SHS

General Mathematics
Module 30:
Solving Problems Involving Simple and
Compound Interest

1
General Mathematics
Grade 11/12 - Module 30: Solving Problems Involving Simple and Compound
Interest
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Sherlyn A. De la Peña, T-I

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D.

Assistant Schools Division Superintendent

German E. Flora, Ph.D., CID Chief

Virgilio C. Boado, Ph.D., EPS in Charge of LRMS

Erlinda M. Dela Peña, Ed.D., EPS in Charge of Mathematics

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

2
 11/12

General
Mathematics
Quarter 2: Week 2 – Module 2
Solving Problems Involving Simple and
Compound Interest

3
 Target

There are different methods that you can use to compute for the interest of
your money in any investments. The common method that you may have
encountered in your previous lessons is the simple interest rate. In simple interest,
you relate money in terms of your investment. The other interest rate is called the
compound interest.
In your previous lesson, you have learned to illustrate simple and compound
interests. Your knowledge in computing the interest, maturity value, future value
and present value will be useful in solving problems involving simple and compound
interest.

In this module, you need to apply the previous concepts to solve problems
dealing with interests and apply them in dealing with daily life problems which you
may encounter.

After going through this module, you are expected to:

1. Solve problems involving simple and compound interests (M11GM-IIb-2)

Subtasks:

1. Define simple and compound interests

2. Distinguish between simple interest and compound interests
3. Compute for interest, maturity value, future value and present value in simple
and compound interests.

Before going on, check how much you know about this topic. Answer
the pre-test on the next page in a separate sheet of paper.

1
Pre-Test
Directions: Read and analyze each item carefully. Write the letter of the best answer
using a separate sheet of paper.

1. What is the amount of money borrowed or invested on the origin date?

A. Annuity B. Interest C. Loans D. Principal

2. Which of the following is the amount paid or earned for the use of money?
A. Bonds B. Interest C. Loans D. Stocks

3. What do you call a date on which the money borrowed or loan is to be

completely repaid?
A. Loan B. Maturity C. Present D. Origin

4. Which of the following statements best illustrates a simple interest?

A. It is a share in the ownership of a company.
B. It is a sequence of payments done periodically and in equal amounts.
C. It is the interest that is computed on the principal and then added to
it.
D. It is the interest that is computed on the principal and also on the
accumulated past interests.

5. A loan institution charges 9% simple interest to P 70, 000 loan for 3 years.
What is the interest on the loan?
A. P 15, 000.00 C. P 20, 000.00
B. P 18, 900.00 D. P 22, 900.00

6. How long will a principal of P 30,000 that earn an interest of P 4,500 at 3%

simple interest?
A. 5 years C. 15 years
B. 10 years D. 20 years

7. What is the maturity value when P 40,000 is compounded annually at an

interest rate of 2.5% in 4 years?
A. P 30, 000.75 C. P 44, 152.52
B. P 42, 351.35 D. P 45, 000.00

8. Suppose P 55,000 will due in 9 years at 7% compounded annually. How much

is the principal amount?
A. P 20, 000.00 C. P 25, 000.75
B. P 22, 465.25 D. P 29, 916.36

9. What is the frequency of conversion when money is compounded quarterly?

A. 1 B. 2 C. 4 D. 12

10. What is the interest rate in a conversion period (j) if the annual interest rate
is 7.5% compounded quarterly?
A. 0.050 B. 0.01875 C. 0.125 D. 0.575

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11. What will be the total number of conversion periods if money is compounded
quarterly with 2 years and 6 months term?
A. 4 B. 6 C. 8 D. 10

12. What is the maturity value if Mark deposited P 35,000 in a bank at 3%

compounded semi-annually for 12 years?
A. P 45, 000.00 C. P 55, 000.00
B. P 50, 032.60 D. P 62, 275.50

13. Mr. De Jesus made an investment for 5 years with an interest rate of 6%
compounded semi-annually. What is the frequency of conversion?
A. 2 B. 4 C. 6 D. 12

14. What will be the interest rate in a conversion period if the annual interest rate
is 16% compounded quarterly?
A. 4% B. 40% C. 0.004% D. 4.05%

15. What is the compounding frequency if the total number of conversion periods
is 12 and the term is 6 years?
A. Annually B. Quarterly C. Monthly D. Semi-annually

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 Jumpstart

For you to understand the lesson well, do the following activities.

