1.

If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days
 1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the exact interest of: P= Php 3,957.50; t = 170 days; and r = 6%
4. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
5. Find the ordinary interest in problem 4, but use exact number of days

Drill
Bank Discount
1. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan
and the interest rate which X is paying.
2. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest
payable in advance. For what sum will Y draw the note which he will give to B?

Promissory Note

1. If B discounts note (a) at 5% , what will Y receive on August 1?

2. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Drill
Bank Discount
1. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan
and the interest rate which X is paying.
2. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest
payable in advance. For what sum will Y draw the note which he will give to B?

Promissory Note

1. If B discounts note (a) at 5% , what will Y receive on August 1?

2. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Drill
Bank Discount
1. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan
and the interest rate which X is paying.
2. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest
payable in advance. For what sum will Y draw the note which he will give to B?

Promissory Note
 1. If B discounts note (a) at 5% , what will Y receive on August 1?
2. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Seatwork
1. Determine how much X receives from the bank B. Also, determine the interest rate which X is paying.
Loan requested by X P5,000
For 6 months
Discounted rate of B 0.065

2. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06

3. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Seatwork
1. Determine how much X receives from the bank B. Also, determine the interest rate which X is paying.
Loan requested by X P5,000
For 6 months
Discounted rate of B 0.065

2. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06

3. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Seatwork
1. Determine how much X receives from the bank B. Also, determine the interest rate which X is paying.
Loan requested by X P5,000
For 6 months
Discounted rate of B 0.065

2. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06
 3. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Seatwork
1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
4. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06
Also, determine the interest rate which X is paying.
5. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Seatwork
1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
4. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06
Also, determine the interest rate which X is paying.
5. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Seatwork
1. If a Php 1,000principal increases to Php 1,250 when invested at simple interest rate for 3 years, what is the interest rate?
2. What principal invested at 5.5% simple interest will amount to Php 1,150 after 2 years & 6 months?
3. Find the ordinary interest on Php 8,500 at 6% from August 11, 2018 to March 13, 2019. Use approximate number of
days.
4. Determine the size of the loan which X would request from b if X desired the immediate proceeds given:
 Immediate proceeds P3,500
Term of Loan 30 days
Discount Rate 0.06
Also, determine the interest rate which X is paying.
5. X paid for Y for an order of goods with the following note:

Thirty days later, Y discounted this note at a bank charging 5.5% discount. Find Y’s proceeds from the sale of the note.

Drill
Simple Interest
1. A man took a loan from a bank at the rate of 12% per annum simple interest. After 3 years he had to pay P5,400 interest.
2. What is the interest charged on a P1,500 loan at 10% for 1 year?
Bank Discount
3. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan and the
interest rate which X is paying.
4. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest payable in
advance. For what sum will Y draw the note which he will give to B?
Promissory Note

5. If B discounts note (a) at 5% , what will Y receive on August 1?

6. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Drill
Simple Interest
1. A man took a loan from a bank at the rate of 12% per annum simple interest. After 3 years he had to pay P5,400 interest.
2. What is the interest charged on a P1,500 loan at 10% for 1 year?
Bank Discount
3. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan and the
interest rate which X is paying.
4. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest payable in
advance. For what sum will Y draw the note which he will give to B?
Promissory Note

5. If B discounts note (a) at 5% , what will Y receive on August 1?

6. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Drill
Simple Interest
1. A man took a loan from a bank at the rate of 12% per annum simple interest. After 3 years he had to pay P5,400 interest.
2. What is the interest charged on a P1,500 loan at 10% for 1 year?
Bank Discount
3. X requests a loan of P9,000 for 3 months from a bank B charging 5% discount. Find the immediate proceeds of the loan and the
interest rate which X is paying.
4. X wishes to receive P9,000 as the immediate proceeds of a 90-day loan from a bank B which is charging 5% interest payable in
advance. For what sum will Y draw the note which he will give to B?
Promissory Note
5. If B discounts note (a) at 5% , what will Y receive on August 1?
6. On July 31, Y discounts note (b) at the bank B of Item No. 1. What are the Y’s proceeds from the sale of the note?

Answer the following on one whole pad paper. Round off your answers to TWO-DECIMAL PLACE, DOUBLE RULE.
1. Find the ordinary interest in the following:
a. P = P3,957.50;t = 170 days; r = 0.06
b. P = P3,957.50;t = 170 days; r = 0.07

2. Find the exact interest in the following:

a. P = P4,893.75;t = 53 days; r = 0.04
b. P = P13,468.60; t = 41 days; r = 0.03

3. Find the ordinary interest on P1,750 at 5% from April 3, 2019 to October 13, 2019, using the exact number of days.

4. A merchant is offered a P50 discount for cash payment of a P1,200 bill due after 60 days. If he pays cash, at what rate may he consider his
money to be earning interest for the next 60 days?

