Long Test 1 September 18, 2013

Simple Interest and Simple Discount Prof. C. F. Garcia, MST

Answer the following problems in the given order, completely and methodically. You
are on your honor NOT to cheat.

1. Supply the missing quantities.

Principal Rate Term Interest Final amt

a. r=? 435 days P0.15M P2.25Million
b. P230,475.44 d=6% 5 yrs and 4
mos
c. r=4.025% P25,087.34 P150,235.54

2. Find the maturity value of a loan on May 13, 2007 if a man borrowed P8.5 M on
July 13, 2000 at 12.41% simple interest.

3. A man will settle his obligations amounting to P207,850.15 on February 10, 2001.
How much did the man borrow on May 21, 2000 if he was charged 14.75% simple
interest on the loan? How much interest did he pay?

4. 4.1. Discount (find P) P600,000 at 12.02% simple interest rate from August 25, 2010
to March 17, 2011.

4.2. Accumulate (find F) P120,600.17 from September 11, 2011 to June 14, 2012 at
14% simple discount.

5. Mr. Yumul needs P35,850 on Feb 16, 2011 and will settle the loan on Dec 16, 2012.
What size of loan must he borrow at 11.751% discount rate?

6. Cocobank charges 9.125% interest deducted in advance. If Mr. Lopez agrees to pay
P87,000 at the end of 2 yrs and 5 mos., how much will be his proceeds?

7. In what time will it take for P119,200 to become P128,011.65 if interest deducted in
advance is 15.12%?

8. In 2 years and 7 months after February 14, 2013, for value received with interest at
10% simple interest, Erin promises to pay Mr. EJ Garcia the amount of one hundred
seventy-five thousand pesos.

a. Find the maturity value of the note.

b. When will the note mature?
c. Find the proceeds of the loan at 8.05% discount rate if the note is discounted 1
year and 5 months before the maturity date.

FORMULAS: