Passignment1-Rena Gungon-6219 A-116
Passignment1-Rena Gungon-6219 A-116
Passignment1-Rena Gungon-6219 A-116
(A-116)
(TTh 10:10AM – 11:40AM)
YMATHBUSFIN – 6219
Prelim Assignment #1: Simple Interest and Discount
1. 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%
Given:
Solution:
P = I / rt
P = P5,357.14
2. 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?
Given:
Solution: Solution:
I = Prt F=P+I
I = P15,000 F = P65,000
1
3. 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?
Given:
Solution:
r = I / Pt
r = 12.5% or 0.125
4. At what annual interest rate is P600 one year ago equivalent to P800 today?
Given:
Solution:
r = I / Pt
r = 33.33% or 0.33
5. How long will it take for an investment of P5,000 to grow to P9,500 if it earns 12% simple
interest per year?
Given:
Solution:
t = I / Pr
2
6. 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.
Given:
Solution:
Ie = P377.26 I = P382.50
7. Find the exact interest on a 150-day loan of P50,000 if the interest rate is 10%?
Given:
Solution:
I = P2,054.79
8. Determine the exact number of days from March 15, 2011 to December 20, 2012.
March – 16 October – 31
April – 30 November – 30
May – 31 December – 20
July – 31
August – 31
September – 30
3
9. Find the ordinary interest on a 160-day loan of P500,000 if the interest rate is 8%?
Given:
Solution:
I = P17,777.78
10. Determine the approximate number of days from Dec. 15, 2018 to Oct. 10, 2019.
December – 15
October = 10 days
Given:
Solution: Solution:
D = Fdt P=F-D
D = P375 P = P7,125
4
12. 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?
Given:
F = P30,000
d = 5% or 0.05
t = 2 years
Solution: Solution:
D = FdT P=F-D
D = P3,000 P = P27,000
Given:
F = P15,500
d = 12% or 0.12
t = 9/12
Solution: Solution:
D = Fdt P=F-D
D = P1,395 P = P14,105
5
14. 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?
Given:
F = P50,000
d = 7.5% or 0.75
t = 3 years
Solution: Solution:
D = Fdt P=F-D
D = P11,250 P = P38,750
15. 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?
Given:
F = P15,000
d = 10% or 0.10
t = 2 years
Solution:
P = F (1 – dt)
P = P12,000
Sam will receive P12,000 on the origin date. However, he would pay P12,000 on the maturity
date since the interest has already been deducted.