A machine costs of P 8,000 and an estimated life of 10 years with a salvage value of P 500. What is its book value after 8 years using straight line method ?
(A) P 2,000.00
(B) P 2,100.00
(C) P 2,200.00
(D) P 2,300.00
A VOM has a selling price of P 400. If its selling price is expected to decline at a rate of 10% per annum due to obsolescence, what will be its selling price after 5 years ?
(A) P 222.67
(B) P 212.90
(C) P 236.20
(D) P 231.56
A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond ?
(A) P 1,122.70
(B) P 1,144.81
(C) P 1,133.78
(D) P 1,155.06
A P 1,000,000 issue of 3%, 15-year bond was sold at 95%. What is the rate of interest of this investment ?
(A) 3.0%
(B) 3.4%
(C) 3.7%
(D) 4.0%
Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 10% per annum. How much is in the account at the end of the 4th year ?
(A) P 4,880.00
(B) P 4,820.00
(C) P 4,860.00
(D) P 4,840.00
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan ?
(A) P 6,999.39
(B) P 6,292.93
(C) P 6,222.39
(D) P 6,922.93
A bond without any security behind them except a promise to pay by the issuing corporation is called __________________?
(A) Joint bond
(B) Debenture bond
(C) Trust bond
(D) Common bond
What bond whose security is a mortgage on certain specified assets of the corporation ?
(A) Registered bond
(B) Collateral trust bond
(C) Mortgage bond
(D) Debenture bond
A type of bond to which are attached coupons indicating the interest due and the date when such interest is to be paid is called ____________________?
(A) Registered bond
(B) Coupon bond
(C) Mortgage bond
(D) Collateral trust bond
What type of bond whose guaranty is in lien on railroad equipment, such as freight and passenger cars, locomotives, etc ?
(A) Railroad bond
(B) Equipment obligation bond
(C) Equipment bond
(D) Equipment trust bond