Occurring once every three years that has 366 days including February 29 as an intercalary

day.

False

Convert 28 months to year

2 and 1/3 years

A year is assumed to have three hundred sixty days. This is called __________.

Ordinary simple interest

There are two kinds of interest: Simple interest and Compound interest.

Select one:

True

The face value is the amount or the proceeds actually received by the borrower from the
lender.

Principal

The rate of interest refers to the part of the revenue per year.

False

Convert 1350 days to year

3 and 3/4years

Convert 18 months to year

1 and 1/2 years

It is considered an expense to the borrower and income for the lender. This is called

Interest

The additional day added to keep the calendar year synchronized with the astronomical or
seasonal year. This is Called______________

Leap year

Determine the exact time for the dates of January 14, 2016 to November 19, 2016.

Select one:
310 days

February 2016 is 29 days.

True

May 1998 is 30 days.

False

Approximation time for dates of August 7, 2015 to November18, 2018 is 1181 days.

True

Exact time for the dates of January 31, 2016 to October 31, 2016 is 273 days.

False

Determine the exact number of days between the following dates.December 31, 2014 to
June 18 2015

169 days
Exact time for the dates of January 7, 2017 to August 8, 2017 is 213 days.

Select one:

True

Find the ordinary interest, using approximate number of days, on P100,000 at 11.5% simple
interest from January 20, 2012 to July 26, 2012

P5941.67

This rare occurrence increases the standard 365 day year to 366 days. This is called ________.

Leap year

The actual time but on the assumption that each month has 30 days.

Exact time

1872 is a leap year.

Select one:

True

How many days are there in February 2013?

28 days

The exact number of day from February 27, 2000 to May 16, 2000 is 78 days.

False

February of 2004 is 29 days.

Select one:

True
August of 2005 is 31 days.

Select one:

True

The formula for calculating time is t is equal to I ÷(Pr)

Select one:

True

Find the present value of P35,000 at 7% simple discount due at the end of 180 days.

P33,775

The discounted amount to pay in advance of the original maturity date. This is
called______________

Select one:
a.
present value

0.5 year is equal to 5 months

False

Refers to the interest rate used in discounted cash flow analysis to determine the present
value of future cash flows. This is called______________

Select one:
a.
discount rate

Future value is the amount that should be paid on the original maturity date

Select one:

True
To what extent will P12,000 gather to P5,565 if the discount rate is 9.75%?

5.5 years

The current worth of a future total of cash or stream of income given a predetermined rate
of return. This is called___________

Present value

Present value is also called discounted value

Select one:

True

If the problem has a given value of maturity amount, discount rate and time. You can
calculate the variable of?

discount and present value

When you buy a bit of capital like a machine you may have a few appraisals of the esteem
that it will make for your association and you may even have a few projections on the profits
on speculation it will create

Select one:

True

The amount at a later point in time is known as a future value

Select one:

True

Present value is also called?

discounted value
The capacity to assess the benefit of something today that will change an incentive after
some time is basic not exclusively to purchasing and offering resources

Select one:

True

Another expression for present value is the value itself, which originates from the way that
you're taking a known future value and reducing it at the loan fee being referred to.

False

You can calculate the amount of maturity if the given are discounted value, discount rate
and term of discount

Select one:

True

If the money is worth 10%, Find the present value of P123,000 due in 24 months

P102,500

A mix of normal Interest and genuine time. This is called_______________

Select one:
a.
Banker's rule

A year is supposed to have three hundred sixty five days. This is called_______________

Exact simple interest

A percentage per day that shoulders 360 days per year. This is called___________

Ordinary Interest
May of 1976 is 30 days.

False

The rate of interest refers to the whole of the principal per year

False

How many days are there in December 1940?

Select one:
a.
31 days

Find the Exact number of days from: February 14, 2016 to October 26, 2017.

Select one:
a.
620 days

How many days are there in February 2040?

29 days

The extra day added to keep the calendar year corresponding with the astral or periodic
year. This is Called_______________

Leap year

How many days are there in March 1982.

31 days

To change times in months in a year by dividing number of months by 12 month

Select one:

True
The length of the period or dated from the date the loan is made to the date the load turn
into due or payable.

