SIMPLE INTEREST
Supplementary questions
1. If you borrowed money from your friend with simple interest of 12%, find the present worth of
P50,000.00 which is due at the end of seven months.
2. Mr. Reyes borrowed money from the bank. He received from the bank an amount of P1,842.00 and
promised to pay P2,000.00 at the end of 10 months. Determine the simple interest rate.
3. If P85,000.00 is invested at 5% ordinary simple interest rate, determine the number of days it will
take for it to accumulate to P92,000.00.
4. An ordinary simple interest rate of 8.5% per year is applied on a P50,000.00 loan made on July 01,
2001. Find the lump sum interest to be paid on the loan on June 05, 2008.
5. Using the same data in problem 4, determine the total amount to be paid on the loan if an exact
interest rate of 7.5% is used.
6. An amount of P20,000.00 was invested at a simple interest, part at 11% for two years, and the rest
at 8% for three years. The total interest earned was P4,690. How much was invested at 11%?
7. An amount of P4,000 is borrowed for 75 days at 16% per annum simple interest rate. How much
will be due at the end of 75 days?
8. What will be the future worth of money after 12 months, if the sum of P25,000.00 is invested today
at a simple interest rate of 1% per month?
9. A bank charges 12% simple interest on a P300.00 loan. How much will be repaid if the loan is paid
back in one lump sum after three years?
10. Maria buys a television set from a merchant who asks for P1,250.00 at the end of 60 days. Maria
wishes to pay immediately, and the merchant offers to compute the cash price on the assumption
that money is worth 8% simple interest. What is the cash price?
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