Problems XI
- The ratio of the interest payment to the principal for a given unit of time and is usually expressed as a percentage of the principal is known as _____?
- A method of depreciation whereby the amount to recover is spread over the estimated life of the asset in terms of the periods or units of output is called as _____?
- The interest rate at which the present work of the cash flow on a project is zero or the interest earned by an investment?
- The lessening of the value of an asset due to the decrease int he quantity available. This refers to the natural resources such as coal, oil and timber in the forest?
- The method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an amount equal to the total depreciation of an asset at the end of the asset's estimated life is known as _____?
- A mathematical expression also known as the resent value of an annuity of one is called as _____?
- The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit is known as _____?
- As applied to a capitalized asset, the distribution of the initial cost by periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged program is called _____?
- A newly licensed ECE, planning to put up a new business needs P 50,000.00 for its operation. Financier A is willing to lend his money for one year at 12.5% interest per annum (discounted). Financier B is charging 14% with the pricinpal and interest payable at the end of the year. Financier C will lend his money payable in 12 equal monthly payments of P 4,600.00 each and Financier D will lend his money to be paid in lump sum of P 60,000.00 at the end of the year. Whose offer is best for the business?
- A fund donated by a wealthy person to IECEP to provide annual scholarships to deserving ECE students. The fund will grant P 5,000.00 for each of the first five years, P 8,000.00 for the next five years and P 10,000.00 each year thereafter. The scholarship will start one year after the fund is established. If the fund earns 8% interest, what is the amount of the donation?
- A person buys a piece of lot for P 100,000.00 downpayment and 10 deferred semi-annual payments of P 8,000.00 each starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?
- Determine the exact simple interest on P 1,200.00 for the period from January 16 to November 26, 2000, if the rate of interest is 24%?
- A certain company makes it a policy that for any new piece of equipment the annual depreciation cost should not exceed 10% of the original cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method?
- A man wishes to prepare the future of his 10 year old son. Determine the monthly savings that the man should make with interest of 5.41% per annum to amount P 120,000.00 at the time his son will be 18?
- Engr. Azarcon borrowed P 2,000.00 from Engr. Espinosa on June 21, 1988 and P 500.00 on June 21, 1990, agreeing that money is worth 5% compounded annually. Engr. Azarcon paid P 500.00 on June 21, 1991, P 400.00 on June 21, 1992 and P 700.00 on June 21, 1993. What additional sum should Engr. Azarcon pay on June 21, 1996 to discharge his reamining liability?
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