KINGFISHER SCHOOL OF BUSINESS AND FINANCE

MATHEMATICS IN THE MODERN WORLD

QUIZ #1
1. How long will an amount of money triple at a simple interest rate of 1% per annum?
2000
t= =200
1000× 0.01
2. Nobita earns 5, 000 pesos by selling Doraemon’s gadget to his friends. If he plans to invest his earnings, how long
would it take to accumulate 12, 500, if it has an interest rate of 0.015% compounded bimonthly?
12500−¿ log 5000
t=log =6108.68 ¿
0.00015
6 log 1+ ( 6 )
3. An investment earns 11 3/8% compounded monthly. Find the value of an initial investment of 5000 pesos after 6
years and 9 months?
−( 6.75 ×12 )
0.11375
P=5000 1+ ( 12 ) =10,736.34
4. At what simple interest rate will an amount of money gain 50% of the principal in 4 years?
500
r= =0.125∨12.5 %
1000 × 4
5. A man buys a dining set with an offer option of paying P13,600 cash or P17,000 at the end of 120 days. At what
rate is he paying simple interest if he pays after 120 days?
3400
r= =0.75∨75 %
120
13600 ×
360
6. A businessman has a 120-day note for P7 500 at 2.18% simple interest. The note discounted immediately at 0.75%. Find the
proceeds.
120
(
F=7500 1+0.0218 ×
360
=7554.50 )
120
P=7554.50 1−0.0075 ×(360
=7535.61 )
7. Mrs. Lynlyn purchased an antique statue of 450 pesos. Ten years later, she sold this statue for 750 pesos. If the
statue is viewed as an investment, what annual rate did she earn?
300
r= =0.0667∨6.67 %
450× 10
8. Accumulate P18,700 at 0.25% simple discount for 2 years and 5 months.
18700
F= =18813.67
29
( 1−0.0025×
12 )
9. The note has a face value of P 12, 500; dated April 12, 2013 that has to be paid after 5 months. The note has an
5 1
interest of 5
% but discounted at a rate of 7 %, 45 days after April 3, 2013. How much was the proceeds?
12 2
5
(
F=12500 1+0.054167 ×
12
=12782.12 )
117
P=12782.12 1−0.075 × (
360
=12470.56 )
10. How much time is needed for money to triple if invested at 9% compounded bimonthly?
3−¿ log 1
t=log =12.30 ¿
0.09
6 log 1+ (6 )
11. If an entrepreneur applies for a loan amounting to P500,000 in a bank, the simple interest of which is P157,500
for 3 years, what interest rate is being charged?
157500
r= =0.105
500000 ×3

12. Mr. John borrowed P20,760 at 3 ½% simple interest on July 13, 2018. The loan is payable on March 16, 2019.
Find the exact and ordinary interest.

246
I =20760 ×0.035 × =489.71 Exact
365

24 6
I =20760 ×0.035 × =496.51 Ordinary
360

13. Find the face value of a 90-day note if it has an interest rate of 12% and was discounted 35 days after signing. The
note has discount rate of 7% and has a proceed of 9, 000 pesos.
9000
F= =9097.29
55
(
1−0.07 ×
360 )
9097.29
P= =8832.32
90
(
1+ 0.12×
360 )
14. A P12, 700, 150-day note was signed on March 27, 2019 at a discount rate of 7%. The note was discounted 40
days before the maturity date. Find the interest rate if the note has a proceed of P 13, 500.
13500
F= =13605.82
40
(
1−0.07 ×
360 )
I =13605.82−12700=905.82
905.82
r= =0.105=0.1712
150
12700 ×
360

15. GCIS approved the loan of Jiminie worth P150,000 at 18% interest for 15 years. Three years before the maturity,
BPI Bank discounted it at 20%. Determine the proceeds of the transaction.
F=150000 ( 1+ 0.18× 15 )=555000
P=555000 ( 1−0.20× 3 )=222000