951. A man purchased on monthly installment a P 100,000 worth of land.

The inter
est rate is 12% nominal and payable in 20 years. What is the monthly amortizatio
n?
A. P 1,101.08
B. P 1,121.01
C. P 1,152.15
D. P 1,128.12
ANSWER: A
952. Money borrowed today is to paid in 6 equal payments at the end of 6 quarter
s. If the interest is 12% compounded quarterly, how much was initially borrowed
if the quarterly payment is P 2,000.00?
A. P 10,834.38
B. P 10,382.90
C. P 10,586.99
D. P 10,200.56
ANSWER: A
953. You need P 4,000 per year for four years to go to college. Your father inve
sted P 5,000 in 7% account for your education when you were born. If you withdra
w P 4,000 at the end of your 17th, 18th, 19th, and 20th birthday, how much will
be left n the account at the end of the 21st year?
A. P 1,700
B. P 2,500
C. P 3,400
D. P 4,000
ANSWER: A
954. What is the accumulated amount of five year annuity paying P 6,000 at the e
nd of each year, with interest at 15% compounded annually?
A. P 40,454.29
B. P 41,114.29
C. P 41,454.29
D. P 40,544.29
ANSWER: A
955. How much must be deposited at 6% each year beginning on January 1, year 1,
in order to accumulate P 5,000 on the date of the last deposit, January 1, year
6?
A. P 751.00
B. P 717.00
C. P 715.00
D. P 725.00
ANSWER: A
956. A debt of P 10,000 with 10% interest compounded semi-annually is to be amor
tized by semi-annual payment over the next 5 years. The first due in 6 months. D
etermine the semi-annual payment.
A. P 1,200.00
B. P 1,295.05
C. P 1,193.90
D. P 1,400.45
ANSWER: A
957. A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per ann
um for the last 4 years. What does he have to pay at the end of the fifth year i
n order to pay off his loan?
A. P 6,919.28
B. P 5,674.00
C. P 6,075.00
D. P 3,296.00
ANSWER: A

959. If you obtain a loan of P 1M at the rate of 12% compounded annually in orde

r to build a house, how much must you pay monthly to amortize the loan within a
period of ten years?
A. P 13,994.17
B. P 12,955.21
C. P 15,855.45
D. P 12,900.25
ANSWER: A
960. How much must you invest today in order to withdraw P 2,000 annually for 10
years if the interest rate is 9%?
A. P 12,853.32
B. P 12,881,37
C. P 12,385,32
D. P 12,835.32
ANSWER: A
961. 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 pre
sent value of the investment if the rate of interest is 12 % compounded semi-ann
ually?
A. P 134,666.80
B. P 143,999.08
C. P 154,696.80
D. P 164,969.80
ANSWER: A
962. Past Board Exam A man loans P 187,400 from a bank with interest at 5% compo
unded annually. He agrees to pay his obligations by paying 8 equal annual paymen
ts, the first being due at the end of 10 years. Find the annual payments.
A. P 44,982.04
B. P 56,143.03
C. P 62,334.62
D. P 38,236.04
ANSWER: A
963. A housewife bought a brand new washing machine costing P 12,000 if paid in
cash. However, she can purchase rt on installment basis to be paid within 5 year
s. If money is worth 8% compounded annually what is her yearly amortization if a
ll payments are to be made at the beginning of each year?
A. P 2,782.85
B. P 2,872.58
C. P 2,400.00
D. P 2,827.58
ANSWER: A
964. Mr Ayala borrows P 100,000 at 10% effective annual interest, He must pay ba
ck 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. P 870.00
B. P 846.00
C. P 878.00
D. P 839.00
ANSWER: A
965. A house and lot can be acquired by a downpayment of P 500,000 and a yearly
payment of P 100,000 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% compounde
d annually, what is the cash price of the property?
A. P 810,100
B. P 808,811
C. P 801,900
D. P 805,902
ANSWER: A
966. A piece of machinery can be bought for P 10,000 cash or for P 2,000 down an
d payments of P 750 per year for 15 years What is the annual interest rate for t
he time payments?

A. 4.61%
B. 3.81%
C. 5.71%
D. 11.0%
967. A man inherited a regular endowment of P 100,000 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 if the cost of money is 14% compounded quarte
rly?
A. P 3,802,862
B. P 3,702,939
C. P 3,502,546
D. P 3,602,431
ANSWER: A
968. A parent on the day the child is born wishes to determine what lump sum wou
ld have to be paid into an account bearing interest at 5% compounded annually, i
n order to withdraw P 20,000 each on the child's 18th, 19th, 20th, and 21st birt
hdays. How much is the lump sum amount?
A. P 35,941.73
B. P 33,941.73
C. P 30,941.73
D. P 25,941.73
ANSWER: A
969. An instructor plans to retire in exactly one year and want an account that
P 25,000 a year for the next 15 years. Assuming a 6% annual effective interest r
ate, what is the amount he would need to deposit now? (The fund will be depleted
after 15 years)
A. P 249,000
B. P 242,506
C. P 248,500
D. P 250,400
ANSWER: A
970. An investment of P 350,000 is made to be followed by payments of P200,000 e
ach year for 3 years. What is the annual rate of return on investment for the pr
oject?
A. 41.7%
B. 32.7%
C. 51.1%
D. 15%
ANSWER: A