
11. 12.07 % 31. P 717.17 50. 2,632 competition entry of all 85. Discount made at the 109. Callable depreciation
12. P18,000 32. P 1,185.54 51. Economic 65. Monopoly other vendors 86. Earning beginning of bond 119. Physical
13. 13.73 % 33. P 2,504.57 Analysis 66. Oligopsony in the market value the first period. 110. Callability depreciation
14. 3.90 % 34. P 7,731.29 52. Foreign 67. Few sellers 75. Natural 87. Interest 98. Bond 111. Call value 120.
15. P39.45 35. P 43,763.20 exchange and many monopoly 88. Interest 99. Value of 112. Adolescence
16. 9.14 % 36. P 53. Goods or buyers 76. Law of rate bond Depreciation 121. Depletion
17. 19.72 % 143,999.08 commodities 68. Many diminishing 89. Compound 100. Bond 113. A. Straight 122. Unit
18. 8.24 % 37. P 6,922.93 54. Services sellers and few return interest 101. Coupon line method method and
19. 11.60 % 38. P 4,860.00 55. Consumer buyers 77. Demand 90. Rate of 102. Joint bond 114. Sinking percentage
compounded 39. 3.0% and producer 69. Few sellers 78. Supply interest 103. Equipment fund method method
annually 40. P 1,144.81 56. Necessity and many 91. Annuity obligation bond 123. Fixed
20. 12.00 % 41. P 236.20 57. Necessity buyers percentage of
gross income 144. Capital 165. Rate of 190. Quick 209. The ratio 230. Oligopoly 265. 15.8% 308. 6.25 years from your
or 50% of the recovery return ratio of cost of goods 231. Book 266. P76.92 309. 6.18 years friend
net taxable 145. Sole 166. Liquid 191. Consol sold to average value 267. 310. 12% ; 342.
income proprietorship assets 192. cost of 232. Depletion P15,614.59 12.616% ; P30,655.68
124. 146. 167. Cost of Cooperative inventory on 233. Fair value 268. P1403.68 12.06% 343. P82938.28
Percentage Corporation goods sold 193. Buffer hand 234. Franchise 269. 311. 16.67 yrs ; 344. 14.49%
method 147. Sole 168. stock 210. 365 / 235. P13,498.60 11.6 yrs ; 11.55 345.
125. Factor proprietorship Incremental 194. Solvency receivable Capitalized cost 270. 11.57 yrs P71,781.47
method 148. cost 195. Liquidity turnovers 236. Bond years 312. 346. 19.72%
126. Initial cost Corporation 169. 196. Assets = 211.Break-even 237. Utility 271. P15,000.00 347. 3.00% and
of property 149. The Bookkeeping liability + analysis value P13,265.83 313. 3.02%
times number partnership system owner’s equity 212. 365 / 238. Perfect 272. P16,550.00 348. 11.83%
of unit sold assets 170. Ledger 197. All of the inventory competition P163,475.37 314. 349. 19.48%
during the year (excluding the 171. Journal above turnover 239. Annual 273. P6750 P17,492.94 350. P6,040.20
divided by the partners 172. Gross 198. Current 213. Payback cost pattern 274. 8% 315. 8.00% 351.
total units in personal income ratio period 240. P 1, 275. 4.55 years 316. 8.24% P16,712.03
property assets) only 173. 199. Current 214. Value of 192.57 276. P200,000 317. 7.96% 352. 20.15
127. will be used to Supervision assets to an investment 241. P 224.62 277. 8% 318. years
Depreciation pay the cost current 215. Double 242. P 5, 278. 8.03% 1.612226000 353. P621,170
recovery liabilities 174. liabilities declining 427.43 279. 8.28% 319. 354. P690,849
128. Present 150. It can be Receivable 200. Quick balance 243. P 756 280. 14.2 years 0.787566127 355. 5 years
worth factor handed down turnover ratio method and 244. 8.64 % 281. 5.13% 320. 356. quarterly
129. Market from one 175. Profit 201. Quick SYD method 245. 7.44 years 282. 21.97 1.487886717 357.
value generation of margin ratio ratio 216. It is one 246. The first years 321. 8.33% P120,289.51
130. Second- partners to 176. Tax credit 202. that calculates payment is 283. 322. 1.377128 358.
hand value another. 177. Rule of 72 Receivables a depreciation made at the P24,751.34 323. 0.726149 P15,030.00
