Exercise 1 INSTRUCTIONS:

Solve for SIMPLE INTEREST (show solutions and box all answers)

I. Find the missing values.

1.

(in pesos) : - - -

P (in pesos) : 1, 320

r (simple interest) : 3%

t (in years) : 3

2.

(in pesos) : 57, 500

P (in pesos) : 200, 800

r (simple interest) : - - -

t (in years) : 4

3.

(in pesos) : 9, 760

P (in pesos) : - - -

r (simple interest) : 2/5%

t (in years) : 7

4.

(in pesos) : 7, 350

P (in pesos) : - - -

r (simple interest) : 10%

t (in years) : 2

5.

(in pesos) : 260,000

P (in pesos) : 1,000,000

r (simple interest) : - - -

t (in years) : 15

II. Bert pays an interest of 31,000 three years after borrowing a certain amount. How much did he borrow if the simple interest rate is 5%?

III. For borrowing 15,000 for 3 years and 3 months, a lender charges a borrower 750. What simple interest rate is the lender using?

IV. What amount of interest will be charged if 7,000 is borrowed for 9 months at a simple rate of interest of 9.5% per annum?

V. If Abel deposited 25,000 at simple interest of 6.25%, how much will he receive after 10 years?

= = =

Exercise 2 INSTRUCTIONS

Solve for ACCUMULATED VALUE IN SIMPLE INTEREST (show solutions and box all answers)

I. Find the accumulated amount.

1.

P (in pesos) : 1,000

r (simple interest) : 0.5%

t : 18 months

ACCUMULATED VALUE =

2.

P (in pesos) : 5, 250

r (simple interest) : 5 %

t : 1 year & 9 months

ACCUMULATED VALUE =

3.

P (in pesos) : 7, 235

r (simple interest) : 2.5 %

t : 2 years

ACCUMULATED VALUE =

4.

P (in pesos) : 10, 500

r (simple interest) : 7 %

t : 24 months

ACCUMULATED VALUE =

II. What amount should be paid on the maturity date to settle a ninety-day loan if the principal is 2,000 at 8 1/5% simple interest?

III. Find the amount invested from December 2017 to March 2019 at 8% simple interest if the maturity value is 5,000.

IV. How long would it take to have 500 in the account if 300 is invested at 4%?

V. Jaqui planned to receive 12,000 after 4 years of investing 3,000. At what interest rate is this possible?

= = =

Exercise 3 INSTRUCTIONS:

Solve for the PRESENT VALUE IN SIMPLE INTEREST (show solutions and box all answers)

I. Find the present value.

1.

F (in pesos) : 1,000

r (simple interest) : 0.5%

t : 18 months

PRESENT VALUE =

2.

F (in pesos) : 5, 250

r (simple interest) : 5 %

t : 5 years and 9 months

PRESENT VALUE =

3.

F (in pesos) : 7, 235

r (simple interest) : 2.5 %

t : 3 years

PRESENT VALUE =

4.

F (in pesos) : 10, 500

r (simple interest) : 7 %

t : 10 years

PRESENT VALUE =

5.

F (in pesos) : 300

r (simple interest) : 10%

t : 25 years

PRESENT VALUE =

II. What is the present value of 4,500 for 3 years and 8 months at 11% simple interest?

III. What is the principal invested at 11.5% simple interest on October 20 2017 that will amount to 7,000 on January 2019?

IV. What sum of money must be invested for 27 months in order to grow to 6,500 at 6.75% simple interest?

V. How long would 1,000 be invested at 5% simple interest to have an accumulated amount of 1,250?