EXERCISE SET NO. 2 ’ S.N.: _20170|0G180. *_@/e2/e02\ : RANJO, VALERIE JOY M.- ENGR. EG TADIQUE Name professor: rd Exam May 2005 | o rs gmount ‘of P200 000.00 is deposited for a period of 8 years. Compute the interest twas made at a simple interest rate of 18%. aoe n= (PZOO c00)(0.18)(g) (Ans. P288 000.00) CE Board Exam October 2009 Calculate the exact interest on an investment of P2000.00 for a period from January 30 to September 15, 2001 if the rate of interest is 10%. 2000. 02, 00. 5 n=228 (Ans. P124.93) = 010 SoPn: {=Fin 1 = #2000 x0-10 x £28 1=124.93 "a5 03. : dard Exam September 2017 Find the principal amount if the amount of interest at the end of two years is P4000.00for a simple interest of 6.25% per annum 9 (Ans, P32 000.00) P-L. 40 aL = 2400 im = @dee5)2 P= P32000 04, What amount will be available in eight months if P15 000.00 is invested now at 10% simple interest per year? F=P(1+in) (Ans.P16 000.00) F Pisosd 1 + 2°(8)| F = PI@OGD 05. ME Board Exam October 2000 't you borrow money from your friend with simple interest of 12%, find the present Worth of P20 000.00 which is due at the end of nine months? P= F(44in)™= Peoqo [2+ (eye) (Ans. P18 348.60) P= F18 348.60ECE Board Exam April 2004 06. man buys an electric fan from a merchant that charges P1500.00 at the end of 90 days. The man wishes to pay cash. What is the cash price if money is worth 10% simple interest? peF(tticy) (Ans. P1463,41) Pe PISOO (V+ (0.10999)! P= PI463. 4) 7, ECE Board Exam April 2001 and March 2008 07. p1000.00 becomes P1500.00 in three years. Find the simple interest rate. = PCttin) (Ans. 16.67%) P1500 = Picco] + (i) 3] j= 0.1G67 =1¢.672 08, _ CE Board Exam November 2005 ‘An engineer borrowed a sum of money under the following terms: P650 000.00 if paid in 90 days, or P600 000.00 if paid in 30 days. What is the equivalent annual rate of simple interest? FeEP(Atin) (Ans. 50%) EY 50. f= n i = 50% 03. EE Board Exam April 2012 In how many years will an investment double in value at 5% simple interest rate? Fe PCi+in) (Ans. 20) n=b-2t OP) : O05 n= 2Oyears 10. Complete the following table using ordinary simple interest: 1 P5850 [Poesia | P48 P'5168.64] P15 382.50 | 193.65 8.5 54 11500 | 12707.5_P1207.50 3.5 7080 1500 | P 1556.25 | _P56.25 5 270 a) in = P5BEO xOI2% 240 ¢) F = P4+T= PUSOO+ 1207.50 iirss8 a > F=Pi2707.5 =P(a4in)= . = Pi Fagtny PSBE0 (1 +10.12)( 249) TID wzo.5 oss eRe (my! : Poy Pusco(igis) PEPIS 382.50 ( 1+ (0.085 #4) 3.52 So \SRggIS 88 b+) c0.005)( a5 E-1_ = PISS6.25-P56.25 Fi8i8: PiSCD \ &. PISSy-25 _ wecl. jpieaS="+ Lo75 00S14, d Exam May 1997 eee deposi of P110 000.00 for 31 days earns P890.39 on maturity after deducting 20% withholding tax on interest income, Find the rate of interest per annum (2-0 2) = P890.39 — eq.1 (Ans.11.75%) [2 Pin eae Suos. 2 int Pin ( (-0.2) = F890, 39 PuLO 000.1) Gils)(0-8) = PEgo. 39 i= OMS 2752 15M was invested in a software company on June 3, 2009 at 12% ordinary simple interest. Determine the date at which the investment would equal P19.5M. eas 7 F=PI9.5M. (Ans. November 20, 2011) PIO5M _| =£lgM __=2.5 Answer : NOVEMBER 20, 20II nz2.5years x 3G0days n= JOO days 3, 2009 -Jure 32,2010 -305 UNE 3 Zoi une 3,201 - 305, ECE Board Exam November 2001 A man invested part of P20 000.00 at 18% and the rest at 16%. The annual income from 16% investment was P620.00 less than three times the annual income from 18% investment. How much did he invest at 18%? Pat Pa = P20 000 (Ans. P5457.14) Ps= P20 000-FR 3\a7 F620 ~ Ip 3CFimk- F620 =(Fin)e , bt NF! 3FA(0.13)— Pe20= Fe (Ole) 7 eg-2 Subs. | se . 