BMSH2201

QUIZ ON TIME VALUE OF MONEY

NAME: SECTION: DATE: SCORE:
Barrios, Praisen Joy J ABM 12

Quiz:
Instruction: Solve the following items. Write your answers and complete solutions in the spaces provided.
(From 1-6: 6 items x 2 points)
1. Rachel wants to borrow P70,000 from the bank at 5% rate and payable in five (5) years. Given these data, how much
interest would she pay?
Ans:
I =PRT
I =( 70,000 ) ( 0.05 ) ¿(5)
I =P 17,500

2. Monica also has a loan from a bank. If the interest is P4,500 at 3% rate, payable in 10 years, how much is the loan?
Ans:
I
P=
rT
4,500
P=
( 0.03)(10)
P=P 15,000

3. Phoebe is offered a P50,000 loan with an interest of P3,000, payable in six (6) years. What is the rate?
Ans:
I
r=
PT
3,000
r=
(50,000)(6)
r =0.01∨1 %

4. Ross has a P30,000 loan with P6,000 interest. If the rate is 4%, how much time does he have to pay off the loan?
Ans:
I
T=
Pr
6,000
T=
(30,000)(0.04)
T =5
5. Joey takes out a P100,000 loan from the bank. If this loan has an interest rate of 7% and must be paid in 15 years,
what is the maturity amount of the loan?

Ans:
A=P(1+rT )
A=100,000(1+0.07(15))
A=P205,000

6. Mattel Inc. wants to save its assets for future use. Compute how much is needed to be saved now for the following:
a. P120,000 in 12 years at 8% interest

Ans:
FV t=PV ( 1+i )t
12
FV t=120,000 ( 1+0.08 )
FV t=P 302,180.414

b. P150,000 in 20 years at 5% interest

Ans:
FV t=PV ( 1+i )t
5
FV t=150,000 ( 1+0.05 )
FV t=P 191,442.2344

7. Complete the table below: (20 items x 1 point)

Rate 3%
Year Principal Interest Solution for Interest Total
1 P10,000.00 P300.00
I =PRT
I =( 10,000 ) ( 0.03 ) (1)
I =P 300
2 P10,300.00 P309.00
I =PRT
I =( 10,300 ) ( 0.03 ) (2)
I =P 309
3 P10,609.00 P318.27
I =PRT
I =( 10,609 ) ( 0.03 ) (3)
I =P 318.27
4 P10,927.27 P327.82
I =PRT
I =( 10,927.27 ) ( 0.03 ) (4)
I =P 327.82
 5 P11,255.09 P337.65
I =PRT
I=( 11,255.09 ) ( 0.03 ) (5)
I =P 337.65
6 P11,592.74 P347.78
I =PRT
I =( 11,592.74 ) ( 0.03 ) (6)
I =P 347.78
7 P11,940.52 P358.22
I =PRT
I =( 1 1,940.52 )( 0.03 ) (7)
I =P 358.22
8 P12,298.74 P368.96
I =PRT
I =( 11,592.74 ) ( 0.03 ) (6)
I =P 347.78
9 P12,667.70 P380.03
I =PRT
I =( 11,592.74 ) ( 0.03 ) (6)
I =P 347.78
10 P13,047.73 P391.43
I =PRT
I =( 11,592.74 ) ( 0.03 ) (6)
I =P 347.78

08 Quiz 1 *Property of STI

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