A shoe manufacturer produces a pair of shoes at a labor cost of $23.50.

The fixed changes on the business are

$10, 125 a month and the variable costs are $2.50 a pair. If the shoes sell the retailers for $48 a pair, how
many pairs must be produced and sold each month for the manufacturer to break and even?
760
750
740
780

These are the two main areas of Ergonomics

Work system design and product development
Work improvement and product development
Work system and product design
Process improvement and work design

If P500 is invested at the end of each year for 6 years, at an effective annual interest rate of 7%. What is the
total amont available upon the deposit of the 6th payment?
P3,544.00
P3,688.00
P3,577.00
P3,455.00

A privately owned summer camp for youngsters has the following data for 12 week season:
Charge per camper $60/week
Variable Cost per Camper $40/week
Fixed Costs $24,000/season
Capacity 150 campers
What is the equivalent of 12 week/season into months?
3 months
6 months
2 months
4 months

A fixed capital investment of $10M and an estimated working capital of $2M is required for a proposed
manufacturing plant. Annual depreciation is estimated to be 10% of the fixed capital. Determine the Annual
Rate of Return on Total Investment
0.1667
0.25
0.2083
0.125

A man expect to receive P 25,000 in 8 years. How much is that money worth now considering interest at 8%
compounded quarterly?
P13,675.23
P13,265.83
 P13,958.33
P13,859.12

As labor productivity increases, which of the following shifts in the labor market should result, ceteris
paribus?
Supply of labor should shift to the right.
Supply of labor should shift to the left.
Demand of labor should shift to the left.
Demand for labor should shift to the right.

It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year is
automatically deducted from the principal amount upon release of money to a borrower. Let us therefore
assume that you applied for a loan with a bank and the P80,000 was approved at an interest rate of 14% of
which P11,200 was deducted and you were given a check of P68,800. Since you have to pay the amount of
P80,000 one year after, what then will be the effective interest rate?
0.1628
0.159
0.162
0.163

Mr. J. Reyes borrowed money from the bank. He received from the bank P1,842 and promise to repay P2,000
at the end of 10 months. Determine the simple interest.
0.161
0.1945
0.1029
0.157

An emmision charge:
Increases private marginal cost and thus induces lower output.
Increases private marginal cost and thus induces higher output.
Increases the difference between private and social costs.
Increases social marginal cost and thus induces lower output.

The VISA CREDIT CARD charges 3% interest per month on the unpaid balance for purchases made on this
card. Compute the effective rate of interest.
0.384
0.4258
0.3904
0.4049

Compared to a competitive market with the same cost and market-demand circumstances, monopoly results
in:
Lower prices and higher output.
Lower prices and lower output.
 Higher prices and higher output.
Higher prices and lower output.

P4,000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at the end of 75
days?
P4,333.33
P4,166.67
P4,150.00
P4,133.33

The change in total revenue that results from a one-unit increase in the quantity of output sold is:
Marginal profit.
Total revenue.
Marginal cost.
Marginal revenue.

Machine cost = $15,000; Life = 8 years; Salvage Value = $3,000. What minimum cash return would the
investor demand annually from the operation of this machine if he desires interest annually at the rate of 8%
on his investment and accumulates a capital replacement fund by investing annual deposits at 5%?
2456.66
4256.66
2546.66
5246.66

The initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the Present Worth Method (PW) using the six (6) methods for making Economy Studies.
937.76
932.17
934.29
938.15

A privately owned summer camp for youngsters has the following data for 12 week season:
Charge per camper $60/week
Variable Cost per Camper $40/week
Fixed Costs $24,000/season
Capacity 150 campers
What is the total number of campers that will allow the camp to just break-even?
BEV=100
BEV=98
BEV=110
BEV=105
How many years will it take $10 to be four times its original value if invested at the rate of 7% compounded
semi-annually?
40.30 years
20.15 years
40.03 years
20.51 years

Given an annual usage of 8, 000 units, unit commodity cost $ 2, cost of placing an order of $ 5, and annual
inventory carrying cost of 30% of the average inventory;
What is the lot size?
21 lots
22 lots
23 lots
20 lots

