ARELLANO UNIVERSITY- PASIG

College Department

MATH OF INVESTMENT
Activity #1 – Simple Interest

Name: Renee Anne L. Comendador

Year and Section: BSBA-MKTG. - 1

Lesson: Simple Interest

Direction: Answer the given problem solving. Show your solution.

1. You are starting your own small business in Albuquerque. You borrow 500,000 from the
bank at a 9% rate for 5 years. Find the interest you will pay on this loan. How much is the
total amount that you need to repay?

I=Prt
I=500,000×9%x5
I=500,000×.45
I=225,000
X=225,000+500,000
X=725,000

Total amount need to repay = 225,000+500,000

=725,000

2. You are tired at the end of the term and decide to borrow 30,000 to go on a trip to Whatever
Land. You go to the bank and borrow the money at 11% for 2 years. a) Find the interest you
will pay on the loan. b) How much will you have to pay the bank at the end of the two
years?
I=Prt
I=30,000×11%x2
I=30,000×.22
I=6,600
X=6,600+30,000
X=36,500

A. 6,600
B. 36,600

3. Find the interest on a loan of 100,000 that is borrowed at 9% for 7 months. How much
would it cost to repay the loan?
I=Prt
I=100,000×9%x.58
I=100,000×.06
I=5,220
X=5,220+100,000
X=105,220