IF YOU CAN SOLVE THESE PROBLEMS IN 1 HR, THEN YOU ARE A CAL TECH EXPERT

PROBLEMS TAKEN FROM 1ST MEETING REFRESHER AT TOLENTINO AND ASSOCIATES..

1. A deposit of P110, 000 was made for 31 days. The net interest after deducting 20% withholding tax is P890.36.
Find the rate of return annually.
2. P5, 000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75 days?
S-1
Mr. J de la Cruz borrowed money from a bank. He received from the bank P1, 340.00 and promised to pay
P1, 500.00 at the end of 9 months. Determine the following
3. Simple interest rate.
4. The corresponding discount rate or often referred to as the Bankers Discount.
S-2
John borrowed P50, 000.00 from the bank at 25% compounded semi-annually.
5. What is the equivalent effective rate of interest?
6. How much must he pay if he pay after 5 years?
7. When will the money double ?
8. If he pay 10,000 after 1 year and 10,000 on the next year , how much must he pay on the 3rd year to wipe out
his loan?
9. Convert the interest rate to compounded quarterly
10. Convert the interest rate to compounded monthly.
11. Convert the interest rate to compounded continuously .
12. Find the present worth of a future payment of P100, 000 to be made in 10 years with an interest of 12%
compounded quarterly.
13. If P5, 000.00 shall accumulate for 10 years at 8% compounded quarterly. Find the compounded interest at the
end of 10 years.
14. By the condition of a will, the sum of P2, 000 is left to a girl to be held in trust fund by her guardian until it
amounts to P50, 000, when will the girl received the money if the fund is invested at 8% compounded quarterly?
15. A Mechanical Engineer wishes to accumulate a total of P10, 000 in a savings account at the end of 10 years. If
the bank pays only 4% compounded quarterly, what should be the initial deposit?
Mr X borrowed P 100,000 at en effective interest of 8% in a bank. He will pay the loan monthly for 5 years
16. Convert interest to compounded monthly
17. What should be the monthly payment?
18. If he decides to pay on a quarterly basis, convert the interest rate to compounded quarterly.
19. What must be the quarterly payment?
20. If he decides to pay on a semiannual basis, convert the interest rate to compounded seminannually.
21. What should be the semiannual payment?
22. Convert the interest rate to compounded continuously.
Mr Y deposited P 1,000 at the end of every month in an account that earns 12% effective interest.
23. What is the monthly interest rate?
24. What will be the amount of money after 5 years?
25. If Mr Y deposited P 1,000 at the beginning of each year, what will be the amount in 5 years. (There will be only
60 deposits )

S -5
Mr Z borrowed P 300,000 from a bank. The bank charges 16% effective interest.
26. What is the equivalent monthly interest rate?
27. What is the monthly amortization if he will pay at the end of each month for 5 years?
28. What will be the monthly amortization if he delays his payment by 6 months (his 1st payment happened at the
end of 6 months ) .
29. What is the monthly amortization if he pays at the beginning of each month for 5 years.
30. Which is the biggest interest rate?
a. 12%
compounded quarterly
b. 11.88% compounded seminually
c. 11.99 % compounded monthly
d. 12.02% compounded continuously
S-6
Given the series of payments at the end of each year:
Year 1
2000
Year 2
5000
Year 3
8000
and so on until year 20, If i = 12% per annum
31. The present worth of all payments. (year 0 )
32. The future worth of all payments ( year 20)
33. The equivalent equal annual worth of all the payments.
S7
Given the first cost of a machine FC = 500,000 Salvage Value is 150,000 Economic Life = 12 years
34. USING straight line method , the annual depreciation is
35. USING Straight line method, the book value after 5 years is
36. USING SOYD, the book value after 3 years is
37 USING SOYD, the maximum depreciation in any year is
38. USING SOYD, the total depreciation after 6 years is
39. USING MATHESONS METHOD, the Mathesons constant is
40. The sunk cost after 3 years using MATHESONS formula is
41. The total depreciation after 7 years is (MATHESONS FORMULA )
42. USING DOUBLE DECLINING BALANCE METHOD , the book value after 3 years is
43. USING SINKING FUND METHOD , with i = 8% , the annual depreciation is
44. The book value after 6 years is (SINKING FUND METHOD )
45. The total depreciation after 5 years is
46. The depreciation on the 4th year is
S-8
Find the present value of a perpetuity of P 15,000 payable semiannually if money is worth 8% compounded
quarterly
47. The interest rate every six months is
48. The present value of the given perpetuity is
2