Have fun and good luck!

Activity 1: Read and Analyze Me!

Directions: Read and analyze the situation carefully. Then, answer the questions
below.
Mr. De Jesus wants to invest his money to a certain company. He asks Mr.
Velasquez, his friend, to help him choose for the best investment.
Mr. De Jesus has P 200, 000 to invest. His friend presented to him a table
that would show the future value of his money using two methods in computing for
the interest. The interest rate in both schemes is at 3.5%.
Year Scheme 1 Scheme 2
1 P 207, 000.00 P 207, 000.00
2 P 214, 000.00 P 214, 245.00
3 P 221, 000.00 P 221, 743.58
4 P 228, 000.00 P 229, 504.60
5 P 235, 000.00 P 237, 537.26
6 P 242, 000.00 P 245, 851.07
7 P 249, 000.00 P 254, 455.85

Questions:
Direction: Write the letter of the correct answer in a separate sheet of paper.

1. Which scheme shows simple interest?

A. Scheme 1 C. Both Scheme 1 and 2
B. Scheme 2 D. None of the above
2. Which scheme shows compound interest?
A. Scheme 1 C. Both Scheme 1 and 2
B. Scheme 2 D. None of the above
3. How much would he earn if he would invest his money in scheme 1 for 12
years?
A. P 77, 000.00 C. P 105, 000.00
B. P 84, 000.00 D. P 112, 000.00
4. How much would Mr. De Jesus earn if he wishes to invest until the 16th year
in scheme 1?
A. P 112, 000.00 C. P 133, 000.00
B. P 126, 000.00 D. P 140, 000.00
5. How much would Mr. De Jesus earn in scheme 2 for the 20 th year?
A. P 140, 000.00 C. P 197, 957.77
B. P 157, 000.00 D. P 397, 957.77

4
 Discover

Simple Interest

Simple interest is charged only on the loan amount called the principal. Thus,
interest on the interest previously is not included. Simple interest is calculated by
multiplying the principal by the rate of interest by the number of payment periods in
a year.

Annual Simple Interest

𝐼𝑠 = 𝑃𝑟𝑡
where:
𝐼𝑠 = simple interest
P = principal, or the amount invested or borrowed
r = simple interest rate
t = term or time in years

Examples:
1. What will be the interest earned for a loan of P 25, 000 at 12% simple interest
for 5 years?

Given: P = P 25, 000 r = 12% = 0.12 t = 5 years

Find: 𝐼𝑠
Solution:

𝐼𝑠 = 𝑃𝑟𝑡
𝐼𝑠 = (25, 000)(0.12)(5)
𝐼𝑠 = 15, 000
The interest earned is P 15, 000.

2. When invested at an annual interest rate of 6%, the amount earned P 10, 500
of simple interest in 2 years. How much money was originally invested?

Given: r = 6% or 0.06 t = 2 years 𝐼𝑠 = P 10, 500

Find: P
Solution:
𝐼𝑠
𝑃=
𝑟𝑡
10,500
𝑃 = (0.06)(2)
𝑃 = 87, 500
The amount invested is P 87, 500.

3. If an entrepreneur applies for a loan amounting to P 400, 000 in a bank, the

simple interest of which is P 150, 500 for 3 years, what interest rate is being
charged?

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 Given: P = 400, 000 t = 3 years 𝐼𝑠 = 150, 500
Find: r
Solution:
𝐼𝑠
𝑟=
𝑃𝑡
150,500
𝑟=
(400,000)(3)
𝑟 = 0.125 = 12.5%
The bank charged an annual interest rate of 12.5%.

