Financial Mathematics

Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Name: Lystra Jaselle A. Aninag Course/Year: BSOAOUMN – 1st Year

Section: 1 Subject Specialist: Cynthia Equiza
EXERCISE 1
Solve the following problems.
1. What is the simple interest of P1000 at 7.5% due on 3 years?
Solution:
Given: P = 1,000 r = 7.5% or (0.075) t = 3 years
I = Prt
I = (1,000) (0.075) (3)
I = P 225
2. Mrs. Rodriguez borrows P75000 to Mr. Roy. She promised to pay it after 2.5 years with
an interest of 12%. How much simple interests will Mr. Roy received?
Solution:
I = Prt
I = (75000) (0.12) (2.5)
I = P22,500
3. Mr. Simone deposits P80000 for 4% interest rate. If he withdraws it after 8 years, how
much simple interest will he get?
Solution:
Given: P = 80,000 r = 4% or (0.04) t = 8 years
I = Prt
I = (80,000) (0.04) (8)
I = P 25,600
4. Yeng puts P10000 into an investment yielding 6%. She left the money in for 2 years.
How much interest did she get?
Solution:
I = Prt
I = (10000) (0.06) (2)
I = P1,200
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5. Ren borrowed P45000 at 3% for 5 years. How much is the simple interest?
Solution:
I = Prt
I = (45,000) (0.03) (5)
I = P 6,750
6. Raquel borrowed P30000 at 9% interest for 4 years to buy a computer. How much did
she pay as an interest?
Solution:
I = Prt
I = (30000) (0.09) (4)
I = P10,800
7. Dylan borrowed P112000 at a rate of 1.8% for 7 years. How much interest did he pay?
Solution:
Given: P = 112,000 r = 1.8% or (0.018) t = 7 years
I = Prt
I = (112,000) (0.018) (7)
I = P14,112
8. Phoebe deposited P500000 into a savings account at a local bank that earned 5.5 of
interest per year. How much interest will she earn after 10.5years?
Solution:
I = Prt
I = (500000) (5.5%) (10.5)
I = (500000) (0.055) (10.5)
I = P288,750
Room E202, Main Building, PUP A. Mabini Campus, Anonas Street, Sta. Mesa, Manila 1016
Trunk Line: 335-1787 or 335-1777 local 305
Website: www.pup.edu.ph

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9. Kent owes P38000 with an interest rate of 4% in the student loans. If the loan will be
paid after 2 years. How much interest will he pay?
Solution:
I = Prt
I = (38,000) (0.04) (2)
I = P 3,040
10. Find the simple interest of P18000 at 2.5% for 5 years.

Solution:
I = Prt
I = (18000) (0.025) (5)
I = P2,250
EXERCISE 2.
1. A man borrows P500 for four months at 9%. How much interest must he pay?
Solution:
Given: P = 500 r = 9% or (0.09) t = 4/12 months
I = Prt
I = (500) (0.09) ()
Simple Interest = P 15
2. On May 24, 2012, Ms. Agnes borrowed P65000 and agreed to repay the loan together
with the interest at 12% in 90 days. How much is the ordinary simple interest?
Solutions:
I = Prt
I = (65000) (0.12) (90) 360
I = P1,950

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3. Find the exact simple interest on P51000 at 18% for 30 days.

Solution:
Given: P = 51,000 r = 18% or (0.18) t = 30/365 days
I = Prt
I = (51,000) (0.18) ()
Exact Simple Interest = P 754.52 or P755
4. Precious borrows P100000 from Caleb which charges her 7.5% simple interest for 95
days. Find the ordinary simple interest.
Solution:
I = Prt
I = (100000) (0.075) (95)
Exact Simple Interest = P1979.17
5. Using the information on no.4, find its exact simple interest.

