Problem 911
P4,000 is borrowed for 75 days at 16 % per annum simple interest. How much will be due at the end of 75
days?
Problem 912
A deposit of P 110,000 was made for 31 days. The net interest after deducting 20% withholding tax is
P890.36. Find the rate of return annually.
Problem 913
Agnes Abanilla was granted a loan of P20,000 by her employer CPM Industrial Fabricator and Construction
Corporation with an interest of 6 % for 180 days on the principal collected in advance. The corporation would
accept a promissory note for P 20,000 non-interest for 180 days. If discounted at once, find the proceeds of
the note.
Problem 914
What will be the future worth of money after 12 months, if the sum of P 25,000 is invested today at a simple
interest rate of 1% per month?
Problem 915
If you borrowed money from your friend with a simple interest of 12%, find the present worth of P 50,000,
which is due at the end of 7 months.
Problem 916
Annie buys a television set from a merchant who asks P 1,250 at the end of 60 days. Annie 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?
Problem 917
It is the practice of almost all banks in the Philippines that when they grant a loan, the interest for one year
is automatically deducted from the principal amount upon release of money to a borrower. Let us therefore
assume that you applied for a loan with a bank and the P 80,000 was approved at an interest rate of 14 % of
which P 11,200 was deducted and you were given a check of P 68,800. Since you have to pay the amount
of P80,000 one year after, what then will be the effective interest rate?
Problem 918
A man borrowed P 20,000 from a local commercial bank which has a simple interest of 16% but the
interest is to be deducted from the loan at the time that the money was borrowed and the loan is payable at
the end of one year. How much is the actual rate of interest?
Problem 919
A bank charges 12 % simple interest on a P 300.00 loan. How much will be repaid if the loan is paid back
in one lump sum after three years?
Problem 920
A man borrowed P 100,000 at the interest rate of 12% per annum, compounded quarterly. What is the
effective rate?
Problem 921
What is the corresponding effective rate of 18% compounded semi-quarterly?
Problem 922
Mandarin Bank advertises 9.5 % account that yields 9.84 % annually. Find how often the interest is
compounded.
Problem 923
A bank pays one percent interest on savings accounts four times a year. The effective annual interest rate
is
Problem 924
The effective rate of 14% compounded semi-annually is
Problem 925
An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?
Problem 926
The amount of P 12,800 in 4 years at 5 % compounded quarterly is
Problem 927
Find the present worth of a future payment of P 100,000 to be made in 10 years with an interest of 12%
compounded quarterly.
Problem 928
On his 6th birthday, a boy is left an inheritance. The inheritance will be paid in a lump sum of P 10,000, on
his 21st birthday. What is the present value of the inheritance as of the boy's 6th birthday, if the interest is
compounded annually? Assume i = 4%.
Problem 929
The amount of P 50,000 was deposited in the bank earning an interest of 7.5% per annum. Determine the
total amount at the end of 5 years, if the principal and interest were not withdrawn during the period
Problem 930
Alexander Michael owes P 25,000.00 due in 1 year and P 75,000 due in 4 years. He agrees to pay
P50,000.00 today and the balance in 2 years. How much must he pay at the end of two years if money is
worth 5% compounded semi- annually?
Problem 931
At an interest rate of 10% compounded annually, how much will a deposit of P 1,500 be in 15 years?
Problem 932
How long (in years) will it take money to quadruple if it earns 7 % compounded semi-annually?
Problem 933
In how many years is required for P 2,000 to increase by P 3,000 if interest at 12% compounded semiannually?
Problem 934
Consider a deposit of P 600.00 to be paid back in one year by P 700.00. What are the conditions on the
rate of interest, i% per year compounded annually such that the net present worth of the investment is
positive? Assume i ≥ 0.
Problem 935
A company invests P 10,000 today to be repaid in 5 years in one lump sum at 12 % compounded
annually. How much profit in present-day pesos is realized?
Problem 936
A firm borrows P 2,000 for 6 years at 8 %. At the end of 6 years, it renews the loan for the amount due
plus P 2,000 more for 2 years at 8 %. What is the lump sum due?
Problem 937
A deposit of P 1,000 Is made in a bank account that pays 8 % interest compounded annually.
Approximately how much money will be in the account after 10 years?
Problem 938
P 200,000 was deposited on January 1, 1988 at an interest rate of 24 % compounded semi-annually. How
much would the sum be on January 1, 1993?
Problem 939
If P 500,000 is deposited at a rate of 11.25 % compounded monthly, determine the compounded interest
after 7 years and 9 months.
Problem 940
Fifteen years ago P 1,000.00 was deposited in a bank account, and today it is worth P 2,370.00. The bank
pays interest semi-annually. What was the interest rate paid in this account?
Problem 942
A sum of P 1,000 is invested now and left for eight years, at which time the principal is withdrawn. The
interest has accrued and is left for another eight years. If the effective annual interest rate is 5 %, what will
be the withdrawal amount at the end of the 16th year?
Problem 943
P 1,500.00 was deposited in a bank account, 20 years ago. Today it is worth P 3,000.00. Interest is paid
semi-annually. Determine the interest rate paid on this account.
Problem 944
A merchant puts in his P 2,000.00 to a small business for a period of six years. With a given interest rate
on the investment of 15 % per year, compounded annually, how much will he collect at the end of the sixth
year?
Problem 945
A man expects to receive P 25,000 in 8 years. How much is that money worth now considering interest at
8% compounded quarterly?
Problem 946
P 500,000 was deposited 20.15 years ago at an interest rate of 7% compounded semi-annually. How much
is the sum now?
Problem 947
In year zero, you invest P 10,000.00 in a 15% security for 5 years. During that time, the average annual
inflation is 6 %. How much, in terms of year zero pesos will be in the account at maturity?
Problem 948
By the condition of a will, the sum of P 20,000 is left to a girl to be held in a trust fund by her guardian until it
amounts to P 50,000. When will the girl receive the money if the fund is invested at 8 % compounded
quarterly?
Problem 949
You borrow P 3,500.00 for one year from a friend at an interest rate of 1.5 % per month instead of taking a
loan from a bank at a rate of 18% per year. Compare how much money you will save or lose on the
transaction.
Problem 950
What is the present worth of two P 100 payments at the end of the third year and fourth year? The annual
interest rate is 8%.