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Solved Problems in Simple Interest

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Lance Geronimo
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26 views3 pages

Solved Problems in Simple Interest

Uploaded by

Lance Geronimo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SOLVED PROBLEMS IN SIMPLE INTEREST

1.) IF YOU BORROWED MONEY FROM YOUR FRIEND WITH SIMPLE INTEREST OF 15%, FIND THE
PRESENT WORTH OF P30,000, WHICH DUE AT THE END OF 7 MONTHS.
SOLUTION:
F=P+I
F = P + PRT
7
30,000 = P + P(0.15) ( )
12
P = P27,586.21

2.) On Feb 3, 2020, Mr. Viaña made loan of P254,100.00 from Deter Bank. Said loan
shall paid in full on Sep 29 of the same year. Determine the accumulated amount if
the rate of interest is 8%.

Feb 3 – 29 = 26 days
Mar = 31
Apr = 30
May = 31
Jun = 30
Jul = 31
Aug = 31
Sep 29 = 29
Total = 239

I = Pni = 254,100.00 X 239/366 X 0.08 = P13,274.30


F = P + I = P254,100 + 13,274.30 = P267,374.30
3.) Today, March 22, 2021, the Soony Inc. made a deposit at the International bank in
the amount of P130,400 for the purchase of new equipment. The savings account
has an interest of 12% and the money shall be withdrawn on October 22, 2021. How
much is the exact simple interest of the deposit upon withdrawal?

Mar 22 – 31 =9
Apr = 30
May = 31
Jun = 30
Jul = 31
Aug = 31
Sep = 30
Oct 22 = 22
Total = 214

I = Pni = 130,400.00 X 214/365 X 0.12 = P9,174.44


F = P + I = P130,400 + 9,174.44 = P139,574.44

4.) A loan of P65,000.00 was made for the period Jan 19 to August 28, 1986. If the rate
of interest is 7.5%, how much is the future amount using exact simple interest?

Jan 19 – 31 = 12
Feb = 28
Mar = 31
Apr = 30
May = 31
Jun = 30
Jul = 31
Aug 28 = 28
Total = 221

I = Pni = 65,000.00 X 221/365 X 0.75 = P22,137. 84


F = P + I = P65,000.00 + 22,137.84 = P87,137.84
5.) A MAN BORROWED FROM A BANK UNDER A PROMISSORY NOTE THAT HE SIGNED IN THE
AMOUNT OF P30,000.00 FOR A PERIOD OF ONE YEAR . HE RECEIVED ONLY THE AMOUNT
OF P21,000.00 AFTER THE BANK COLLECTED THE ADVANCE INTEREST AND AN
ADDITIONAL AMOUNT OF P85.00 FOR NOTARIAL AND INSPECTION FEES . WHAT WAS THE
RATE OF INTEREST THAT THE BANK COLLECTED IN ADVANCE ?
SOLUTION:
INTEREST = 30,000 − (21,000 + 85) = 8,915
AMOUNT HE ACTUALLY RECEIVED = 30,000 − 8915 = 21,085
8915
RATE OF INTEREST = X100
21,085
RATE OF INTEREST = 42.28%

6.) A man borrowed money from Bebe Lending Investor in the amount of P35,500. After
200 days he is ready to pay and Bebe Lending Investor asked him to pay the amount
of P51,278.00 as full payment including the interest. What is the rate of interest use
in this ordinary simple interest loan?

Amount of interest = 51,278.00 – 35,500


= 15,777.78

I = Pni
P15,777.78 = 35,500.00 X 200/360 X i

i = 15,777.78 / 19,722.22 = .8000 or 80% rate of interest

F = P + I = P35,500.00 + 15,777.78 = P51,278.00

7.) If Monica borrowed money from Leila with a simple interest of 15%, find the
present worth of P50,000, which is due at the end of 7 months.

𝐹 = 𝑃 + 𝑃𝑛𝑖
7
50,000 = 𝑃 + 𝑃 ( ) (0.15)
12
𝑷 = 𝟒𝟓, 𝟗𝟕𝟕. 𝟎𝟏

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