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Simple and Compound Interest Problems

The document contains 10 math word problems about simple and compound interest rates. For simple interest problems, it asks the reader to calculate interest earned or owed given a principal amount, interest rate, and time. For compound interest problems, it asks the reader to calculate the balance of an account given the principal, interest rate compounded periodically, and time. It provides the formulas and calculations for both simple and compound interest rate word problems.

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Judith DelRosario De Roxas
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97 views4 pages

Simple and Compound Interest Problems

The document contains 10 math word problems about simple and compound interest rates. For simple interest problems, it asks the reader to calculate interest earned or owed given a principal amount, interest rate, and time. For compound interest problems, it asks the reader to calculate the balance of an account given the principal, interest rate compounded periodically, and time. It provides the formulas and calculations for both simple and compound interest rate word problems.

Uploaded by

Judith DelRosario De Roxas
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Glaizel Joyce Balderama

G11- ABM- 1

SIMPLE INTEREST PROBLEM

1. Sarah deposits Php. 4,000 at a bank at an interest rate of 4.5% per year. How much
interest will she earn at the end of 3 years?

2. Wanda borrowed Php. 3,000 from a bank at an interest rate of 12% per year for a 2-year
period. How much interest does she have to pay the bank at the end of 2 years?

3. Kate is investing Php10,000 and wants to double it in 8 years. What interest rate will she
need to find?

4. You deposit some money into a bank account paying 4% simple interest per year. You
received Php.6,700 in interest after 3 years. How much the deposit was?

5. You deposit Php.35,000 into a bank account paying 1.2% simple interest per month. If
you receiver Php.900 as interest, find the time for which the money stayed at the bank.
COMPOUND INTEREST PROBLEM

1. If you deposit Php.4,000 into an account paying 6% annual interest


compounded quarterly, how much money will be in the account after 5 years?

2. If you deposit Php.6,500 into an account paying 8% annual interest


compounded monthly, how much money will be in the account after 7 years?

3. How much money would you need to deposit today at 9% annual interest
compounded monthly to have Php.12,000 in the account after 6 years?

4. If you deposit Php.5,000 into an account paying 6% annual interest


compounded monthly, how long until there is Php.8000 in the account?

5. If you deposit Php.8,000 into an account paying 7% annual interest


compounded quarterly, how long until there is Php.12400 in the account?
Mhelven Philip G. Mustaza

G11- ABM- 3

SIMPLE INTEREST PROBLEM

1. What sum would yield an interest of Php.3600 in 3 years at 3%?

2. At what rate per cent per annum will Php.250 amount to Php330 in 4 years?

3. At what rate per cent per annum will Php.4000 yield an interest of Php.780 in 1/ years
?

4. In what time will Php.4000 amount to Php.5120 if the simple interest is the calculated at
14% ?

5. A sum amount to Php.2400 at 15% simple interest per annum after 4 years. Find the
sum.
COMPOUND INTEREST PROBLEM

1. If you start a bank account with Php.10,000 and your bank compounds the interest
quarterly at an interest rate of 8%, how much money do you have at the year's end ?

2. The first credit card that you got charges 12.49 % interest to its customers and
compounds that interest monthly. Within one day of getting your first credit card, you
max out the credit limit by spending Php.1,200.00 . If you do not buy anything else on
the card and you do not make any payments, how much money would you owe the
company after 6 months?

3. An initial deposit of Php.5,000 is made into a savings account that compound 7.1%
interest annually. How much is in the account at the end of 5 years?

4. After 80 years of 5.8% interest compounded monthly, an account has Php.102,393.44.


What was the original deposit amount?

5. An account earning 6.6% interest rate compounded monthly for 10 years would have a
balance of how much if the principal was Php.550,00?

Common questions

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Using the formula for compound interest, A = P(1 + r/n)^(nt), where P = Php. 1,200, r = 0.1249, n = 12, and t = 0.5 years (6 months). A = 1,200(1 + 0.1249/12)^(12*0.5) = Php. 1,276.99 .

Using the simple interest formula I = PRT, where I = Php. 6,700, R = 4% (0.04), and T = 3. Rearrange to find P: 6,700 = P * 0.04 * 3. Solving gives P = 6,700 / 0.12 = Php. 55,833.33 .

Using the compound interest formula, A = P(1 + r/n)^(nt), where P = Php. 550, r = 0.066, n = 12, and t = 10. Thus, A = 550(1 + 0.066/12)^(12*10) = Php. 1,038.12 .

Use the compound interest formula rearranged for the principal: P = A / (1 + r/n)^(nt). Here, A = Php. 102,393.44, r = 0.058, n = 12, and t = 80. Therefore, P = 102,393.44 / (1 + 0.058/12)^(12*80) = Php. 1,051.96 .

Using the formula for compound interest, A = P(1 + r/n)^(nt), with A = Php. 8,000, P = Php. 5,000, r = 0.06, and n = 12. Solving for t gives 8,000 = 5,000(1 + 0.06/12)^(12t). Taking logarithms, t = ln(8,000/5,000) / (12*ln(1.005)) = 8.56 years .

Using the formula for compound interest, A = P(1 + r/n)^(nt), where P = Php. 4,000, r = 0.06, n = 4 (quarterly), and t = 5 years. A = 4,000(1 + 0.06/4)^(4*5) = 4,000(1.015)^20 = Php. 5,373.61 .

To calculate the simple interest, use the formula I = PRT, where I is the interest, P is the principal amount (Php. 4,000), R is the annual interest rate (4.5% or 0.045), and T is the time in years (3 years). So, I = 4,000 * 0.045 * 3 = Php. 540. Sarah will earn Php. 540 in interest .

Using the simple interest formula I = PRT, with I = Php. 900, P = Php. 35,000, and R = 1.2% or 0.012 per month. Solving for T: 900 = 35,000 * 0.012 * T, T = 900 / (35,000 * 0.012) = 2.14 months .

Using the future value formula for compound interest, A = P(1 + r/n)^(nt), rearrange to find P: P = A / (1 + r/n)^(nt). With A = Php. 12,000, r = 0.09, n = 12, and t = 6 years; P = 12,000 / (1 + 0.09/12)^(12*6) = Php. 6,968.42 .

Using the formula for simple interest I = PRT, set I to the interest required to double the investment, which is Php. 10,000. So, 10,000 = 10,000 * R * 8. Solving for R gives R = 10,000 / (10,000 * 8) = 0.125 or 12.5% per annum .

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