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business finance LQ3

Total questions: 25

Worksheet time: 2hrs 53mins

Name
Class
Date
1.

RiRi Couple wishes to select the better of two 5-year

annuities, C & D. Annuity C is with an annuity of P 5,000 per year for 5 years. Annuity D is with an annuity of P 5,200 per year for 5 years. What is the FV for Annuity C?

a)

28,753.70

b)

29,753.70

c)

31, 746.52

d)

30, 746.52

2.

RiRi Couple: How about the future value for Annuity D? Annuity D is with an annuity of P 5,200 per year for 5 years

a)

28, 753.70

b)

29,753.70

c)

31, 746.52

d)

30, 746.52

3.

What is the balance in an account at the end of 6 years if P 20,000 is deposited today and the account earns 6% interest? If compounded quarterly?

a)

23, 881.05

b)

21, 868.87

c)

31, 868.87

d)

22, 868.87

4.

What is the balance in an account at the end of 6 years if P 20,000 is deposited today and the account earns 6% interest? If compounded semi-annually?

a)

21, 868.87

b)

21, 768.87

c)

23, 881.05

d)

23, 581.05

5.

What is the balance in an account at the end of 6 years if P 20,000 is deposited today and the account earns 6% interest? If compounded annually?

a)

23, 881.05

b)

28, 670.38

c)

28, 370.38

d)

23, 581.05

6.

How much will be an account at the end of 4 years if the amount deposited today is P 32,000 and the interest is 6% per year compounded quarterly?

a)

33, 963.63

b)

34, 963.63

c)

32, 963.63

d)

31, 963.63

7.

Calculate the Future Value of Mr. L with a Single Cash Flow of P400 deposited today at the end of the deposit period of 20 years if the interest rate is 4% which is compounded annually

a)

9,418.95

b)

9,718.95

c)

8,718.95

d)

8,518.95

8.

Calculate the Future Value of Mr. M with a Single Cash Flow of P6,500 deposited today at the end of the deposit period of 7 years if the interest rate is 7% which is compounded annually

a)

50,066.15

b)

50,166.15

c)

50,566.15

d)

50,266.15

9.

Calculate the Future Value of Mr. P with a Single Cash Flow of P32,00 deposited today at the end of the deposit period of 6 years if the interest rate is 11% which is compounded annually

a)

200,417.6

b)

201,417.6

c)

202,417.6

d)

220,417.6

10.

Calculate the Future Value of Mr. L with a Single Cash Flow of P51,00 deposited today at the end of the deposit period of 9 years if the interest rate is 9% which is compounded annually

a)

550,907.8

b)

500,908.7

c)

505,907.8

d)

550,109.8

11.

Calculate the future value at the end of the deposit period of 5 years with a compounding frequency of 15 times/year if Ms. A has an initial deposit of P 3,500 at an annual interest of 6%

a)

4,021.68

b)

4,321.68

c)

4,002.68

d)

4,721.68

12.

Calculate the EAR at the end of the deposit period of 5 years with a compounding frequency of 15 times/year if Ms. A has an initial deposit of P 3,500 at an annual interest of 6%

a)

1.06

b)

1.09

c)

1.04

d)

1.05

13.

Calculate the future value at the end of the deposit period of 6 years with a compounding frequency of 7 times/year if Ms. D has an initial deposit of P 14,000 at an annual interest of 10%

a)

25,401.6

b)

24,401.6

c)

23,401.6

d)

25,001.6

14.

Compute the EAR at the end of the deposit period of 6 years with a compounding frequency of 7 times/year if Ms. D has an initial deposit of P 14,000 at an annual interest of 10%

a)

1.07

b)

1.08

c)

1.09

d)

1.06

15.

Loan Amortization schedule. Mr. Bo-Gum borrowed P 21,000 at an 11% annual rate of interest to be repaid over 4 years. The loan is amortized into four-equal annual end-of-year payments. Calculate the annual loan payments (cash flow)

a)

6,777.85

b)

6,768.85

c)

6,268.85

d)

6,088.85

16.

Calculate the Quick (Acid) Test Ratio for the year 2019

a)

1.52

b)

1.42

c)

1.72

d)

1.82

17.

Calculate the Current Ratio for 2019

a)

3.11

b)

2.91

c)

2.11

d)

1.11

18.

Calculate the Current Ratio for 2020

a)

2.21

b)

2.41

c)

1.41

d)

3.41

19.

Calculate the Inventory Turnover for the year 2020 assuming the Cost of Goods Sold is P 250,000.

a)

8.80

b)

9.08

c)

9.8

d)

9.89

20.

Calculate the Average Collection Period for 2020 with the sales revenue of P 500,000.

a)

26,000

b)

26 days

c)

26 months

d)

26 years

21.

Calculate the Average Payment Period for 2020 assuming the amount purchases is 32% of the P 500,000 sales

a)

302 days

b)

203 days

c)

213 days

d)

2.03 days

22.

Calculate the Total Asset Turnover for 2020 with the sales revenue of P 500,000

a)

0.59

b)

0.49

c)

0.70

d)

0.96

23.

Calculate the Debt-ratio for 2019

a)

0.41

b)

0.041

c)

0.45

d)

0.04

24.

Calculate the Debt Ratio Period for 2020

a)

0.41

b)

0.40

c)

0.04

d)

0.041

25.

Beginning Retained Earnings for the year 2020

a)

150,000

b)

220,000

c)

250,000

d)

180,000