Group 1 - SIMPLE INTEREST ( Midterm)

1. Megan invests $2,500 in a savings account that offers a 4% annual interest rate. If
she earns $100 in interest, how long did she keep her money in the account?

A) 2 years 0
B) 3 years //
C) 4 years
D) 5 years

2. John borrows $1,200 from a friend and agrees to repay it in 6 months with 5%
interest. How much will he have to repay in total?

A) $1,260//
B) $1,230
C) $1,215
D) $1,180

3. Maria took out a loan for $3,000 at an interest rate of 6%. If she paid back a total of
$3,540, how long did it take her to repay the loan?

A) 1 year
B) 1.5 years//
C) 2 years
D) 2.5 years

4. Alex deposited $800 into a savings account. After 3 years, he had a total of $920 in
the account. What was the annual interest rate?

A) 5% //
B) 7.5%
C) 10%
D) 12.5%

5. Sarah wants to accumulate $1,500 in a savings account for a future vacation. If the
account offers a 3% interest rate, how much should she initially deposit if she plans to
leave the money for 2 years?

A) $1,400
B) $1,470//
C) $1,520
D) $1,550

6. Emily deposited $800 into a savings account that offers an annual interest rate of
5%. How much will she have in the account after 2 years?
A) $840
B) $860
C) $900
D) $920//

7. If the principal is $3,000, the interest rate is 6%, and the time period is 1.5 years,
how much interest will be earned?

A) $180
B) $270//
C) $360
D) $540

8. A bank loan for PhP10,000 is discounted at 12% for 270 days. Find the bank
discount?

A. PhP987.67
B. PhP9,100.00
C. PhP887.67
(D. PhP900.00)

9. Teacher Abet borrowed from MMA Bank which charged a bank discount rate of
10.5% per year. If the proceeds received is Php4650 for the period of 8 months, find
the discount charged.

(A. Pho350)
B. Pho345
C. Php360
D. Php355

10. Jose borrowed Php15000 for 60 days and she was charged a bank discount rate of
3.06% per annum. What are the bank discount.

A. Php75.50
B. Php76.00
(C. Php76.50)
D. Php74.50

11. A discount of PhP300 is charged for a 72-day loan. If the discount rate is 16%,
how much must be repaid in maturity?

A. PhP9,000.35
B. Php9,517.50
(C. PhP9,375.00)
D. Php9,375.30
12. It is all months within a year contain 30 days

a. Approximate Time//
b. Actual Time
c. Payment Time
d. None of the above

13. It is exact or actual number of days in any given month

a. Approximate Time
b. Payment Time
c. Approximate Time
d. Actual Time//

14. Find the Sum of interest using the four methods on ₱ 30,000 at 4.5% from August
2, 2020 to November 27, 2020.

a. Actual Days 117 and Approximate Days 115//

b. Actual Days 119 and Approximate Days 118
c. Actual Days 220 and Approximate Days 218
d. Actual Days 210 and Approximate Days 201

15. Find the interest and amount on ₱ 1.5 M at 6.35% Simple Interest from March 3,
2020 to December 30, 2020 using Banker's Rule.

a. ₱ 89,109.20
b. ₱ 100, 800.19
d. ₱ 39, 908.16
c. ₱ 79, 904.17//

16. A bank discounts a P160,000 loan due in 3 years at 10% simple discount. Find the
equivalent simple interest rate.

A. 14.3 % //
B. 16 %
C. 13.5%
D. 12 %

17. Find the simple discount rate equivalent to 15% simple interest for 240 days.

A. 12.6 %
B. 11.6 %
C. 14.6 %
D. 13.6 % //
18. If Php12,300 is due at the end of five years at 8% simple discount, find the
proceeds and simple discount.

A. Php7,000.00
B. Php7,500.00
C. Php6.980.00
D. Php7,380.00 //

19. It is a promissory note where the principal, P, is explicitly written. It is better

referred to as the face value of the loan. The total amount to be repaid on the maturity
date is the maturity value, F.

A. Bank Discount Note

B. Simple Interest Note //
C. Cashier’s Note
D. Borrower’s Note

20. Rizza signed a P62,000 bank discount note at 10%. If the proceeds was P60,000,
what was the term of the note?

A. 3.87 months //
B. 5 months
C. 2 months
D. 7 months