1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of P74, 900.00, which due at the end of seven months. 2. Clara has invested P 10,000.00, part at 5% and the remainder at 10% simple interest. How much is invested at higher rate if the total annual interest from this investment is P 950.00? 3. Determine the accumulated amount using exact simple interest on P 10,000.00 for the period from January 20, 1990 to November 28 of the same year at 15% interest rate. 4. You owe P120,000 from a friend and promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 moths? 5. A price tag of P150,000 is payable in 60 days. A 3% discount is offered if paid in 30 days. What is the rate of simple interest? 6. A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a period of one year. He received only P50, 150 after the bank collected the advanced interest and an additional amount of P850 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?

1. If a man borrowed money from his girlfriend with simple interest rate of 12%, determine the present worth of P74, 900.00, which due at the end of seven months. 2. Clara has invested P 10,000.00, part at 5% and the remainder at 10% simple interest. How much is invested at higher rate if the total annual interest from this investment is P 950.00? 3. Determine the accumulated amount using exact simple interest on P 10,000.00 for the period from January 20, 1990 to November 28 of the same year at 15% interest rate. 4. You owe P120,000 from a friend and promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 moths? 5. A price tag of P150,000 is payable in 60 days. A 3% discount is offered if paid in 30 days. What is the rate of simple interest? 6. A man borrowed from a bank under a promissory note that he signed in the amount of P60,000 for a period of one year. He received only P50, 150 after the bank collected the advanced interest and an additional amount of P850 for notarial and inspection fees. What was the rate of simple interest that the bank collected in advance?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Answer the following simple interest problem using the provided formula ONLY. Show your complete solution.

Simple Interest
1. If a man borrowed money from his girlfriend with simple interest rate
of 12%, determine the present worth of P74, 900.00, which due at the end
of seven months.
2. Clara has invested P 10,000.00, part at 5% and the remainder at 10%
simple interest. How much is invested at higher rate if the total annual
interest from this investment is P 950.00?
3. Determine the accumulated amount using exact simple interest on P
10,000.00 for the period from January 20, 1990 to November 28 of the
same year at 15% interest rate.
4. You owe P120,000 from a friend and promise to pay 6% simple interest.
How much will you pay at the end of 9 months? How about at the end of 1
year and 6 moths?
5. A price tag of P150,000 is payable in 60 days. A 3% discount is
offered if paid in 30 days. What is the rate of simple interest?
6. A man borrowed from a bank under a promissory note that he signed in
the amount of P60,000 for a period of one year. He received only P50, 150
after the bank collected the advanced interest and an additional amount
of P850 for notarial and inspection fees. What was the rate of simple
interest that the bank collected in advance?

Simple Interest - only the principal earns interest.
where:
I = Pni
F= P + I
F = P + Pni
F = P(ltni)
I= interest
i= rate of interest
period
per
interest
n = number of interest period
P= principal or present worth
F = Future worth or
accumulated amount

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