Math-of-Investment-Activity-12

Simple Interest
Activity #1
1. Dick takes a loan of P8,000 to buy a used truck at the rate of 9% simple Interest. Calculate the annual
interest to be paid for the loan amount.
2. Steve invested P 10,000 in a savings bank account that earned 2% simple interest. Find the interest
earned if the amount was kept in the bank for 4 years.
3. You borrow P10,000 for 3 years at 5% simple annual interest.
4. How much should be deposited now in a savings account that earns at the rate of 5% simple interest, if
a man wants to have P7000 at the end of 10 months? 5. At the end of 5 years, Eric paid his friend P10000
If money is worth 10%, find the principal amount borrowed by Eric?
6. Find the present value of P5000 for 6 months at 6% simple interest.
7. Francine deposited P5,000 in a bank paying 4% simple interest for 3 years. How would she have in her
account at the end of three years assuming that no withdrawals were made?
8. Cheska borrowed P20,000 and repaid the loan after 2 years and 6 months with interest at 11% simple
interest. Find the total amount paid by Cheska.
9. Zita makes an investment by lending P24,000 to Timothy for 2 years at an interest of 11% per annum.
What is the maturity value of the investment?
10. At what simple interest rate is P420 the interest on P8000 for 11 months?
11. What simple interest rate is needed to earn an interest of P16000 of an investment of P24000 for 4
years?
12. If the total interest earned by the P11,000 investment for 2 years was P2,400, what is the simple
interest rate?
13.Leah earned P360 as interest after some time in her investment of P4000. If the interest on the
investment was 10% per annum, find how long the man invested his money?
14. Dumbo loans P15000 at 6%% simple interest, how long will it take him to get P2800 interest?
15. Crecita accumulate P26000 at 6% simple interest rate. What is the term if she earned P20,000
interest?
16. Find the approximate time between June 5 and Dec 12, 1996.
17. An investment was made from July 15, 2009 to January 29, 2010. Find the exact time. Find the exact
time between the dates.
18. Find actual time from July 18, 2006 to July 18, 2015.
Simple Discount
Activity #2
1. Find the discount interest on 2000 pesos for 210 days at discount interest rate of 7.5%.
2. Find the discount interest if F= Php 5000, d=.09, and t= 9 months.
3. Michael borrows 13000 pesos from a lending institution which charges 20% discount interest in 1 year
and 3 months. How much discount interest will Michael pay?
4. Jakeson needs to purchase a computer that costs 14000 pesos. How much discount interest is he going
to pay if the bank is charging 17% simple discount in 10 months?
5. If the discount of 60000 pesos for 7 months at 45% simple discount is 44, 250 pesos. What is the
discount interest paid?
6. In order to receive 200,000 in six years' time she calculates the present value of the future cash flow
using her chosen discount rate of 13%.
7. receive Michelle invested a certain amount of money in a bank; at the maturity date she will P
5,000.00. Applying the discount rate of 4.8%, what amount would she get asking to be paid in advance of
3 months?
8. A P 10,000 face value discount note has a term of 4 months. The simple discount rate is 6%. Find the
amount of the discount.
9. A P5,000 face value note has a term of 219 days. The simple discount rate is 9 3/8%. Find the proceeds
of the note.
10. A 3-month note will accumulate $2000. The simple discount rate is 5 %%. Determine the proceeds of
the note.
11. What is the maturity value of a note that is discounted at 10% for 126 days if the maker receives
20,023.20 as proceeds?
12. A discount of 5000 is charged for a 72-day load of August 1. If the discount rate is 16%, how much
must be repaid at maturity?
13. A man needs 47500 as proceeds. It can be obtained from a bank with a rate of 5% annually. Find how
much should be for 1 year and 9 months
14. Accumulate 12300 for 3 years and 6 months at 53/4 simple discount.
15. What is the accumulated value of 12900 with 12.5% simple discount for 10 months.
16. Jam paid P500 interest in advance for a P10,000 loan payable in 3 years. what discount rate was
applied on the loan?
17. At what discount rate will a P30,000 loan earn P3,325 in 18 months?
18. An interest of P325 is paid by Elysse for a P9,750 debt payable in 2 years.
19. Samantha has a loan of P500,000 at Bank of Diaz payable in 9 years. She paid P731,995 interest in
advance last week.
20. Bettina paid P103,000 interest in advance for P650,000 loan payable in 7 years. Find the discount
rate.
21. Santos Financial Corp invested 49,200 in discount bonds with face values totaling 50,000. The
discount rate was 4%. How long will it be until the notes mature?
22. On May 11, 2007, you bought a $2,000 T bill for $1,950. The simple discount rate was 5%. What is a
term?
23. Anna borrows 12,000 from a lending institution which charges 19% discount interest. When will the
loan mature if the institution deducted a 2,850 interest on the loan?
24. A company deducted 500 from the 10000 which Jacob borrows. It charges 10% discount interest.
When will the loan mature?
25. A lending company invested 90,000 in discount bonds with face values totaling 89,100 The discount
rate was 7%. How long will it be until the notes mature?

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Simple Interest

3. You borrow P10,000 for 3 years at 5% simple annual interest.

6. Find the present value of P5000 for 6 months at 6% simple interest.

2. Find the discount interest if F= Php 5000, d=.09, and t= 9 months.

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