1.

Determine the ordinary simple interest on P700 for 8 months and 15 days if the
rate of interest is 15%.
Given: Solution:
Number of day = 8 months + 15 days From;
8 months x 30 days/month I=Pin
240 days + 15 days
n = 255 days Then;
255
I = P700 (0.15) ( )
360
I = 15% = 0.15

Therefore;
I = P74.375
Find: I = ?
2. Determine the exact simple interest on P5000 for the period from January 15 to
October 12, 1996, at 18% interest.
Given: Find: I=? Solution:
Number of days (n) = Jan – 16 From;
Feb – 29 I=Pin
Mar – 31 Then;
Apr – 30 271
I = P5000 (0.18)( )
May – 31 366

Jun – 30 Therefore;
Jul – 31 I = P666.39
Aug – 31
Sep – 30
Oct – 12
-------------------------
Total: 271
P = P5000
i = 18% = 0.18
3. What will be the future worth of money after 14 months, if a sum of P10,000 is
invested today at a simple interest rate of 12% per year?
Given: Solution:
Number of day (n) = 14 months From;
i = 12% = 0.12 F = P (1 + in)
P = P10,000
Then;
F = P10,000 (1 + (.12)(14/12))
Find: F = ? F = P10,000 (1.14)

Therefore;
F = P11,400.00
1. If you deposit P 4000 into an account paying 6% annual interest
compounded quarterly, how much money will be in the account after 5 years?
Given: Solution:
i = 6% = 0.06 From:
m=4 F = P (1 + i)n
n=5x4
= 20 Then;
P = P4000 F = P4000.00 (1 + (0.06/4))20
= P4000.00 (1.3469)

Find: F = ? Therefore;
F = P5387.42
2. If you deposit P6500 into an account paying 8% annual interest
compounded monthly, how much money will be in the account after 7 years?
Given: Solution:
i = 8% = 0.08 From:
m = 12 F = P (1 + i)n
n = 7 x 12
= 84 Then;
P = P6500 F = P6500.00 (1 + (0.08/12))84
= P6500.00 (1.7474)

Find: F = ? Therefore;
F = P11,358.24
3. How much money would you need to deposit today at 9% annual interest
compounded monthly to have P12000 in the account after 6 years?

Given: Solution:
i = 9% = 0.09 From:
m = 12 P = F (1 + i)-n
n = 6 x 12
= 72 Then;
F = P12,000 P = P12,000.00 (1 + (0.09/12))-72
= P12,000.00 (0.5839)

Find: P = ? Therefore;
F = P7007.08
4. If you deposit P5000 into an account paying 6% annual interest compounded monthly, how
long until there is P8000 in the account?

Given: Solution:
i = 6% = 0.06 From:
m = 12 F = P (1 + i)n
P = P5,000
F = P8,000 Then;
P8,000 = P5,000 (1 + (0.06/12))n
P8,000/P5,000 = (1.005)n
Find: n = ? ln 1.6 = n ln 1.005
ln 1.6/ln 1.005 = n

Therefore;
n = 94.23