5 BFA (0.18) —PG20= (PZOOD-Fa ole Ps. = P 5457.14 ‘ ¢ 2 ECE Board Exam March 2008 and October 2008 The amount of P12 800.00 in 4 years at 5% compounded quarterly is, P=P12g09 (Ans. P15 614.59) F=P(ati)” = PIZBOD(14 Be) F=PIS@I4.59ECE Board Exam April 2005 ‘Aman deposited 5000.00 on the date his s is worth 10% compounded semi-annually, what i the ec withdraw on his 21* birthday? vximum a P=5000 i= oye (Ans. P35 200.00) n= 20¢e) F=PUIti "= P5000(1+ 940 F = 35200 EE Board Exam September 2017 With an interest rate of 6% compounded investment ane six years is nearly equal to 06 birthday. If money Mount the son can semi-annually, the value of a P1500.00 (Ans. P2139.00) n= G2) P=® 1500 Fe e(ati)” = Pisoo(1 + 92¢)¢ F =2139.00 ME Board Exam October 2011 What is the accumulated value of P2000.00 in five years at 11% compounded quarterly? (Ans. P3440.00) F=PCi +i)" = Peon (i gy F > 3440.00 ME Board Exam October 2000 ; : What is the present worth of P54 000.00 due in five years if money is worth 11% and is compounded sora, (Ans. P31 613.00) I - 1 P= P4000 (1 +g) "° P=P 21013 EE Board Exam May 2003 A promissory note with a maturity value of P32 000.00 is due is the discount value of the promissory note, if this note 8%? (00 is due 3 years from now. What sed on an interest rate of (Ans. P25 403.00) PFE +i =p 32000 ( HO-08)? P= F 25403.C0 2-1920. 21 22. 23. 24. 25. EE Board Exam September 2005 How much should you put into a 7.9% 5 , in 63 years? Savings account in order to have $175 000,00 P= F( wir SIT5COD (140.079)-¢3 pe Sl454.4 (Ans. $1454.41) ME Board Exam October 2001 How much should you put into a 6% saving five years? P= F(I4+i) "= PIO AD (140.00) F Peers 7essie ) (Ans. P74 725.81) 198 Account in order to have P100 000.00 in ME Board Exam October 2002 What amount must be invested now at 8% interest in order to have a total of P10 000.00 in 10 yrs? P=FECHi = FIO 000(1+0.08)1° (Ans. P4631.93) P= P4631.93 ME Board Exam October 2002 A bank offers 1.2% per month. What is the effective interest rate if compounded monthly? ie= Citi] =| (Ans. 15.4%) fe=[t+o.012]'"7- | le= 15.4% ECE Board Exam April 2001 . . The effective rate of 14% compounded semi-annually is: (Ans. 14.49%) les fall te=[1+034]*-| ‘e= 14.497 ME Board Exam October 2006 Aman invested P100 000.00 with interest at 12% compounded quarterly. What is the effective rate? (Ans. 12.55%) te = [ite [1 Mfg Ve = 12.55% 2-2027. 28. 29. 30. quarterly, it will become P18 032.85. Determine the one e2iNg 4% compounded ie= { i +] a © effective rate of shih Per year. ie=L +98] 4 | ns. 4.06%) ie = 4.00% ME Board Exam October 2000 A sum of money is deposited now in a savings interest rate is 12% and interest is compounded monthiy How stv iat be deposited to yield P500.00 at the end of 11 months? one must ie= [ite] ™-| (Ans. P451.00) one=[iri[?