Complementary Activity

Simple interest
1. Mrs. Olmedo requests a loan of $8,150 for the purchase of a refrigerator and agrees to pay a
a total of $2,785 in interest, what amount must be paid at the end of the established term?
M = C + I M = 8,150 + 2,785 = 10,953
$10,935

2. Ten months ago, Paola deposited $140,000 in a bank account. If today she withdraws the money and she
They delivered a total of $151,900, calculate the interest earned.

I = M-C I = 151,000 - 140,000 = 11,900

$11,900

3. Suppose you received a loan and at the end of 5 months you have to pay an amount of $18,506.25. If the
The interest was $2,056.25, how much capital was lent to him?

C=M-I C=18,506.25-2,056.25= 16,450

$16,450

4. At a certain bank, the interest rate applicable to personal loans is equal to the current TIIE.
moment when the loan is made plus 25 percentage points. If the TIIE is 3.18% per year, what
What is the applicable interest rate?

TIIE=3.18+25=28.18
Answer: 28.18%

5. Rubén buys a stove on credit that has a cash price of $6,715. He agrees to give
a down payment of 15% and a final payment 8 months later. If you agree to pay an interest rate of 23%
Semester on the balance, how much will need to be paid in 8 months?
Enganche = 6,715x15%= 1,007.25 C=6,715-1007.25=5,707.75
Monthly Interest Rate = 23% semiannual 23/6 = 3.833% Monthly
I= Cit I= (5,707.75) (0.03833) (8) = 1,750.376667
M=C+I M = 5,707.75 + 1,750.376667 = 7,458.1266

$7,458.13
6. A capital invested at simple interest tripled after 8 years. What is the annual simple interest rate?
won?
M −C 3 x −x2x
i= i= = =0.25 i = 25% annual
Ct x (8) 8x

Response: 25% annually

7. Seven thousand pesos borrowed at 4.45% monthly generated an interest of $2,492. Calculate the term.
I 2,492 2,492
t= = =8 months
Yes 7,000(0.0445) 311.5

Response: 8 months

8. How long does it take a lender to make an amount of $29,925 from a loan of $14,250?
If a simple interest rate of 60% per year is applied? Express the result in months.
M −C 29,925−14,250 15,675
t= t= = =1.83 years 1.83(12) = 22 months
Yes 14,250(0.60) 8550

Response: 22 months

9. A bank has an average passive interest rate of 5.18% per year and the active interest rate is
38.5% annually on average. If the profit the bank made in the first quarter of the year was $127
714,832 and it is assumed that all the money he received from savers he lent, how much money
loan?
i=38.5-5.18= 33.32
I127714832 127714832
C= = = =¿
¿ 0.0833
12(
0.3332
3
) 1,553,191,261

$1,533,191,261
Present value and time value of money
10. Calculate the ordinary and exact simple interest on 33,000 dollars, from January 4 to August 21 of a year.
leap year. The interest rate is 11.75% per year.

MES DAYS
0.000326388 0.000321038

JANUARY 27

FEBRUARY 29

MARCH 31

APRIL 30 0.1175 0.1175

I= ie=
360 366
MAY 31

JUNE 30

JULIO 31

AUGUST 21

I =Cit
I=33,000((0.000326388)(230))=2,477.28492
Yes=33,000( ( 0.000321038 ) ( 230 ) )=¿ 2,436.68
The ordinary=¿2,477.28492

I exactly=¿ 2,436.68

2,477.29 dollars; 2,436.68 dollars

11. Calculate the simple commercial and exact interest of $130,000 loaned at an interest rate equal to the TIIE.
in effect at the time of the loan plus 21 percentage points, from July 7 to November 10.
Assume that at the time of the loan, the TIIE was 4.3%.

TIIE= 4.3+21=25.3%
MES DAYS
0.253 =0.000702777 0.253 0.00069315
I= ie=
JULIO 24 360 365
I =Cit
AUGUST 31

SEPTEMBER 30
I=130,000 ( ( 0.000702777 ) (126 ) ) 11,511.50
E Ie=130,000 ( ( 0.00069315 ) ( 126 ) )=¿ 11,353.797

The ordinary=¿ 11,511.50

OCTOBER 31
I exact=¿ 11,353.797
NOVEMBER 10

Respuesta: $11,511.50; $11,353.81

12. Calculate the present value of 15,000 dollars using a monthly interest rate of 0.5%, four
months before expiration.
M 15000 15000
VP= C = = = =14,705.88
1+ ¿ 1+ ( 0.005 ) ( 4 ) 1.02
Response: 14,705.88 dollars

On December 12, 2015, a promissory note was signed with a due date of March 31, 2016. If the value of
the due amount is $152,299.47 and the interest rate was agreed at 2.396% per month, calculate

a) The capital that was lent

MES DAYS DEADLINE VEN. b) The present value of the document as of February 15, 2016.