4. How long will P 100, 000 earn a simple interest of P 20, 000 at 2% per annum?

Given: 𝐼𝑠 = P 20,000 P = 100, 000 r = 2% or 0.02

Find: t
Solution:
𝐼𝑠
𝑡=
𝑃𝑟
20,000
𝑡=
(100,000)(0.02)
𝑡 = 10 years

5. How much interest is charged when P 50, 000 is borrowed for 9 months at an
annual interest rate of 10%?

Given: P = P 50, 000

r = 10% = 0.10
9
t= year = 0.75 year
12

Note: To convert units of time from months to years, use these formulae:
𝑛𝑜.𝑜𝑓 𝑚𝑜𝑛𝑡ℎ𝑠
Time in months 𝑡=
12

Find: 𝐼𝑠
Solution:

𝐼𝑠 = 𝑃𝑟𝑡
𝐼𝑠 = (50, 000)(0.10)(0.75)
𝐼𝑠 = 3, 750

The simple interest charged is P 3, 750.

6. Teresa borrowed P 120,000 from her uncle. If Teresa agreed to pay an 8%

annual interest rate, calculate the amount of interest she must pay if the loan
period is (a) 2 years, (b) 9 months, and (c) 18 months

Solution:
a. Given: P = P 120,000 r = 8% or 0.08 t = 2 years
Find: 𝐼𝑠
𝐼𝑠 = 𝑃𝑟𝑡
𝐼𝑠 = (120,000)(0.08)(2)

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 𝐼𝑠 = 19, 200

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b. Given: P = 120,000 r = 8% or 0.08 t = 9 months or year
12
Find: 𝐼𝑠
𝐼𝑠 = 𝑃𝑟𝑡
9
𝐼𝑠 = (120,000)(0.08) ( )
12
𝐼𝑠 = 7, 200

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c. Given: P = 120,000 r = 8% or 0.08 t = 18 months or year
12
Find: 𝐼𝑠
𝐼𝑠 = 𝑃𝑟𝑡
18
𝐼𝑠 = (120,000)(0.08) ( )
12
𝐼𝑠 = 14, 400

7. Calculate the interest if you get a loan of P 200, 000 from a bank at 10.5%
interest rate for 180 days.

Given: P = P 200, 000

r = 10.5% = 0.105
180
t= year = 0.493 year
365

Note: To convert units of time from days to years, use these formulas:
𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠
Time in days (for exact method) 𝑡=
365

𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠
Time in days (for ordinary method) 𝑡=
360

Find: 𝐼𝑠
Solution:
𝐼𝑠 = 𝑃𝑟𝑡
180
𝐼𝑠 = (200,000)(0.105) ( )
365
𝐼𝑠 = P 10, 356. 17

Compound Interest

Many banks savings account pays compound interest. In this case, the
interest is added to the account at regular intervals, and the sum becomes the new
basis for computing interest. Compound interest is a type of interest where the
amount of interest generated in terms of year is based on both the starting amount
and the previously earned interest.

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 Future Value (F) at Compound Interest

𝐹 = 𝑃(1 + 𝑟)𝑡

Present Value (P) at Compound Interest

𝐹
𝑃=
(1 + 𝑟)𝑡
or
𝑃 = 𝐹(1 + 𝑟)−𝑡

where

P = principal or present value

F = maturity (future) value at the end of the term
r = interest rate
t = term/time in years

The compound interest 𝐼𝑐 is given by

𝐼𝑐 = 𝐹 − 𝑃
Examples:
1. What is the interest of P 25,000 if invested at 4.5% compounded annually in
3 years?

Given: P = P 25,000 r = 4.5% or 0.045 t = 3 years

Find: 𝐼𝑐
Solution:

𝐹 = 𝑃(1 + 𝑟)𝑡
𝐹 = (25,000)(1 + 0.045)3
𝐹 = 28,529.15

𝐼𝑐 = 𝐹 − 𝑃
𝐼𝑐 = 28,529.15 − 25,000
𝐼𝑐 = 3,529.15

The interest is P 3, 529.15.

2. If Mr. Dela Cruz is investing P 200,00 with compound interest rate of 3.5%
for 10 years, how much is the money of Mr. Dela Cruz after 10 years? How
much does he earn?

Given: P = 200,000 r = 3.5% or 0.035 t = 10 years

Find: F, 𝐼𝑐
Solution:

𝐹 = 𝑃(1 + 𝑟)𝑡
𝐹 = (200,000)(1 + 0.035)10
𝐹 = 282,119.75
𝐼𝑐 = 𝐹 − 𝑃

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 𝐼𝑐 = 282,119.75 − 200,000
𝐼𝑐 = 82,119.75

Mr. Dela Cruz will have P 282,119.75 after 10 years of investment using the
interest that is compounded annually. He actually earned P 82,119.75 after
10 years.