In five years, P18,000 will be needed to pay for a building renovation. In order to generate this sum, a sinking
fund of three annual payments is established now. For tax purposes, no further payments will be made after
three years. What payment is necessary if money is worth 15% per annum?
P3,878.56
P3,919.53
P3,789.34
P3,345.65

The effective rate of 14% compounded semi-annually is

0.1494
0.1449
0.1236
0.1488

Find the interest factor if F = $5,000 , n = 3 years, and i = 8% compounded annually

0.79383
0.97833
0.87383
0.78833

The amount of P50,000 was deposited in the bank earning at interest of 7.5% per annum. Determine the total
amount at the end of 5 years, if the principal and interest were not withdrawn during the period.
P72,475.23
P78,536.34
P71,781.47
P70,374.90

At what annual interest rate will increase an investment of $1400 by $600 in 9 years?
0.0395
 0.0404
0.0359
0.044

An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?
0.0722
22.1181
0.1578
0.0771

It is a direction of light when it strikes a surface at a sharp angle

Key
Uplight
Wall washing
Grazing

A deposit of P110,000 was made for 31 days. The net interest after deducting 20% witholding tax is P890.36.
Find the rate of return annually.
0.1175
0.1195
0.1275
0.1225

A merchant puts in his P2,000.00 to a small business for a period of six years. With a given interest rate on the
investment of 15% per year, compounded annually, how much will he collect at the end of the sixth year?
P4,200.00
P4,626.00
P4,390.15
P4,400.00

Given an annual usage of 8, 000 units, unit commodity cost $ 2, cost of placing an order of $ 5, and annual
inventory carrying cost of 30% of the average inventory;
What is the total cost?
$ 16, 192
$ 16, 219
$ 16, 912
$ 16, 129

A contractor has a job which should be completed in 100 days. At present he has 80 men on the job and
estimated that they will finish the work in 130 days. Of the 80 men; 50 are paid at $12 a day, 25 at $18 a day
and 5 at $25 a day. For each day beyond the original 100 days, the contractor has to pay $250 liquidated
damages.
What is the amount of the liquidated damages?
$ 25, 500
 $ 32, 500
$ 7, 500
$ 6, 000
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The
interest was accrued is left for another eight years. If the effective annual interest rate is 5%. What will be the
withdrawal amount at the end of the 16th year?
P774.00
P799.00
P500.00
P706.00

At 6%, find the capitalized cost of a bridge whose cost is P250M and life is 20 years, if the bridge must be
partially rebuilt at a cost of P100M at the end of each 20 years.
210
215
245.3
220

The initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the Future Worth Method (FW) using the six (6) methods for making Economy Studies.
2322.5
2324.8
2320.7
2326.9

How much must be deposited at 6% each year beginning of January 1, year 1, in order to accumulate P5,000
on the date of the last deposit, January 1, year 6?
P725.00
P751.00
P717.00
P715.00

A manufacturing firm wishes to give each 80 employees a holiday bonus. How much is needed to invest
monthly for a year at 12% nominal interest rate compounded monthly, so that each employee will receive a
P2,000 bonus?
P12,608.00
P12,300.00
P12,600.00
P12,610.00

Find the values of n if F = $7,000 , P = $3,500 , and I = 6% compounded quarterly

 n=13.33 years
n=11.63 years
n=9.04 years
n=10.50 years

Marginal cost can best be approximated by the formula:

Total cost/Input cost
Change in total cost/Change in input
Total cost/ Output
Change in total cost/Change in output

The initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the Explicit Reinvestment Rate of Return (ERRR) using the six (6) methods for making Economy
Studies.
0.2235
0.2036
0.2125
0.2267

A fixed capital investment of $10M and an estimated working capital of $2M is required for a proposed
manufacturing plant. Annual depreciation is estimated to be 10% of the fixed capital. Determine the Minimum
Payback Period if the annual profit is $2.5M
6.3 years
8.0 years
4.8 years
4.5 years

A man inherited regular endowment of P100,000 every end of 3 months for 10 years. However, he may
choose to get a single lump sump payment at the end of 4 years. How much is this lump sump if the cost of
money is 4% compounded quarterly?
P3,702,939
P3,802,862
P3,502,546
P3,602,431

