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Midterm Learning Activity 1

This document contains solutions to several problems involving simple and compound interest calculations. It begins with four problems involving simple interest using the formula I=PRT. It then shifts to discussing compound interest, providing the compound interest formula and solving seven problems using this approach. Examples include calculating interest earned on investments compounded quarterly, semi-annually, and monthly over periods of 1 to 6 years.

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Cyd Benito
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733 views3 pages

Midterm Learning Activity 1

This document contains solutions to several problems involving simple and compound interest calculations. It begins with four problems involving simple interest using the formula I=PRT. It then shifts to discussing compound interest, providing the compound interest formula and solving seven problems using this approach. Examples include calculating interest earned on investments compounded quarterly, semi-annually, and monthly over periods of 1 to 6 years.

Uploaded by

Cyd Benito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name : Cyd B.

Pega
Section : F11A

SIMPLE INTEREST

 `.How much interest will Mary earn in her investment of S Php 12.400 at 6% simple
interest for for 3 years

SOLUTION :

I = Prt
I = php 2,232.00

First, converting R percent to r a decimal


r = R/100 = 6%/100 = 0.06 per year,
then, solving our equation

I = 12400 × 0.06 × 3 = 2232


I = php 2,232.00

The simple interest accumulated


on a principal of php 12,400.00
at a rate of 6% per year
for 3 years is php 2,232.00

 Sophia borrowed Php 25,000 from a lending corporation that charges 12% interest with
an agreement to pay the principal and the interest at the end of the term. If she paid Php
35,500 at the end of the term, for how long did she use the money.

SOLUTION :

t = I / Pr
t = 8.3333 years
t = 25000 / ( 25000 × 0.12 ) = 8.3333
t = 8.3 years

 lan wishes to have Php 36,500 after 1 year and 3 months to be used for their educational
tour. How much should he invest in his account today if the interest rate is 5 1/2%?

SOLUTION :

 F=P(1+r t)
 36,500 = P(1+ (0.0505)(1.4)
 P = 34251.39586168

 Mrs. Santiago plans to purchase a new loptop for her daughter by getting a loan of Php
51,000 from a bank that charges 11 3/4 % interest rate. How much will she pay the bank
after 169 days using exact interest?

SOLUTION :

I = Prt
I = 51000 × 0.1175 × 0.463014 = 2774.611395
I = php 2,774.61

Lorie borrowed Php 23,000 from XYZ Cooperative that charges 7% interest rate for 298
days. How much interest will Lorie pay?

SOLUTION :

I = Prt
I = 23000 × 0.07 × 0.816438 = 1314.46518
I = php 1,314.47

COMPOUND INTEREST

 Find the compound amount of Php2,000 invested for 1 year at 5% compounded


Quarterly.

 SOLUTION :

 F = P(1 + r/n)nt
 First, convert R as a percent to r as a decimal
r = R/100
r = 5/100
r = 0.05 rate per year,

Then solve the equation for A


A = P(1 + r/n)nt
A = 2,000.00(1 + 0.05/4) (4)(1)
A = 2,000.00(1 + 0.0125)(4)
A = Php 2,101.89

 Determine the compound amount and interest of Php14,000 invested at 11%


compounded semi-annually for 5 years?

SOLUTION :

F = P(1+i)^n
F=14,000(1+0.0157142857)^22
F-19.728.87727632

 Ana borrowed Php 11,300 from Amy at 15% compounded monthly for 18 months. How
much will Amy receive at the end of the term?

SOLUTION :

3. F=P(1+i/m)
4. F=11,300(1+0.00833333/11)
5. F=11308.56
 How much will be invested to accumulate Php 87,000 at the end of 6 years if money
earns 9% interest rate, compounded quarterly?

SOLUTION :

First, convert R as a percent to r as a decimal


r = R/100
r = 9/100
r = 0.09 per year,

Then, solve the equation for P


P = A / (1 + r/n)nt
P = 87,000.00 / (1 + 0.09/4) (4)(6)
P = 87,000.00 / (1 + 0.0225)(24)
P = Php 51,003.46

 Justine invested Php 50,000 for 2 years. At what rate of interest converted monthly did
his money earn if he received Php 61,000 at the end of the term?
 SOLUTION :

Solving for rate r as a decimal


r = n[(A/P)1/nt - 1]
r = 12 × [(61,000.00/50,000.00)1/(12)(2) - 1]
r = 0.09983844

Then convert r to R as a percentage


R = r * 100
R = 0.09983844 * 100
R = 9.984%/year

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