49. A man invest in a medium scale business that cost him P 57,000.00. The net annual return is estimated at P
14,000 for each of the next 8 years. Find the benefit cost ratio if annual interest rate is 8%.
50. Compute the benefit cost ratio of the given project
Project Cost P 80,000
Gross Income 25,000 per year
Operating Cost
P 6,000 per year
Salvage Value
0
Life of Project
10 years
Rate of Interest 12%
51. If the nominal interest rate is 3%, how much is P 5,000 worth in 10 years in a continuous compounded account?
52. P 6,000 is deposited each year into a savings account that pays 6% nominal interest compounded continuously.
How much will be the account at the end of 8 years?
53. A man borrows P 100,000 at a rate of 6% compounded continuously for 5 years. How much money must he
pay annually?
54. At 6% , find the capitalized cost of a bridge whose cost is 250 M and life is 20 years if the bridge must be
partially rebuilt at a cost of 100 M every 20 years.
S-9
A machine cost P 150,000 and will have a scrap value of P 10,000 when retired at the end of 15 years. If money is
worth 4%
55. Find the annual investment
56. The Capitalized Cost is
S-10
57. The cost of producing a certain commodity consist of P 45 per unit for labor and material cost and P 15 per unit
for other variable cost. The fixed cost per month is P 450,000. If the commodity is sold at P 250 per unit
57. What is the break even quantity ?
58. What is the profit/loss if the number of items sold is 3000?
59. A certain copier machine cost P 150,000 with a trade in value of P 1.50,000 after making 800,000 copies. Using
the declining balance method, what is the book value of the machine when it had made 300,000 copies?
60. What is the present worth of two P 100.00 payments at the end of the 3rd and the 4th year is interest rate is 8%?
61. The nominal rate of interest is 4%. How much is P 10,000 worth in 10 years in a continuously compounded
account?
62. If P 500,000 is deposited at a rate of 11.25% compounded monthly, what will be the amount after 7 years and 9
months?
63. In year zero, you invest P 10,000 in a 15% security for 5 years. During the time, the average inflation is 6%. How
much in terms of year zero pesos will be the account at the maturity?

S 11
A man inherited a regular endowment of P 100,000 every end of 3 months for 10 years. However he may elect to
get a single lump sum after 4 years.
64 . How much is the lump sum if the cost of money is 14% compounded quarterly?
65. What is the present worth of the endowment?
66. A debt of x pesos with interest rate of 7% compounded annually will be retired at the end of 10 years through the
accumulation of deposit in a sinking fund invested at 6% compounded semiannually. The deposit in the sinking fund
every end of the six months is P 21,962.68. The value of x is
67. A man paid 10% downpayment of P 200,000 for a house and lot and agreed to pay the balance on a monthly
installments for 60 months at an interest rate of 15% compounded monthly. Determine the required monthly
payment.
S -12
Determine the break even point in terms of the number of units produced per month. Cost are in pesos per unit
Selling Price Per unit P 600
Labor Cost
P 115
Cost of Materials
P 76
Other Cost
P 2.32
Total Monthly Overhead Cost
428,000
68. The break even point is
69. Determine the profit/loss if it sells 1000 units.
S -13
Given the bank deposits in an account that earns 3% per annum.
End of :
Year 1
5,000
Year 2
6,000
Year 3
7,200
70. The deposit at year 20 is
71. The total deposits made without interest after 20 years.
72. The Present Worth of 20 deposits.
73. The Future worth of the 20 deposits
74. The equivalent equal annual deposits for the 20 deposits.
75. An amount of 1,000 becomes 3500 after 6 years. If money is x% compounded quarterly , x = ?
S 14
A 3 deg simple curve is used to connect two highways whose bearings are S 110 W and S 470 W . Use arc basis.
76. The radius of the curve is
77. The length of the curve is
78. The external distance is
79. The length of the middle ordinate is
4

80. The tangent distance is

S- 15
A simple curve has a degree of 6 deg and length of 140 m. What is the central angle of the curve. Use Chord
Basis.
81. The radius of the curve is
82. The central angle is
S 16
A 40 simple curve have tangents with bearings of N 200 E and N 600 E. The stationing of PI is 3 + 980
83. The radius of the curve is
84. The tangent distance is
85. The stationing of PC is
86. The length of the curve is
87. The stationing of the PT is
S -17
A reversed curve consists of two curves of equal radius has the following properties
D1 = 3 deg
I1 = 18 deg
D2 = 2 deg
I2 = 24 deg
Stationing Of PT is 32 + 121 Use Chord Basis
88. The radius of curve 1 is
89. The radius of the 2nd curve is
90. The stationing of PC is
S 18
A vertical sag parabolic curve is to connect a -2% grade to a 3% grade. The change in grade per meter station is
0.2%. The PT of of the curve is at station 25 + 325 and elevation 25.42.
91. The length of the curve is
92. The stationing of the PC of the curve is
93. The stationing of the lowest point of the curve is
94. The elevation of the PC is at
95. The elevation of the lowest point of the curve is at
96. The elevation of PI is at
97. The stationing of the PI is at
98. The elevation at station 25 + 075 is
S 19
Given the following cross section notes for a road in cut
x
+2.5

0
+c

7.8
+y

S 20

The road has a width of 10 m and have a slope of 2: 1 (horizontal: vertical ) . The area of the cross section is 47.4
m2
99. The value of x is
100. The value of y is
101. The value of c is
a. 4.23 m