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Solution 1-5 1

The document contains 5 math problems involving concepts like simple and compound interest, present and future value of annuities, equivalent interest rates, and percent composition by mass. The solutions show the formulas used and step-by-step workings to arrive at the final answers.

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Dan Edison Ramos
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4K views4 pages

Solution 1-5 1

The document contains 5 math problems involving concepts like simple and compound interest, present and future value of annuities, equivalent interest rates, and percent composition by mass. The solutions show the formulas used and step-by-step workings to arrive at the final answers.

Uploaded by

Dan Edison Ramos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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1.

A young electrical engineer borrowed money P10,000 at 12% interest and paid P2,000 per annum
for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?
(REE 2019)

Solution 1:

F = P (1+i) n

where:

F = Future amount

P = Present amount

i = rate/percent

n = number of years

ORDINARY ANNUITY

– series of equal payment at equal interval of time.

P = ( A/i ) [ ( (1+i) n - 1) / (1+i) n ]

where:

A = Annuity – a uniform series of payment occurring at equal interval of time.

P = Present amount

I = Rate/Percent

n = number of years

substitute the given:

P = (2,000/0.12) [ ( (1+0.12) 4 – 1 ) / (1+0.12) 4 ]

P = 6,074.698693  store A

remaining to be paid:

P = 10,000 – (store A) = 3,925.301307  store B


Will be paid by the young electrical engineer in 5 years with interest:

F = P (1+i) n = (store B) (1+0.12) 5 = P 6,917. 7221 ~ P 6,922.93

Solution 2: (CASH FLOW)

A young electrical engineer borrowed money P10,000 at 12% interest and paid P2,000 per
annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off
his loan?

FOCAL POINT

NOTE : Future papuntang Present :

P = F (1+i) –n

10,000 = 2k (1+0.12) -1 + 2k (1+0.12) -2 + 2k (1+0.12) -3 + 2k (1+0.12) -4 + x (1+0.12) -5

X = P 6,917.7221 ~ P 6,922.93
2. What is most nearly the present worth of a $100 annuity over 10 years period if the interest is 8%.

SOLUTION:

P = F (1+i) –n

P = 100 (1+0.08) –1 + 100 (1+0.08) –2 + 100 (1+0.08) –3 + 100 (1+0.08) –4 + 100 (1+0.08) –5 + 100
(1+0.08) –6 + 100 (1+0.08) –7 + 100 (1+0.08) –8 + 100 (1+0.08) –9 + 100 (1+0.08) –10 = 671

3. An interest rate of 10% compounded semiannually is equivalent to how many per cent
compounded quarterly? (REE 2019)

SOLUTION:

iesemiannually = iequarterly

inR = 0.09878 x 100% = 9.878%


4. Determine the exact simple interest on P5,000 for the period from January 15 to June 20,1993, if
the rate of simple interest is 14%.

SOLUTION:

I = Pin

January 15, 1993 - 16 days May - 31 days

February - 28 days June 20,1993 - 20 days

March - 31 days

April - 30 days

n = 16 days + 28 days + 31 days + 30 days + 31 days + 20 days = 156 days

Exact simple  n = 365 days

Interest:

I = P5,000(0.14)(156 days x 1year/365days) = P299.1780 ~ P299.18

5. What is the percent composition by mass of oxygen (O) element in sulfuric acid (H2SO4)?

H = 1.008 amu, S = 32.07 amu, and O = 16.00 amu.

SOLUTION:

%O2 = (4(16.00)) / (2(1.008) + 32.07 + 4(16.00) x 100% = 65.25%

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