SIMPLE INTEREST PROBLEMS: REVIEW

Solve the following problems under simple interest.

Given that the simple interest formula is

I = Prt

F=P+I

where:

I = the amount of interest

P = amount of principal
F = maturity value
r = annual rate of interest
t = time in years

1. Suppose you borrowed P10,000 from the bank at a 13% rate for 4 years. Find
the interest you will pay on this loan. 1 = Prt 1 = (10000) (13 % )(4) = 5200

2. What will be simple interest for 1 year and 8 months on a principal of P28,500 at
the rate of 12% per annum? 1 =
Put 1 = (20500) (12 % )(2
%
/2) = 5700 +
28500 =
34200

3. A sum of P12,000 is lent out at 5% per annum simple interest. What will be the
amount after 5 years? 1 = Prt =
(12000) (5 % ) (5) = 3000 + 12000 = 15 000
,

4. A sum of P25,000 will become P31,000 in 48 months at some rate of simple

interest. Find the rate of interest per annum.
5. Given that simple interest on a certain sum of money is P4,016.25 at 9% per
annum in 5 years, find the principal.
31 000
=
(25000)(4) r

① 1 =
Put
& 1 = Put 3)000
-
100 000 r
=
-

V
6000 (25 000) r(4) P(9 % ) (5yr)
0 31
,
=
=
.

4016 .
25 =

31 %
= 25000r(4) 4016 .
25 = P(0 09)(5yr) .

= 25 O

8925-
V
0 06 =

p
.

=
or
-

O-6%