131. Fair value 151. The stock 178. Capital turnover amount greater beginning of 284. 3.92% 324. 6.00% 359.
132. Franchise holders of the gain 203. Net credit than a straight each period. 285. 3% 325. 6.09% P18,548.39
value corporation are 179. Capital sales to line amount 247. P4,280.47 286. 19.72% 326. 5.87% 360. 16.6%
133. In-place only liable to loss average net 217. Deflation 248. Straight 287. 12.75% 327. 8.00% 361. 2.94%
value the extent of 180. Certificate receivables 218. Cartel line method 288. P3.87 328. 8.24% 362. 6%
134. All of the their of deposit 204. Return of 219. Bank 249. Declining 289. 21.51% 329. 7.92% 363. 5.66%
above investments. 181. Currency investment notes balance 290. 6% 330. 364. P291,500
135. Valuation 152. depreciation ratio 220. Law of method 291. P155 P800,000.00 365. P8000
136. Sunk cost Corporation 182. Currency 205. Price- diminishing 250. Sinking 292. P77.66 331. 366. P125,000
137. 153. devaluation earnings ratio return fund method 293. 0.333 P907,009.21 367.
Capitalized cost Partnership 183. Forced 206. The ratio 221. Price- 251. 37.11% 294. 6% 332. P3,250,000
138. Life cycle 154. Common saving of the net earnings 252. 16.28% 295. 7% P911,059.20 368. 4 years
cost stock 184. Cash flow income before 222. Return on 253. 15.92% ; 296. 1.60844 333. 369. P50,000
139. Annual 155. Preferred 185. taxes to net investment 13.73% 297. P705.42 P44,086.60 370. 10 years
cost method stock Amortization sales 223. Profit 254. 13.64% 298. P256,000 334. 4.56 years 371. P146,000
140. Benefit- 156. Dividend 186. First cost 207. The ratio margin 255. P18,800 299. 335. 9.5% 372. P900,000
cost ratio 157. Equity + cost of of gross profit 224. Arbitrage 256. P4133.33 P507,365.96 336. 11.6% 373.
141. 158. Equity perpetual to net sales 225. 257. P5,000 300. compounded P1,200,000
Opportunity 159. Capital maintenance 208. The ratio Moratorium 258. 21.4% P519,327.95 monthly 374.
cost 160. Stock 187. Effective of common 226. Rate 259. 32% 301. 8% 337. 7% P1,185,769.76
142. The initial 161. Economic interest shareholders’ discount 260. P1,513.56 302. 4 years 338. 8% 375. P2,400
depreciation is return 188. Net equity to the 227. Deferred 261. 11.75 303. 8% 339. 8% 376. P2,670
low 162. Goodwill income to number of annuity 262. P46,729 304. 8% 340. 5.8% 377. 8%
143. Single 163. Patents owner’s equity outstanding 228. Effective 263. 4% ; 305. 1.61607 341. save P55 378. P30,000
payment 164. Fixed 189. Net sale shares interest 4.17% 306. 0.616783 by borrowing 379. P33,200
