Question 1.

Simple Interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 25,000,000 0 0 25,000,000
1 25,000,000 3,875,000 3,875,000 28,875,000
2 28,875,000 3,875,000 7,750,000 32,750,000
3 32,750,000 3,875,000 11,625,000 36,625,000
4 36,625,000 3,875,000 15,500,000 40,500,000
5 40,500,000 3,875,000 19,375,000 44,375,000
6 44,375,000 3,875,000 23,250,000 48,250,000
7 48,250,000 3,875,000 27,125,000 52,125,000
8 52,125,000 3,875,000 31,000,000 56,000,000
9 56,000,000 3,875,000 34,875,000 59,875,000
10 59,875,000 3,875,000 38,750,000 63,750,000

Compound Interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 25,000,000 0 0 25,000,000
1 25,000,000 3,875,000 3,875,000 28,875,000
2 28,875,000 4,475,625 8,350,625 33,350,625
3 33,350,625 5,169,346.88 13,519,971.88 38,519,971.88
4 38,519,971.88 5,970,595.64 19,490,567.52 44,490,567.52
5 44,490,567.52 6,896,037.97 26,386,605.49 51,386,605.49
6 51,386,605.49 7,964,923.85 34,351,529.34 59,351,529.34
7 59,351,529.34 9,199,487.05 43,551,016.39 68,551,016.39
8 68,551,016.39 10,625,407.54 54,176,423.93 79,176,423.93
9 79,176,423.93 12,272,345.71 66,448,769.64 91,448,769.64
10 91,448,769.64 14,174,559.29 80,623,328.93 105,623,328.9
 Payment (5years)

Period Beginning Balance Payment Ending Balance

Owed Money Owed Money
0 51,386,605.48 0 51,386,605.48
1 51,386,605.48 10,277,321.1 41,109,284.38
2 41,109,284.38 10,277,321.1 30,831,963.28
3 30,831,963.28 10,277,321.1 20,554,642.18
4 20,554,642.18 10,277,321.1 10,277,321.1
5 10,277,321.1 10,277,321.1 0

Payment (10years)

Period Beginning Balance Payment Ending Balance

Owed Money Owed Money
0 105,623,328.9 0 105,623,328.9
1 105,623,328.9 10,562,332.89 95,060,996.01
2 95,060,996.01 10,562,332.89 84,498,663.12
3 84,498,663.12 10,562,332.89 73,936,330.23
4 73,936,330.23 10,562,332.89 63,373,997.34
5 63,373,997.34 10,562,332.89 52,811,664.45
6 52,811,664.45 10,562,332.89 42,249,331.56
7 42,249,331.56 10,562,332.89 31,686,998.67
8 31,686,998.67 10,562,332.89 21,124,665.78
9 21,124,665.78 10,562,332.89 10,562,332.89
10 10,562,332.89 10,562,332.89 0
Answers and Solutions for Question 1
Question 2.
Question 3.

₱ 10,000,000.00, borrowed 3 years ago using the simple interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 6,493,506.49 0 6,493,506.49
1 6,493,506.49 1,168,831.17 7,662,337.66
2 7,662,337.66 1,168,831.17 8,831,168.83
3 8,831,168.83 1,168,831.17 10,000,000

₱ 18,000,000.00, borrowed 6 years ago using the simple interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 8,653,846.15 0 8,653,846.15
1 8,653,846.15 1,557,692.31 10,211,538.46
2 10,211,538.46 1,557,692.31 11,769,230.76
3 11,769,230.76 1,557,692.31 13,326,923.07
4 13,326,923.07 1,557,692.31 14,884,615.38
5 14,884,615.38 1,557,692.31 16,442,307.69
6 16,442,307.69 1,557,692.31 18,000,000

₱ 25,000,000.00, borrowed a year ago using the simple interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 21,186,440.68 0 21,186,440.68
1 21,186,440.68 3,813,559.32 25,000,000

