ACTIVITY 4.

1
SIMPLE INTEREST
NAME RANIELLA ALLYSSA FLORES DATE

YEAR & BEED 1 SCORE:

SECTION
Direction: For items 2 – 9 (3 points each), round off your answers in to 2 decimal places.
1. a) The formula for simple interest is: I = Prt
b) Rearrange this formula to find:
i) Time: T = I / Pr

ii) The interest rate: r = I/ Pt

iii)The Principal : P = I/rt

2. If Michael invests Php2000 in the bank at a rate of 5.5% for 6 years how much interest will he
make?

P= 2000
r= 5.5% (0.055)
t= 6 years
i=?

I=Prt
I=(2000)(0.055)(6)
= 660

3. Kelsey takes out a loan for Php6000 to start a business after high school. The bank charges her
8% interest for the loan. After 5 years how much interest will be added on to the loan?

P=6000
r=8%(0.08)
t =5 years
I=?

I=Prt
I=(6000)(0.08)(5)
=2400
4. Jessie invests Php3345 in the stock market. Over the 3 years she has this invested she gets an
average return of 7.8%. How much will her investment be worth after the 3 years?

P=3345
r=7.8%(0.078)
t=3 years
I=?

I=Prt
I=(3345)(0.078)(3)

=4127.73

5. Scott takes gets a student loan to go to college after high school. If he pays Php750 in interest at a
rate of 3%, how much must the loan have been for originally?

I=750
r=3%
t=1 year
P=?

P=I/rt
=750/(0.03)(1)
=25000

6.Taylor has just won Php4,250 from the 50/50 at the Sea Dog's game and decides to invest all of it.
If he makes Php1275 with a 5% interest rate, how long must he have had the money invested?

P=4250
r=5%(0.05)
I=1275
t=?

t=I/Pr
=1275 / (4250)(0.05)
=1275 / 212.5
=6years

7.At what rate would you need to invest Php12000 and make Php2880 after 8 years?

P=12000
I=2880
t=8 years
r=?

r=I/Pt
=2800/(12000/8)
=2880/96000
=3%

8.What will the total value of an investment of Php5000 be if it has an interest rate of 7% and is
invested for 20 years?

P=5000
r=7%(0.07)
t=20 years
t=?

I=Prt
=(5000)(0.07)(20)
=7000+5000
=12000

9. Morgan has an investment worth Php130,000 dollars after 20 years. If his original investment was
for Php50,000 what must the interest rate have been?

I=130,000
P=50,000
t=20 years
r=?

r=I/Pt
=80,000/(50,000)(20)
=0.08 or 8%