Gulifardo,Ezekiel A.

BSME3-A

Assignment 1

Answer:

1. Determine the exact simple interest on P50 000 periods for the period

June 25, 2005 to September 2, 2006, if the rate of interest is 12% per year?

I= pin

=(5000)(12)(435/365)

I=7150.68

1year and 2 month and 8 days = 435 days

2. A loan of P2000 is made for a period of 13 months, from January 1 to January 31 the following

year, at simple interest rate of 20% . What future amount is due as the end of the loan period?

I = Pin

F= P + I

F= 2000+433.33

F= 2433.33

3. If you borrow money from your friend with simple interest of 12%, find the present worth of

P20, 000, which is due at the end of nine months.

F= P ( 1+ni)-1

F= 20000(0.9174)

F=18,348.12

Assingment 2

1.)

A=P⋅(1+(rn))nt
3⋅P=P⋅(1+0.12)t
3=1.12t
ln(3)=t⋅ln(1.12)
ln(3)ln(1.12)=t
t=9.69
so the answer is 9 years and 2months and 9 days to triple the inventory itself in 12%
2.)

Where A is the total amount, P is the principal (initial) amount, r is the interest rate in decimal form, and
t is the number of years.
In this case, P = 3000 and r = 0.09. The first question is how many years until you double your balance.
Double the balance would be 6000. So we want to find what t is when A is 6000.

Divide both sides by 3000

Divide both sides by 0.09

The problem itself does not say how to round. If the answer should be in whole years, the answer would
be 23 years.
The second part of the problem asks the same question, but with r = 0.08 compounded yearly. The
formula for compound interest is

P = 3000, A = 6000, r = 0.08, n = 1, and we are solving for t.

we need to use a natural logarithm since our variable is in an exponent. Taking the ln of both sides, we
have

Due to the laws of logarithms, we can pull the t down.

So

So again, if your answer should be in whole years, it would technically be 10, because the balance
wouldn't be quite doubled in just 9 years. Otherwise, round accordingly.