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Problem Set 2 Deadline: Sept. 02,2020, 12mn Mathematics of Investment

Mr. Konti borrowed ₱12,000 from Susan Rodriguez at a 16.5% discount rate for 3 years. Manuel borrowed ₱35,000 from a bank charging 8% but received ₱30,000; the problem is to find the loan term. Chimmy applied for an ₱80,000 loan and received ₱77,000 after interest was deducted in advance; the 6-month loan's implied discount rate is to be found. The document provides 6 mathematics investment problems asking students to find loan amounts, interest rates, present values, and equivalent rates. Students are to submit PDF solutions with their name and problem numbers.

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Manuel Francisco
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246 views1 page

Problem Set 2 Deadline: Sept. 02,2020, 12mn Mathematics of Investment

Mr. Konti borrowed ₱12,000 from Susan Rodriguez at a 16.5% discount rate for 3 years. Manuel borrowed ₱35,000 from a bank charging 8% but received ₱30,000; the problem is to find the loan term. Chimmy applied for an ₱80,000 loan and received ₱77,000 after interest was deducted in advance; the 6-month loan's implied discount rate is to be found. The document provides 6 mathematics investment problems asking students to find loan amounts, interest rates, present values, and equivalent rates. Students are to submit PDF solutions with their name and problem numbers.

Uploaded by

Manuel Francisco
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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Problem Set 2

Deadline: Sept. 02,2020, 12mn


Mathematics of Investment
Answer the following problems. Show you solutions. Send your solution as PDF FORMAT,
with file name, ps2_moi_surname_given name_mi
1. Mr. Konti borrowed ₱12,000 from Susan Rodriguez who charged a discount rate of
16.5% for three years. How much interest will be collected in advanced from the loan?
(4pts)

2. Manuel is borrowing ₱35, 000 from a bank that charges a discount rate at 8%. If Manuel
received ₱30, 000 from the bank, find the term. (4pts)

3. On January 12, Chimmy applied for a ₱80, 000 loan. After deducting the interest in
advance, he received ₱77, 000. If the loan is to be repaid at the end of 6 months, at what
discount rate was interest charged? (6pts)

4. Suppose that ₱5, 000 is due at the end of 9 months and is discounted to the present date at
8% simple discount. Find the equivalent simple interest rate that will produce the same
present value. (6pts)

5. A loan of ₱25, 000 was repaid by the end of two years at 8% simple interest. What is the
equivalent discount rate on the loan? (5pts)

6. Find the present value of ₱24, 000 for 2 years at: (5pts)

a. 14% simple discount


b. 14% simple interest

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