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Interest Calculation and Investment Problems

The document contains 9 math word problems involving calculating simple and compound interest earned on various investments and loans over different periods of time. It asks the reader to show the complete solutions to the problems.

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Brixter Adviento
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107 views1 page

Interest Calculation and Investment Problems

The document contains 9 math word problems involving calculating simple and compound interest earned on various investments and loans over different periods of time. It asks the reader to show the complete solutions to the problems.

Uploaded by

Brixter Adviento
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ACTIVITY # 2

PROBLEM SOLVING. Show your complete solutions.

1. April deposits P 3,000 into a savings account earning 3% simple interest per annum on January
1, 2021. Calculate how much money she will have at the end of the year.
2. Using the data in # 1, how much money will April have at the end of the year if instead of simple
interest, she was given compound interest?
3. If Lilia paid P 980 in interest at 14% for 2 years, how much money did she borrow?
4. Luz paid P 1080 in interest on a P 3,060 loan she got from the credit union. The term of the loan
is 3 years. Find the rate.
5. Nilda earned P 225 on her P4,500 investment earning 10% interest. Find the term of the
investment.
6. Genevieve invests P 5,000 in the bank at 6% compounded annually. Calculate the interest her
money will have earned at the end of 3 years.
7. Pamela invests P 1,000 at 10% compounded annually. Calculate the interest she will have
earned at the end of 7 years. Approximately how long will it take for her investment to double?
8. Jed invested P 5,000 at a bank at a compound interest of 12% compounded semi-annually. How
much money will he have at the end of two years?
9. Masipag Corporation has a line of credit with Bank X for P 10,000,000 for the year 2021. For any
amount borrowed, the bank requires the borrower a compensating balance of 5%. Assuming the
company needed P 5,000,000 cash on June 30, 2021 and availed of the credit line for 12%
interest payable on December 31, 2021; and assuming further that the company has no existing
deposit with the bank:
a. How much should the company borrow to have a net cash proceeds of P 5,000,000?
b. How much is the compensating balance?
c. What is the effective interest rate from this transaction?

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