By the conditions of a will, the sum of P25,000 is left to a girl to be held in a trust fund by her guardian until it
amounts to P45,000. When will the girl receive the money if the fund is invested at 8% compounded
quarterly?
7.42 years
7 years
7.25 years
 6.8 years

What is the ordinary interest earned on a $20,000 for a period of 29 days at 5% simple interest?
90.55
75.55
79.5
80.55

A machine costing P72,000 is estimated to have a book value of P40,545.73 when retired at the end od 10
years. Depreciation cost is computed using a constant percentage of the declining book value. What is the
annual rate of depreciation in %?
28
30
16
25

A man borrowed P100,000 at the interest rate of 12% per annum, compounded quarterly. What is the
effective rate?
0.12
0.03
0.132
0.1255

The initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the External Rate of Return Method (ERR) using the six (6) methods for making Economy Studies.
0.2083
0.2297
0.2168
0.2315

Find the difference between the amount of $100 at simple interest and the compound interest for 5 years at
5%.
2.26
6.22
2.62
2.92

An employee obtained a loan of P10,000 at the rate of 6% compounded annually in order to repair a house.
How much he pay monthly to amortize the loan within a period often years?
P198.20
P110.22
P110.02
 P150.55

How long will it take the money to triple itself if invested at 10% compounded semi-annually?
12.5 years
11.3 years
13.3 years
11.9 years

An upward-sloping supply curve a labor reflects:

The increasing opportunity cost of labor.
The increasing marginal utility of income as a person works more hours.
All of the above.
The increase in quantity supplied as prices fall.

Tha amount of P12,800 in 4 years at 5% compounded quarterly is

P16,311.26
P15,847.33
P15,614.59
P14,785.34

By condition of a will, the of P2,000.00 to a small business for a period of six years. With a given interest rate
on amounts to P50,000. When will the girl receive the money if the fund is invested at 8% compounded
quarterly?
11.57 years
10.34 years
7.98 years
10.45 years

At an interest rate of 10% compounded annually, how much will a deposit of P1500 be in 15 years?
P6,234.09
P6,100.00
P6,437.90
P6,265.87
You need P4,000.00 per year for four years to go to college. Your father invested P5,000.00 in 7% account for
your education when you were born. If you withdraw P4,000.00 at the end of 17 th,18th, and 20th birthday, how
much will be left in the account at the end of the 21st year?
P4,000.00
P3,400.00
P1,700.00
P2,500.00

What nominal rate, compounded semi-annually, yields the same amount as 16% compounded quarterly?
0.0688
 0.0842
0.0824
0.0648

Find the present worth of a future payment of P 100,000 to be made in 10 years with an interest of 12%
compounded quarterly.
P30,444.44
P33,000.00
P30,546.01
P30,655.68

A fixed capital investment of $10M and an estimated working capital of $2M is required for a proposed
manufacturing plant. Annual depreciation is estimated to be 10% of the fixed capital. Determine the Capital
Investment
$13M
$11M
$10M
$12M

A man borrowed P 20,000 from a local commercial bank which has a simple interest of 16% but the interest
is to be deducted from the loan at the time that the money was borrowed and the loan is payable at the end of
one year. How much is the actual rate of interest?
0.19
0.1
0.14
0.12

A contractor has a job which should be completed in 100 days. At present he has 80 men on the job and
estimated that they will finish the work in 130 days. Of the 80 men; 50 are paid at $12 a day, 25 at $18 a day
and 5 at $25 a day. For each day beyond the original 100 days, the contractor has to pay $250 liquidated
damages.
What is the "total wages" if 80 men will do the job?
$ 145, 500
$ 152, 750
$ 140, 200
$ 150, 300

fixture that costs P700.00 will save per item produced. Maintenance will be P40,000 annually, 3500 units are
produced annually. What is the payback period at 10%?
5.57 years
4.12 years
4.65 years
4.85 years
Find the value of P if F = $5,000 , n = 3 years, and i = 8% compounded annually.Find the vauke of P
 P=$5,469.62
P=$4,529.62
P=$6,429.62
P=$3,969.15

