Simple Interest and
Compounded Interest
Amlong invests P250,000 in his friend's company. His
investment will earn a simple interest rate of 5% per
year. How much interest will he earn after 5 years? How
much is his total investment?
Mr. Bumbastik lends money to market fish vendors at a
simple interest of 5% monthly. If Aling Puring borrowed
10,000 from him, how much interest would she pay after
one year?
Debhie invested P100,000 in an account that earns an
annual interest rate of 1%. How much interest will she
earn after 2 years? How much is her total investment?
Ordinary and
Exact Interests
Ordinary Interest
If Php 32,500 is invested for 150 days at 7.1% interest
rate, how much is the total interest earned?
A. Using ordinary interest
B. Using exact interest
You borrowed Php 100,000 to be paid after 400 days at a
rate of 12%. How much will you be paying at the
maturity date?
A. Using ordinary interest
B. Using exact interest
Compound
Interest
The Barge corporation invests P 50,000,000 in a bank
that offers an annual interest of 6%, compounded yearly.
How much is the total interest? How much will be the
value of this investment in 10 years?
Suppose you invest P 50,000 at a 15% annual interest
rate compounded semi-annually. What is the total
interest? Determine the value of your investment after 3
years.
The Barge corporation invests P 50,000,000 in a bank
that offers an annual interest of 6%, compounded yearly.
How much will be the value of this investment in 10
years?