How many years will P100,000 earn a compound interest of P50.000 if the interest

Question

How many years will P100,000 earn a compound interest of P50.000 if the interest rate is 9% compounded quarterly? 3.25 years 5.86 years 4.55 years 2.11 years What refers to the present worth of cost associated with an asset for an infinite period of time? Annual cost Increment cost Capitalized cost Operating cost Mr.J. Reyes borrowed money from the bank. He received from the bank P1, 842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest. 12.19% 12.03% 11.54% 10.29% Salvage value is sometimes known as Scrap value Going value Junk value Second-hand value The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called Sunk cost Economic life In-place value Annuity What is defined as the reduction or fall of the value of an asset due to constant use and passage of time? Depletion Inflation Depreciation Deflation

Explanation / Answer

Question (6) Capitalized Cost. (Option C)

Question (8) Scrap Value. (Option A)

Question (9) Sunk Cost (Option A)

Question (10) Depreciation. (Option C)

Question (7) The Rate of Simple interest = (Simple interest * 100 * 12) / (Principal * Time)

= [158(NOTE 1) * 100 * 12 ] / (1842 * 10)

= 189600 / 18420

= 10.29 % (approx)

Conclusion:- The Rate of Simple Interest = 10.29 % (Option D)

(NOTE 1):- The Simple Interest = Amount - Principal = 2000 - 1842 = $ 158.

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