5. Determine how much X receives from the bank B using the given below. Also, determine the interest rate which X is paying.
Loan requested by X P3,800
For 45 days
Discount Rate of B 6.25%

6. The holder of a non-interest-bearing note dated October 1, 2018 payable 4 months after date, discounted it at a bank on October1, at the rate of
4%. The bank’s discount on the note was P20. What was the face value of the note?

7. What is your Instructor’s full name?

First Name (2points) ________________________________
Middle Initial (1 point) ________________________________
Last Name (2 points) ________________________________

Answer the following on one whole pad paper. Round off your answers to TWO-DECIMAL PLACE, DOUBLE RULE.
1. Find the ordinary interest in the following:
a. P = P3,957.50;t = 170 days; r = 0.06
b. P = P3,957.50;t = 170 days; r = 0.07

2. Find the exact interest in the following:

a. P = P4,893.75;t = 53 days; r = 0.04
b. P = P13,468.60; t = 41 days; r = 0.03

3. Find the ordinary interest on P1,750 at 5% from April 3, 2019 to October 13, 2019, using the exact number of days.

4. A merchant is offered a P50 discount for cash payment of a P1,200 bill due after 60 days. If he pays cash, at what rate may he consider his
money to be earning interest for the next 60 days?

5. Determine how much X receives from the bank B using the given below. Also, determine the interest rate which X is paying.
Loan requested by X P3,800
For 45 days
Discount Rate of B 6.25%

6. The holder of a non-interest-bearing note dated October 1, 2018 payable 4 months after date, discounted it at a bank on October1, at the rate of
4%. The bank’s discount on the note was P20. What was the face value of the note?

7. What is your Instructor’s full name?

First Name (2points) ________________________________
Middle Initial (1 point) ________________________________
Last Name (2 points) ________________________________

Answer the following on one whole pad paper. Round off your answers to TWO-DECIMAL PLACE, DOUBLE RULE.
1. Find the ordinary interest in the following:
a. P = P3,957.50;t = 170 days; r = 0.06
b. P = P3,957.50;t = 170 days; r = 0.07

2. Find the exact interest in the following:

a. P = P4,893.75;t = 53 days; r = 0.04
b. P = P13,468.60; t = 41 days; r = 0.03

3. Find the ordinary interest on P1,750 at 5% from April 3, 2019 to October 13, 2019, using the exact number of days.
4. A merchant is offered a P50 discount for cash payment of a P1,200 bill due after 60 days. If he pays cash, at what rate may he consider his
money to be earning interest for the next 60 days?

5. Determine how much X receives from the bank B using the given below. Also, determine the interest rate which X is paying.
Loan requested by X P3,800
For 45 days
Discount Rate of B 6.25%

6. The holder of a non-interest-bearing note dated October 1, 2018 payable 4 months after date, discounted it at a bank on October1, at the rate of
4%. The bank’s discount on the note was P20. What was the face value of the note?
7. What is your Instructor’s full name?
First Name (2points) ________________________________
Middle Initial (1 point) ________________________________
Last Name (2 points) ________________________________

COMPOUND INTEREST
 COMPOUND INTEREST – If, at stated intervals during the term of an investment, the interest due is added to the principal and thereafter earns
interest, the sum by which the original principal has increased by the end of the term of the investment
 COMPOUND AMOUNT – At the end of the term, the total amount due, which consist of the original plus the compound interest
 CONVERSION PERIOD – The time between successive conversions of interest into principal
 RATE PER CONVERSION – The rate at which interest is earned during conversion period

EXAMPLE Find the compound amount after 1 year if P100 is invested at the rate of 8% compounded quarterly
DRILLS
1. Find the compound amount after 9 years and 3 months on a principal P=P3,000, if the rate is 6% compounded quarterly.
2. Find the present value of P5,000, due at the end of 4 years and 6 months, if money earns 4% converted semi-annually.
3. Find the compound amount on P3,000,000 after 16 years and 3 months, if the rate is (0.06, m=4).
4. Find the present value of P6,000, due after 4 ½ years, if money can earn interest at the rate (0.08, m=4). What is the discount on the P6,000?

COMPOUND INTEREST
 COMPOUND INTEREST – If, at stated intervals during the term of an investment, the interest due is added to the principal and thereafter earns
interest, the sum by which the original principal has increased by the end of the term of the investment
 COMPOUND AMOUNT – At the end of the term, the total amount due, which consist of the original plus the compound interest
 CONVERSION PERIOD – The time between successive conversions of interest into principal
 RATE PER CONVERSION – The rate at which interest is earned during conversion period

EXAMPLE Find the compound amount after 1 year if P100 is invested at the rate of 8% compounded quarterly
DRILLS
1. Find the compound amount after 9 years and 3 months on a principal P=P3,000, if the rate is 6% compounded quarterly.
2. Find the present value of P5,000, due at the end of 4 years and 6 months, if money earns 4% converted semi-annually.
3. Find the compound amount on P3,000,000 after 16 years and 3 months, if the rate is (0.06, m=4).
4. Find the present value of P6,000, due after 4 ½ years, if money can earn interest at the rate (0.08, m=4). What is the discount on the P6,000?

