Assignment: Solve the following problems. 1. The proceed of a 3-year loan Reina obtained at a bank is P9,500.

If the discount rate was 6%, how much is the maturity value of the loan? 2. If a loan of P9,800 will be paid with P11,300 due at the end of 2 years and 3 months, what is the simple discount rate? 3. RFS Inc. receives a P200,000 bank discount note for 1 year from one of its clients? After 6 months, the note was discounted at the SJS Bank at a discount rate of 12%. How much is the proceed that RFS receive from the note? 4. June promised to repay a bank loan of P14,200 at the end of 120 days. If the bank charges 16% interest in advance, how much is the discount? How much did June receive? 5. In availing discount, what interest rate is equivalent to 11% discount rate in 3 years? 6. A rural bank wishes to earn 12% simple interest in discounting notes. If the term of the discount is 4.5 years, what simple discount rate should be used?

7. What sum of money will be required to discharge a loan of P13,600 on July 7, 2015 if the loan is made on July 7, 2009 at a rate of 15% compounded semiannually? 8. A car is purchased on installment. The buyer makes a P230,000 down payment and owes a balance of P450,000 to be paid in 4 years. How much is the cars cash value if money is worth 6% compounded bimonthly? 9. Beth Rodolfo receives a loan of P24,000 with interest at 13% compounded semiannually. He promised to pay his creditors in full on the day when P35,000 will be due. How long will it take for her to pay the debt? 10. Rolando Sy wants to buy a tricycle 3 years from now using the proceeds of a 16% investment that is compounded quarterly. If the projected price of the tricycle is P85,000, how much money must be invested today to earn the price of the tricycle? 11. Accumulate P25,300 for 7 years at 8% compounded semiannually. 12. How much is the compound interest on P3,000 at the end of 7 years at 8% compounded quarterly.