1.

MIDTERM EXAM IN MMWORLD 467

NAME: HAZEL SERRANO COURSE/YR/BLOCK: BSBA-HRM 1/467 DATE SUBMITTED: APRIL 21,2022

INSTRUCTION: Solve the following problems below using the assigned value to substitute the letters A to I for
the given figures. Present written solution on the space provided.

1. Leah invested A in a savings account at 10% interest, compounded annually, for 3 years. Compute for the
compound amount and compound interest.

ANSWER:
Given: P = 38000, r = 10%, n= 1 and t = 3yrs

A = P(1 + r/n)nt
A = 38,000.00(1 + 0.1/1) (1)(3)
A = 38,000.00(1 + 0.1)(3)
A = 50,578.00
The amount is 50578 and the interest is
A=P+I 12578.
50578=38000+1
I = 50578-38000
I = 12578

2. If B will accumulate to C in D years, what is the interest rate compounded annually?

ANSWER
Given: A = 43000, P = 39000, t = 5 years

r=n[(A/P)1/nt-1]
r = 1 x [(43,000.00/39,000.00)1/(1)(5)-1]
r= 0.0197196

Then convert r to R as a percentage

R = r * 100
R = 0.0197196 * 100
R = 1.972% / year

3. Tim applies for a E loan in a bank, the interest of which is F for G days, what interest rate is being charged?
ANSWER:
I = Prt r= I / Prt
I = 46000 × 0.065 × 0.972222 r= 6.5 / ( 46000 × 0.958904 )
I = 2906.94378 r= 0.00014736
I = 2,906.94 converting r decimal to a percentage
R = 0.00014736 * 100
R = 0.0147%/year
4. What is the period of a loan for H, at 8% ordinary interest, if the amount of interest is I?
ANSWER:
t= I / Pr
t = 4600 / ( 46000 × 0.08 )
t= 1.25
t = 1.25 years (about 1 years 3 months)