COMPOUND INTEREST
 COMPOUND INTEREST – If, at stated intervals during the term of an investment, the interest due is added to the principal and thereafter earns
interest, the sum by which the original principal has increased by the end of the term of the investment
 COMPOUND AMOUNT – At the end of the term, the total amount due, which consist of the original plus the compound interest
 CONVERSION PERIOD – The time between successive conversions of interest into principal
 RATE PER CONVERSION – The rate at which interest is earned during conversion period

EXAMPLE Find the compound amount after 1 year if P100 is invested at the rate of 8% compounded quarterly
DRILLS
1. Find the compound amount after 9 years and 3 months on a principal P=P3,000, if the rate is 6% compounded quarterly.
2. Find the present value of P5,000, due at the end of 4 years and 6 months, if money earns 4% converted semi-annually.
3. Find the compound amount on P3,000,000 after 16 years and 3 months, if the rate is (0.06, m=4).
4. Find the present value of P6,000, due after 4 ½ years, if money can earn interest at the rate (0.08, m=4). What is the discount on the P6,000?

COMPOUND INTEREST
 COMPOUND INTEREST – If, at stated intervals during the term of an investment, the interest due is added to the principal and thereafter earns
interest, the sum by which the original principal has increased by the end of the term of the investment
 COMPOUND AMOUNT – At the end of the term, the total amount due, which consist of the original plus the compound interest
 CONVERSION PERIOD – The time between successive conversions of interest into principal
 RATE PER CONVERSION – The rate at which interest is earned during conversion period

EXAMPLE Find the compound amount after 1 year if P100 is invested at the rate of 8% compounded quarterly
DRILLS
1. Find the compound amount after 9 years and 3 months on a principal P=P3,000, if the rate is 6% compounded quarterly.
2. Find the present value of P5,000, due at the end of 4 years and 6 months, if money earns 4% converted semi-annually.
3. Find the compound amount on P3,000,000 after 16 years and 3 months, if the rate is (0.06, m=4).
4. Find the present value of P6,000, due after 4 ½ years, if money can earn interest at the rate (0.08, m=4). What is the discount on the P6,000?
 COMPOUND INTEREST
 COMPOUND INTEREST – If, at stated intervals during the term of an investment, the interest due is added to the principal and thereafter earns
interest, the sum by which the original principal has increased by the end of the term of the investment
 COMPOUND AMOUNT – At the end of the term, the total amount due, which consist of the original plus the compound interest
 CONVERSION PERIOD – The time between successive conversions of interest into principal
 RATE PER CONVERSION – The rate at which interest is earned during conversion period

EXAMPLE Find the compound amount after 1 year if P100 is invested at the rate of 8% compounded quarterly
DRILLS
1. Find the compound amount after 9 years and 3 months on a principal P=P3,000, if the rate is 6% compounded quarterly.
2. Find the present value of P5,000, due at the end of 4 years and 6 months, if money earns 4% converted semi-annually.
3. Find the compound amount on P3,000,000 after 16 years and 3 months, if the rate is (0.06, m=4).
4. Find the present value of P6,000, due after 4 ½ years, if money can earn interest at the rate (0.08, m=4). What is the discount on the P6,000?

VALUES OF OBLIGATION – A financial obligation is a promise to pay, or, an obligation is equivalent to a promissory note. Consider the
following obligations or notes.
(a) Three years and 9 months after date, X promises to pay P1,000 to Y or order.
(b) Three years and 9 months after date, X promises to pay P1,000 together with all accumulated interest at the rate 6%
compounded quarterly, to Y or order
Examples:
1. One year after date of note (a), what does Y receive on discounting it with a banker B to whom money is worth (0.05, m=4)?
2. One year after date of note (b), what is the value to a man W to whom money is worth (0.07, m=4)?
3. Note (b) was not paid when due. What should X pay at the end of 5 years to cancel the obligation if money is worth (0.07, m=4)
to Y?

Seatwork
1. If money is worth (0.07, m=2) to W, what would he pay to Y for note (a) above, 3 months after date of note?
2. If money is worth (0.06, m=2), to W, what should he pay to Y for note (b) above, 3 months after date of note?

