1. If a certain fund earns an interest of 12% compounded quarterly, what is the effective rate of interest? a. 12.10% b. 3.05% C. 12.55% d. 12.68%
1. If a certain fund earns an interest of 12% compounded quarterly, what is the effective rate of interest? a. 12.10% b. 3.05% C. 12.55% d. 12.68%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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51
1. If a certain fund earns an interest
of 12% compounded quarterly,
what is the effective rate of
6. What should be the annual discount
rate of a loan if the simple interest rate is
interest?
a. 12.10%
b. 3.05%
c. 12.55%
d. 12.68%
8%?
a. 65%
b. 6.32%
C. 7.41%
d. 8.01%
2. At an interest rate of 2% per month, the
money will double in value in how many
months?
7. A necklace is appraised at P6,300. If
a. 20 months
the value of the necklace has increased at
b. 22 months
an annual rate of 7%, how much was it
worth 15 years ago?
a. P2,283.41
c. 24 months
d. 35 months
b. P2,450.35
3. If P100,000.00 is loaned for 10 years at
a simple interest rate of 15% per annum,
c. P2,867.20
d. P2,689.5
determine the total amount due at the end
of 10 years?
a. P350,000.00
8. Jones Corporation borrowed P9,000
from Brown Corporation on Jan. 1, 1978,
b. P200,000.00
and P12,000 on Jan. 1, 1980. Jones
c. P250,000.00
d. P300.000.00
Corporation made a partial payment of
P7,000 on Jan. 1, 1981. It was agreed that
the balance of the loan would be
4. What is the future amount P5,000 using
amortized by two payments, one on Jan.
1, 1982, and on the other on Jan. 1, 1983,
the exact simple interest for the period
from January 5 to November 28, 1990. If
the rate of interest is 22%
the second being 50% larger than the first.
If the interest rate is 12%, what is the
amount of each payment?
5. By the conditions of a will, the sum of
9. If P5,000 is invested now at an interest
P25,000 is left to a girl to be held in trust
by her guardian until it amounts to
P45,000. When will the girl receive the
rate of 9% compounded continuously, how
much would be at the end of 8 years?
a. P9,875.8
b. P10,272.2
money if the fund is invested at 8%
compounded quarterly?
a. 72 years
b. 7.42 years
c. 8.42 years
d. 6.42 years
c. P12,072.4
d. P13,773.5
с.
10. Find the effective rate of interest for an
investment that earns 5 %% per year,
compounded continuously.
a. 75%
b. 5.65%
C. 8.74%
d. 12%
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