Solution:
Given: P = 100,000 r = 7.5% or (0.075) t = 95/365 days
I = Prt
I = (100,000) (0.075) ()
Exact Simple Interest = P 1,952.05
6. Find the ordinary simple interest, if she invests P20550 yielding 15% simple interest at
24 days.
Solution:
I = Prt
I = (100000) (0.075) (95)
I = P1979.17

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7. Mr. Y put P45000 as an investment yielding 10.5% interest rate. How much interest will
his money earn after 10 months?
Solution:
Given: P = 45,000 r = 10.5% or (0.105) t = 10/12 months
I = Prt
I = (45,000) (0.105) ()
Simple Interest = P 3,937.50 or P 3,938
8. Find the exact simple interest on P1450 at 6% for 75 days.

Solution:
I = Prt
I = (1450) (0.06) (75)
I = P652
9. Ms. Tiffany borrowed P6450 due on 8 months. How much interest if the rate is 14%.
Solution:
Given: P = 6,450 r = 14% or (0.14) t = 8/12 months
I = Prt
I = (6,450) (0.14) ()
Simple Interest = P 602
10. Ms. Rose loans P14500 from Ms. Tulip. She promised to pay it with 10% interest due on
49 days. How much interest will Ms. Tulip get?
Solution:
I = Prt
I = (14500) (0.10) (49) 360
I = P197.36
I = Prt
I = (14500) (0.10) (49)
I = P194.66

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EXERCISE 3.
1.Julie earns P10000 at 4% interest after 3 years. How much money did she invest?
Solution:
Given: I = 10,000 r = 4% or (0.04) t = 3 years
P = I/RT
P = 10,000 / (0.04) (3)
P = 10,000 / 0.12
P = P 83,333.33
2. Gabriella paid an interest of P1068.75 to a finance company at a rate of 6.25% for

4.75
years. How much did she borrow?
Solution:
P = I/RT
P = 1068.75 / (.0625) (4.75)
P = 1068.75 / 0.296875
P = ₱3,600
3. Sam earns P450 in his savings account after 2.5 years. If it charges 4.5%, how much
is her principal?
Solution:
Given: I = 450 r = 4.5% or (0.045) t = 2.5 years
P = I/RT
P = 450 / (0.045) (2.5)
P = 450/ 0.1125
P = P 4,000

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4. Jane owes the bank some money at 5% per year. After two years, she paid P1250 as
an interest. How much did she owe the bank?
Solution:
P = I/RT
P = 1250 / (.05) (2)
P = 1250 / .1
P = ₱12,500
5. A man took loan from a bank at the rate of 12% simple interest. After 3 years he had
to
pay P5400 interest only for the period. The principal amount borrowed by him was:
Solution:
Given: I = 5400 r = 12% or (0.12) t = 3 years
P = I/RT
P = 5400 / (0.12) (3)
P = 5400 / 0.36
P = P 15,000
6. A sum fetched a total simple interest of P4016 at the rate of 9% in 5 years. What is the
principal?
Solution:
P = I/RT
P = 4016 / (.09) (5)
P = 4016 / 0.45
P = ₱8,924.444444 or ₱8,924.44

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7. A certain amount earns simple interest of P1771 after 7 years. If the rate is 11%, what
is the amount?
Solution:
Given: I = 1,771 r = 11% or (0.11) t = 7 years
P = I/RT
P = 1771 / (0.11) (7)
P = 1771 / 0.77
P = P 2,300
8. Find the principal of P210 at 7% rate for one year.

Solution:
P = I/RT
P = 210 / (.07) (1)
P = 210 / 0.07
P = ₱3000
9. Daisy paid P3380 at 5% simple interest after 6.5 years. How much did she borrow?
Solution:
Given: I = 3,380 r = 5% or (0.05) t = 6 .5 years
P = I/RT
P = 3380 / (.05) (6.5)
P = 3380 / 0.325
P = P 10,400
10. What is the principal of P1500 at 9% for 4 months?