Olongapo City, July 15, 2018

Three years and 6 months after date, I promise to Y or order at the First National Bank, P1,500 together with accumulated
interest at the rate (0.07, m=2). Value received. Signed X

3. Twelve months after date, what does Y receive on selling this note to a bank which uses the rate (0.06, m=2) in discounting?
4. What would Y receive for the note in problem 3 if he discounted it on July 15, 2018, at a bank using rate (0.55, m=2)?

VALUES OF OBLIGATION – A financial obligation is a promise to pay, or, an obligation is equivalent to a promissory note. Consider the
following obligations or notes.
(a) Three years and 9 months after date, X promises to pay P1,000 to Y or order.
(b) Three years and 9 months after date, X promises to pay P1,000 together with all accumulated interest at the rate 6%
compounded quarterly, to Y or order
Examples:
1. One year after date of note (a), what does Y receive on discounting it with a banker B to whom money is worth (0.05, m=4)?
2. One year after date of note (b), what is the value to a man W to whom money is worth (0.07, m=4)?
3. Note (b) was not paid when due. What should X pay at the end of 5 years to cancel the obligation if money is worth (0.07, m=4)
to Y?

Seatwork
1. If money is worth (0.07, m=2) to W, what would he pay to Y for note (a) above, 3 months after date of note?
2. If money is worth (0.06, m=2), to W, what should he pay to Y for note (b) above, 3 months after date of note?

Olongapo City, July 15, 2018

Three years and 6 months after date, I promise to Y or order at the First National Bank, P1,500 together with accumulated
interest at the rate (0.07, m=2). Value received. Signed X

3. Twelve months after date, what does Y receive on selling this note to a bank which uses the rate (0.06, m=2) in discounting?
4. What would Y receive for the note in problem 3 if he discounted it on July 15, 2018, at a bank using rate (0.55, m=2)?

VALUES OF OBLIGATION – A financial obligation is a promise to pay, or, an obligation is equivalent to a promissory note. Consider the
following obligations or notes.
(a) Three years and 9 months after date, X promises to pay P1,000 to Y or order.
(b) Three years and 9 months after date, X promises to pay P1,000 together with all accumulated interest at the rate 6%
compounded quarterly, to Y or order
Examples:
1. One year after date of note (a), what does Y receive on discounting it with a banker B to whom money is worth (0.05, m=4)?
2. One year after date of note (b), what is the value to a man W to whom money is worth (0.07, m=4)?
3. Note (b) was not paid when due. What should X pay at the end of 5 years to cancel the obligation if money is worth (0.07, m=4)
to Y?
Seatwork
1. If money is worth (0.07, m=2) to W, what would he pay to Y for note (a) above, 3 months after date of note?
2. If money is worth (0.06, m=2), to W, what should he pay to Y for note (b) above, 3 months after date of note?

Olongapo City, July 15, 2018

Three years and 6 months after date, I promise to Y or order at the First National Bank, P1,500 together with accumulated
interest at the rate (0.07, m=2). Value received. Signed X

3. Twelve months after date, what does Y receive on selling this note to a bank which uses the rate (0.06, m=2) in discounting?
4. What would Y receive for the note in problem 3 if he discounted it on July 15, 2018, at a bank using rate (0.55, m=2)?

EFFECTIVE RATE – Under a given type of compound interest, the rate per year at which principal grows.
NOMINAL RATE – The percent quoted in stating a type of compound interest; it is the rate per year at which money
earns during a conversion period

The effective rate i corresponding to the nominal rate j, converted m times per year, satisfies the equation

EXAMPLES:
1. What is the effective rate corresponding to the rate (0.05, m=4)?
2. What nominal rate, if converted 4 times per year, will yield effective rate 6%?
3. What nominal rate, converted quarterly, will give the same yield as (0.05, m=2)?

DRILLS
PROBLEM j m i PROBLEM j m i
1 0.07 2 6 12 0.04
2 2 0.07 7 0.03 2
3 0.10 4 8 2 0.0275
4 2 0.035 9 4 0.025
5 0.09 3 10 0.05 1

EFFECTIVE RATE – Under a given type of compound interest, the rate per year at which principal grows.
NOMINAL RATE – The percent quoted in stating a type of compound interest; it is the rate per year at which money
earns during a conversion period

The effective rate i corresponding to the nominal rate j, converted m times per year, satisfies the equation

EXAMPLES:
1. What is the effective rate corresponding to the rate (0.05, m=4)?
2. What nominal rate, if converted 4 times per year, will yield effective rate 6%?
3. What nominal rate, converted quarterly, will give the same yield as (0.05, m=2)?

