1.

You agreed to open a time deposit account with GM Bank for P2, 000,000 with 4% interest per
annum. The maturity date or term of your deposit is 50 days only. How much is your interest
income before tax after 50 days
2. You had a surgery operation a year ago and you can run out of funds to pay the bills. You
applied for an emergency loan from your bank and paid P5, 000 per month for one year at 8%
interest. How much was the principal amount of the emergency loan?

3. You are ready to invest in a security deposit account with your funds amounting to P500, 000 in
5 years. You target to earn a total future value of P800, 000. What should be the annual interest
rate to you can achieve your investment goal?
4. Aling Juana wants to invest in Producer’s Bank which will give her 20% per annum in 5 years. She
targets to earn total future value of P2, 000,000. How much should she invest in the said bank?
5. If you deposit P5, 500 in a bank at annual simple interest of 0.5% how much money will you
have after 12 years?
6. How long will an amount of money triple at a simple interest rate of 1% per annum?

7. Chloe borrowed P100, 000 at 8% compounded annually. How much will he be paying after 2
years?
8. A time deposit account in a bank yield 5.5% compounded interest annually. Jennifer invested
P450, 000 for 4 years in this saving account. How much interest will she gain?
9. How much money must be invested to obtain an amount of P150, 000 in 2 years if money earns
at 10.5% compounded annually?
10. Yassy is thinking of investing an amount of P30,000 for 2 ½ yrs. Find the future value based on
the following investments:
a). Simple interest of 8.5%
b). 8.5% compounded annually
c). Which investment is better? (situation a or b) Justify your answer.

11. How much should you deposit in a bank paying 2% compounded quarterly to accumulate an
amount of P80,000 in 5 years and 9 months?
12. Mary Ann is planning to invest P150,000. Bank A is offering 7.5% compounded semi- annualy
while Bank B is offering 7% compounded monthly. If she plans to invest this for 4 years. In which
bank should she invest?
13. James sold his car and invested P300, 000 at 8.5% compounded quarterly. Find the maturity
value he invest for a). 3 years b). 6 years c). How much is the additional interest
earned due to the longer time?