1) What is the present of a P100 annuity starting at the end of the third year and continuing to the end of  the fourth year, if the annual interest rate is 8%?  a

1) What is the present of a P100 annuity starting at the end of the third year and continuing to the end of  the fourth year, if the annual interest rate is 8%? 

a. P122 c. P160 

b. P153 d. P162 

2. A debt of P 100,000 is to be discharged by ten semi-annual payments, the first to be made 6 months  after the load is given. The debt will be discharged by 5 equal payments each P 10,000 and by 5 other  equal payments of such amount that the payment will liquidate the debt. If interest is 12%  compounded semi-annually, what is the amount of the last 5 payments? 

a. P 16, 386.74 c. P 22,956.44 

b. P 18,368.74 d. P 18,584.36 

3. The city wishes to set up a retirement fund. At 10% interest rate compounded continuously, how large  a fund in millions of pesos is required to guarantee an average annual retirement income of P  20,000.00? 3,000 retirees are expected to participate. 

a. P 600M c. P 580M 

b. P 590M d. P 570M 

4. Supposed a man receives an initial annual salary of P 60,000 increasing at a rate of P 5,000 a year. If  money is worth 10%, determine his equivalent uniform salary for a period of 8 years. a. P 73,022.66 c. P 76,022.78 

b. P 74,022.66 d. P 75,022.39 

5. It is the worth of property which is equal to the original cost less the amount which has been charged  to depreciation. 

a. Scrap Value c. Fair Value 

b. Book Value d. Use Value 

6. It is the worth of property which is equal to the original cost less the amount which has been charged  to depreciation. 

a. Scrap Value c. Fair Value 

b. Book Value d. Use Value

7. A machine was purchased 5 years ago at a cost of P 120,000. Its estimate salvage value at the end of  10 years is P 10,000. If it is sold now for P 30,000, what is the sink cost if the depreciation method  used is straight line method? 

a. P 21,000 c. P 35,000 

b. P 30,000 d. P 25,000 

8. It is interest earning with equal deposit made at equal interval time. 

a. Amortization c. Sinking fund 

b. Dividend d. Depletion 

9. A certain machinery cost P 50,000 lasts 12 years with a salvage value of P 5,000. Money is worth 5%  if the owner decides to sell if after using it for 5 years. What should his price be so that he will not  lose or gain financially in the transactions? 

a. P 44,378.01 c. P 34,378.5 

b. P 34,578.75 d. P 44,578.67 

10. The original cost of a certain piece of equipment is P 150,000 and it is depreciated by 10% sinking  fund method. Determine the annual depreciation charge if the book value of the equipment after 10  years is the same as if it had been depreciated at P 14,000 each year by straight-line method. a. P 7,843.35 c. P 8,748.36 

1. b. P 8,784.36 d. P 7,858.35