I. State whether the statement is true or false.

1. Compound discount is the sum by which the original principal has been increased by the end of the contact.

2. Compound interest is the difference between the future value and present value.

3. Present value is defined as the principal whom you would have to invest now at a given interest rate.

4. Future value is the total amount the borrower needs to pay back at the start of the contract.

5. The formula for the ordinary interest computation is, I=Prt(d/360).

6. The formula for the exact interest computation is, I-Prt(d/365).

7. Discount is a deduction from the maturity amount (P) of an obligation allowed for paying it currently.

8. Interest is the amount added to the (P) principal given a period of time.

9. Approximate time is the time between two dates which assumes that each month has 30 days in it except the month of February.

10. Exact time is the time between two dates which considers the correct number of days in a month.

II. Problem Solving.( 2 points each). Show your solutions.

1. A principal earns interest of P196 in 3 years and 6 months at simple interest rate of 6 %. Find the principal invested.

2. How long will it take for P800 to earn P240, if it is invested at 6 % simple interest?

(3). Convert the time computed to its exact value (years, months, days, hours, minutes).

4. Brent borrowed P12,500 from a bank at 9 % simple interest for 3 years and 6 months. Howmuch did Brent pay back the bank? (4 - interest earned, 5 - payment to the bank).

6-7. Find the ordinary interest (6) and amount (7) on P6,600 at 6 % simple interest for 125days.

8-9. Find the exact interest (8) and amount (9) on P7,700 for 210 days at 7 1/8% simple interest.

10-11. Accumulate P2,500 at 5 3/5% simple interest from November 6, 2012 to April 11, 2013. (10-time, 11-accumulated value).

11. How much loan would Mr. Tabua ask for, if he needs P2,500 cash which will be repaid in 1 year and 3 months with 5 4/5% simple discount?

13-14. A loan was applied on October 1, 2011 and was discharge a loan of P7,800 on April 1, 2012, at what rate compounded quarterly was the loan? (13 - time, 14 - rate).

15-16. An investment on a time deposit was made by Vanessa, she decided to leave the investment for a period of times. For the 1st 5 years, a 7% rate was given compounded

monthly and for the next 3 years 12% rate compounded quarterly? How much is the money that would Vanessa expect at the end of 8 years? (15-value of money for 5 years, 16-value of money at the end of 8 years).

17. An obligation of P15,600 is due on January 6, 2013. What is the value of this obligation on July

6, 2007 at 5 % compounded semiannually?

18. If an investment of P9,500 was left on a bank and becomes 25,300 after 12 years compounded monthly, what was the nominal rate given for the investment?

19. For money to double itself to 11 years, what must be the rate of interest converted quarterly?

20. What time will money become four times itself at 7% interest compounded three times a year?