Activity No.

2
Personal Finance
Name:____________________ Date:_____________ Time:____________
A. Determine the simple interest in each of the following: (Show your solution)
1) P4550 at 73/4% for 2years. ________
I = Prt
I = 4,550 x 18.25% x 2
I = 4,550 x 0.1825 x 2
I = P1,660.75
2) P 25,200 at 4% for 3 years and 6 months ________
I = Prt
I = 25,200 x 4% x 3 6/12
I = 25,200 x 0.04 x 3.5
I = P3,528

3) P18,200 at 5.75% for 6 years. ________

I = Prt
I = 18,200 x 5.75% x 6
I = 18,200 x 0.0575 x 6
I = P6,279

4) P 35,400 at 3.5% for 6 months. ________

I = Prt
I = 35,400 x 3.5% x 6/12
I = 35,400 x 0.035 x 0.5
I = P619.50

5) P15, 600 at 4 ½ % for 9 months. _______

I = Prt
I = 15,600 x 4 ½ % x 9
I = 15,600 x 4.2% x 9/12
I = 15,600 x 0.042% x 0.75
I = P491.4
6) $24,000 at 5.5% for 5 years. ________
I = Prt
I = 24,000 x 5.5% x 5
I = 24,000 x 0.055 x 5
I = P6,600
7) P 25,300 at 3.12% for 10 months_______
I = Prt
I = 25,300 x 3.12% x 10/12
I = 25,300 x 0.0312 x 0.83
I = P655.1688 or P655.17
8) P1,200 at 5.5% for 4 ½ years. ________
I = Prt
I = 1,200 x 5.5% x 4 ½
I = 24,000 x 0.055 x 4.25
I = P5,610
9) P 1,600 at 4.5 % for 9 months. _______
I = Prt
I = 24,000 x 5.5% x 5
I = 24,000 x 0.055 x 5
I = P6,600
10) P12,000 at 2.2% for 5 years and 4 months. ________
I = Prt
I = 12,000 x 2.2% x 5 4/12
I = 12,000 x 0.022 x 5.33
I = P1,407.12

B. Solve each simple interest word problem. (Show your solution)

1) Sara puts P42,000 into an investment yielding 5 ¼ % annual simple interest; she left
the money in for five years. How much interest does Sara get at the end of those five
years?
I = Prt
I = 42,000 x 5 ¼ % x 5
I = 42,000 x 5.25 x 5
I = 42,000 x 0.0525 x 5
I = P 11,025
2) A bank is offering 3.5% simple interest on a savings account. If you deposit P7,500,
how much interest will you earn in two years?
I = Prt
I = 7,500 x 3.5% x 2
I = 7,500 x 0.035 x 2
I = P 525
3) P400 interest is earned on a principal of P2,000 at a simple interest rate of 5%
interest per year. For how many years was the principal invested?
I = Prt
t = I / Pr
t = 400 / (2,000 x 0.05)
t = 400 / 100
t = 4 years
4) In how many years will P1,200 yield an interest of P180 at 3% simple interest?
I = Prt
t = I / Pr
t = 180 / (1,200 x 3%)
I = 180 / (1,200 x 0.03)
I = 5 years

5) Jim invested P40,000 in a bond at a yearly rate of 4.5%. He earned P 5,400 in

interest. How long was the money invested?
I = Prt
t = I / Pr
t = 5,400 / (40,000 x 4.5%)
t = 5,400 / (40,000 x 0.045)
t = 3 years