A bank charges 12% simple interest on a P300.00 loan. How much will be repaid if the loan is paid back in
one lump sum after three years?
P551.00
P450.00
P408.00
P415.00

Find the present value in pesos, of a perpetuity of P15,000 payable semi-annually if money is worth 8%,
compounded quarterly.
358477
371287
392422
386227

A fixed capital investment of $10M and an estimated working capital of $2M is required for a proposed
manufacturing plant. Annual depreciation is estimated to be 10% of the fixed capital. Determine the Net
Annual Profit
$1.5M
$2.5M
$2.0M
$3.0M

the initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the Internal Rate of Return Method (IRR) using the six (6) basic methods for making Economy
Studies.
0.2168
0.2083
0.2267
0.1978

What is the exact leap year interest earned on a $20,000 for a period of 29 days at 5% simple interest?
81.23
97.25
80.25
79.23
If you borrow money from your friend at 12% "simpe interest", determine the P.W of $20,000 which is due at
the end of 9 months.
$ 18, 384.62
$ 18, 348.62
$ 18, 834.62
$ 18, 438.62

A loan of P5,000 is made for a period of 15 months at a simple interest rate of 15%. What futue amount is due
at the end of a loan period?
P5,637.50
P5,900.90
P5,842.54
P5,937.50

Suppose a firm has an annual budget of $100,000 in wages and salaries, $50,000 in materials, $20,000 in new
equipment, #10,000 in rented property, and $20,000 in interest cost on capital. The opportunity cost for
stockholder investments is $30,000 per year, and there is an owner-manager who could receive income of
$50,000 by woring elsewhere. The firm earns revenues of $210,000 per year. What is the economic profit for
the firm described above?
10000
70000
Loss of $70,000
Loss of $10,000

The tag price of a certain commodity is for 100 days. If paid in 31 days, there is a 3% discount. What is the
simple interest paid?
0.0625
0.1215
0.2232
0.1614

A young engineer borrowed P10,000 at 12% interest and paid p2,000 per annum for the last four years. What
does he have pay at the end of the fifth year in order to pay his loan?
P6,919.28
P5,674.00
P3,296.00
P6,074.00

find the nominal rate which if converted quarterly could be used instead of 12% compounded semi-annually.
0.1129
0.1402
0.1183
0.2134
A debt of P10,000 with 10% interest compounded semi-annually is to be amortized by semi-annual payment
over the next 5 years. The first due in 6 months. Determine the semi-annual payment?
P1,400.45
P1,295.05
P1,200.00
P1,193.90

A machine having a first cost of P60,000.00 will be retired at the end of 8 years. Depreciation cost is computed
using a constant percentage of the declining book value. What is the total cost of depreciation, in pesos, up to
the time the machine is retired if the annual rate of depreciation is 28.72%?
P58,000.00
P59,000.00
P57,000.00
P56,000.00

A privately owned summer camp for youngsters has the following data for 12 week season:
Charge per camper $60/week
Variable Cost per Camper $40/week
Fixed Costs $24,000/season
Capacity 150 campers
What is the Contribution Margin per week?
$ 30/week
$ 24/week
$ 20/week
$ 25/week

You loan from a loan firm an amount of P100,000 with the rate of simple interest of 20%, but interest was
deducted from the loan at the time the money was borrowed. If at the end of one year you have to pay the full
amount of P100,000, what is the actual rate of interest?
0.3
0.188
0.25
0.275

A company must relocate one of its factories in three years. Equipment for the loading duck is being
considered for purchase. The original cost is P20,000, the salvage value after three years is P8,000. The
company's rate of return (i) on money is 10%. Determine the capital recovery rate per year.
P5,897.56
P5,578.35
P5,625.38
P5,987.67

if P5,000.00 shall acumulate for 10 years at 8% compounded quarterly, find the compouned interest at the
end of 10 years.
P6,010.20
 P6,000.00
P6,040.20
P6,005.30

What is the exact interest earned on a $20,000 for a period of 29 days at 5% simple interest?
79.45
81.45
80.45
97.45

A service car whose cash price was P540,000 was brought with the down payment of P162,000 and monthly
of P10,874.29 for 5 years. What was the rate of interest if compounded monthly?
0.2
0.24
0.26
0.22

Governments usually build highways because it is difficult to exclude people who don’t pay for the highways
from using those highways. What type of market failure is most likely involved?
Public goods.
Inequity.
Market power.
Government failure.

