GEAS 25

A businessman borrowed P300,000 with interest at the rate of 6% compounded semi-annually. He agrees to discharge his obligation by paying a series of 8 equal semi-annual payments, the first being due at the end of 5.5 years. Find the semi-annual payment.

• P69,475.53

• P57,434.78

• P73.083.59

• P40,922.40

A man borrowed P300,000 from a lending institution which will be paid after 10 years at an interest rate of 12% compounded annually. How much should he deposit to a bank monthly in order to discharge his debt 10 years hence?

• P2,798.52

• P3,952.50

• P4,672.31

• P5,093.06

What is the accumulated amount of the five year annuity paying P6000 at the end of each year, with interest at 15% compounded annually?

• P40,454.29

• P41,114.29

• P41,454.29

• P40,544.29

A man owes P12,000 today and agrees to discharge the debt by equal payments at the beginning of each 3 months for 8 years, where this payments include all interest at 8% payable quarterly. Find the quarterly payment.

• P501.30

• P602.40

• P498.20

• P701.60

A man will deposit P200 with a savings and loan association at the beginning of 3 months for 9 years. If the association pays interest at the rate of 5.5%quarterly, find the sum to his credit just after the last deposit.

• P9236

• P9363

• P9563

• P9684

At what interest rate payable quarterly will payments of P500 at the beginning of each 3 months for 7 years discharge a debt of P12500 due immediately?

• 3.44%

• 4.33%

• 5.44%

• 6.33%

A P1,000,000 issue of 3% 15 years bonds was sold at 95%. If miscellaneous initial expenses of the financing were P20,000 and yearly expenses of P2,000 is incurred, what is the true cost the company is paying for the money it borrowed?

• 2.6%

• 4.2%

• 4.0%

• 3.8%

A man was offered a Land Bank certificate with a face value of P100,000 which is baring interest of 8% per year payable semi-annually and due in 6 years. If he wants to earn 6% semi-annually, how much must he pay the certificate?

• P96,041.92

• P90,061.49

• P90,614.92

• P99,814.92

The National Irrigation Administration undertakes the construction of an irrigation project in the province of oriental Mindoro which will cover an area of 10,000 hectares and estimated cost P10,000,000 which was borrowed from the World Bank at the start of the construction. The construction will last 30 years with no salvage value. Bonds will be paid at 4% per annum compounded annually for 30 years. The construction of project will take 4 years. Insurance operation and maintenance of the system will cost P120,00 per year. Interest on sinking fund is 6%. How much should each hectare be charged?

• P64.65

• P66.56

• P60.66

• P45.65

A company issued 50 bonds of P1,000 face value each redeemable at par at the end of 15 years to accumulate the funds required fro 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 12th year?

• P35,983

• P38,378

• P41,453

• P37,519