Show your complete solution for each item on your test booklet. Box your final answer and write the letter corresponding

to your answer beside the box. Round off your answers to two decimal places.$(50$ points$)$

The time it would take for a given sum of money to double at $8\%$ per year simple interest is

$($a$)10\mathrm{.}5$ years

$($b$)11\mathrm{.}5$ years

$($c$)12\mathrm{.}5$ years

$($d$)13\mathrm{.}5$ years

If $$10,000$ is deposited each year for $10$ years and earns $6\%$ per year, how much can a depositor withdraw annually for

$5$ years, starting one year after the $10$th deposit is made?

$($a$)$ $$28456\mathrm{.}84$

$($b$)$ $$33822\mathrm{.}65$

$($c$)$ $$31290\mathrm{.}73$

$($d$)$ $$25329\mathrm{.}05$

If you are able to save $$6000$ in year $1,$$$6300$ in year $2,$ and amounts increasing by $5\%$ each year through year $15,$ the

amount you will have at the end of year $15$ at an interest of $10\%$ per year, compounded quarterly is

$($a$)$ $$289,634\mathrm{.}29$

$($b$)$ $$236,838\mathrm{.}18$

$($c$)$ $$223,415\mathrm{.}32$

$($d$)$ $$258,746\mathrm{.}20$

Assume you borrow $$50,000$ at $10\%$ per year interest and you agree to repay the loan in five equal annual payments.

What is the amount of the unrecovered balance immediately after you make the third payment?

$($a$)$ $$22,891\mathrm{.}53$

$($b$)$ $$18,234\mathrm{.}67$

$($c$)$ $$14,985\mathrm{.}24$

$($d$)$ $$24,613\mathrm{.}46$

How much can JPMorgan Chase lend to a developer who will repay the loan by selling $6$ view lots at $$210,000$ each $3$

years from now? Assume the bank will lend at $12\%$ per year, compounded semiannually.

$($a$)5666,326\mathrm{.}42$

$($b$)$ $$888,250\mathrm{.}28$

$($c$)8777,328\mathrm{.}16$

$($d$)$ $$999,420\mathrm{.}19$

Income from product sales of P & G has averaged $$15000$ per month for $3\mathrm{.}5$ years. What is the future worth of the

income $($after the $3\mathrm{.}5$ years$)$ at an interest rate of $8\%$ per year, compounded quarterly? Assume there is no interperiod

compounding.

$($a$)S6,147,613\mathrm{.}22$

$($b$)$ $$8,949,121\mathrm{.}65$

$($c$)$ $$5,454,917\mathrm{.}32$

$($d$)$ $$7,188,272\mathrm{.}17$

A company that manufactures air$-$operated drain valve assemblies has obtained cost savings in the design of assembly

system, what is the future worth in year $8$ of savings of $$50,0002$ years from now and $$35,000$ per year in years $3$

through $6$ at an interest rate of $0\mathrm{.}5\%$ per month, compounded continuously?

$($a$)$ $$244,734\mathrm{.}15$

$($b$)$ $$325,117\mathrm{.}62$

$($c$)$ $$288,359\mathrm{.}28$

$($d$)$ $$302,243\mathrm{.}35$

You borrowed P$150,000$ pesos from a lending company now. Determine the accumulated loan amount in $8$ years if the

loan charges $12\%$ per year, compounded monthly, the first three years and $15\%$ per year, compounded semiannually

for the last five years.

$($a$)$ $$315,456\mathrm{.}21$

$($b$)$ $$236,892\mathrm{.}38$

$($c$)$ $$442,251\mathrm{.}63$

$($d$)$ $$534,235\mathrm{.}49$

TurboJet Engine Company wants to have $$10$ million in the fund $6$ years from now. If the company deposits $$2\mathrm{.}5$

million now, what uniform amount must it add at the end of each of the next $6$ years to reach its goal, if the fund earns

a rate of return of $15\%$ per year?

$($a$)389,213\mathrm{.}65$

$($b$)$ $$675,389\mathrm{.}32$

$($c$)$ $$354,312\mathrm{.}98$

$($d$)$ $$481,776\mathrm{.}80$

An employee borrows $$15000$ from a lending company. The loan is to be repaid in $20$ equal quarterly installments. The

interest rate is $5\%$ per year with the first payment to be made $3$ years after the date of the loan. What will be the

approximate amount of the quarterly payment?

$($a$)$ $$876\mathrm{.}65$

$($b$)$ $$1034\mathrm{.}26$

$($c$)$ $$987\mathrm{.}63$