SIMPLE INTEREST1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine thepresent worth of P74,900.00, which due at the end of the seven months.2. Riley has invested P10,000.00, part at 5% and the remainder at 10% simple interest. Howmuch is invested at higher rate if the total annual interest from the investment is P950.00?3. Determine the accumulated amount using exact simple interest on P10,000.00 for theperiod from January 20,1990 to November 28 of the same year at 15% interest rate.4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How muchwill you pay at the end of 9 months? How about at the end of 1 year and 6 months?5. A price tag of P150,000.00 is payable in 60 days. A 3% discount is offered if paid in 30days. What is the rate of simple interest?6. A man borrowed from a bank under promissory note that he signed in the amount ofP60,000.00 for a period of 1 year. He received only P50,150.00 after the bank collectedthe advanced interest and an additional amount of P850.00 for notarial and inspectionfees. What was the rate of simple interest that the bank collected in advance?

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Answered: 1. If Ysabelle borrowed money from Nina…

1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine the present worth of P74,900.00, which due at the end of the seven months.

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

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SIMPLE INTEREST
1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine the
present worth of P74,900.00, which due at the end of the seven months.
2. Riley has invested P10,000.00, part at 5% and the remainder at 10% simple interest. How
much is invested at higher rate if the total annual interest from the investment is P950.00?
3. Determine the accumulated amount using exact simple interest on P10,000.00 for the
period from January 20,1990 to November 28 of the same year at 15% interest rate.
4. You owe P120,000.00 from a friend that 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 months?
5. A price tag of P150,000.00 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 promissory note that he signed in the amount of
P60,000.00 for a period of 1 year. He received only P50,150.00 after the bank collected
the advanced interest and an additional amount of P850.00 for notarial and inspection
fees. What was the rate of simple interest that the bank collected in advance?

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