Rudio, Clark Dave L.

BSRE 2-2

LEARNING ACTIVITY 2
Part 1. Complete the following.
# Interest rate per year Time Discount rate
1 10% 10 months 7.69%
2 15% 45 days 1.84%
3 6% 150 days 2.44%
4 77.78% 6 months 28%
5 80.67% 210 days 32%
6 65.85% 4 months 18%
7 18% 7 months 9.5%
8 7.5% 98 days 2%
9 9% 211 days 5%
Part 2. Solve the following problems.
1. Find the discount rate if Php340,000 is the present value of Php350,000, due after
60 days.
𝑑 = 2.86%
2. If the discount rate is 6%, find the present value of Php30,000, due at the end of 3
months.
𝑃 = 𝑃ℎ𝑝 28,200
3. If a 6% discount rate is charged in discounting amounts due after the below given
time, what equivalent interest rate could be used?
(a) one year 𝑟 = 6.38%
(b) 4 months 𝑟 = 19.15%
4. Phil requests a loan of Php9,000 for 3 months from Banco de Progresibo charging
5% discount.
(a) How much will Phil get now? 𝑃 = 𝑃ℎ𝑝 8,550
(b) What is the interest rate? 𝑟 = 21.05%
5. Dream desires Php250,000 as the amount that he will receive from a 6-month loan
from a bank which charges 7% discount rate.
(a) How much loan must Dream request? 𝑃 = 𝑃ℎ𝑝 232,500
(b) What is the interest rate? 𝑟 = 15.05%
6. ABC Construction paid XYZ Contractors for their service with the following note:
Sixty days after date I promise to pay to XYZ Contractors or order Php3,750,000 at
the Continental Trust Company. Value received. Signed, ABC Construction. Thirty
days later, XYZ Contractors discounted this note at a bank charging 5.5% discount
rate. How much will XYZ Contractors get from the sale of this note?
𝑃 = 𝑃ℎ𝑝 3,543,753.544
7. A certain commodity is payable in 150 days, but if paid in 125 days, there will be a
6% discount. Find the annual rate of interest.
𝑟 = 91.91%

8. An item is payable in 100 days, but if paid in 60 days, there will be a discount. If the
annual rate of interest is 24%, find the discount rate.
𝑑 = 2.60%
9. Engr. Ortiz borrowed Php80,000 from a bank and agreed to pay the loan at the end
of 8 months. The bank discounted the loan and gave him Php70,000 in cash.
(a) What is the interest rate? 𝑟 = 21.43%
(b) What is the discount rate? 𝑑 = 12.50%
10. Lain Paterson borrows money from a bank which uses a simple discount rate of
10%. She signs a promissory note promising to pay Php20,000 per month at the
end of the third, fifth, seventh, and tenth months, respectively. Determine the amount
she received from the bank.
𝑃 = 𝑃ℎ𝑝 76,071.37