Solution:
P = I/RT
P = 1500 / (.09) (4/12)
P = 1500 / (.09) (0.333333333)

Page 8 of 12
P = 1500 / 0.03
P = ₱50,000
EXERCISE 4.
1. Mrs. Perez borrows 5500 payable after 7 months. If her money earns P500
simple interest, find the interest rate.
Solution:
Given: I = 500 P = 5,500 t = 7 months
r = I/PT
r = 500 / (5500) (7/12)
r = 500 / (5500) (0.5833)
r = 500 / 3208
r = 0.1558 or 15.58%
2. Mr. Paz borrowed 102000 to buy feeds for his piggery. After 9 months, she
paid 12500 as interest. Find the interest rate.
Solution:
Given: I = 12500 P = 102000 t = 9 months
r = I/PT
r = 12500 / (102000) (9/12)
r = 12500 / (102000) (0.75)
r = 12500 / 76500
r = 0.1633 or 16.33%
3. At what rate was 23000 invested if it earned 666 for 115 days?
Solution: Given: I = 666 P = 23,000 t = 115 days
r = I/PT
r = 666 / (23000) (115/360)
r = 666 / (23000) (0.3194)

Page 9 of 12
r = 666 / 734.62
r = 0.0906 or 9.06%
4. After 3 months, Mr. Willie Nep paid 7500 interests for the sum of money he
borrowed at 80250 to buy seeds for his farm. Find the interest rate.
Solution:
Given: I = 7500 P = 80250 t = 3 months
r = I/PT
r = 7500 / (80250) (3/12)
r = 7500 / (80250) (0.25)
r = 7500 / 20062.5
r = 0.3738 or 37.38%
5. At what rate will a borrowed sum of money charged if it earns 1/5 of itself as
interest for 1 year and 9 months?
Solution:
Given: I = of P = (P) P = ? t = 1 year and 9 months =
r = I/PT
r = 1/5 / (P) (1 9/12) /100
r = 20 / (21/12)
r = 20 / 21/12
r = 0.1143 or 11.43%
6. Mr. Diaz borrowed 95000 to buy feeds for his poultry. After 9 months, she paid
8500 as interest. Find the interest rate.
Solution:
Given: I = 8500 P = 95000 t = 9 months
r = I/PT
r = 8500 / (95000) (9/12)
r = 8500 / (9500) (0.75)

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r = 8500 / 7125
r = 1.19%
7. At what rate was 70590 invested if it earned 570 for 200 days?
Solution:
Given: I = 570 P = 70,590 t = 200 days
r = I/PT
r = 570 / (70590) (200/360)
r = 570 / (70590) (0.5555)
r = 570 / 39212.7
r = 0.0145 or 1.45%
8. Mr. Santiago borrows 4600 payable after 8 months. If her money earns P125
simple interest, find the interest rate.
Solution:
Given: I = 125 P = 4600 t = 8 months
r = I/PT
r = 125 / (4600) (8/12)
r = 125 / (4600) (0.6667)
r = 125 / 3066.7
r = 0.0407 / 4.07%
9. After 2 months, Mr. Shi Zu paid 750interest for the sum of money he
borrowed at 90780to buy seeds for his farm. Find the interest rate.
Solution:
Given: I = 750 P = 90,780 t = 2 months
r = I/PT
r = 750 / (90780) (2/12)
r=
r = 0.0496 or 4.96%

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10. At what rate was 4500 invested if it earned 230 for 2 months?

Page 12 of 12

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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Name: Lystra Jaselle A. Aninag Course/Year: BSOAOUMN – 1st Year

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

10. Find the simple interest of P18000 at 2.5% for 5 years.

THE COUNTRY’S 1st POLYTECHNICU

3. Find the exact simple interest on P51000 at 18% for 30 days.

5. Using the information on no.4, find its exact simple interest.

THE COUNTRY’S 1st POLYTECHNICU

8. Find the exact simple interest on P1450 at 6% for 75 days.

THE COUNTRY’S 1st POLYTECHNICU

2. Gabriella paid an interest of P1068.75 to a finance company at a rate of 6.25% for

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

8. Find the principal of P210 at 7% rate for one year.

10. What is the principal of P1500 at 9% for 4 months?

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

THE COUNTRY’S 1st POLYTECHNICU

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