Time

To convert times in months in a year by dividing number of days by 12 months.

False

Date when a loan or investment is made.

Origin date

Find the Approximate number of days from: January 14, 2000 to October 26, 2002.

1,002days

Exact interest is used when calculations require the use of the Actual number of days in a
year

Select one:

True

February of 2000 is 29 days

Select one:

True

The amount of money that is paid for the use of investment or loan money. This is
called__________________________

Interest rate

2 year and 9 months is equal to 2.75 years.

Select one:

True

The exact number of day from July 27, 1976 to November 16, 1976 is 112 days

Select one:

True

Leap year has 365 days

False

A promissory note is a document. It is a promise by the borrower to repay a certain amount

of money on a certain day.

False

On March 15, Mrs. Bautista draws a note promising to pay Carol P5,000 for 60 days. The
payee of the note is Mrs. Bautista.

False

This refers to the length of time from the origin date to maturity date. This is called?

Term

What is the characteristic of a promissory note?

A guarantee to pay with terms and conditions that incorporate when and the amount to pay

This refers to the date when the note is drawn or signed. This is called?

Origin date
A promissory note is a written document that promises to repay a loan or debt under
certain terms.

Select one:

True

Which of the following is not contained in a promissory note?

Select one:
a.
resources of the borrower

Mr. Co owns a P60,000 promissory note dated May 5 at 5% simple interest. The term of the
note is 120 days. Find the maturity value of the note?

P61,000

A non-interest-bearing note is a note or bond with no stated interest rate on its face.

Select one:

True

A loan between lender and borrower which accrues interest over the pre-determined loan
period.

Interest bearing note

Mr. Punzalan composed a 90 day note for P35, 000 on July 20, 2015 at 6% simple interest.
The maturity date will be on October 18, 2015

True

The interest is implied in the face interest of the note.

False
The date when maturity value is due to the payee. This is called?

Maturity date

An Interest bearing note do actually pay interest.

False

Mr. Punzalan composed a 90 day note for P35, 000 on July 20, 2015 at 6% simple interest.
The maturity date will be on October 18, 2015. The maturity value of the note is P3,552.50

False

How many frequency conversion periods if the loan is compounded every 3 months?

m is equal to 4

What is the number of Conversion Periods if 5 years and 6 months compounded monthly?
n is equal to 66

The frequency conversion periods if the loan is compounded every once a day is 365 or 366
if leap year

Select one:

True

The Number of Conversion Periods in 2.5 years compounded quarterly is 10

Select one:

True

Rate per conversion Period is the rate of interest for each conversion period

Select one:

True
Nominal rate is denoted by n

False

Simple interest advances are typically offered by banks to people and representatives for
here periods only.

False

The frequency conversion periods if the loan is compounded every once a year is 1

Select one:

True

Refers to the interest calculated on the original principal and also on the accumulated
interest of previous periods of a deposit or loan. This is called

Compound Interest

The stated annual interest rate is called?

Select one:
a.
Nominal rate

The interval of time between successive conversions of interest into principal is called?

Conversion Period

What is the symbol of rate per Conversion Period?

i
Compound interest implies that the a total of cash contributed for one year that procures
interest compounded quarterly will procure simple interest for the primary quarter. The
interest earned is added to the first primary to have another main.

Select one:

True

Annual means six (6) calendar months.

False

The yield on a loan is always expressed as a Peso amount.

False

In each calculation of compound interest, the new principal becomes larger.

Select one:

True

In computing compound interest, the new principal for each interval becomes:

Larger.

You are applying for a credit card at a bank and are told their rate of interest is 15 percent.
You've taken this course and know this is probably not the actual rate you will be paying.
What else are you going to ask the bank in order to determine the true rate?

Select one:
a.
How often is the rate compounded?

If you are a borrower, it is better to have interest compounded more frequently; if you are a
lender, it is better to have it compounded less frequently.

False
The more often compounding occurs for an investment, the ________________the rate of
return.

Greater.

Compound interest is the computation of nominal rate and simple rate.

False

When the interest earned is added to the principal at regular intervals, it is known as:

Compounding

Savings compounded ____________ would have the most elevated compelling yield.