-y l= 9.4888 x0? ez FC ti)" = PS00(1+ 0.00949Rg)7" P=F450.06 ° oc ) P= 2451.00 ME Board Exam March 2011 and September 2012 Find the nominal rate compounded quarterly that is equivalent to 14% compounded semi-annually. ieg tiez (1p) a(4 BA in= 0.1376 (Ans. 13.76%) A commercial bank charges 2% interest per month on the unpaid balance of loans made by its credit card subscribers. It claims that the annual interest applied is 12 (2%) 24%. Is this true? ie=(141)™-| =(140.02)" - les Neary um “STS NOT TRUE ME Board Exam April 1998 'f P5000.00 shall accumulate LA ay years at compounded interest at the end of 10 years. FE PCI+i)" = psoco(ito-02)4° (Ans. P6040.20) F=Pi040.20 \> F-P = Pil040.20-P 5000 I= FG 040.20 8% compounded quarterly, find the 709431. 32. 33. 35, ME Board Exam October 1995 A bank is advertising 9.5% accounts that yield 9.84% ad compounded? w annually. How often is interest ie= [ise] =| 0.0984 =[ \4 oges |) me4 < Quarterly ECE Board Exam March 2008 How many years are required for P: ‘ei : hee oan reqi "2000.00 to double if interest is 12% compounded E=PCiti)? aP=P(4 ta \rr (Ans. 6) (2X 2000) = # 2000 ( 14 Se.20 n=Gyrs. a (Ans. Quarterly) ME Board Exam October 2002 How long will an account invested at 5% compounded yearly be doubled? eePCatiyn alot arn prany (Ans. 14.2 yrs) 2=(1+0.05)" n= \42 yrs: ME Board Exam March and September 2011 Compute the number of years when P2500.00 is compounded to P5800.00 if invested at 12% compounded quarterly. F= Pati (Ans. 7.12) PECOO = P2500 (2+ Quz)*r N=7-(2 yrs. ECE Board Exam October 2007 7 By the condition of a will, the sum of P20 000.00 is left to a girl to be held in a trust fund by her guardian until it amounts to P50 000.00. When will the girl receive the Money if the fund is invested at 8% compounded quarterly? eerie) (Ans. 11.57 years) Fepatdeyme P500uD= Pepe (1+ 228) *" n= \.57 yrs.36. 37. 38. 39. 40. ECE Board Exam October 2008 How long will it take a compoi amount factor of 1.194 if the int Fe PLitij™ = erry (Ans. 6 years) 1194 [1+0.084" n= @yrs. und interest to pr lerest rate ig 3% N°? @ SiNale payment compound A commercial bank offers 12.55% effective interest on deposits. If P75 000.00 is deposited in an account that compounds interest quart amount after 42 months. \. = 12.55% - P=P75095 ; ae aan tee ele Ol2S5=[ i 4de]4_, ie= O12 FePctiy’ F=P75(+ (Ans. P113 441,12) ME Board Exam October 1997 A nominal interest of 3% compounded continuously is given on the account. What is the accumulated amount of P10 000.00 after 10 years? F = Polen, (Ans. P13 498.60) F=Ploowe” 03 (10) F=F1249B.60 P15 000.00 is deposited in a savings account that offers continuous compounding. Determit i if it accumulates to P24 731.00 after 10 years. ee ioe rate if it accu (ans. 5%) P2473\=PI5000e ig =0-05 igs 5% 'f P25 000.00 is deposited in an account that pays 7% interest compounded continuously, determine the number of months required for it to accumulate to P34 50. i Fe peen (ooryn P34 250.50=P250eE n= 4.5 years a n=G-5 yesy (2) (Hee) n= 54 months (Ans. 54 months) 2-2341, CE Board Exam May 2006 How many years will a deposit tri a Herald lt potenti iple itself at an interest rate of 7% per annum 2 Pele Be [oom (Ans. 15.7) n= \5-7yrs. 42, CE Board Exam May 2005 ‘An amount of P200 000.00 is deposited for a peri An an 0 ¢ Period of 8 years. C i if a) it was made 18% compounded bi-monthly; b) it was made at 1% compounded continuously. . (Ans. P626 450.38; P644 139.16) FeP(itt b) F = Pelt 0) ano (t+ 238)" FESO 8) FP 820450.38 Pa laa L= FrP= P(826450.33-amen)| I2 & I= F'844133-\0- F 200000 = =F626450. 