Business Finance Finals Exam

How much should you invest today at an 11% simple interest to have Php 15,500.00 after five years?

• Php 1,000.00

• Php 5,000.00

• Php 10,000.00

• Php 10,500.00

For a Php 10,000.00 loan to be paid in 10 years at a 6% compounded interest annually, what will be the maturity value?

• Php 17,908.48

• Php 19,708.84

• Php 18,907.48

• Php 17,098.84

Jannah deposits Php 1,500.00 in her bank account. How much interest will she accumulate in her account after 4 years if the bank pays 3% compound interest annually?

• Php 1,608.26

• Php 1,688.26

• Php 1,866.26

• Php 1,800.26

Instead of computing the value for 1(1+r)t, we can use the _____________.

• present value interest factor

• future value interest factor

• perfect value interest factor

• fast value interest factor

A series of payments required for a specific number of periods is _________.

• annuity

• rate

• principal

• interest

Instead of using the formula __________, you can use the present value interest factor for an ordinary annuity (PVIFA) table.

• (1+r)t1

• 1−1(1+r)tr

• 1(1+r)t

• 1(1+r)t

When payments are due at the beginning of each period, it is called an __________.

• annuity due

• ordinary annuity

• undeffered annuity

• uncertain annuity

When the payment appears at the end of each period, it is called an _________.

• annuity due

• ordinary annuity

• undeffered annuity

• uncertain annuity

If your money is compounded at 12% interest monthly, you have to save _________ monthly to accumulate Php 10,000.00 in 2 years.

• Php 350.50

• Php 470.73

• Php 833.33

• Php 450.50

It is a method that evaluates a project by measuring the time (usually expressed in years) it will take to recover the initial investments.

• internal rate of return

• payback method

• net present value

• none of the above