Daily

The effective annual yield of an investment may be different from the nominal interest rate
due to the effect of compounding

True

An investment that pays interest at 2% per year compounded twice a year has an effective
yield of 4%.

False

The individual who composes a promissory note is known as a ___________.

d.
maker

A 60 days note dated December 1 is due on January30.

Select one:

True

A person who has a written promise to be paid money by another person.

Select one:
a.
payee
When no compounding period is mentioned, every 6 months compounding should be
assumed.

False
Check

How much will be the maturity value of P20,300 at the end of 4 years if the interest rate is
6% compounded continuously?

Select one:
a.
P25,806.35

Over a period of 3 years and 6 months, an original principal of P10,000 accumulated to

P12,000 in an account where the interest rate was compounded monthly. Determine the
rate of interest to two decimal places.

Select one:
a.
5.22%

ABC Company received a 60 day, 12% note for P8,500 on July 6. What is the maturity value
of the note?

Select one:
a.
P8,670
Find the present value of P150,500, which is due in 3 years and 6 months with interest at 9%
compounded monthly.

Select one:
a.
P109,962.40

At what rate of interest compounded monthly will P35,000 accumulate to P70,000 in 4

years?

c.
17.45%

Assume for the principal P, and r% and time t, the simple interest is S and compounded is C.
What is the possible outcomes?

1. C<S
2. C = S
3. C>S

Select one:
a.
Only III is correct

Each of the following is a characteristics of a promissory note except;

d.
Payee who has an unconditional rights to receive a definite amount on a definite date.

Which of the following has the largest future value if P15,000 is invested today?

10 years with a compound Continuously interest rate of 8%

An interest rate of 12% compounded semiannually corresponds to an effective rate of

b.
12.36%
What nominal rate compounded monthly is equivalent to 9% effective rate?

Select one:
a.
8.65%

On promissory note, the due payment is after a specific date.

Select one:

True

The role of a promissory note is to promise to pay within one year of the issuance of the
promissory note.

False

Lenders prefer more frequent compounding; borrowers prefer less frequent compounding.

Select one:

True

Date of maturity of note is;

b.
maturity value is due to the payee

What is a promissory note?

c.
It is a promise by the borrower to repay a certain amount of money on a certain day

In the event that cash has a time value, at that point the future worth will consistently be
same than the first sum contributed.

False

In computing compound interest, the new principal for each interval becomes larger

Select one:
 True

Interest on a 60 days, 8 percent, P10,000 promissory note is calculated by multiplying

P10,000 x 8/100 x 60/12

False

How many years will it take for P12,000 to become P24,000 if it is invested at 12%
compounded monthly?

b.
5.81 years

After the payments in an ordinary annuity have been discounted to time period 0, you will
have the __________valueof the ordinary annuity.

d.
Present Value

An annuity due is an annuity in which the periodic payments are made at the beginning of
each payments interval.

Select one:

True

An ordinary annuity has payments that occur at the end of the time periods.

Select one:

True

The discounted value of the periodic payment at the beginning of the period of deferment
is the present value of a deferred annuity.

Select one:

True
Mario wants to deposit P4,500 into a fund at the beginning of each month. If he can earn
12% compounded interest every 3 months, how much amount will be there in the fund at
the end of 5 years?

d.
P258,525.91

With a deferred annuity due, payments are made in every period of the term.

False

The differences between an ordinary annuity and an annuity due are the number of
compounding periods.

False

The cash flow of an annuity due occur at the end of each period .

False
Check

The frequency of compounding affects the actual amount of interest being paid

Select one:

True

Amount of money today which is equal to series of payments in future?

c.
present value of annuity

The interest removed from the payments in an ordinary annuity when calculating the
present value is also referred to as______
b.
discount

Lottery payoffs and payment for rental apartments are examples of?

d.
annuity due

The cash flows for an ordinary annuity remain constant for period to period and they occur
at the end of each period.

Select one:

True

Which assets are amortized?

c.
Franchise agreements

Amortization is the __________.

Select one:
a.
process of gradually retiring a debt by periodic payments.

Which of the following are intangible assets?

d.
Trademarks

Amortized funds are designed to completely pay off the loan balance over a set amount of
time. Your last loan payment will pay off the final amount remaining on your debt

False

Reducing your loan balance also known as paying off the loan principal.