present worth asset 229. Lien 264. 66.6% 307. 8 years 380. P7,545.45
381. 417. Duopsony 449. Franchise 503. P971.83 543. P54.66
P652,333.33 418. Duopoly 450. Book 504. 544. P2,158.92
382. P64 M 419. Deferred value P31,079.73 545. 5.84%
383. P2,294.44 annuity 451. P400.00 505. 9.14% 546.
384. 8 years 420. Break 452. 12.07% 506. P621,169.64
385. P857 even 453. 1 hour P71,781.47 547. P152.88
386. P350 421. Sunk cost 454. 18% 507. 548. 16.67%
387. 19 years 422. Gratuitous 455. P3.80 P40,530.49 549. P3,260.34
388. P300,000 423. 456. 6.58% 508. 19.72% 550.
389. Construction 457. P44,750 509. 16.32% P18,548.38
P679,454.27 cost 458. P32,000 510. 8.24% 551. 17.35%
390. 424. Marginal 459. P4,200 511. 11.83% 552. 7.42 years
P21,357.42 ; revenue 460. 37.5% 512. 11.60% 553. 5 years
P68,642.58 425. Scrap 461. 26 days compounded 554.
391. P12,420 value 462. P12,000 monthly P15,030.03
392. Straight 426. Book per cubic meter 513. P3,864.95 555. P7,623.42
Line value 463. 166 514. 12.00% 556. 20 years
393. Sum of 427. Prime cost 464. P860 515. P6,040.20 557. P6,209.21
Years Digit 428. Discount 465. 516. 19.48% 558.
394. Declining 429. Marginal P1,207,500 517. P11,025.25
Balance cost 466. P4.90 P30,655.68 559.
395. Double 430. Bond 467. P949,645 518. 7.86 years P2,000,166.28
Declining 431. Salvage 468. 28.33% 519. 560. 4.06%
Balance value 469. P215,344.40 561.
396. Sinking 432. Physical P829,592.50 520. 14.2 years P39,026.25
Fund inventory 470. 521. 19.64% 562. P1,550
397. 433. Current P1,916,858.24 522. 14.49% 563. 1.64 years
P430,629.00 asset 471. 12 months 523. P6,265.87 564.
