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Review MODULE 10 – ENGINEERING ECONOMY

10.01 SIMPLE INTEREST

SITUATION.
How much is the interest that will be paid on a Php25,000 loan that was
made on May 1, 2002 and repaid on August 1,2005
1. With ordinary simple interest at 8% per year.

2. With exact simple interest at 8% per year.

3. The tag price of a certain commodity is for 100 days. If paid in 31

days, there is a 3% discount. What is the rate of interest paid?

4. A deposit of Php 110,000 was made for 31 days. The net interest
after deducting the 20% withhold tax is P 890.36 Find the rate of
return annually.