EXAM Flashcards
is the exact interest rate on a principal during one year
Effective rate of interest
is the interest deducted in advance
discount
is the income produced by money that has been loanes
interest
A woman borrowed P3000 to be paid after 1 ½ years with interest at 12% compounded semi-anually and P5000 to be paid after 3 years at 12% compounded monthly. What single payment must she pay after 3 ½ years at an interest rate of 16% compounded quarterly to settle the two obligations?
126297.56
How long must a 4000 note bearing 4% simple interest run to amount to P4135?
0.84375 or 10months and 4 days
A businessman borrowed P100,000 from a bank and agreed to pay the loan at the end of twenty-four months. The bank discounted the loan and gave him P80,000. What is the interest rate?
25%
A man decided to paint his house himself after office hours. He can paint 25sqm per hour on average. It takes him 15 minutes to prepare his materials and 20 minutes to keep the materials after painting. If there are 900 sq.m. to be painted, how long will it take him to paint his house if he devotes 2.5 hours each day?
19days
It is defined as an entity that makes the product, good, or service available to a buyer or consumer in exchange for monetary consideration.
Seller
It is defines as any tangible economic activity that contributes directly or indirectly to the satisfaction of human wants.
Service
Consider a project which involves an investment of P100,000 now and P100,000 at the end of one year. Revenue of P150,000 will be generated at the end of years 1 and 2. What is the net present value of this project if the effective annual interest rate is 10%?
69421.49
it refers to the place in which buyers and sellers exchange a well-defined commodity
Market
it exists when there are so few suppliers of a product or service that the action of one will inevitably result in a similar action by the other suppliers.
Oligopoly
is the value that can be obtained from selling property after it has been used.
Salvage Value
A 220V 2 horsepower (Hp) has an efficiency of 80%. If the power costs P3000 per kW-hr, P2.90 per kw-hr for the 2nd 50 kw-hr. P2.80 for the 3rd kw-hr and so on until a minimum of P2.50 per kw-hr is reached. How much in Peso does it cost to run this motor continuously for 7 days?
856.2 (tentative)
specifies the interest rate and several interest periods in one year.
Nominal Interest Rate
