Quiz #2 - Discount and Inflation

A man borrowed 2,000 Php from a bank and agreed to pay the loan at the end of 6 months. The bank discounted the man and gave him 1,800 Php in cash. What is the rate of discount?

• 5%

• 5.26%

• 11%

• 10%

A man borrowed 2,000 Php from a bank and agreed to pay the loan at the end of 6 months. The bank discounted the man and gave him 1,800 Php in cash. What is the rate of interest (2 decimal places)?

(a)  

Based on new reports, it is precited that there will be an average annual rate of inflation in prices of commodities of 8% during the next 10 years. Assuming that this prediction to be accurate, a motorcycle currently costing P50,000 now would have what price 10 years hence?

• P110,105.17

• P112,161.24

• P107,946.25

• P109,962.00

Based on new reports, it is precited that there will be an average annual rate of inflation in prices of commodities of 4.12% during the next 15 years. Assuming that this prediction to be accurate, a motorcycle currently costing P60,000 now would have what price 15 years hence?

• P110,105.17

• P112,161.24

• P107,946.25

• P109,962.00

An economy is experiencing inflation at an annual rate of 8%. If this continues, what will P1,500 be worth 4 years from now, in terms of today’s peso?

• P1,102.45

• P1,120.45

• P1,102.54

An economy is experiencing inflation at an annual rate of 7%. If this continues, what will P1,000 be worth 2 years from now, in terms of today’s peso?

• P857.34

• P864.38

• P873.48

A man invested P10,000 at an interest rate of 10% compounded annually. What will be the annual amount of his investment, in today’s peso, after 6 years, if inflation remains the same at the rate of 8% per year.

• P10,960.86

• P10,136.84

• P10,906.86

• P11,163.84

A man invested P10,000 at an interest rate of 10% compounded annually. What will be the annual amount of his investment, in today’s peso, after 6 years, if inflation remains the same at the rate of 8.33% per year.

• P10,961.34

• P10,136.84

• P10,906.86

• P11,163.84

A real estate broker stated that a house be sold in 1980 for P37,000 and was sold by the buyer for P90,000 in 1995. If the increase in price is due solely to inflation, determine the average rate of inflation between 1980 and 1995.

• 3.9%

• 1.6%

• 9.3%

• 6.1%

A real estate broker stated that a house be sold in 1980 for P35,000 and was sold by the buyer for P90,000 in 1990. If the increase in price is due solely to inflation, determine the average rate of inflation between 1980 and 1990.

• 9.0%

• 9.3%

• 9.6%

• 9.9%