Solve the following problem systematically and box the final answer with its

appropriate units. Write the question and the complete solution in the prescribed
format. Submit your scanned work on the provided link on Google Classroom.
1. For the period from Jan. 15 to Nov. 28, 2014, calculate the simple interest on
P 5,000, if the interest rate is 21 percent.
Given:
P = P5,000
i = 21%
n = Jan. 15, 2014 to Nov. 28, 2014 = 317 days
Required:
I=?
Formula:
I=P×i×n
Solution:
I=P×i×n
317
I = P 5,000 × 0.21 ×
360
I = P 924.5833333
I = P 924.58
2. What is the annual interest rate if a $15,000 investment receives $365 in 4 months?
Given:
P = $15,000
I = $365
n = 4 months÷12 months/year=1/3 years
Required:
i=?
Formula:
I
i=
P∙n
Solution:
I
i = P∙n
$365
i = $15,000∙1/3 = 0.073

i = 7.30%
3. What is the future equivalent of $10000 invested for 4 1/4 years at 8% simple
interest per year?
Given:
P = $10,000
i = 8% per year
n = 4 1/4 years = 4.25 years
Required:
F=?
Formula:
F = P[1 + (i × n)]
Solution:
F = P[1 + (i × n)]
F = $10,000[1 + (0.08 × 4.25)] = $13,400
F = $13,400.00
4. A principal of $2000 is placed in a savings account at 4% per annum compounded
annually. How much is in the account after three years?
Given: Formula:
P = $2,000 F = P(1 + i)N
i = 4% per annum Solution:
N = 3 years F = P(1 + i)N
Required: F = $2,000(1 + 0.04)3
F=? F = $2,000(1.124864)
F = $2,249.73

5. To have a total of $10,000 after 8 years, what principal do you have to deposit in a
4.5 percent saving account compounded monthly?
Given:
F = $10,000
i = 4.5 % compounded monthly
t = 8 years
N = 12t = 96 months
Required:
P=?
Formula:
F = P(1 + i)N
F
P= N
(1+i)
Solution:
F
P=
(1+i)N
$10,000
P= 0.045 96
(1+ )
12
P = $6,981.462417

P = $6981.46