Name: Usi, Judielyn Gia F.
Section: A123
Time: MWF 1:30 – 2:30 pm
SIMPLE INTEREST AND SIMPLE DISCOUNT
Answer the following questions. Please show your solutions (3 points each number)

Determine the principal that would have to be invested to provide P750 simple interest at the end of 21 months if the interest rate is 8%.
P = ? I = P750 t = 21/12 r = 8% or 0.08
P = 750
(0.08) (21/12)
P = 750
0.14
P = P5,357

Shan deposits P50,000 in a savings account that pays interest at the rate of 10% per year. How much is the interest and what will be the total amount after three years?
I = ? P = P50,000 r = 10% or 0.10 t = 3 years
I = (50,000) (0.10) (3)
I = P15,000

Block Company deposited P200,000 in a bank account on Oct 12 and withdraws a total of P225,000 exactly on October 12 of the next year. What is the annual interest rate at which the company was paid?
r = ? P = P200,000 I = P25,000 t = 1 Year
r = 25,000
(200,000)(1)
r = 25,000
200,000
r = 0.125 or 12.5%

At what annual interest rate is P600 one year ago equivalent to P800 today?
r = ? P = P600 t = 1 Year I = P200
r = 200
(600)(1)
r = 200
600
r = 0.3333 or 33.33%

How long will it take for an investment of P5,000 to grow to P9,500 if it earns 12% simple interest per year?
t = ? P = P5,000 I = P4,500 r = 12% or 0.12
t = 4,500
(5,000)(0.12)
t = 4,500
600
t = 7.5 Years

Determine the simple interest earned if P4,500 is invested at 12% interest rate in 255 days, a) using exact interest b) using ordinary interest
I = ? P = P4,500 r = 12% or 0.12 t = 255 days

Exact Interest
Ie = (4,500)(0.12)(255/365)
Ie = P377

Ordinary Interest
Io = (4,500)(0.12)(255/360)
Io = P382.5

Find the exact interest on a 150day loan of P50,000 if the interest rate is 10%?
I = ? t = 150/365 P = P50,000 r = 10% or 0.10
Ie = (50,000)(0.10)(150/365)
Ie = P2,054.79 or P2,055

Determine the exact number of days from March 15, 2011 to December 20, 2012.
2011: March 3115 = 16
April = 30
May = 31
June = 30
July = 31
Aug = 31
Sep = 30
Oct = 31
Nov = 30
Dec = 31
291
2012: Jan = 31
Feb = 29
Mar = 31
April = 30
May = 31
June = 30
July = 31
Aug = 31
Sep = 30
Oct = 31
Nov = 30
Dec = 20
646 + 291 = 646 days

Find the ordinary interest on a 160day loan of P500,000 if the interest rate is 8%?
I = ? t = 160/360 P = P500,000 r = 8% or 0.08
Io = (500,000)(0.08)(160/360)
Io = P17,777.77 or P17,778

Determine the approximate number of days from Dec. 15, 2018 to Oct. 10, 2019.
Dec – Jan = 30
Jan – Feb = 30
Feb – Mar = 30
Mar – April = 30
April – May = 30
May – June = 30
June – July = 30
July – Aug = 30
Aug – Sep = 30
Sep – Oct = 25
Approx. 295 days

Discount P7,500 at 10% simple discount for 6 months.
D = ? F = P7,500 d = 10% or 0.10 T = 6/12
D = FdT
D = (7,500)(0.10)(6/12)
D = P375

How much interest will be deducted from a loan worth P30,000 after 2 years with a discount rate of 5%? How much will the proceeds of the loan be?
D = ? P = ? F = 30,000 T = 2 Years d = 5% or 0.05
D = (30,000)(0.05)(2)
D = P3,000
P = 30,000 – 3,000
P = P27,000

Discount P15,500 at a 12% simple discount for 9 months.
D = ? F = P15,500 d = 12% or 0.12 t = 9/12
D = (15,500)(0.12)(9/12)
D = P1,395

How much interest will be deducted from a loan worth P50,000 after 3 years with a discount rate of 7.5%? How much will the proceeds of the loan be?
D = ? P = ? F = P50,000 T = 3 years d = 7.5% or 0.075
D = (50,000)(0.075)(3)
D = P11,250
P = 50,000 – 11,250
P = P38,750

Dominic wants to borrow P15,000 payable in two years at a 10% discount rate. How much will Dominic receive on the origin date? How much will he pay on the maturity date? Answer: P15,000
P = ? F = P15,000 t = 2 Years d = 10% or 0.10
P = F (1dt)
P = 15,000 [1 – (0.10)(2)]
P = P12,000
Share with your friends: 