DRILLS
PROBLEM j m i PROBLEM j m i
1 0.07 2 6 12 0.04
2 2 0.07 7 0.03 2
3 0.10 4 8 2 0.0275
4 2 0.035 9 4 0.025
5 0.09 3 10 0.05 1

EFFECTIVE RATE – Under a given type of compound interest, the rate per year at which principal grows.
NOMINAL RATE – The percent quoted in stating a type of compound interest; it is the rate per year at which money
earns during a conversion period

The effective rate i corresponding to the nominal rate j, converted m times per year, satisfies the equation

EXAMPLES:
1. What is the effective rate corresponding to the rate (0.05, m=4)?
2. What nominal rate, if converted 4 times per year, will yield effective rate 6%?
3. What nominal rate, converted quarterly, will give the same yield as (0.05, m=2)?

DRILLS
PROBLEM j m i PROBLEM j m i
1 0.07 2 6 12 0.04
2 2 0.07 7 0.03 2
3 0.10 4 8 2 0.0275
4 2 0.035 9 4 0.025
5 0.09 3 10 0.05 1
P ACCUMULATES FOR, OR
PRINCIPAL, P AMOUNT, A RATE
A IS DUE AFTER
P2,500 a. 13 yrs 9 mos 8%, m=4
b. P1,500 7 yrs 6 mos 6%, m=12
P576.50 c. 3 yrs 6 mos 6%, m=12
P1,398.50 d. 15 yrs 3 mos 5%, m=4
e. P8,300 14 yrs 9 mos 4.5%, m=2

f. Accumulate a P40,000 principal for 15 years under the rate (5%, m=4). What is the compound interest earned?
g. Find the present value of P6,000, due after 4 ¼ years, if money can earn interest at the rate (8%, m=4). What is the discount
on P6,000?
h. X owes P300, due with accumulated interest at the rate (0.04, m=4) at the end of 5 years and 3 months. What is the value of
this obligation two years before it is due to a man to who money is worth (0.06,m=1)?
i. At the end of 4 ½ years, P7,000 is due, together with accumulated interest at the rate (0.045, m=2). (a) Find the value of this
obligation 2 ½ years before it is due if money is worth (0.05, m=2). (b) What is its value then under the rate (0.045, m=2)?

P ACCUMULATES FOR, OR
PRINCIPAL, P AMOUNT, A RATE
A IS DUE AFTER
P2,500 a. 13 yrs 9 mos 8%, m=4
b. P1,500 7 yrs 6 mos 6%, m=12
P576.50 c. 3 yrs 6 mos 6%, m=12
P1,398.50 d. 15 yrs 3 mos 5%, m=4
e. P8,300 14 yrs 9 mos 4.5%, m=2

f. Accumulate a P40,000 principal for 15 years under the rate (5%, m=4). What is the compound interest earned?
g. Find the present value of P6,000, due after 4 ¼ years, if money can earn interest at the rate (8%, m=4). What is the discount
on P6,000?
h. X owes P300, due with accumulated interest at the rate (0.04, m=4) at the end of 5 years and 3 months. What is the value of
this obligation two years before it is due to a man to who money is worth (0.06,m=1)?
i. At the end of 4 ½ years, P7,000 is due, together with accumulated interest at the rate (0.045, m=2). (a) Find the value of this
obligation 2 ½ years before it is due if money is worth (0.05, m=2). (b) What is its value then under the rate (0.045, m=2)?

P ACCUMULATES FOR, OR
PRINCIPAL, P AMOUNT, A RATE
A IS DUE AFTER
P2,500 a. 13 yrs 9 mos 8%, m=4
b. P1,500 7 yrs 6 mos 6%, m=12
P576.50 c. 3 yrs 6 mos 6%, m=12
P1,398.50 d. 15 yrs 3 mos 5%, m=4
e. P8,300 14 yrs 9 mos 4.5%, m=2

f. Accumulate a P40,000 principal for 15 years under the rate (5%, m=4). What is the compound interest earned?
g. Find the present value of P6,000, due after 4 ¼ years, if money can earn interest at the rate (8%, m=4). What is the discount
on P6,000?
h. X owes P300, due with accumulated interest at the rate (0.04, m=4) at the end of 5 years and 3 months. What is the value of
this obligation two years before it is due to a man to who money is worth (0.06,m=1)?
i. At the end of 4 ½ years, P7,000 is due, together with accumulated interest at the rate (0.045, m=2). (a) Find the value of this
obligation 2 ½ years before it is due if money is worth (0.05, m=2). (b) What is its value then under the rate (0.045, m=2)?

