Created by:

Gomez, Ma. Paloma

Flores, Sarah

11 STEM 2

I. Compound Interest Word Problems

1. James is investing 15,000php for ten years at an interest rate of 6% compounded
monthly.

Solution: Answer:

F= r= FV=

P= t=

2. A fireman invests 40,000php in a retirement account for 2 years. The interest rate is 6%.
The interest is compounded monthly. What will his final balance be?

Solution: Answer:

F= r= FV=

P= t=

3. You invest 100php for 3 years at 10% interest compounded yearly. How much will you
have at the end of the three years? (Breakdown)

Solution: Answer:

F= r= P= t= FV=
 II. Simple Interest Word Problems

4. Jane owes the bank some money at 4% per year. After half a year, she paid 45php as
interest. How much money does she owe the bank?

Solution: Answer:

i= t= p=

r=

5. John wants to have an interest income of 3,000php a year. How much must he invest for
one year at 8%?

Solution: Answer:

i= r= p=

t=
Created by:

Gomez, Ma. Paloma

Flores, Sarah

11-STEM 2

I. Compound Interest Word Problems

1. James is investing 15,000php for ten years at an interest rate of 6% compounded
monthly.

Solution: Answer:

F=12 r=0.06% 15000(1+1/200)(12)(10) FV= 27290.95php

P=15,000php t=10yrs 15000(1.005)120

2. A fireman invests 40,000php in a retirement account for 2 years. The interest rate is
6%. The interest is compounded monthly. What will his final balance be?

Solution: Answer:

F=12 r=0.06% 40000(1+1/200)(12)(2) FV= 45086.39php

P=40,000php t=2yrs 40000(1.005)24

3. You invest 100php for 3 years at 10% interest compounded yearly. How much will
you have at the end of the three years? (Breakdown)

Solution: Answer:

F=1 r=0.10% P=100php t=3yrs FV= 133.1php

1st year 3rd year

100x0.10x1=10 121x0.10x1=12.1

2nd year

110x0.10x1=11
 II. Simple Interest Word Problems

4. Jane owes the bank some money at 4% per year. After half a year, she paid 45php
as interest. How much money does she owe the bank?

Solution: Answer:

i=45 r=0.04% 45/0.04(0.5) p= 2250php

t=6mons 45/0.02

5. John wants to have an interest income of 3,000php a year. How much must he
invest for one year at 8%?

Solution: Answer:

i=3000 r=0.08% 3000/0.08(1) p= 37500php

t=1yr 3000/0.08