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Answer:

2-4. Determine the exact simple interest on P5, 000 for the period from Jan.15 to Nov.28, 1992, if the
rate of interest is 22%.

Given:
P= P5, 000
i= 22%

Solution:

January 15= 16 (excluding Jan.15)

February = 29
March = 31
April = 30
May = 31
June = 30
July = 31
August = 31
September = 30
October = 31
November 28 = 28 (including Nov.28)
318 days

Exact simple interest = Pin

= 5000×318∕366×0.22
= P955.74

Answer: P955.74

2-5. A man wishes his son to receive P200, 000 ten years from now. What amount should he invest if
it will earn interest of 10% compounded annually during the first 5 years and 12% compounded
quarterly during the next 5 years?

Given:
F= P200, 000;

For compound interest:

i= 10%; n=5
For compound interest
i= 12%∕4= 3%; n= 5×4=20