P ACCUMULATES FOR, OR
PRINCIPAL, P AMOUNT, A RATE
A IS DUE AFTER
P2,500 a. 13 yrs 9 mos 8%, m=4
b. P1,500 7 yrs 6 mos 6%, m=12
P576.50 c. 3 yrs 6 mos 6%, m=12
P1,398.50 d. 15 yrs 3 mos 5%, m=4
 e. P8,300 14 yrs 9 mos 4.5%, m=2

f. Accumulate a P40,000 principal for 15 years under the rate (5%, m=4). What is the compound interest earned?
g. Find the present value of P6,000, due after 4 ¼ years, if money can earn interest at the rate (8%, m=4). What is the discount
on P6,000?
h. X owes P300, due with accumulated interest at the rate (0.04, m=4) at the end of 5 years and 3 months. What is the value of
this obligation two years before it is due to a man to who money is worth (0.06,m=1)?
i. At the end of 4 ½ years, P7,000 is due, together with accumulated interest at the rate (0.045, m=2). (a) Find the value of this
obligation 2 ½ years before it is due if money is worth (0.05, m=2). (b) What is its value then under the rate (0.045, m=2)?

EFFECTIVE RATE – Under a given type of compound interest, the rate per year at which principal grows.
NOMINAL RATE – The percent quoted in stating a type of compound interest; it is the rate per year at which money earns during a conversion
period
The effective rate i corresponding to the nominal rate j, converted m times per year, satisfies the equation

EXAMPLES:
1. What is the effective rate corresponding to the rate (0.05, m=4)?
2. What nominal rate, if converted 4 times per year, will yield effective rate 6%?
3. What nominal rate, converted quarterly, will give the same yield as (0.05, m=2)?

QUIZ
PROBLEM j m i PROBLEM j m i
1 0.07 2 6 12 0.04
2 2 0.07 7 0.03 2
3 0.10 4 8 2 0.0275
4 2 0.035 9 4 0.025
5 0.09 3 10 0.05 1

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
2. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the values of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth:
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.
3. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.

EFFECTIVE RATE – Under a given type of compound interest, the rate per year at which principal grows.
NOMINAL RATE – The percent quoted in stating a type of compound interest; it is the rate per year at which money earns during a conversion
period
The effective rate i corresponding to the nominal rate j, converted m times per year, satisfies the equation

EXAMPLES:
1. What is the effective rate corresponding to the rate (0.05, m=4)?
2. What nominal rate, if converted 4 times per year, will yield effective rate 6%?
3. What nominal rate, converted quarterly, will give the same yield as (0.05, m=2)?

QUIZ
PROBLEM j m i PROBLEM j m i
1 0.07 2 6 12 0.04
2 2 0.07 7 0.03 2
3 0.10 4 8 2 0.0275
4 2 0.035 9 4 0.025
5 0.09 3 10 0.05 1

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
2. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the values of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth:
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.
3. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.
2. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
3. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the value of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.
2. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
3. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the value of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.
2. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
3. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the value of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.

ANNUITY- is a sequence of periodic payments

ANNUITY CERTAIN- is one whose payments extend over a fixed term of years
CONTINGENT ANNUITY- in one whose payments last for a period of time which depends on events whose dates of
occurrence cannot be accurately foretold
ANNUAL RENT- The sum of the payments of an annuity made in one year is called the rent
PAYMENT INTERVAL- The time between successive payments dates
TERM OF THE ANNUITY- the time between the beginning of the first payment interval and the end of the last

Drills
1. Consider an annuity of P100.00, payable annually for 5 years, with interest at the rate 4% effective.
2. If money is worth (0.06, m=4), find the present value P and the amount A of an annuity whose annual rent is P200.00, payable semi-annually.
3. Payments of P100.00, made at the end of each 3 months for 15 years. Money is worth (0.05, m=4).

QUIZ. Find the value of P and A

1. The annual rent of the annuity is P2,000, the payment interval is 3 months, and the term is 12 ½ years. Money is worth
a. (0.06, m=1); and b. (0.06, m=2)
2. An annuity which pays P100 at the end of each interest period for 10 interest periods. Money is worth 0.045 per interest period.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for
annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included,
by equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment
(or amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for
annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included,
by equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment
(or amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for
annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included,
by equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment
(or amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for
annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included,
by equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment
(or amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for
annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included,
by equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment
(or amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
 2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. A debt will be discharged, principal and interest, at 6% effective, included, by payments of P1,200 at the end of each year for 12 years.
Compute for the regular payment and prepare the amortization schedule.
4. A loan of P5,000, with interest at 6% , payable semi-annually, is to be amortized by six semi-annual payments, the first due after six months.
Compute for the regular payment and prepare the amortization schedule.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
 3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

Compute for the following.

1. What is the future value of P25.00 deposited monthly for 30 years at the rate 2% compounded monthly? What is the amount of interest
earned on this investment?
2. Find the monthly annuity payment must make if you want to have P1,000,000.00 in 30 years (assuming 12% annual interest, compounded
monthly).
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P10,000 and it will wear out in 10 years. When worn out, its scrap value is P500. Under the sinking fund plan, determine
the depreciation charge which should be made at the end of each year for 10 years, if the fund is invested at 5% effective.

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
 2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
2. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
3. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
4. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
5. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
6. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
5. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
6. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?

