Assignment:

1) P5000 is borrowed for 75 days at 16% per annum simple interest. How much will be due at
the end of 75 days?
a) 6167.30 b) 5164.38 c) 5166.67 d)
6666.67

2) If you borrow money from your friend with simple interest of 12% find the present worth of
P20, 000 which is due at the end of 9 months.
a) 18,348.60 b) 19,485.59 c) 28,394.45 d) 42,953.10

3) A loan was made 3trs and 4months at 6% simple interest. The principal amount of the loan
has just been repaid along with 800 of interest. Compute the principal amount of the
original loan.
a) 4000 b) 3800 c) 5000 d) 2500

4) What will be the future worth of money after 12 months, if the sum of 25, 000 is invested
today at simple interest rate of 1% per year?
a) 30,000 b) 29,000 c) 28,000 d) 27,859

5) If you borrowed P10, 000 from a bank with 18% interest per annum, what is the total
amount to be repaid at the end of one year?
a) 18,100 b) 81,100 c) 11,800 d) 10,180

6) What is the corresponding effective interest rate of 18% compounded semi-quarterly.

a) 19.25% b) 19.48% c) 18.46% d) 18.95%

7) By the condition of a will, the sum of P2000 is left to a girl to be held in a trust fund by her
guardian until it amounts to P50, 000. When will the girl received the money if the fund is
invested at 8% compounded quarterly?
a) 7.98 yrs. b) 10.34 yrs. c) 11.57 yrs. d) 10.45 yrs.

8) How many years will P100, 000 earned a compound interest of P50, 000 if the interest rate
is 9% compounded quarterly?
a) 3.25 b) 4.55 c) 5.86 d) 2.11

9) What is the present worth of the two P100 payments at the end of the third year and fourth
year? The annual interest rate is 8%.
a) P153 b) P160 c) P162 d) P127

10) In how many years are required for P2, 000 to increase by P3000 if interest is 12%
compounded semi – annually?
a) 8 b) 9 c) 10 d) 7