December 19
e
M 152299.47 152299.47
C= = = =¿ 140,000
1+ ¿ 1+ ( 0.02396 ) ( 110 ) 1.087853333
January 31

February 29 14

March 31 31
 M 152299.47 152299.47
VP = C = = = =147,015.7248
1+ ¿ 1+(0.02396)(45) 1.03594

Respuesta: a) $140,000; b) $147,015.72

14. Using the calendar year, obtain the maturity value of the following promissory note:

I WILL PAY
Document number: Unique GOOD FOR: $166,130.60
In Mexico City, November 8, 2015

By this promissory note, I (we) oblige myself (ourselves) to unconditionally pay to the order of
Vision by Cable, S.A. in Mexico City on February 8, 2016.
The quantity of:

One hundred sixty-six thousand one hundred thirty pesos 60/100 National Currency

Amount received to my (our) complete satisfaction. The previous sum will incur interest at
the rate of 28% per year until the date of its maturity, and if it is not paid on
default will incur a default interest rate of 39.2% per year.

Lorena Lee
Address: Calzada Jesús # 60
Population: Mexico City.
I (we) accept

MES DAYS

November 22

December 31

January 31

February 8

M =C(1+¿)=166,130.60 1+
[ ( 0.28
365 ) ]
(92) =166,130.60(1.070575342)=177,855.324

$177,855.32
15. If the promissory note from the previous exercise was settled 18 days after the due date, calculate the interest.
moratorium, as well as the total amount to be paid. Use the calendar year.
0.392
Im=Inside= 166,130.60
365 ( )
(18)=¿ 166130.60(0.019331506) = 3,211.55

M =C + I 177,855.324 + 3211.55 = 181,066.874

$3,211.55; $181,066.87

16. A promissory note for $1,534 was paid after 35 days by a check for $1,603.98. What was the rate?
annual interest? Use the calendar year.
M −C1,603.98−1,534 69.98
i= = = =0.4757
Ct 147.0958904
1,534
35
365 ( )
i = 0.4757(100) = 47.57

Answer: 47.57% annual

17. Mr. Solís signed a promissory note on August 20 for a principal of $21,000 at 40% simple interest. At
On what date will the interest be $1,306.67?
M =C + I =21,000+1306.67 22,306.67
MES DAYS

t=
M
C [
−1
=
21000 ] [
22306.67
−1
=
0.06222238 ]
=1.86666 (30) = 56
August 11
i 0.0333333
0.40
12 ( ) September 30

October 15

Answer: October 15
Total 56 days

Simple discount
A person requests a loan of $75,000 for a term of two months, with a discount rate of 27.3%.
Calculate the discount and the effective value.
 D= Mdt = 75,000 ( 0.273
12 )
( 2 )=75,000 ( 0.0455 )=¿ 3,412.50

VE=M−D=75,000−3,412.5=71,587.5
$3,412.50; $71,587.50

19. Obtain the discount and the effective value of 8,300 dollars due in 120 days, if the rate
the discount is 11% per year.

Mdt = 8,300 ( 0.11

360 )
( 120 )=8,300 ( 0.036666666 ) 304.33

VE=M−D=8300−304.33=7,995.67

Respuesta: 304.33 dólares; 7,995.67 dólares

20. A clothing manufacturer borrowed $341,000 from a bank on March 10. The loan was discounted at
2.32% monthly and it has to be settled by June 15.

a) What amount did the manufacturer receive?

MES DAYS

March 21 D = Mdt = 341000 ( 0.0232

30 )
( 97 )=341000 ( 0.075013333 )=25,579.54667

April 30 315,420.45

May 31
VE=M−D=341000−25,579.54667=7,995.67

June 15

b) What amount do you have to pay on the due date?

M= 341,000

Respuesta: a) $315,420.45; b) 341,000

21. The school principal requested a loan of $270,000 for a term of 45 days, discounted at 2.85%.
monthly, for the purchase of 10 interactive whiteboards.

a) If each board costs $22,760 plus 16% VAT, will he have enough to pay for the 10 boards?

Cost of blackboards = 22760(0.16) = 3,641.6 22760 + 3641.6 = 26401.6(10) = 2,640,16

D = Mdt = 270000 ( 0.0285

30 )
( 45 )=270000 ( 0.04275 )=11,542.5
 VE=M−D=270000−11,542.5=258,457.5
264,016-258,457.5= 5,558.5 Remaining

b) How much do you need to ask for in order to obtain the exact amount to pay for the blackboards?

