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  1. An asset is purchased for P 9,000.00. Its estimated economic life is 10 years after which it will be sold for P 1,000.00. Find the depreciation in the first three years using sum-of-years digit method

  2. A.

     P 3,279.27

    B.

     P 3,927.27

    C.

     P 3,729.27

    D.

     P 3,792.72

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  3. What is another term for “perfect competition”?

  4. A.

     Atomistic competition

    B.

     No-limit competition

    C.

     Free-for-all competition

    D.

     Heterogeneous market

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  5. A person buys a piece of lot for P 100,000 downpayment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

  6. A.

     P 142,999.08

    B.

     P 143,104.89

    C.

     P 142,189.67

    D.

     P 143,999.08

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  7. Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

  8. A.

     P18,000

    B.

     P18,900

    C.

     P19,000

    D.

     P19,100

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  9. What is the feature of some bonds whereby the issuer can redeem it before it matures?

  10. A.

     Return clause

    B.

     Callability

    C.

     Recall clause

    D.

     Call class

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  11. Present worth Annuity (PWA) is generally known as

  12. A.

     Premium annuities

    B.

     Income annuities

    C.

     Future annuities

    D.

     All of these

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  13. A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

  14. A.

     2.590

    B.

     2,632

    C.

     2,712

    D.

     2,890

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  15. Duopsony is a market situation where there is/are:

  16. A.

     Few sellers and few buyers

    B.

     Few sellers and many buyers

    C.

     Many sellers and few buyers

    D.

     One seller and few buyers

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  17. Duopoly is a market situation where there is/are:

  18. A.

     Few sellers and few buyers

    B.

     Few sellers and many buyers

    C.

     Many sellers and few buyers

    D.

     One seller and few buyers

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  19. What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual interest rate is 8%.

  20. A.

     P 150.56

    B.

     P 152.88

    C.

     P 153.89

    D.

     P 151.09

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