Activity 1

1. Determine the ordinary simple interest on P10,000 for 9 months and 15 days if the rate
of interest is 6%.
2. Determine the exact simple interest on P20,000 for the period from January 15 to
November 15, 2012, if the rate of simple interest is 5%.
3. You loan from a bank the amount of P100,000 with a rate of simple interest of 20% but
the interest was deducted from the loan at the time the money was borrowed. If at the
end of 1 year, you have to pay the full amount of P100,000, what is the actual rate of
interest?
4. Mr. Dee Jay borrowed money from the bank and he received the amount of P18,420
and promised to repay P20,000 at the end of 10 months. Determine the rate of simple
interest.
5. If P50,000 is borrowed for 90 days at 8% per annum simple interest. How much will be
due at the end of 90 days?
6. The employee has a promissory note, due 5 years hence, whose maturity value is
P70,000. If the rate of interest is 12% compounded semi-annually, what is the value of
this note now?
7. A debt of P150,000 was paid for as follows: P40,000 at the end of 3 months, P50,000 at
the end of 12 months, P30,000 at the end of 15 months, and a final payment F at the
end of 21 months. If the rate of interest is 12% compounded quarterly, find the final
payment F.
8. Charlie wishes to bequeath his youngest son P200,000 ten years from now. What
amount should he invest now if it will earn interest of 6% compounded annually during
the first 5 years and 8% compounded quarterly during the next 5 years?
9. If P500,000 is invested at 8% interest compounded quarterly, how many years will it
take for this amount to accumulate to P900,000?
10. At a certain interest rate compounded annually, P100,000 will become P450,000 in 15
years. What is the amount at the end of 10 years