PAMANTASAN NG LUNGSOD NG VALENZUELA

BUSINESS FINANCE
ASSIGNEMNT: BASIC LONG-TERM FINANCIAL CONCEPTS (Simple Interest)

NAME: SECTION: SCORE: .

Word Problems:
1. Anastacia Industries borrowed money at 9% interest for 125 days. If the interest was P5,600, use the ordinary interest
method to compute the amount of principal of the loan?

2. What is the rate of interest on a loan of P250,000, for 245 days, if the amount of interest is P19,600, using the ordinary
interest method? Round your answer to the nearest hundredth percent.

3. What is the time period of a loan for P150,000, at 9.5% ordinary interest, if the amount of interest is P6,500.

4. Nissan-QC borrowed P2,250,000 on April 16 to purchase a shipment of new cars. The interest rate was 9.3% using
the ordinary interest method. The amount of interest was P9,600. For how many days was the loan outstanding?

5. Using the information above, what was the maturity date of the loan?

6. Andrea Anemone borrowed money to buy a car at 13.5% simple interest. From her credit union. If the loan was
repaid in 2 years and the amount of interest was P27,000, how much did Andrea borrow?

7. What rate of interest was charged on an ordinary interest loan for P1,30,000, if the interest was P44,000, and the time
period was from January 1 to April 27?

8. How many years will it take P50,000 invested at 8% simple interest to double to P100,000?

9. Using the information above, how long will it take if the interest is increased to 10%?

10. Using the banker’s rule, find the simple interest on P18,000 at 17¼% from February 4 to April 21 of the same leap
year.

11. Cai Xiang borrowed P12,000 on September 10, 2016 to start college. He repaid the loan on July 20 of the following
year. What amount did he pay back if the bank calculated the exact interest at 11% and used the actual time?

12. What is the maturity date of a loan taken out on September , 2012 for 125 days?

13-15. Fill in the blanks:

Interest Principal Rate Time (Days)
a. P 300 P 30,000 8% 13. _______
b. P 450 14. ________ 9% 100
c. P 250 P 48,000 15. ______ 25

16-25. Find the Unknown Values

Principal Rate Time Interest Method Interest Maturity Value
16. 9.50% 100 days Exact P 3,400 17.
P 255,000 11.25% 300 days Ordinary 18. 19.
130,000 14.00% 20. Ordinary 9,600 21.
25,000 22. 280 days Ordinary 2,950 23.
36,000 24. 160 days Exact 2,250 25.

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