3. What are the amounts of interest and maturity value of a loan for P 20,000 at
6% compound interest for 3 years?

Given: P = 20,000 r = 6% or 0.06 t = 3 years

Find: F, 𝐼𝑐
Solution:

𝐹 = 𝑃(1 + 𝑟)𝑡
𝐹 = (20, 000)(1 + 0.06)3
𝐹 = 23, 820. 32

𝐼𝑐 = 𝐹 − 𝑃
𝐼𝑐 = 23, 820. 32 − 20, 000
𝐼𝑐 = 3, 820. 32

The maturity value is P 23, 820. 32 and the interest is P 3,820.32

4. Ms. Bautista aims to have his investment grow to P 600, 000 in 4 years. How
much should she invest in an account that pays 5% compounded annually?

Given: F = 600, 000 r = 5% or 0.05 t = 4 years

Find: P
Solution:
𝐹
𝑃=
(1 + 𝑟)𝑡

600, 000
𝑃=
(1 + 0.05)4
𝑃 = 493, 621. 48

She should invest P 493, 621. 48.

Compounding More than Once a Year

In computing compound interest and the compound amounts when

compounded monthly, quarterly, semi-annually and annually the frequency of
conversion period increases the compound interest also increases as well as the
compound amount. The formula in finding compound amount when compounding
is computed more than once a year.

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 Maturity Value (F), Compounding m times a year

𝐹 = 𝑃(1 + 𝑗)𝑛

Present Value (P) at Compound Interest

𝐹
𝑃=
(1 + 𝑗)𝑛

where:
F = maturity value
P = principal
j = rate of interest for each conversion period
𝑖𝑚 𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝑗= =
𝑚 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛
t = term/time in years
n=txm

Table1. Frequency of Conversion

Compounding Frequency Frequency of Conversion (m)
Compounded Annually 1
Compounded Semi-annually 2
Compounded Quarterly 4
Compounded Monthly 12
Compounded Daily 365

Examples:
1. Find the maturity value and interest if P 10, 000 is deposited in a bank at 2%
compounded quarterly for 5 years.
Given: P = 10,000 𝑖 𝑚 = 2% or 0.02 t= 5 years m=4
Find: F, 𝐼𝑐
Solution:
Compute for the interest rate in a conversion period (j)
𝑖 𝑚 0.02
𝑗= = = 0.005
𝑚 4

Compute for the total number of conversion periods

𝑛 = 𝑚 𝑥 𝑡 = (4)(5) = 20

Compute for the maturity value

𝐹 = 𝑃(1 + 𝑗)𝑛
𝐹 = (10, 000)(1 + 0.005)20
𝐹 = 11, 048.96
The compound interest is
𝐼𝑐 = 𝐹 − 𝑃
𝐼𝑐 = 11, 048.96 − 10, 000
𝐼𝑐 = 1, 048.96

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2. Allan borrows P 50, 000 and promises to pay the principal and interest at 12%
compounded monthly. How much must he repay after 6 years?

Given: P = 50,000 𝑖 𝑚 = 12% or 0.12 t= 6 years m = 12

Find: F
Solution:
𝐹 = 𝑃(1 + 𝑗)𝑛
0.12 (12)(6)
𝐹 = 50, 000(1 + )
12
𝐹 = 50,000(1 + 0.01)72
𝐹 = 50, 000(1.01)72
𝐹 = 102, 354. 97

Thus, Allan must pay P 102, 354.97 after 6 years.

3. Michael received a monetary graduation gift from his parents amounting to

P 5, 000. He decided to place his graduation money in an account and leave
it there for 2 years in time for his college degree. He puts his money to an
account that gives 3.5% interest compounded quarterly. How much will be in
Michael’s account at the end of two years?

Given: P = 5,000 𝑖 𝑚 = 3.5% or 0.035 t= 2 years m=4

Find: F, 𝐼𝑐
Solution:
Compute for the interest rate in a conversion period (j)
𝑖 𝑚 0.035
𝑗= = = 0.00875
𝑚 4

Compute for the total number of conversion periods

𝑛 = 𝑚 𝑥 𝑡 = (4)(2) = 8

Compute for the maturity value

𝐹 = 𝑃(1 + 𝑗)𝑛
𝐹 = (5, 000)(1 + 0.00875)8
𝐹 = 5, 360.91

Michael will have P 5, 360.91in his account at the end of two years.

