GENERAL MATHEMATICS

QUIZ: SIMPLE AND COMPOUND INTEREST

Name:

Date:

Instruction: Solve the following with COMPLETE SOLUTION. STRICTLY NO CHEATING

1. Determine the exact simple interest on P 5,000 invested for the period from
January 15, 1996 to October 12, 1996, if the rate of interest is 15%. P555.33
2. On her recent birthday, April 22, 2001, Olive was given by her mother a certain
sum of money as birthday present. She decided to invest the said amount on 20%
exact simple interest. If the account will mature on Christmas day at an amount of P
10,000, how much did Olive receive from her mother on her birthday? P8,807.92
3. How many years will P 100,000 earn a compound interest of P 50,000 if the
interest rate is 9% compounded quarterly? 4.56 years
4. If P5,000 shall accumulate for 10 years at 8% compounded quarterly, find the
compounded interest at the end of 10 years. P6,040.20
5. When will an amount be tripled with a compound interest of 11.56%. 10.04
years
6. What rate compounded annually will double an amount of money in 3 years?
26%
7. Suppose that you have P80,000. You decided to deposit it on a bank and will not
withdraw from it for 10 years. A bank offers two types of compound interest
accounts. The first account offers 6% interest compounded monthly. The second
account offers 6.5% interest compounded semi-annually. Which account will you
want your money to earn more? Show your solution to justify your answer.
P151,667.03 second acct.