38 T* F644 139.10 43. CE Board Exam November 2003 A nominal annual rate of interest of 7%, compounded continuously, has an effective annual interest rate of: . le real (Ans. 7.25%) ie HEP -| = 0.0725 \e= 7.25% 44. ME Board Exam March 2011 and September 2012 If a machine is purchased on installment and the buyer makes an P80 000.00 down payment and owes a balance of P180 000,00 in 2 years, compute the machine's cash value if is jounded quarterly. alue if the money is worth 14% comp. q ateiescizco} Bice ee 2345071 P(P-900 006)(1-035) = F150000 Pe PIGZIN- 73 2-2445, Two years ago, Ms. A. Grande de < posited P30 000.00 it interest compounded semi-annually. If another deposit of fog (una, tnat ears 10% determine the accumulated amount in the fund after threc ee 90 is made today, (P-30 000) (Ans. P75 668.76) 20000 123456780910 Fe RaHye Es F56406.19(1+0.05)¢ Fee(itiy? 7 +005) 30 000(1+0.05)* FP iScca 7, F = P30 t65.19+ 2000p F"P50465.19 = & 46. CE Board Exam May 2007 The purchase of a new car requires P100 000.00 down Payment, P300 000.00 after \ two years, and P600 000.00 after five years. The interest rate is 18% ‘compounded monthly. a) What is the present worth of car? b) What is the lump sum value of the car if paid in 5 years? | (P10 cD0) eee 0 © @ 4 oe ea) 3c : re#@O 200 000 )PaF(tiy? 7 a aoe P30D0001!.018)“4eanmnn( Loy? P= P555440 76 b) F=RCiti)n 5 © = P555440.76 (140.015, Fae 357s BS ) (Ans. P555 440.76; P1357 063.84) 47. _ K.T. Perry deposited P50 000.00 in bank X which offers 12% interest compounded bi- monthly. Two years later, she deposited P70 000.00 in bank which os ae interest compounded quarterly. The following year, she deposited Pa 000,00 in bank Z which offers 16% interest compounded semi-annually, Determine due if she makes a total witha’ wal three years after the last depo: Ar) 45 +f ref 6 ~ ! = ier Piri t+ P Citi slg FeP(iti) a ite Pitty Poa } Vo F = 50000( '+ %3%)°*+70000(it- "+ gocay, wach F =F 366192. 079 ) (8 Pgoc0Dr late this now, P1.2M will be needed to replace a machine. To accumulat as. ‘Five years feng fund of four yearly deposits is established. If the first deposit is due "amount, a 4 the succeeding deposits incroased by P100 000.00 per yoar, determine newt you! Af the first deposit. Interest is 8% effective. the amoun | (Ans. P106 182.70) + 20 bay eefert sn Feros) OB)" (Pr 100005) (1.08)? 2 . 1 a ( Pram) .08)* +((P200.000)( 1.08) 000.00 savings account eaming 8% effective interest was opened five years 49, APsiiignother savings account is started today at 12% interest compounded quarter, determine the amount required such that both accounts will be equal seven from now. = me n (Ans, P5503.17) I JD er@pH2 5000('! 