Ateneo De Naga University FMAC224– Investment and Portfolio Management

Simple Interest Exercises

JMURevilla
Name: ______Khianne Mae Obias__________Section:___AMN1_____ Date:____08-26-20________

1. Mr. Sarmiento invested P20,500 in a bank which yields 16½% simple interest for 10 months. Find the
interest.

I = 2,818.75

2. After eleven months, an amount invested at 8% earned P8,800. How much was invested?

P = 120,000

3. What principal will amount to P3,050 in 6 months if the interest rate is 8%?

P = 76,250

4. How many days will it take for P16,550 to earn P480 if it is invested at 7 ½ % simple interest?

T = 140 days

5. Mr. Palo borrowed P64,800 to buy merchandise for his business. After six months, he paid P3,078 as
interest. Find the interest date.
R = 0.095 or 9.5

6. Find the interest earned if half of P30,000 was invested at 12% simple interest for 2 ½ years.

I = 4,500

7. Find the interest earned by investing P12,000 at 12% simple interest for 145 days.

I = 580

8. How many years will it take P25,000 invested at 10% simple interest to double P50,000?

T = 10 years

9. How long will it take a principal to earn half of itself if invested at 16% simple interest?

T = 3.125 or 3 ¼ years

10. Sarah borrowed P31,500 on April1. The interest rate was 12% using the ordinary interest method. The
amount of interest was P157.50. For how many days was the loan? What was the maturity date of the
loan?

T = 15 days

11. Gold Industries borrowed money at 9% for 125 days. If the interest charge was P5,600, use the ordinary
interest method to compute the amount of principal of the loan.

P = 179,200

12. What is the time period of a loan for P150,000 at 9.5% ordinary interest, if the amount of interest is
P6,500?

T = 164 days

13. Hi-Quality Company borrowed P2,250,000 on March 16 to purchase a shipment of new cars. The interest
rate was 9.3% using the ordinary interest method. The amount of interest was P9,600. For how many days
was the loan? What was the maturity date of the loan?

T = 16.52 days or 17 days

Maturity Date: April 2

14. Settie borrowed money to buy a car at 13.5% simple interest from her credit union. If the loan was repaired
in 2 years and the amount of interest was P27,000, how much did Andrea borrow?

P = 100,000

15. What rate of interest was charged on an ordinary interest loan for P1,350,000 if the interest was P44,000
and the time period was from January 16 to April 27?

R = 11.50%

16. How many years will it take P50,000 invested at 8% simple interest to double to P100,000? How long will it
take if the interest rate is increased to 10?

T = 12.5 years