4. What is the present value of P 25, 000 due in 2 years and 6 months if money
is worth 10% compounded quarterly?

1
Given: F = 25, 000 𝑖 𝑚 = 10% or 0.10 t=2 years m=4
2
Find: P
Solution:
Compute for the interest rate in a conversion period (j)
𝑖 𝑚 0.10
𝑗= = = 0.025
𝑚 4

11
 Compute for the total number of conversion periods (n)
1
𝑛 = 𝑚 𝑥 𝑡 = (4) (2 ) = 10
2
Compute for the present value
𝐹
𝑃=
(1+𝑗)𝑛
25,000
𝑃=
(1+0.025)10
𝑃 = 19, 529. 96

5. How much should you deposit in a bank that pays 2% compounded quarterly
to accumulate an amount of P 80, 000 in 6 years?

Given: F = 80, 000 𝑖 𝑚 = 2% or 0.02 t = 6 years m=4

Find: P
Solution:
Compute for the interest rate in a conversion period (j)
𝑖 𝑚 0.02
𝑗= = = 0.005
𝑚 4

Compute for the total number of conversion periods (n)

𝑛 = 𝑚 𝑥 𝑡 = (4)(6) = 24

Compute for the present value

𝐹
𝑃=
(1+𝑗)𝑛
80,000
𝑃=
(1+0.005)24
𝑃 = 70, 974.85

12
 Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Enrichment Activity 1: Fill Me!

Complete the tables by solving for the unknown.
A. Simple Interest
Principal (P) Rate (r) Time (t) Interest (𝐼𝑠 )
10, 000 8% 15 (1)
(2) 2% 5 10, 000
360, 000 (3) 2 3, 600
500, 000 10.5% (4) 175, 500
800, 000 9.25% 2.5 (5)
B. Compound Interest
Principal (P) Rate (r) Time (t) Compound Maturity Value (F)
Interest (𝐼𝑐 )
35, 600 6% 9 months (6) (7)
140, 250 10% 15 months (8) (9)
75, 800 8.5% 2years (10) (11)
(12) 2% 5 (13) 50, 000
(14) 9.25% 2.5 (15) 100, 000

Assessment 1
Solve the following problems on simple and compound interests.
1. Irene invested P 25, 000 at 16% simple interest for 6 years.
a. How much interest will be earned?
b. What is the future value of the investment at the end of 6 years?

2. In a certain bank, Marie invested P 88, 000 in a time deposit that pays 1.5%
compound interest in a year. How much will be her money after 6 years? How
much interest will she gain?

Enrichment Activity 2: Complete Me!

Complete the following statements with the correct answers.
1. When money is compounded monthly, the frequency of conversion (m) is
__________________.
2. If the interest rate per conversion period is 1% and money is compounded
monthly, the nominal rate (𝑖 𝑚 ) is ___________________.
3. When the annual interest rate is 16% compounded quarterly the interest rate
in a conversion period (j) is ____________________.
4. When the term is 3 years and 6 months and money is compounded semi-
annually, the total number of conversion periods (n) is ___________________.

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 5. When the total number of conversion periods is 12 and the term is 6 years,
then money is compounded _____________________.
Assessment 2
Solve the following problems. Show clean and neat solutions.
1. Kaye aims to accumulate an amount of P 180, 000 in 5 years and 6 months.
Find the present value on the following investments and tell which investment
requires a smaller principal.
a. Simple interest of 8.5%
b. 8.5% compounded semi-annually

2. Lina is going to make investments for her daughter’s education in 5 years’

time. If she is going to invest her P 30, 000 for 2.5% compounded semi-
annually in 5 years, how much would be her money at the end of 5 years?

Deepen

Directions: Analyze and solve the problem carefully. Show complete and
clean solutions.