SEATWORK
1. A debt of P12,000, with interest payable semi-annually at the rate 5%, is to be amortized in 10 years. Compute the monthly payment.
2. A purchaser of a house owes P7,500, and interest at 6% is payable semi-annually on all amounts remaining due. He wishes to discharge his
debt, principal and interest included, by twelve equal semi-annual installments, the first due after 6 months. Compute for the regular
payment.
3. JRG Company needs P500,000 for replacement of existing equipment. How much amount they should save annually to create a sinking fund,
which should be available at end of 4 years, if rate of interest is 10%?
4. A machine costs P3,100 when new, it wears out in 12 years and its final scrap value is P100. Under the sinking fund plan, determine the
depreciation charge which should be made at the end of each 6 months if the fund accumulates at (.05, m = 2).
5. A motor truck has an original value of P2,500, a probable life of 6 years, and a final salvage value of P200. Its depreciation is to be covered by deposits
in a fund at the end of each 3 months. Find the quarterly deposit if the fund earns (.055, m = 4).
6. A manufacturing plant is composed of part (a) whose post is P90,000, life is 15 years, and salvage value is P6,000, and part (b) whose cost is P50,000,
life is 20 years, and salvage value is P5,000. If depreciation charges are made at the end of each year and accumulate at 4%, effective, what is the
total annual charge for the plant?
DRILLS
1. A building costs P50,000 and has a salvage value of P5,000 when worn out at the end of 15 years.
a. Find the annual depreciation charge using straight line and sum-of-the-years method of depreciation
b. Find the annual depreciation charge under the sinking fund method, where the fund earns 4% effective
2. COMPOSITE LIFE. A plant consists of part A, with life 20 years, original costs P55,000 and scrap value P5,000; part B with life 15 years, original cost
P23,000 and scrap value P3,000; part C, with life 15 years, original cost P16,000 and scrap value P1,000. Determine the composite life, under (a)
sinking fund method, with interest at 4% effective, and (b) under the straight line method
3. VALUATION OF MINE. A mine, whose life is 20 years, costs P200,000 cash. What should be the net annual revenue in order to pay 6% interest,
annually, on the invested capital, and to provide an annual deposit for a redemption fund which accumulates at 4% effective?
4. VALUATION OF MINE. The annual revenue from a mine will be P30,000 until it becomes exhausted at the end of 25 years. What should be paid for the
mine if 8% is to be earned on the invested capital while redemption fund accumulates at 5%?
5. PERPETUITY. Find the present value of a perpetuity which pays P1,000 at the end of each 3 months, if money is worth (0.08, m=4) for 25 years.
6. PERPETUITY. A bridge must be repainted each 5 years at a cost of P8,000. If money is worth 5%, find the present value of all future repainting.
7. CAPITALIZED COSTS. A machine costs P3,000 new and must be renewed at the end of each 15 years. (a) Find the capitalized cost when money is
worth (0.05, m=1), if the final scrap value of the machine is P500; (b) if the scrap value is zero

DRILLS
1. A building costs P50,000 and has a salvage value of P5,000 when worn out at the end of 15 years.
a. Find the annual depreciation charge using straight line and sum-of-the-years method of depreciation
b. Find the annual depreciation charge under the sinking fund method, where the fund earns 4% effective
2. COMPOSITE LIFE. A plant consists of part A, with life 20 years, original costs P55,000 and scrap value P5,000; part B with life 15 years, original cost
P23,000 and scrap value P3,000; part C, with life 15 years, original cost P16,000 and scrap value P1,000. Determine the composite life, under (a)
sinking fund method, with interest at 4% effective, and (b) under the straight line method
3. VALUATION OF MINE. A mine, whose life is 20 years, costs P200,000 cash. What should be the net annual revenue in order to pay 6% interest,
annually, on the invested capital, and to provide an annual deposit for a redemption fund which accumulates at 4% effective?
4. VALUATION OF MINE. The annual revenue from a mine will be P30,000 until it becomes exhausted at the end of 25 years. What should be paid for the
mine if 8% is to be earned on the invested capital while redemption fund accumulates at 5%?
5. PERPETUITY. Find the present value of a perpetuity which pays P1,000 at the end of each 3 months, if money is worth (0.08, m=4) for 25 years.
6. PERPETUITY. A bridge must be repainted each 5 years at a cost of P8,000. If money is worth 5%, find the present value of all future repainting.
7. CAPITALIZED COSTS. A machine costs P3,000 new and must be renewed at the end of each 15 years. (a) Find the capitalized cost when money is
worth (0.05, m=1), if the final scrap value of the machine is P500; (b) if the scrap value is zero