A piece of machinery can be bought for P10,000.00 cash for P2,000.00 down and payments of P750.00 per
year for 15 years. What is the annual interest rate for the time payments?
0.11
0.0381
0.0461
0.0571

If a firm is producing a rate of output for which MC exceeds price:

The firm can increase its profits by increasing output.
The firm is maximizing profit.
The firm must have an economic loss.
The firm can increase its profit by decreasing output.

In how many years will required for P2,000 to increase by P3,000 if interest is at 12% compounded semi-
annually?
7
8
9
10
What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly?
0.079
0.0842
0.0688
0.0824

What is the corresponding effective rate of 18% compounded semi-annually?

0.1925
0.1895
0.1948
0.1846

Find the interest factor if A = $600 , n = 15 years, and i = 5% compounded annually

2.0789
0.9634
0.04634
10.379

A privately owned summer camp for youngsters has the following data for 12 week season:
Charge per camper $60/week
Variable Cost per Camper $40/week
Fixed Costs $24,000/season
Capacity 150 campers
What is the profit for the 12-week season if the camp operates at 80 percent capacity?
Z = $8,400
Z=$5,000
Z=$4,800
Z=$4,500
Find the value of P if A = $600 , n = 15 years, and i = 5% compounded annually
P=$6,227.40
P=$5,470.65
P=$6,429.75
P=$3,969.15

If a single perfectly competitive firm raises its price above the market price:
It will sell some, but less, output.
It will not sell any output.
it will sell more output.
Not enough information is provided to determine what happens to quantity demanded.

What is the effective rate corresponding to 16% compounded daily? Take 1 year = 360 days.
0.1735
0.1784
 0.165
0.1678

What will be the future worth of money after 12 months, if the sum of P 25,000 is invested today at simple
interest rate of 1% per month?
P30,000
P29,000
P27,000
P28,000

An asset is purchased for P9,000.00. Its estimated life is 10 years, after which it will be sold for P1,000.00.
Find the book value during the first year if sum-of the-year's digit (SOYD) depreciation is used.
P7,545.00
P8,000.00
P6,500.00
P6,000.00

A person buys a piece of lot for P100,000 down payment and 10 deferred semi-annual payments of P8,000
each starting three years from now. What is the present value of the investment if the rate is 12%
compounded semi-annually?
P134,666.80
P143,999.08
P164,969.80
P154,696.80

If economic profits are earned in a competitive market:

All of the above
The market-supply curve will shift upward.
Equilibrium price will rise.
More firms will enter the market.

If you borrowed money from your friend with simple interest of 12%, find the present worth of P50,000,
which is due at the end of 7 months.
P46200
P46730
P45789
P44,893

When there are positive externalities from the consumption of a good, the government should:
Subsidize consumption.
Enforce antitrust laws against producers of the good.
Tax producers of the good.
Make transfer payments to those who incur the externalities.
A car was bought on installmentbasis with a monthly installment of P10,000.00 for 60 months. If interest is
12% compounded annually calculate the cash price of the car.
P567,539.75
P455,875.00
P678,519.75
P345,539.75

The initial investment to buy an equipment of a proposed project to increase productivity is $25,000 and this
equipment will have a salvage value of $5,000 at the end of its expected life of 5 years. Increased productivity
attributed to the equipment will amount to $8,000 per 5 year after extra operating costs have been
subtracted from the value of the additional production. If MARR (Minimum Attractive Rate of Return) is 20%,
compute the Annual Worth Method (AW) using the six (6) methods for making Economy Studies.
320
314
312
310

Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is
compounded.
Quarterly
Bi-monthly
Monthly
Daily

Compute the equivalent rate of 8% compounded quarterly to a rate compounded bi-monthly.

0.0979
0.0797
0.0779
0.0977