Mr. Cruz thought of investing or saving some of his money after all the
leisure’s that he enjoyed. He believes in the saying “A penny saved is a penny is a
penny earned”. With P 20, 000 remaining cash on hand he plans to save it in a bank,
but he is still in doubt where to invest the money. Bank A offers him a simple interest
of 8.5% per annum. Bank B offers 8.5% compounded semi-annually. Help him solve
his problem by computing for the future value of his money every year until the 10th
year.

Year Bank A Bank B

1
2
3
4
5
6
7
8
9
10

How much will be his money after 10 years? Which bank offers the best investment?
Why?

14
Your output will be graded using this rubrics.
Criteria Excellent Satisfactory Developing Beginning
10 points 8 points 5 points 2 points
Accuracy of the Shows accurate Shows solution Shows solution The solution is
Solution solution. with minimal with plenty of all erroneous.
errors. errors.
Mathematical Shows excellent Shows clear Shows limited Did not apply
Concept understanding understanding understanding the concept of
of the concept of of the concept of of the concept of solving
solving solving solving problems
problems problems problems involving simple
involving simple involving simple involving simple and compound
and compound and compound and compound interest.
interest. interest. interest.

Gauge

Directions: Read and analyze each item carefully. Write the letter of the best answer
using a separate sheet of paper.

1. When the annual interest rate is 16% compounded quarterly the interest rate
in a conversion period is _________________.
A. 4% B. 40% C. 0.004% D. 4.05%

2. Which of the following is calculated by multiplying the principal by the rate of

interest by the number of payment periods in a year?
A. Annuity
B. Business Loans
C. Compound Interest
D. Simple Interest

3. Which of the following statements best illustrates a compound interest?

A. It is the share in the ownership of a company.
B. It is a sequence of payments done periodically and in equal amounts.
C. It is the interest that is computed on the principal and then added to
it.
D. It is the interest that is computed on the principal and also on the
accumulated past interests.

4. Find the total number of conversion periods when money is compounded

quarterly with 2 years and 6 months term.
A. 4 B. 6 C. 8 D. 10

5. Suppose P 55,000 will due in 9 years at 7% compounded annually. How much

is the principal amount?
A. P 20, 000.00 C. P 25, 000.75
B. P 22, 465.25 D. P 29, 916.36

15
 6. Find the maturity value if Mark deposited P 35,000 in a bank at 3%
compounded semi-annually for 12 years.
A. P 45, 000.00 C. P 55, 000.00
B. P 50, 032.60 D. P 62, 275.50

7. Mr. Santos invested a certain amount in a bank at 6% simple interest per

year. The amount he received for 7 years is P 105,000. How much did Mr.
Santos invest?
A. P 60, 235.36 C. P 73, 943.66
B. P 70, 000.25 D. P 80, 265.25

8. What is the frequency of conversion when money is compounded monthly?

A. 1 B. 2 C. 4 D. 12

9. When the total number of conversion periods is 72 and the term is 6 years,
then money is compounded ___________________.
A. Annually B. Quarterly C. Monthly D. Semi-annually

10. How much should you deposit in a bank so that it will accumulate to P 100,
000 at 2% simple annual interest for 10 years?
A. P 80, 000.00 C. P 85, 000.00
B. P 83, 333.33 D. P 88, 333.00

11. Peter borrowed P 100, 000 at 8% compounded annually. How much will he be
paying after 2 years?
A. P 116, 640.00 C. P 121, 650.00
B. P 161, 460.25 D. P 146, 608.75

12. What amount must be deposited by a student in a bank that pays 2%

compounded annually so that after 12 years he will have P 100, 000?
A. P 75, 550.00 C. P 80, 000.50
B. P 78, 849.32 D. P 85, 250.36

13. Christian lends P 60, 000 for 4 years at 5% compounded semi-annually. Find
the future value.
A. P 70, 000.00 C. P 73, 104.17
B. P 72, 250.25 D. P 75, 257.36

For items nos. 14-15, use the problem below.

Marco deposited P 20, 000 that gives 2% compounded quarterly and let it
stay there for 5 years.

14. Find the future value.

A. P 25, 520. 25 C. P 32, 278.23
B. P 22, 097.91 D. P 35, 000.00

15. What is the interest of this amount?

A. P 5, 520.25 C. P 12, 278.23
B. P 2, 097.91 D. P 15, 000.00

Great job! You are done with this

module.

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