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Discount L &: Bank Jaime Tiong Interest

J. Reyes borrowed P1,842 from a bank and promised to repay P2,000 after 10 months. The simple interest rate is determined to be 10.29%. A loan of P5,000 for 15 months at a simple interest rate of 15% will result in a future amount due of P5,937.50. Borrowing P10,000 from a bank at 18% interest per year, the total amount to repay after one year is P11,800. Calculating the present worth of P50,000 due in 7 months at a 12% simple interest rate yields P46,728.97.

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Jimuel Sanchez Cayabas
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88 views

Discount L &: Bank Jaime Tiong Interest

J. Reyes borrowed P1,842 from a bank and promised to repay P2,000 after 10 months. The simple interest rate is determined to be 10.29%. A loan of P5,000 for 15 months at a simple interest rate of 15% will result in a future amount due of P5,937.50. Borrowing P10,000 from a bank at 18% interest per year, the total amount to repay after one year is P11,800. Calculating the present worth of P50,000 due in 7 months at a 12% simple interest rate yields P46,728.97.

Uploaded by

Jimuel Sanchez Cayabas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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26 Question Bank - Engineering Economics by Jaime R. Tiong Simple Interest & Discount 27

l= Pin
20,000 = 80,000(i)(1) J. Reyes borrowed money from the bank. He received from the bank P 1,842
i = 0.025 promised to repay P 2,000 at the end of 10 months. Determine the rate of
i=25%
o/". 12.19%
.'. The actual rate of interest is 25
12.030h
11.54%
10.29%
A loan of P 5,000 is made for a period of 15 months, at a simple interest rate of
'1
5%, what future amount is due at the end of the loan period?
F = P(1+ in)
A. P 5,937.50
B. P 5,873.20 2ooo = n+zlt.'l'19)l
c. P 5,712.40 L \12i1
D. P 5,690.12
i= 0.1029
i=10.29%
,9urr*"
The simple interest rate is 10.29 %.
F = P(1+ in)

'r --""1'
= sooolr.0.',u[E)l
"'"[tz)] rborrowed P 10,000 from a bank with 18% interest per annum, what is the
----
F = 5,937.50
amount to be repaid at the end of one year?
P 10,900
.'. The future amount at the end of the loan period is P 5,937.50.
P 11;200
P 11,800
P 12,000

lf you borrowed money from your friend with simple interest ol 12o/o, find the
present worth of P 50,000, which is due at the end of 7 months.
F = P(1+ in)
A. P 46,728.97
F=1O,ooo(+0.1S)
B. P 47,098.12
c. P 47,890.12 F = 11,800
D. P 48,090.21
The total amount to be repaid at the end of one year. is P 11 ,800.
c'*r"rn
F=P(1 +in)
tag of P 1,200 is payable in 60 days but if paid within 30 days it will have a
so,ooo=P[1 ..,r(#)] discount. Find the rate of interest.

P = 46,728.97

.'. The present worth is P 46,728.97.

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