MODULE 2 ACTIVITY

Answer the following problems. Show your solutions. No solution, no credit policy! Summarize your
final answers for each number in one sheet of paper and other sheets are for solutions. Name the file as
Module 2 activity and upload it in your folder in Google Drive.

Note: Round off your final answer to 2 decimal places. For example, 1.56 years, 16.67% and P45,698.86.
Do not forget the label (years, percentage or peso sign)

Be honest! Committing mistake is part of the learning process.

1. Find the principal at ordinary interest

Interest Rate Time Principal
P750 8% 90 days P37,500
P300 10% 45 days P24,000

2. Find the interest rate at ordinary interest

Principal Interest Time Rate
P45,000 P1,387.50 74 days 15%
P36,000 P4,200.00 200 days 21%

3. Find the time at ordinary interest

Principal Interest Rate Time (Days)
P96,000 P1,020 8.5% 0.125 year or 45 days
(0.125*360)
P76,000 P380 12% 0.04 year or 15 days
(.0416666*360)

3. How much must be invested today if Marcus wants to have P480,000 in 5 years and 11 months if the
interest rate is 16.5%? P242,884.25. Principal is missing. t= 5 + 11/12 P= F/ (1+RT)

4. Mary David has P1,000,000 in the money market. If the present interest rate is 18%, how much will
she earn after 2 ½ years? P450,000. Interest is missing. t = 2 + ½ I= PRT

5. Lily borrowed P80,000 from Benny who charged 12.5% interest rate. How much should she pay
Benny after 2 years and 8 months? P106,666.67. Future amount is missing. t = 2 + 8/12 F= P(1+RT)

6. At what simple interest rate will a sum double in 10 years? 10%. Assume I=1 and P=1 to have future
amount of P2 which is the double the amount of principal. I=Prt r= I/Pt

7. How long will it take for P15,000 to accumulate to P18,500 if the interest rate is 14.5%? 1.61 years.
Interest = Future amount – Principal. To accumulate means money will be this amount after the
period so P18,500 is the future amount. T=I/Pr
8. What principal invested on January 15 will amount to P43,500 on March 23 of the same year if the
interest rate is 12.25%? Use exact interest method for actual time used. Assume that year is not a leap
year. P42,543.36. Count days from January 15 to March 23. P = F/(1+rt)

9. On March 1, P90,000 was borrowed and repaid on July 26 of the same year. Assume no leap year.
Given an interest rate of 10.75%, how much simple interest was earned using the following: I=Prt
a. Actual time, exact interest P3,896.51
b. Approximate time, exact interest P3,843.49
c. Actual time, ordinary interest P3,950.63
d. Approximate time, ordinary interest P3,896.88

10. Find the simple discount of P90,000 loan if the discount rate is 10.5% for 2 years and 240 days.
P25,200. F = P90,000 which is the amount borrowed or loan D=Fdt

11. Lorna borrowed P35,000. The proceeds of this loan was P33,750 with 9.5% discount rate charged in
advance. Find the term of the loan. 0.38 year D=1,250 D= Fdt t= D/Fd = 1250/ (35,000*.095)

12. Discount P90,000 for 5 years and 4 months at: (a) 16.5% simple interest and (b) 16.5% simple
discount
a. P47,872.34 b. P10,800
a. Discount in simple interest means you are finding the present value or principal of an amount.
So, P90,000 is the future amount P = F/(1+rt)
b. Discount in simple discount will use the formula for proceeds. P=F(1-dt) F=P90,000

13. Find the amount due at the end of 2 years if the present value is P190,000 at (a) 9.5% simple interest
and (b) 9.5% simple discount.
a. P226,100 b. P234,567.90
a. In simple interest, finding the amount due means finding the future amount which is principal
plus interest. F=P(1+rt)
b. In simple discount, finding the amount due means finding the future amount or the amount
borrowed or loaned. The present value in simple discount is the amount received today or the
proceeds. F = P/(1-dt)

14. How long will it take for a P300,000 simple interest note to become P310,000 if the interest rate is
12%?
0.28 year t = I/Pr

15. Discount P350,000 for 270 days at 15% simple interest. P314,606.74 P=F/(1+rt)

16. Ben deposited $6,500 in a simple interest account that pays 2.8% interest annually. If Ben leaves the
money in the account for 12 years, how much interest will he earn? $2,184. The amount earned is the
amount of Interest.
17. Steph took out a simple interest loan that charges 8.5% interest annually. If her original loan amount
was for $30,000 and she is paying off the loan over 20 years, how much will she pay altogether?
$81,000. Pay altogether means the amount to be paid at the end of the term which is the principal
plus interest. F=P(1+rt)

18. Derek deposited $3,000 in a simple interest account 3 years ago. He has earned $360 in interest so far.
What is the interest rate for his account? 4% r =I/Pt

19. Clint earned $1,155 in interest from his simple interest account over the last 5 years. The account pays
1.25% interest annually. How much did Clint originally deposit in his account? $18,480. The term
“originally deposit” means that the amount you invested today or the principal amount or the
present value. P = I/rt

20. Hector took out a small loan of $900 for 18 months. The simple interest rate on the loan was 10.5%.
How much will he pay in interest on the loan? $141.75 I=Prt

21. Todd takes out a student loan for $25,000. The annual simple interest rate on the loan is 7.75%. If
Todd will be paying $38,750 in interest alone, how many years will it takes to pay off the loan? 20
years. The problem says that $38,750 is for the interest only. t= I/Pr

22. Susie opens a simple interest checking account. After 6 months, her account grew from $500 to
$508.75. What is the interest rate on her account? 3.50%. Interest is future amount minus principal.
If 500 becomes 508.75, this means that the difference is the interest. r=I/Pt

23. Trevor deposits $1500 in a simple interest account that pays 4.3% interest annually. After 15 years,
how much total money would be in the account? $2,467.50. Total money means the amount
deposited plus interest earned. F=P(1+rt)

24. A person takes out a discounted loan with a face value of $500 for 6 months from a lender who
charges a 10% discount rate. What is the discount? $25 D=Fdt

25. A person takes out a discounted loan with a face value of $500 for 6 months from a lender who
charges a 10% discount rate. How much money does the borrower receive? $475. The amount the
borrower received is the amount of proceeds or present value.