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.