ARELLANO UNIVERSITY

2600 LEGARDA, MANILA, PHILIPPINES

SCHOOL OF BUSINESS ADMINISTRATION
EXPANDED TERTIARY EDUCATION, EQUIVALENCY AND ACCREDITATION PROGRAM
ASSESSMENT ON MATHEMATICS OF INVESTMENT (MGT 103)

Name: ____________________________________________ Score/Rate: ______________________

Solve the following problems and show all pertinent solutions.

1. Mrs. Carlos borrowed ₱15,500 at 7% simple interest. She was charged an amount of
₱1,200 as interest. Compute for the duration of the loan.
2. Mr. Cruz deposited an amount of ₱350,000 in a bank that gives 4.5% on savings account.
How much shall be the accumulated value of the investment after 3 years and 7 months?
How much shall be the interest earnings?
3. A bank charges 10% discount on short term loans. Find the proceeds by each of the
borrowers who requested:
a. ₱18,500 for 45 days
b. ₱13,000 for 5 months
c. ₱50,000 from March 6, 2012 to December 12 of the same year
4. Ms. Santos borrowed a certain amount from the bank that charges 8% discount. If she
received ₱39,700, how much was the amount borrowed?
5. What sum is needed to accumulate ₱500,000 in 7 years if the interest is 6% compounded
monthly?
6. Find the compound amount of ₱13,500 at the end of 5 years and 5 months at 9%
compounded
a. quarterly.
b. Semi-annually
7. A debt of ₱45,000 is due in 10 years. This obligation is to be replaced by a payment of
₱3,000 at the end of 2 years plus 2 equal payments at the end of 4 and 8 years. Find the
size of each payment using the rate, a8% compounded monthly and setting the
comparison date on the 8th year.
8. Tessa owes the following debts:
a. ₱4,000 due in one year
b. ₱7,500 due in 9 months with accumulated simple interest from today at 9%
c. ₱8,500 due in 18 months with accumulated interest from today at 15% compounded
semi-annually

Tessa wishes to replace these debts with two equal payments at the end of 18 months
and 2 years respectively. Find how much each payment is, if money is worth 12%
compounded monthly.

GOOD LUCK