Practice Pakistan's most useful MCQs for competitive exams

Miss Evilla borrowed money from a bank. She receives from the bank P1,340.00 and promised to pay P1,500.00 at the end of 9 months. Determine the corresponding discount rate or often referred to as the “banker’s discount”?

• (A)  13.15 %
• (B)  13.32 %
• (C)  13.46 %
• (D)  13.73 %

Answer

Submitted By :Ali Uppal

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?

• (A)  P18,000
• (B)  P18,900
• (C)  P19,000
• (D)  P19,100

Answer

Submitted By :Ali Uppal

A investor wishes to earn 7% on his capital after payment of taxes. If the income from an available investment will be taxed at an average rate of 42%, what minimum rate of return, before payment of taxes, must the investment offer to be justified ?

• (A)  12.07 %
• (B)  12.34 %
• (C)  12.67 %
• (D)  12.87 %

Answer

Submitted By :Ali Uppal

A man invested P110,000 for 31 days. The net interest after deducting 20% withholding tax is P890.36. Find the rate of return annually?

• (A)  11.50 %
• (B)  11.75 %
• (C)  11.95 %
• (D)  12.32 %

Answer

Submitted By :Ali Uppal

A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount ?

• (A)  3.67 %
• (B)  4.00 %
• (C)  4.15 %
• (D)  4.25 %

Answer

Submitted By :Ali Uppal

Mr. Bacani borrowed money from the bank. He received from the bank P1,842 and promised to repay P2,000 at the end of 10 months. Determine the rate of simple interest?

• (A)  12.19 %
• (B)  12.03 %
• (C)  11.54 %
• (D)  10.29 %

Answer

Submitted By :Ali Uppal

A loan of P5,000 is made for a period of 15 months, at a simple interest rate of 15%, what future amount is due at the end of the loan period ?

• (A)  5,937.50
• (B)  5,873.20
• (C)  5,712.40
• (D)  5,690.12

Answer

Submitted By :Ali Uppal

You borrow P3,500.00 for one year from a friend at an interest rate of 1.5% per month instead of taking a loan from a bank at a rate of 18% per year. How much lesser you will pay by borrowing the money from the bank ?

• (A)  P 62.44
• (B)  P44.55
• (C)  P54.66
• (D)  P37.56

Answer

Submitted By :Ali Uppal

A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10% ?

• (A)  P1,549.64
• (B)  P1,459.64
• (C)  P1,345.98
• (D)  P1,945.64

Answer

Submitted By :Ali Uppal

Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded ?

• (A)  Monthly
• (B)  Bimonthly
• (C)  Quarterly
• (D)  Annually

Answer

Submitted By :Ali Uppal