398. P180,000 434. Tort 472. Processing 524. P27,782.36
399. P14,000 435. Perpetuity method A P13,265.83 565.
400. P15,000 436. 473. P630 per 525. 5 years P15,249.13
401. Utility Necessities engine 526. 5.96% 566. P5,552.64
402. Pretend 437. Supply 474. P473,000 527. 567.
stock 438. Salvage 475. 16.67% P15,614.59 P593,888.96
403. Market value 476. 25.0% 528. 11.57 568.
value 439. 477. P5,937.50 years P18,302.85
404. Depreciation 478. 529. P2,444.32 569.
Depreciation 440. P46,728.97 530. P705.42 P19,624.49
405. Oligopoly Partnership 479. 10.29% 490. 19.05% 531. 3.5% 570. 42.57%
406. Monosony 441. 480. P11,800 491. P4,133.33 532. P4,626.12 571. 19.56%
407. Book Proprietorship 481. 37.11% 492. P18,800 533. 12.55% 572.
value 442. Demented 482. 4.00% 493. 534. Quarterly P11,025.25
408. Deflation persons 483. 4.17% P18,348.62 535. 10 years 573. 7.42 years
409. Cartel 443. Luxury 484. P25,250 494. 13.64% 536. P1,549.64 574.
410. Monopoly 444. Perfect 485. P28,000 495. 15.92% 537. P1,494.52 P11,717.85
411. Bilateral competition 486. 16.28% 496. 13.73% 538. 575. 14.27
monopoly 445. Luxuries 487. 11.75% 497. P1,233.55 P13,498.59 years
412. Deflation 446. Authorized 488. P5,166.67 498. 15.69% 539. P6,716.53 576.
413. Annuity capital 489. 12.07% 499. P666.39 540. P4,631.93 P4,838,949.58
414. Interest 447. Journal 500. 3.90% 541. 577.
415. Maker 448. Economic 501. P8,807.92 P690,848.73 P77,108.66
416. Par value life 502. P39.45 542. 7.71% 578. P2,158.92
579. 41.42% 615. P717.17 651. 2.15 687. 710. Effective per year than 767. A/i 801. P325,000 840. All of the
580. 8.00% 616. 652. P3,573.99 P233,779.27 rate that of LA 768. Present 802. P7,157.40 above
581. 10.00% P17,504.13 653. P838.86 688. 711. Luxury Lakers’ worth factor 803. 12.72% 841. n(n + 1)/2
582. 5.74% 617. P1,185.54 654. P347,733.29 712. Market 741. 769. 804. 842. First cost
583. P2,795.00 618. P2,432.26 P10,205.13 689. value P1,532,630 Amortization P295,308,323.1 + Cost of
584. P1,611.51 619. P8,626.02 655. 24% P217,679.01 713. Perfect 742. Joan, 770. 0 perpetual
585. 620. P2,504.57 656. 690. competition P763.27 Depreciation 805. maintenance
P201,869.91 621. P16,379.75 P2,195,600.03 714. Luxuries 743. 771. Declining P322,549.33 843. Depletion
586. P42,821.86 657. P3,919.52 691. P45.95 715. P17,566.33 balance 806. 844. Sole
P44,851.64 622. P7,731.29 658. 692. Necessities 744. method P666,666.67 proprietorship
587. 623. P371,287.13 P2,526,768.61 716. Oligopoly P106,101.37 772. P236.20 807. P1,559.50 845.
P153,085.56 P40,454.29 659. P3,576.64 693. 717. Authorized 745. Economic 773. P2,000.00 808. Partnership
588. 4.26% 624. P1,295.05 660. P5,650.22 P34,710.74 capital return 774. P550,540.57 846.
589. 10.11% 625. P5,174.23 661. 694. 718. Book 746. Interest P626,269.09 809. 800 Corporation
590. 9.56% 626. P42,821.87 P32,727.27 value 747. Rate of 775. 9 years 810. 886 847.
591. P43,763.20 662. 10 695. Borrow 719. Interest return 776. P857.14 811. 1,053 Corporation
P14,715,068 627. 663. and buy is 720. Current 748. Interest 777. 812. 5,000 848. Enterprise
592. P10,834.38 P13,994.17 economical by assets rate P48,000.00 813. 2,334 849. 5
P147,346.02 628. 664. P1,827.79 almost a 721. Economic 749. Effective 778. 814. 160 850. The
593. P143,999.08 665. hundred life interest P30,000.00 815. 1,015 partners’
P146,323.08 629. P100,375.37 thousand than 722. Escalatory 750. Franchise 779. P7,545.45 816. 1.0 hours personal assets
594. P8,769.18 P12,835.32 666. lease. clause value 780. per unit are attached to
595. P61,500 630. P716.81 P197,008.25 696. No, it is 723. 751. Book P146,000.00 817. 1,228 the debt of the
596. 6 631. 4.61% 667. P8,225.00 not a sound Depreciation value 781. P1,454.54 818. 120 partnership
597. 3.7% 632. 668. idea recovery 752. Salvage 782. 819. 110 851. Sinking
598. 11.55% P37,520.34 P186,927.24 697. P2,782.93 724. Gross value P30,000.00 820. 1,000 feet fund method
599. 633. 669. 698. P252.12 margin 753. Salvage 783. 8% 821. Profit of 852. annuity
P2,170,968.95 P808,835.92 P35,074.58 699. P846.10 725. Book value 784. 32.25% P121,666.67 853. economic
600. Bank note 634. 670. 700. Foreign value 754. Going 785. 822. 2,632 return
601. Deflation P30,941.73 P15,185.78 operation 726. Working value P17,672.73 823. 9,601 854.
602. Annuity 635. 671. 19.47% yields capital 755. 786. 25% 824. 3,040 amortization
603. Market P242,806.22 672. P7,710.94 approximately 727. Monopoly P37,520.34 787. P2,400.00 825. P170,000 855. working
604. 636. 673. 3% less rate of 728. Bilateral 756. 788. 0.1 826. 160,000 capital
Monopsony P12,615.80 P34,675.18 return than oligopoly P13,084.58 789. 827. P88,960 856. luxuries