Select one:
 True

Only intangible assets are amortized.

Select one:

True

Mrs. Sanchez is required to pay 15 quarterly installment of P10,200 each for a loan at 8%
compounded quarterly. How much is her loan?

Select one:
a.
P131,062.49

In amortization, transaction each payment pays a portion of interest.

False
Check

A copyright would generally not be amortized.

False

Which of the following would not generally be amortized?

c.
equipment

The prospective method is used to find the outstanding principal if all the periodic
payments, from the first to the last are the same.

Select one:

True
You financed P225,000 for 30 years at 5% annual interest and will make monthly payments
of 1,207.85. How much interest will you have to pay when you finish paying back the loan?

P209,826

The interest rate per period for a 9% loan in which you will make quarter payments is 2.25%

Select one:

True

Gradual reduction of a loan date through periodic payments of principal and interest
calculated to pay off debt at the end of a fixed period.

Amortization

Amortized is a method for computing equal payment for a loan.

False

You took out a 5-year loan for P36,000 at 7.5% annual interest. You've got to make monthly
payments. How much is your payment?

b.P721.37

Which assets are amortized?

Select one:
a.
Patents and trademarks

What is amortization used for?

intangible property

Trademark is example of tangible asset.

False
What is the interest rate per period for a 4.5% loan in which you will make semiannual
payments, expressed as a percentage? (round to the hundredth of a percent)

Select one:
a.
2.25%

In a sinking fund, how many periods of payment are there if the machine will be purchased
for 9 years with payments deposited every 3 months?
d.
36

In a sinking fund that earns 12.5 % compounded every 3 months of payment. How much is
the total amount of interest is needed to accumulate P225,000 in 5 years and 9 months?
d.
P67,902.41

Sinking fund is a series of payment but not equal payments.

False

The number of payment periods in a sinking fund is 24 if the payment paid in 6 years in
every 3 months.

Select one:

True

The sum of the interest paid and the payment into the sinking fund is referred to as the
periodic cost of the debt.

Select one:

True

A sum P850,000 will be needed to purchase a brand new vehicle at the end of 9 years. If
money is deposited every month at 6%, what is the amount of period deposited?
b.
P5954.87
Find the amount of each payment to be made into a sinking fund so that enough will be
present to accumulate the following amount. Payments are made at the end of each period.
The interest rate given is per period.P90,000; money earns 7% compounded semiannually
for 16 and a half years.
d.
P1491.52

In a sinking fund, what must the rate per conversion period for 6 3/4% compounded
quarterly?
c.
1.6875%

The book value of a sinking fund is the original principal minus the balance in the sinking
fund.

Select one:

True

At 6% interest compounded every 3 months for 6 years, what is the interest rate and the
number of periods that will be computed before amount of periodic payment?
b.
1.5% ; 24

Sinking fund are series of equal payments every three months only.

False

Sinking funds can make a company more trustworthy and their bonds more secure.

Select one:

True

There should be 50 installments in a sinking fund if the car expected to buy in 5 years with
payments deposited.

False
Find the amount of each payment to be made into a sinking fund so that enough will be
present to accumulate the following amount. Payments are made at the end of each period.
The interest rate given is per period.P120,000; money earns 9% compounded quarterly for
12 years and 3 months.
d.
P1,367.01

A sinking fund protects investors or lenders from big losses.

Select one:

True

A total P520,000 will be expected to buy a new vehicle toward the finish of 5 years. On the
off chance that cash is kept every 3 months month at 7%. What is the amount of period
deposited?
c.
P1,567.35

____ specially designated funds into which the company deposited money so that a bond
can be paid off at maturity.
b.
sinking funds

____________refers to the total amount paid for the asset

d.
Cost

An asset's useful life is the same as its physical life.

False
ABC Company purchases a machine for developing a new item that will cost P25,000 and
has an estimated salvage value of P2,400 when the machine can produce 25,000 units. What
is the depreciation per unit?
P0.904
The permanent, continuing and gradual shrinkage in the book value of a fixed asset is called
_______.

b.
depreciation

The book value of an asset indicates the asset's fair market value at that time.

False

The difference between the book value at the beginning and at the end revaluation amount
is_________.

c.
depreciation

The accumulated depreciation is the depreciation expenses.

