MATHEMATICS OF INVESTMENT QUIZ #1

PART I: ACTUAL TIME AND APPROXIMATE TIME (5pts per item)

1. Determine the actual and approximate time from January 20, 2020 to September 14, 2020.
Show your solutions in tabular form.

MONTH ACTUAL TIME APPROXIMATE TIME

January 11 10
February 29 30
March 31 30
April 30 30
May 31 30
June 30 30
July 31 30
August 31 30
September 14 14
Total 238 Days 234 Days

2. Determine the actual and approximate time from December 8, 2020 to July 7, 2021. Show your
solutions in tabular form.

MONTH ACTUAL TIME APPROXIMATE TIME

December 23 22
January 31 30
February 28 30
March 31 30
April 30 30
May 31 30
June 30 30
July 7 7
Total 211 Days 209 Days
PART II: EXACT AND ORDINARY INTEREST USING ACTUAL AND APPROXIMATE TIME (10pts per item)

1. Determine the exact and ordinary interest on 9,250 php at 19% from February 14, 2010 to May
17 of the same year using actual time and approximate time. Show the tabular solution in
computing for the actual and approximate time.

a. Exact Interest using Actual Time

b. Ordinary Interest using Actual Time
c. Exact Interest using Approximate Time
d. Ordinary Interest using Approximate Time

a. 442.99 php
b. 449.14 php
c. 447.80 php
d. 454.02 php

2. How much exact and ordinary interest should Ms. A pay for a loan of 7,300 php at 14%
borrowed in October 23, 2020 if she promised to pay everything on March 16, 2021 using
approximate and actual time. Show the tabular solution in computing for the actual and
approximate time.

a. Exact Interest using Actual Time

b. Ordinary Interest using Actual Time
c. Exact Interest using Approximate Time
d. Ordinary Interest using Approximate Time

a. 403.2 php
b. 408.8 php
c. 400.4 php
d. 405.96 php
PART III. Solve the following (3 pts each)

1. Find the interest on 9,000 php at 6% for 9 months.

405 php

2. An amount of 17,200 was borrowed and after 3 years, paid back the loan with 7% interest. How
much was the interest paid?
3,612 php

3. Give the exact interest on 8,250 php at 10% simple interest for 250 days.
565.07 php

4. How much was borrowed if the interest at 12% after 3 months is 850 php?
28,333.33 php

5. What sum will accumulate to 23,000 in 4 years at 17% simple interest?

13,690.48 php

6. Accumulate 10,000 for 7 years at 6% simple interest

14,200 php

7. Ms. A borrowed 24,500 from a bank at 9% simple interest for 2 years and 3 months. How much
did Ms. A pay back the bank?
29,461.25 php
8. A simple interest of 4,567.5 was charged on a loan of 21,000 php for 3 years. What simple
annual rate of interest was charged on the loan?
7.25%

9. Find the term if the interest rate is earned at 1,200 and the principal is 8,000 and the rate of
interest is 4%.
3.75 or 3 years and 9 months

10. If 18,300 php lent out at 9% annual interest, earned at 2,058.75 interest, how long had it been
lent?
1.25 or 1 year and 3 months

11. Find the simple discount at 9% on 10,500 php on March 8, 2007, if the debt is repaid on March
8, 2009.
1,890 php

12. Give the discount if one borrows 13,400 at 7% simple discount for 3 years and 8 months.
3,439.33 php

13. At 15% simple discount, find the present value of 18,000 php which is due at the end of 120
days. What is the discount on the 18,000 php?
900 php

14. Find the proceeds on 9,200 php due at the end of 3 years at 7%
7,268 php
 15. Discount 19,000 for 3 years and 3 months at 14% simple discount.
10,355 php

16. How much should Ms. A borrow to have 23,000 today if she promised to pay it in 3 years at 7%?
29,113.92 php

17. If 12,900 is the proceeds of 14,400 due in 10 months, what is the simple discount rate?
12.5%

18. The discount on 7,250 php is 1,125 at 4%. When is the amount due?
3.88 or 3 years, 10 months, and 17 days

19. Find the discount rate equivalent to 18% simple interest for 3 years and 6 months.
11.04%

20. What discount rate a person avail for a loan with a 10% interest rate in 3 years and 6 months?
7.41%

BONUS (10pts)

A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3 years
and 9 months, what simple discount rate should be used?
10.38%