Jeriel Balatbat

C37B

Simple Interest

1..How much interest is charged when Php 600,000 is borrowed for 2 years with
an interest rate of 5.5 % ?

I= 600,000 x 0.55 x 2 = 660,000

I = 660,000 - 600000

I = PHP 60,000

2. Lucy borrowed Php 875,000 from a lending firm that charges 6% per
year. How much should she pay the lending firm after 4 years?

F = 875000 (1 + 0.06 x 4) = 1,085,000

F = PHP 1,085,000

3.How long will it take for Php 85,000 to have a maturity value of Php 140,000 if
the rate at which it is invested is 11% simple interest?

T = 140000 = 85,000x0.11

T= 140000 = 9350

T = 140000/9350 = 9350/9350

T = 5.8824 years

4.Mr. Abiertas expects to have Php 1,750,000. in his fund at the end of 5 years. If
he invested Php 1,500,000 at the start of the term, what interest rate is applied?

r =1,750,000 = 1,500,000 x 5

r = 1 750 000/7 500 000 = 7 500 000/7 500 000

r = 0.0333

r = 3.33 % interest rate

 5. Determine the exact interest earned if Php 96,000 is borrowed at 12%
interest rate for 125 days.

I = 96000 (1+0.12 x 125/365) = PHP 99,945.21

I = PHP 99,945.21 - PHP 96,000 = PHP 3945.21

I = PHP 3945.21

6. What is the future value of Php 143,000 if it is invested at 12% simple

interest rate for 260 days using ordinary interest?

F = 143000 (1+0.12 x 260/360) = PHP 155,393.33

F = PHP 155,393.33

7. Determine the future value if Php 65,000 is invested from January 2 ,

2021 to October 7, 2021 at 8% simple interest rate using

APPROX TIME =

JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT

28 28 30 30 30 30 30 30 30 23

28+28+30+30+30+30+30+30+30+23 = 289

ACTUAL TIME =

JAN FEB MARCH APRIL MAY JUNE JULY AUG SEPT OCT

29 28 31 30 31 30 31 31 30 24

29+28+31+30+31+30+31+31+30+24 = 295

a. exact interest for the approximate time;

F = P ( 1 + r to )
F = 65,000 (1 + (0.08)(289/365))

F = PHP 69,117.26

b. ordinary interest for the approximate time;

F = P ( 1 + r to )

F = 65,000 (1 + (0.08)(289/360))

F = PHP 69,174.44

c. exact interest for the actual time;

F = P ( 1 + r te )

F = 65,000 (1 + (0.08)(295/365))

F = PHP 69,202.74

d. Ordinary interest for the actual time

F = P ( 1 + r te )

F = 65,000 (1 + (0.08)(295/360))

F = PHP 69,261.11

Simple Discount

8. How much should be deducted in advance from a loan of Php 82,500. If

it is due after 8 months,with 12% discount rate?

I = 82,500 x 0.12 x 8/12 = PHP 6560

I = PHP 6560

9. Find the proceeds if Php 136,000 is the future value due after 2 years at
10% discount rate.

P = 136,000 [ 1-(0.10)(2)]

P = PHP 108,800
 10. Rosell received Php 59,000 as proceeds from a loan payable in 1 year
and 6 months at 10.5% discount rate. What is the maturity value of the loan?

Pr = 59000

F = 59000 = (1- 0.105 x 1.5)

F = 59000/0.8425 = 0.8425 / 0.8425

F = PHP 70029.67

11. The amount of Php 18,750 was deducted in advance from a loan of Php
175,000 payable in 1.5 years. Determine the rate applied.

d = 18750 = 175000 X 1.5

d = 18750/262500 = 262500/262500

d = 0.0714

7.14 % rate applied