1. M.E.

Board April 1995

P4000 is borrowed for 75 days at 16% interest per annum simple interest. How much will be due
at the end of 75 days?
A. P 4133.33
B. P 4333.33
C. P 4166.67
D. P 4150.00
2. M.E. Board April 1998
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 3 years?
A. P408
B. P415
C. P551
D. P450
3. M.E. Board October 1995, EE Board October 1997
Elso Bank advertises 9.5% account that yields 9.84% annually. Pamela asks how often the
interest is compounded.
A. Daily
B. Monthly
C. Bi-monthly
D. Quarterly
4. M.E. Board October 1996
An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual
interest rate?
A. 7.71%
B. 7.22%
C. 15.78%
D. 21.8%
5. M.E. Board October 1995
A company invests P10000 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. P 7623
B. P 7236
C. P 7326
D. P 7362
6. M.E. Board April 1998
If P5000 shall accumulate for 10 years at 8% compounded quarterly, find the compounded
interest at the end of 10 years.
A. P 6005.30
B. P 6000.00
C. P 6040.20
D. P 6010.20
7. M.E. Board October 1995
In year zero, you invest P10000 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 12020
B. P 13030
C. P 14040
D. P 15030
8. M.E. Board April 1996
What is the present worth of two P100 payments at the end of third year and fourth year? The
annual interest rate is 8%.
A. P 153
B. P 160
C. P 162
D. P 127
9. M.E. Board October 1994
If you obtain a loan of P 1M 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 ten years?
A. P 13,994.17
B. P 12,955.21
C. P 15,855.45
D. P 12,900.25
10. M.E. Board April 1998
How much must you invest today in order to withdraw P 2000 annually for 10 years if the
interest rate is 9%?
A. P 12853.32
B. P 12881.37
C. P 12385.32
D. P 12835.32
11. M.E. Board April 1998
How much must be deposited at 6% each year beginning on January 31, year 1, in order to
accumulate P5000 on the date of the last deposit January 31, year 6?
A. P 751
B. P 717
C. P 715
D. P 725
12. M.E. Board October 1998
What is the accumulated amount of five year annuity paying P6000 at the end of each year, with
interest at 15% compounded annually?
A. P 40454.25
B. P 41114.29
C. P 41454.29
D. P 40544.29
13. M.E. Board April 1992
A unit of welding machine cost P 45000 with an estimated life of 5 years. Its salvage value is
P2500. Find its depreciation rate by straight line method.
A. 17.75%
B. 19.88%
C. 18.89%
D. 15.56%
14. M.E. Board April 1998
An equipment costs P10000 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. P 791.26
B. P 950.00
C. P 971.12
D. P 845.32
15. M.E. Board April 1995
A machine costing P 720000 is estimated to have a book value of P 40545.73 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. 28
B. 25
C. 16
D. 30
16. M.E. Board April 1998
A company purchases an asset for P10000 and plans to keep it for 20 years. If the salvage value
is zero at the end of 20 years. What is the depreciation in the 3rd year? Use SYD method.
A. P 1000
B. P 857
C. P 937
D. P 747
17. M.E. Board April 1996
Steel drum manufacturer incurs a yearly fixed operating cost of P200,000. Each drum
manufactured cost P160 to produce and sells P200. What is the manufacturer’s break-even sales
volume in drums per year?
A. 1250
B. 2500
C. 5000
D. 1000