DRILLS
1. A building costs P50,000 and has a salvage value of P5,000 when worn out at the end of 15 years.
a. Find the annual depreciation charge using straight line and sum-of-the-years method of depreciation
b. Find the annual depreciation charge under the sinking fund method, where the fund earns 4% effective
2. COMPOSITE LIFE. A plant consists of part A, with life 20 years, original costs P55,000 and scrap value P5,000; part B with life 15 years, original cost
P23,000 and scrap value P3,000; part C, with life 15 years, original cost P16,000 and scrap value P1,000. Determine the composite life, under (a)
sinking fund method, with interest at 4% effective, and (b) under the straight line method
3. VALUATION OF MINE. A mine, whose life is 20 years, costs P200,000 cash. What should be the net annual revenue in order to pay 6% interest,
annually, on the invested capital, and to provide an annual deposit for a redemption fund which accumulates at 4% effective?
4. VALUATION OF MINE. The annual revenue from a mine will be P30,000 until it becomes exhausted at the end of 25 years. What should be paid for the
mine if 8% is to be earned on the invested capital while redemption fund accumulates at 5%?
5. PERPETUITY. Find the present value of a perpetuity which pays P1,000 at the end of each 3 months, if money is worth (0.08, m=4) for 25 years.
6. PERPETUITY. A bridge must be repainted each 5 years at a cost of P8,000. If money is worth 5%, find the present value of all future repainting.
7. CAPITALIZED COSTS. A machine costs P3,000 new and must be renewed at the end of each 15 years. (a) Find the capitalized cost when money is
worth (0.05, m=1), if the final scrap value of the machine is P500; (b) if the scrap value is zero
DRILLS
1. A building costs P50,000 and has a salvage value of P5,000 when worn out at the end of 15 years.
a. Find the annual depreciation charge using straight line and sum-of-the-years method of depreciation
b. Find the annual depreciation charge under the sinking fund method, where the fund earns 4% effective
2. COMPOSITE LIFE. A plant consists of part A, with life 20 years, original costs P55,000 and scrap value P5,000; part B with life 15 years, original cost
P23,000 and scrap value P3,000; part C, with life 15 years, original cost P16,000 and scrap value P1,000. Determine the composite life, under (a)
sinking fund method, with interest at 4% effective, and (b) under the straight line method
3. VALUATION OF MINE. A mine, whose life is 20 years, costs P200,000 cash. What should be the net annual revenue in order to pay 6% interest,
annually, on the invested capital, and to provide an annual deposit for a redemption fund which accumulates at 4% effective?
4. VALUATION OF MINE. The annual revenue from a mine will be P30,000 until it becomes exhausted at the end of 25 years. What should be paid for the
mine if 8% is to be earned on the invested capital while redemption fund accumulates at 5%?
5. PERPETUITY. Find the present value of a perpetuity which pays P1,000 at the end of each 3 months, if money is worth (0.08, m=4) for 25 years.
6. PERPETUITY. A bridge must be repainted each 5 years at a cost of P8,000. If money is worth 5%, find the present value of all future repainting.
7. CAPITALIZED COSTS. A machine costs P3,000 new and must be renewed at the end of each 15 years. (a) Find the capitalized cost when money is
worth (0.05, m=1), if the final scrap value of the machine is P500; (b) if the scrap value is zero

DRILLS
1. A building costs P50,000 and has a salvage value of P5,000 when worn out at the end of 15 years.
a. Find the annual depreciation charge using straight line and sum-of-the-years method of depreciation
b. Find the annual depreciation charge under the sinking fund method, where the fund earns 4% effective
2. COMPOSITE LIFE. A plant consists of part A, with life 20 years, original costs P55,000 and scrap value P5,000; part B with life 15 years, original cost
P23,000 and scrap value P3,000; part C, with life 15 years, original cost P16,000 and scrap value P1,000. Determine the composite life, under (a)
sinking fund method, with interest at 4% effective, and (b) under the straight line method
3. VALUATION OF MINE. A mine, whose life is 20 years, costs P200,000 cash. What should be the net annual revenue in order to pay 6% interest,
annually, on the invested capital, and to provide an annual deposit for a redemption fund which accumulates at 4% effective?
4. VALUATION OF MINE. The annual revenue from a mine will be P30,000 until it becomes exhausted at the end of 25 years. What should be paid for the
mine if 8% is to be earned on the invested capital while redemption fund accumulates at 5%?
5. PERPETUITY. Find the present value of a perpetuity which pays P1,000 at the end of each 3 months, if money is worth (0.08, m=4) for 25 years.
6. PERPETUITY. A bridge must be repainted each 5 years at a cost of P8,000. If money is worth 5%, find the present value of all future repainting.
7. CAPITALIZED COSTS. A machine costs P3,000 new and must be renewed at the end of each 15 years. (a) Find the capitalized cost when money is
worth (0.05, m=1), if the final scrap value of the machine is P500; (b) if the scrap value is zero