₱ 10,000,000.00, borrowed 3 years ago using the compound interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 6,086,308.73 0 6,086,308.73
1 6,086,308.73 1,095,535.57 7,181,844.30
2 7,181,844.30 1,292,731.97 8,474,576.28
3 8,474,576.28 1,525,423.73 10,000,000
₱ 18,000,000.00, borrowed 6 years ago using the compound interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 6,667,767.71 0 6,667,767.71
1 6,667,767.71 1,200,198.19 7,867,965.89
2 7,867,965.89 1,416,233.86 9,284,199.75
3 9,284,199.75 1,671,155.96 10,955,355.71
4 10,955,355.71 1,971,964.03 12,927,319.74
5 12,927,319.74 2,326,917.55 15,254,237.29
6 15,254,237.29 2,745,762.71 18,000,000

₱ 25,000,000.00, borrowed a year ago using the compound interest rate

Period Beginning Balance Interest Per Period Ending Balance Owed

Owed Money Money
0 21,186,440.68 0 21,186,440.68
1 21,186,440.68 3,813,559.32 25,000,000

₱ 28,000.00 every year, borrowed 3 years ago, compounded

Period Beginning Balance Payment Ending Balance

Owed Money Owed Money
0 84,000 0 84,000
1 84,000 28,000 56,000
2 56,000 28,000 28,000
3 28,000 28,000 0

₱ 58,000.00 every year, borrowed 6 years ago, compounded

Period Beginning Balance Payment Ending Balance Owed

Owed Money Money
0 348,000 0 348,000
1 348,000 58,000 290,000
2 290,000 58,000 232,000
3 232,000 58,000 174,000
4 174,000 58,000 116,000
5 116,000 58,000 58,000
6 58,000 58,000 0
Answers and Solutions in Question 3
Question 4.
Question 5.

Corporation A with funding of ₱ 500,000.00 at simple interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 500,000 0 0 500,000
1 500,000 165,000 165,000 665,000
2 665,000 165,000 330,000 830,000
3 830,000 165,000 495,000 995,000
4 995,000 165,000 660,000 1,160,000
5 1,160,000 165,000 825,000 1,325,000
6 1,325,000 165,000 990,000 1,490,000
7 1,490,000 165,000 1,155,000 1,655,000
8 1,655,000 165,000 1,320,000 1,820,000
9 1,820,000 165,000 1,485,000 1,985,000
10 1,985,000 165,000 1,650,000 2,150,000
11 2,150,000 165,000 1,815,000 2,315,000
12 2,315,000 165,000 1,980,000 2,480,000
13 2,480,000 165,000 2,145,000 2,645,000

Corporation B with funding of ₱ 1,000,000.00 at simple interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 1,000,000 0 0 1,000,000
1 1,000,000 330,000 330,000 1,330,000
2 1,330,000 330,000 660,000 1,660,000
3 1,660,000 330,000 990,000 1,990,000
4 1,990,000 330,000 1,320,000 2,320,000
5 2,320,000 330,000 1,650,000 2,650,000
6 2,650,000 330,000 1,980,000 2,980,000
7 2,980,000 330,000 2,310,000 3,310,000
8 3,310,000 330,000 2,640,000 3,640,000
9 3,640,000 330,000 2,970,000 3,970,000
10 3,970,000 330,000 3,300,000 4,300,000
11 4,300,000 330,000 3,630,000 4,630,000
12 4,630,000 330,000 3,960,000 4,960,000
13 4,960,000 330,000 4,290,000 5,290,000
Corporation C with funding of ₱ 1,500,000.00 at simple interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 1,500,000 0 0 1,500,000
1 1,500,000 495,000 495,000 1,995,000
2 1,995,000 495,000 990,000 2,490,000
3 2,490,000 495,000 1,485,000 2,985,000
4 2,985,000 495,000 1,980,000 3,480,000
5 3,480,000 495,000 2,475,000 3,975,000
6 3,975,000 495,000 2,970,000 4,470,000
7 4,470,000 495,000 3,465,000 4,965,000
8 4,965,000 495,000 3,960,000 5,460,000
9 5,460,000 495,000 4,445,000 5,955,000
10 5,955,000 495,000 4,950,000 6,450,000
11 6,450,000 495,000 5,445,000 6,945,000
12 6,945,000 495,000 5,940,000 7,440,000
13 7,440,000 495,000 6,435,000 7,935,000

