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    Althea Dane Gregorio
    This document contains 5 practice problems related to simple and compound interest calculations. The problems are solved step-by-step showing the formulas and calculations. The original principal is calculated for a 5-year investment earning 7.5% simple interest. The time required to earn Rs. 4,500 interest on Rs. 30,000 at 9% simple interest is also calculated. The simple interest rate earned on an investment of Rs. 35,000 that returned Rs. 39,250 after 2 years and 9 months is determined. The amount that must be invested now at 2% monthly interest to reach a target of Rs. 80,000 in 15 months is calculated. Finally, the compound amount due after 6 years and 2 months on Rs

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    INVESTING

    Uploaded by

    Althea Dane Gregorio
    23 views2 pages
    This document contains 5 practice problems related to simple and compound interest calculations. The problems are solved step-by-step showing the formulas and calculations. The original principal is calculated for a 5-year investment earning 7.5% simple interest. The time required to earn Rs. 4,500 interest on Rs. 30,000 at 9% simple interest is also calculated. The simple interest rate earned on an investment of Rs. 35,000 that returned Rs. 39,250 after 2 years and 9 months is determined. The amount that must be invested now at 2% monthly interest to reach a target of Rs. 80,000 in 15 months is calculated. Finally, the compound amount due after 6 years and 2 months on Rs

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    This document contains 5 practice problems related to simple and compound interest calculations. The problems are solved step-by-step showing the formulas and calculations. The original principal is calculated for a 5-year investment earning 7.5% simple interest. The time required to earn Rs. 4,500 interest on Rs. 30,000 at 9% simple interest is also calculated. The simple interest rate earned on an investment of Rs. 35,000 that returned Rs. 39,250 after 2 years and 9 months is determined. The amount that must be invested now at 2% monthly interest to reach a target of Rs. 80,000 in 15 months is calculated. Finally, the compound amount due after 6 years and 2 months on Rs

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views2 pages

    INVESTING

    Uploaded by

    Althea Dane Gregorio
    This document contains 5 practice problems related to simple and compound interest calculations. The problems are solved step-by-step showing the formulas and calculations. The original principal is calculated for a 5-year investment earning 7.5% simple interest. The time required to earn Rs. 4,500 interest on Rs. 30,000 at 9% simple interest is also calculated. The simple interest rate earned on an investment of Rs. 35,000 that returned Rs. 39,250 after 2 years and 9 months is determined. The amount that must be invested now at 2% monthly interest to reach a target of Rs. 80,000 in 15 months is calculated. Finally, the compound amount due after 6 years and 2 months on Rs

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    062223 [H]
    Created @June 22, 2023 6:33 PM

    Text

    Tags

    1. (3points) A 5-year investment has a maturity value of Php 27, 500. If the applied rate is 7.5% simple interest, what is
    the original principal?

    F = P hp27, 500
    r = 7.5%
    t = 5 years
    F = P (1 + rt)
    27, 500 = P (1 + 0.075 ∗ 5)
    P = 20, 000
    Original Principal = Php20,000

    2. (3 points) How long will it take a Php 30, 000 debt to earn an interest of Php 4, 500 if the simple interest being
    charged is 9%.

    P = P hp30, 000
    I = P hp4, 500
    r = 9%
    t = PIr
    4,500
    t = 30,000∗0.09
    t = 1.67
    Time = 1.67 years

    3. (3 points) James invested Php 35, 000 and had Php 39, 250 returned to him 2 years and 9 months later. At what
    simple interest rate did his money earn?

    P = P hp35, 000
    F = P hp39, 250
    t = 2 years 9 months
    −P
    r = FPt
    r = 39,500−35,000
    35,000∗(2+ 9 ) 12
    r = 0.0441558
    r = 4.41558%
    Rate = 4.42%

    4. (3 points) Jen needs to raise Php 80, 000 in 15 months. What amount should she set aside now and invest in a fund
    earning 2% per month to reach her target amount?

    062223 [H] 1
    F = P hp80, 000
    t = 15
    12
    r = 2%
    F = P (1 + rt)
    15
    80, 000 = P (1 + 0.02 ∗ 12 )
    P = 78, 048.78048
    Principal = Php78,048.78

    5. (3 points) Find the compound amount due in 6 years and 2 months if Php 350, 000 is invested at 12% interest
    compounded quarterly.

    t = 6 years 2 months
    P = P hp350, 000
    r = 12%
    n=4
    F = P (1 + nr )nt
    2 )
    F = 350, 000(1 + 0.12
    4 )
    4∗(6+ 12

    F = P hp725, 637.28057
    Compound Amount = Php725,637.28

    062223 [H] 2

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