605. Deferred 637. P1,101.08 674. domestic 729. Bilateral 757. 3.0% P76,500.00 828. 295,490 857.
annuity 638. P6,922.93 P135,507.42 operation. monopoly 758. 790. 829. P814,320 necessities
606. Break 639. 32.7% 675. 478 701. 730. Duopsony P90,614.93 P341,000.00 830. 858. oligopoly
even – no gain 640. P7,425.72 676. P66,204.14 731. Time 759. 7.56% 791. 18.89% P3,354,680 859. perfect
no loss 641. P72,173.90 702. value of money 760. 3.85% 792. 831. 25 competition
607. Gratuitous P13,486.70 677. P2,775.50 P51,346.58 732. Discount 761. P1,144.81 P235,000.00 832. 250 860. market
608. Prime cost 642. 24.8% 678. 703. 733. Cash flow 762. Fair value 793. P791.26 833. 10,000 value
609. Acid-test 643. P1,263.71 P99,601.71 P734,391.48 734. P3,319.45 763. Ordinary 794. P6,710.89 834. 7,143 861. utility
ratio 644. P3,942.44 679. 0.492% 704. Supply 735. P4,860.00 annuity 795. 835. P25,011 862. balance
610. 645. 680. 4.5 years 705. An asset 736. P690.58 764. Deferred P41,244,253.40 836. Straight sheet
Depreciation P13,486.73 681. P6,917.72 706. Chairman 737. annuity 796. P3,927.27 line method 863. book
611. Salvage 646. 682. P250,000 of the Board P15,178.34 765. Annuity 797. 837. Declining value
value P13,023.52 683. 36.71% 707. Private 738. due P99,658.41 balance 864. evaluation
612. Physical 647. 684. 708. P18,449.37 766. The first 798. P9,250.00 method over different
inventory P3,702,939.73 P278,664.54 Depreciation 739. P4,280.47 payment is 799. 838. Sinking periods
613. Bid 648. 5 685. 709. 740. Chicago made at the $500,000,000 fund method 865. all of
bulletin 649. P1,699.86 P366,062.33 Partnership Bulls’ offer is beginning of 800. 839. Sinking these
614. Perpetuity 650. P839.19 686. 35.28% over $150,000 each period. P541,033.66 fund factor
866. identical 893. A series of 917. Sum of
equivalent equal the year’s digit
uniform annual payments at method
cash flows equal time 918. Sinking
867. (100% - periods. fund method
%net salvage 894. Physical 919. Bond
value)/Estimate inventory 920. Break-
d service life 895. even method
868. marginal Depreciation 921. P 2,244.00
revenue amnesty 922. P
869. journal 896. salvage 10,200.00
870. sinking value 923. P
fund 897. book 24,429.97
871. an asset value 924. P
872. all of the 898. interest 30,000.00
list rate 925. 304 days
873. 899. Straight 926. 4%
depreciation line method 927. P
874. Effective 900. Rate of 13,361.20
rate return 928. 11.75%
875. Law of 901. Interest 929. P 408.00
diminishing 902. Both A 930. 16.14%
Utility and B 931.
876. Discount 903. Simple P11,040.20
877. Price interest 932. P
discrimination 904. 10,955.61
878. Cartel Compound 933. P
879. Price war interest 11,102.61
880. 905. nominal 934. P
Equilibrium rate 10,794.62
price 906. Effective 935. 5 years
881. Physical rate 936. 12 years
life 907. annuity 937. P 1,083.00
882. 908. All of the 938. 1988
Partnership above 939. P
883. 909. Perpetuity 11,800.00
Monopsony 910. Ordinary 940. 12.75%
884. annuity 941. 12
corporation 911. Deferred 942. 7.92%
885. cost of annuity 943.
goods sold 912. Annuity P171,744.44
886. book due 944. 4.77 years
value 913. 945. P
887. Sinking Capitalized cost 170,149.77
fund 914. 946. 13.84%
888. capital Depreciation 947. P 152.87
889. book 915. All of the 948. P 6,034.66
value above. 949. P 1,360.50
890. patents 916. Straight 950. P
891. bid line 34,276.48
bulletin depreciation
892. tort