Examination in CE 223 - Part 02

Find the present worth of all the cash disbursements using gradient interest formulas if money is worth 15% per annum. Annual cash disbursements increases by P1000 every year thereafter, until the end of the fourth year. The first cash disbursement amounts to P5000.

• P19,052.32
• P18,061.32
• P17,055.32
• P16,542.32

How much money will you invest today in order to withdraw P2000 annually for 10 years if the interest rate is 9%?

• P12,835.31
• P12,385.32
• P12,538.33
• P12,853.34

Mc. Leo wants to buy a car by paying a down payment of P100,000 and the balance to be paid monthly for 5 years at 18% compounded monthly. What is the monthly payment if the cost of the car is P500,000?

• P12,669.71
• P12,696.71
• P12,966.71
• P12,676.71

Sheryl obtains a loan of P1 Million at the rate of 12% compounded semi-annually in order to build a house, how much must he pay monthly to amortize the loan within a period of ten years?

• P14,719.95
• P14,791.95
• P14,179.95
• P14,197.95

Mr. Johnson borrows P90,000 at 12% effective annual interest. He must pay back the loan over 25 years with uniform monthly payments due on the first day of each month. Approximately what amount does Mr. Johnson pay each month?

• P889.42
• P988.42
• P848.42
• P898.42

A farmer bought a tractor costing P25,000 payable in 10 semi-annual payments starting at the beginning of each period. If the interest rate is 26% compounded semi-annually, determine the amount of each installment.

• P4,077.20
• P4,027.20
• P4,707.20
• P4,770.20

Jason borrowed P100,000 at 11% compounded annually for 12 years. And promised to pay the amount starting 5 years from now. Find the annual payment.

• P23,832.42
• P23,238.42
• P23,382.42
• P23,328.42

A father invests P10,000 now for the college education of his newborn son. If the fund earns 14% effective, how much will the son get each year starting from his 16th to the 20th birthday?

• P20,971.64
• P20,791.64
• P20,179.64
• P20,917.64

The maintenance cost of a machine this year is expected to be P1,000. The cost will increase P200 each year for the subsequent 9 years. The interest is 15% compounded annually. What is the approximate present worth of maintenance for the machine over the full 10 years?

• P4,818.67
• 4481.76
• P8,414.67
• P4,418.76

A man buys a small garden tractor. There will be no maintenance cost the first year as the tractor is sold with one year’s free maintenance. The second year the maintenance is estimated at $20. In subsequent years the maintenance cost will increase $20 per year (that is, 3rd year maintenance will be $40; 4th year maintenance will be $60, and so forth). How much would need to be set aside now at 5% interest to pay the maintenance costs on the tractor for the first six years of ownership?

• $101.52
• $164.74
• $239.36
• $284.13