Corporation A with funding of ₱ 500,000.00 at compound interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 500,000 0 0 500,000
1 500,000 165,000 165,000 665,000
2 665,000 219,450 384,450 884,450
3 884,450 291,868.5 676,318.5 1,176,318.5
4 1,176,318.5 388,185.11 1,064,503.61 1,564,503.61
5 1,564,503.61 516,286.19 1,580,789.8 2,080,789.8
6 2,080,789.8 686,660.63 2,267,450.43 2,767,450.43
7 2,767,450.43 913,258.64 3,180,709.07 3,680,709.07
8 3,680,709.07 1,214,633.99 4,395,343.06 4,895,343.06
9 4,895,343.06 1,615,463.21 6,010,806.27 6,510,806.27
10 6,510,806.27 2,148,566.07 8,159,372.34 8,659,372.34
11 8,659,372.34 2,857,592.87 11,016,965.21 11,516,965.21
12 11,516,965.21 3,800,598.52 14,817,563.73 15,317,563.73
13 15,317,563.73 5,054,796.03 19,872,359.76 20,372,359.76
Corporation B with funding of ₱ 1,000,000.00 at compound interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 1,000,000 0 0 1,000,000
1 1,000,000 330,000 330,000 1,330,000
2 1,330,000 438,900 768,900 1,768,900
3 1,768,900 583,737 1,352,637 2,352,637
4 2,352,637 776,370.21 2,129,007.21 3,129,007.21
5 3,129,007.21 1,032,572.38 3,161,579.59 4,161,579.59
6 4,161,579.59 1,373,321.26 4,534,900.85 5,534,900.85
7 5,534,900.85 1,826,517.28 6,361,418.14 7,361,418.14
8 7,361,418.14 2,429,267.98 8,790,686.12 9,790,686.12
9 9,790,686.12 3,230,926.42 12,021,612.54 13,021,612.54
10 13,021,612.54 4,297,132.14 16,318,744.68 17,318,744.68
11 17,318,744.68 5,715,185.74 22,033,930.42 23,033,930.42
12 23,033,930.42 7,601,197.04 29,635,127.46 30,635,127.46
13 30,635,127.46 10,109,592.06 39,744,719.52 40,744,719.52

Corporation C with funding of ₱ 1,500,000.00 at compound interest

Period Beginning Balance Interest Per Accumulated Ending Balance

Owed Money Period Interest Owed Money
0 1,500,000 0 0 1,500,000
1 1,500,000 495,000 495,000 1,995,000
2 1,995,000 658,350 1,153,350 2,653,350
3 2,653,350 875,605.5 2,028,955.5 3,528,955.5
4 3,528,955.5 1,164,555.32 3,193,510.82 4,693,510.82
5 4,693,510.82 1,548,858.57 4,742,369.38 6,242,369.38
6 6,242,369.38 2,059,981.9 6,802,351.28 8,302,351.28
7 8,302,351.28 2,739,775.92 9,542,127.2 11,042,127.2
8 11,042,127.2 3,643,901.98 13,186,029.18 14,686,029.18
9 14,686,029.18 4,846,389.63 18,032,418.81 19,532,418.81
10 19,532,418.81 6,445,698.21 24,478,117.02 25,978,117.02
11 25,978,117.02 8,572,778.62 33,050,895.64 34,550,895.64
12 34,550,895.64 11,401,795.56 44,452,691.2 45,952,691.2
13 45,952,691.2 15,164,388.1 59,617,079.3 61,117,079.3
Solutions for Question 5
Question 6,7,8, and 9