STUDY GUIDE ON SIMPLE INTEREST

A. Complete to find the amount of simple interest

I= P x R x T
Where:
I= Interest
P= Principal ( Amount of money deposited or borrowed) Amount= P + I
R= Rate
T= Time ( years )

1. Php 10,000 at 8% per year for 4 years.

I = 10,000 x 0.08 x 4 = Php 3200 A= 10,000 + 3200 = Php 13,200

2. Php 25,000 at 0.5% per year for 5 months

I= 25,000 x 0.005 x (5/12)

I= 25,000 x 0.005 x 0.42 A= 25,000 + 52.50 = Php 25, 052.08
I= 52.08

3. Php 12,000 at 10% per year for 6 months

I = 12,000 x 0.10 x ( 6/12 )

I= 12,000 x 0.10 x 0.5 A= 12,000 + 600 = Php 12,600
I= 600

4. Php 9,000 at 3% per year for 18 months

I= 9,000 x 0.03 x (18/12)

I= 9,000 x 0.03 x 1.5 A = 9,000 + 405 = Php 9,405
I= 405

5. Php 5,000 at 8% per year for 3 years

I= 5,000 x 0.08 x 3 A= 5,000 + 1,200 = Php 6,200

I= 1200

B. Complete the table

I I I
P= R x T R= P x T x100 T= PxR

PRINCIPAL RATE TIME INTEREST AMOUNT

 Php 3120 6% 3 years I= Php 561.60 A= Php 3,681.60

Php 8,000 12% 2 years I= Php 1,920 A= Php 9,920

1800 15% 4 years Php 1800 A= Php 4,800

P= = 3,000
0.15 x 4
Php 2,500 250 1 year Php 250 A= Php 2,750
R= x 100 =
2500 x 1
10%
P= 15,000-6,700= 8,300 6,700 3 years Php 6,700 Php 15,000
R= x 100
8,300 x 3
=26.91%

I. Solve the following problems on Simple Interest

1. Ms. Ellar borrowed Php 5,500 for 6 months with a yearly interest of 8%.

a. What is the interest on the loan?

P= 5,500
R = 8% = 0.08
T= 6/12= 0.5

I= 5,500 x 0.08 x 0.5 = Php 220

b. How much money did Ms. Ellar pay back in all?

A= 5,500 + 220 = Php 5,720

2. Mr. Dominique paid a total of Php 1670 interest on Php 8,500 that he borrowed for a period of 3
months. What was the monthly rate of interest?

P= 8,500
I= 1,670
T= 3/12 = 0.25

R= 1670 / ( 8,500 x 0.25 ) x 100

R = 1670/ 2125 x 100
R= 78.59%

3. Mrs. Serrano paid 750 interest on Php 8,000 that she borrowed for a period of 3 months. What was
the yearly rate of interest?
P= 8,000
I= 750
T= 3/12

R= 750 / (8,000 x 0.25 ) x 100

R= 37.50 %

4. Mr. Felix has Php 4500 invested in a cooperative that pays a 5% yearly interest. In how many
yearswill his investment earn Php 900?

P= 4,500 R= 5% = 0.05 T=? I= 900

T= 900 / (4500 x 0.05 )

T= 900 / 225
T= 4 Years

5. Vivien loaned Carlos some money at the rate of 7% per year. When Carlos paid back the loan at
the end of 5 years, he had to pay Php 1,500 interest. How much money did he borrow?

R= 7% = 0.07 T=5 I= 1,500 P=?

P= 1,500/ (0.07 x 5)

P= Php 4,285.71