264016 264016
VE = 264016
M= = 1− 0.0285 (45) 1−0.04275 =
(1−dt)
30 ( ) 0.95725
=275,806.74

Respuesta: a) No le alcanza, le faltan $5,558.50; b) $275,806.74

22. Bruno requests a loan of $4,600 for a term of 100 days and only receives $4,140. What is the rate of
annual discount? Use the calendar year.
M −VE4600−4140 460
d= = = =0.001(365)=0.365(100)=36.5
Mt 4600(100) 460000

Answer: 36.5% annual

23. Daniel signs a promissory note for 6,320 dollars with a maturity of 3 months and receives a cash value of 5,925 dollars.

What was the discount rate applied?

M −VE6320−5925 395
d= = = =0.020833333(12)=0.25(100)=25
Mt 6320(3) 18960
M −VE6320−5925 395
r= = = =0.022222222(12)=0.26666(100)=26.67
Vet 5925(3) 17775

25% annual; 26.67% annual

24. Calculate the expiration date of a document that is discounted on May 3 with a rate of
34.77%
M −VE12000−11698.66 301.34
t= = = =26.361111
Md 11.43123288
12000
0.3477
365 ( )
t=3+26=29 May 29

Response: May 29

25. What return rate does a financial factoring company obtain that uses a discount rate?
31% discount on all its operations with a 45-day term?
 d 0.31 0.31
r= = =
0.96125
(1−dt)
1− ( )
0.31
360
(45)
=0.322496749(100)=32.2496

Response: 32.25% annual

Guillermo requested a personal loan with a 3-month term. If the discount rate was 23.8%,
What was the rate of return for the bank?
d 0.238 0.238
r= = = =0.253056884(100)=25.3056
0.9405
(1−dt)
1− (
0.238
12
(3) )
25.31% annual

27. At what discount rate is a promissory note negotiated on June 22 if it matures on August 4, knowing that the
the yield rate was 28.9688% per year?

MES DAYS

June 8
r 0.289688 0.289688
d= = = =0.2801(100)=January 28
1.034127627
( )
July 31 (1+ rt) 0.289688
1+ (43)
365
August 4
o

Response: 28% annual

28. Twenty days ago, a promissory note with a maturity value of $9,630 was signed. If it is discounted at a bank today.

with an annual discount rate of 35.7% and receiving $9,486.75, what was the original term of the
document?
M −VE9630−9486.75 143.25
t= = = =fifteen thousand two hundred eight
Md 9.418931507
9630
0.357
365 ( )
t=20+15 35 days

Response: 35 days
29. Sara buys an electronic organ making an initial payment of $5,000 and the rest, $23,450, she must pay in
60 days with an annual interest rate of 21.9%. Since Sara signed a promissory note that covers the value of

debt maturity, the manager of the establishment discounts it three days later in a company
of financial factoring, at a 24.4% discount rate. What amount of money does the manager obtain?
What rate of return does the bank obtain?

I =Cit=23450 ( 0.219
360 )
( 60 ) =23450 ( 0.0365 )=855.925

M =C+I =23450+855.925=24,305.925

VE=M(1−dt)=24305.925 1−
[ ( 0.244
360 ) ]
(57) =24305.925(0.961366666)=23,366.906

d 0.244 0.244
r= = = =0.253805(100)=25.3805
0.961366666
(1−dt)
1− (
0.244
360
(57) )
$23,366.91; 25.38% annual

30. On December 10, 2015, Ediciones Thor, S.A., discounted the following promissory note at a bank that uses
a discount rate of 30%. Obtain the effective value.

I WILL PAY
Document number: Unique GOOD FOR: $314,500.00
In Mexico City, on October 15, 2015

By this promissory note, I (we) undertake to pay unconditionally to the order of

Thor Editions, S.A. in Mexico City on January 15, 2016.
The quantity of:

Three hundred fourteen thousand five hundred pesos 00/100 National Currency

Value received to my (our) complete satisfaction. The previous amount will accrue interest at
the annual rate of 25% until the date of its maturity, and if it is not paid by
The expiration will result in a late interest rate of 37.5% annually.

René Loreto
Address: Av. Archimedes # 120
Mexico City
I (we) accept
MES DAYS DEADLINE FRIDAY.

October 16

November 30
e

December 31 21

January 15 15

I =Cit=314500 ( )
0.25
360
( 92 ) =314500(0.063888888)=20,093.05

M =C + I =314500+20093.05=334,593.05

VE=M(1−dt)=334593.05 1−
[ ( 0.30
360 ) ]
(36) =334593.05(0.97)=324,555.2585

$324,555.27