False

If a company revises the estimated useful life of one of its assets being depreciated, the
company will need to reissue its earlier financial statements as the earlier depreciation was
incorrect.
False

Depreciation Expense reflects an allocation of an asset's original cost rather than an

allocation based on the economic value that is being consumed.

Select one:

True

The book value of an asset is defined as _______________.

d.
Cost Minus Accumulated Depreciation

Depreciation Expense is sometimes referred to as a noncash expense.

Select one:
 True

Total depreciation cannot exceeds its:

Select one:
a.
Depreciable value

The books value of an asset is obtained by deducting depreciation from its ___________.
Cost

Accumulated depreciation is the cost that is running amount or balance of depreciation

from the beginning to the end of a specified period of time.

False

What is depreciation?
Portion of a fixed asset's fixed asset in a methodical way until the point that the asset
becomes zero or negligible.

What is the quarterly charge? Loan quantity ₱150,000, Rate: 6%, 12 year mortgage.
d.
₱4,406.25

The sum or very last price of an ordinary annuity is the entire all matters considered and the
accumulated interest.

b.
Cash Value

If you make investments ₱12,500 each 6 months into an account income 12 % compounded
semiannually, how long will it take the account to grow to₱ 169,062?
d.
approximately 5.08 years 

Which of the subsequent are intangible property?

b.
Franchise agreements

A Company GYK purchased an equipment at a price of   ₱575,000. The equipment has a
useful existence of 25 years and a salvage fee of ₱75,000.What is the yearly depreciation?
c.
₱20,000

The periodic rate of interest is computed via dividing the interest rate according to year
through the compounding interval.

Select one:

True

________is a progression of identical charge made closer to the end of lower back to lower
back periods over a settled timeframe.
Deferred Annuities

Ronald wants to deposit ₱2,500 right into a fund at the start of each month. If he can earn
9% compounded hobby every 3 months, how a great deal amount will be there within the
fund at the end of 9 years and 9 months?
₱268,076.55

A normal annuity is in which the periodic bills are made on the end of the fee interval.

True

What is a way to pay down the major amount that it owes earlier than the foremost price
date takes place for a borrower? 
b.
sinking fund

If the interest rate is compounded quarterly and you are calculating the range of
compounding durations then the quantity that results might be in quarterly terms.

Select one:
 True

What do you call to the predicted or estimated value of an asset when it is sold, traded,
disposed or retired from provider?

Select one:
a.
Salvage

Which of the following could not usually be amortized?

b.
Machinery

Sinking fund is a sequence of payment however it has no identical bills.

False

The sum of the interest payment and the sinking fund payment is called _________.
d.
Periodic Expense

The cost of asset may be reduced to zero underneath this approach.

d.
straight line method

The sum of the digits when n = 11 is 50

False

A 7-year ordinary annuity has periodic payment of ₱5,500 each year.  If the interest rate is
12 percent, the present value of this annuity is closest to which of the following?
₱25100.66

Machinery is an instance of intangible assets

False

Periodic fee is the amount you pay each month on a mortgage

Select one:

True

The interest rate per period for a 12.6% loan in which you will pay every 6 month is 2.10%
False

A price of an asset at a given period (usually at the end of the year) within its beneficial
lifestyles
Book Value

What type of annuity in which the primary fee is behind schedule to a few date within the
future? 

Select one:
a.
Deferred Annuities

A great depreciation approach for belongings that fast lose their fee or end up out of date,
like laptop equipment and other era that has extra utility in the sooner years of their
lifestyles, earlier than technological improvements make it vital to replace them. 
Declining Balance method

With deffered annuity due, bills are made in every duration of the time period.
False

Scrap value is a likewise called residual price, scrap fee, or alternate-in fee.

Select one:

True

Mr. Larry has decided to deposit ₱25,000 at the end of every 6 months in an account that
pays interest 8% compounded Semiannually for retirement in 18 years and 6 months. How
much will be in the account in that time?
₱2,042,556.16
MHC Company purchases a device for growing a brand new object as a way to fee ₱55,000
and has a predicted salvage fee of ₱12,000 while the device can produce 20,000 units. What
is the depreciation per unit?
₱2.15