# Miñano-Finals-Worksheet-1.pptx

26 de Dec de 2022
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### Miñano-Finals-Worksheet-1.pptx

• 1. Worksheet #1 Simple and Compound Interest
• 2. Find the simple interest and the maturity value. 1.Php 150 000 at 5 % for 8 years. 2.Php 780 000 at 4% for 13 years. 3.Php 120 000 at 3% for 10 years 4. P = Php 150 000; F = 151 000; r = 4% 5. P = Php 750 000; F = 750 500; r = 2%
• 3. 1. Php 150 000 at 5 % for 8 years. Is = Prt Is = (150,000) (0.05) (8) Is = Php 60,000 P + Is = MV 150,000 + 60,000 = Php 210,000 MV = Php 210,000 2. Php 780 000 at 4% for 13 years. Is = Prt Is = (780,000) (0.04) (13) Is = Php 405,600 P + Is = MV 780,000 + 405,600 = Php 1,185,600 MV = Php 1,185,600 3. Php 120 000 at 3% for 10 years Is = Prt Is = (120,000) (0.03) (10) Is = Php 36,000 P + Is = MV 120,000 + 36,000 = Php 156,000 MV = Php 156,000
• 4. 5. P = Php 750 000; F = 750 500; r = 2% F - P = Is 750,500 - 750,000 = 500 Is = 500 Is = Prt 500= (750,000) ( 0.02) (t) 500 = 15,000t 15,000 t = 0.03 years t = 0.03 x 12 = 0.36 months t = 0.36 x 30 = 10.8 days t = 10.8 x 24 = 259.2 hours t = 259.2 x 60 = 15,552 minutes 4. P = Php 150 000; F = 151 000; r = 4% F - P = Is 151,000 - 150,000 = 1,000 Is = 1,000 Is = Prt 1,000 = (150,000) ( 0.04) (t) 1,000 = 6,000t 6,000 t = 0.17 years t = 0.17 x 12 = 2.04 months t = 2.04 x 30 = 61.2 days t = 61.2 x 24 = 1468.8 hours t = 1468.8 x 60 = 88,128 minutes
• 5. Find the interest rate (simple interest) 6. P = Php 150 000; I=1 000; t = 2 yrs 7. P = Php 320 000; I = 7 000; t = 18 months 8. P = Php 2 050 000; I = Php 5 400; t = 2.8 yrs
• 6. 6. P = Php 150 000; I=1 000; t = 2 yrs I = Prt 1,000 = (150,000) (r) (2) 1,000 = 300,000r 300,000 r = 0.003 or 0.3% 7. P = Php 320 000; I = 7 000; t = 18 months I = Prt 7,000 = (320,000) (r) (1.5) 7,000 = 480,000r 480,000 r = 0.0146 or 1.46% 8. P = Php 2 050 000; I = Php 5 400; t = 2.8 yrs I = Prt 5,400 = (2,050,000) (r) (2.7) 5,400 = 5,535,000r 5,535,000 r = 0.00097 r = 0.0010 or 0.10%
• 7. Solve the following: 9. A businessman invested Php 100 000 in a fund that 10.5% compounded annually for 5 years. How much was the fund at the end of term? 10. Cris borrows Php 50 000 and promises to pay the principal and interest at 12% compounded monthly. How much must he repay after 6 years?
• 8. 9. A businessman invested Php 100 000 in a fund that 10.5% compounded annually for 5 years. How much was the fund at the end of term? Given: P = 100,000; r = 10.5% or 0.105; t = 5; m = 1 (annually) Required: Maturity Value of the fund at the end of the term. Equation: F = P (1 + r/m)mt Solution: F = 100,000 (1+ 0.105/1)^(1) (5) F = 100,000 (1+ 0.105)^5 F = 100,000 (1.105)^5 I = Php 16474.47 P + I = MV 100,000 + 16474.47 = Php 116,474.47 Answer: The Amount of money at the end of the term is approximately Php 116,474.47 in total.
• 9. 10. Cris borrows Php 50 000 and promises to pay the principal and interest at 12% compounded monthly. How much must he repay after 6 years? Given: P = 50,000; r = 12% or 0.12; t = 6; m = 12(monthly) Required: Maturity Value of debt that he needs to repay in total. Equation: F = P (1 + r/m)mt Solution: F = 50,000 (1+ 0.12/12)^(12) (6) F = 50,000 (1+ 0.01)^72 F = 50,000 (1.01)^72 I = Php 102354.97 P + I = MV 50,000 + 102,354.97 = Php 152,354.97 Answer: The Amount of debt that accumulated is Php 152,354.97 in total.