08) * 2.25503 -168 50. ME Board Exam October 1997 A student plans to deposit his P1500.00 in the bank now and another P3000.00 for the next two years. If he plans to withdraw P5000.00 three years after his last deposit for the purpose of buying shoes, what will be the ‘amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%. soo | ote (Ans. P1550.00) pe | I | i { ref pt-6 150 a 1500 (1-1) ©+3000(1-1)*— 500001.) = F a0 F= PI5s50 Pa51, ME Board Exam April 2004 If P25 000.00 is invested now, P35 000.00 two years from now, and P45 000.00 four years from now, what will be the total amount in 10 years? Interest rate is 4%. _ {! Ref @pt. 10 (Ans. P141 845.00) ; 25000 (104)!"+ 35000( 04) *-+4503(1.04)° =F \ F F141 845.38 * ps -45m0 52, Three years ago, an engineer opened a savings account with an initial deposit of 200 000.00. He withdrew P50 000.00 three months later, and another P50 000.00 ix months after the first withdrawal. Last year, he deposited P100 000.00 and withdrew P150 000.00 six months later. Find the account balance today if interest is 40% compounded quarterly. ~~ (Ans. P93 717.82) 200 000(1.025)" +|y000(L.02 se =50 Go0¢4 625)" + 50 WO (1-02 (80000) (1025)? + = F= 9371782 53. Deposits of P35 000.00, P48 000.00, and P25 000.00 were made in a savings account eight years, five years, and two years ago, respectively. Determine the accumulated amount in the account today if a withdrawal of P55 000.00 was made four years ago. The applied interest rate is 11% compounded continuously. 550 Fe x (Ans. P113 330.66) © ssrome8 4 agoone"rageanet ne Hesoe F = P13 330-66 54. Determine the adjusted interest rate if the real interest rate is 5% per year and the inflation rate is 9% per year. i = (tia tin)-l (Ans. 14.45%) ("= (1 +205) (14+0.09)-1 . , 20.1445 114450 56. For the past eight years an engineering company has enjoyed a rate of return adjusted for inflation of 18% per year. Determine its real rate of return if the inflation fate for the same period is 7% per year. ONS ( 1+0.07)( (+iz) v1 (Ans. 10.28%) i, = 10.28% ,56. 57. 58. 59. ‘A manufacturing equipment that costs P85 000.00 will have to be replaced in three years. If the inflation rate is 7.5% and the interest rate is 12% per year, determine the future amount needed for the replacement. FeP( iti)? (Ans. P148 353.70) RA +i) (C44 2 P Hh = 3 ns 3yrs = FB500 (1-12 )(1-075)°=1 SEF ig)ot = (120121007 h FE P= P49 353 70 20: F=PC14i)F = 6 Q5000( 1+0-204)+1 Fe F148353.70 ME Board Exam March 2011 and 2013 A man borrowed P2000.00 from a bank and agreed to pay the loan at the end of one year. The bank discounted the loan and gave him P1950.00 in cash. How much is the rate of discount? (Ans. 2.5%) ECE Board Exam November 1999 You loan from a firm an amount of P100 000.00 with a simple interest rate of 20%, but the interest was deducted from the loan at the time the money was borrowed. Ifat the end of one year, you have to pay the full amount of P100 000.00, what is the actual rate of interest? (Ans. 25%) ECE Board Exam October 2007 A man borrows P15 000.00 from Hong Kong bank. The rate of simple interest is 12%, but the interest is to be deducted from the loan at the time the money is borrowed. At the end of one year he has to pay back P15 000.00. What is the actual rate of interest? (Ans. 13.64%) A Credit Cooperative discounts 15% simple interest per year on loans made. If a member borrows P100 000.00, determine a) the amount he will receive; b) the actual rate of interest. (Ans. P85 000.00; 17.65%)