Part 1 (Simple Discount, Compound, Cash Value, Nominal rate

Question 1

Find the simple discount on a debt of P7,350 due in 9 months at a discount rate of 8.5% what is the present value?

Answer 1

D = 468.56

P = 6,881.44

Question 2

Find the present value of 12% simple interest on P2,300 due in 9 months.

Answer 2

P = 2,110.09

D = 189.91

Question 3

Find the value on June 6 of non-interest bearing net for 4,200 payables on July 18, money worth 8% Simple interest. What is the discount?

Answer 3

P = 4,161.16

D = 38.84

Question 4

At 10% Simple discount, find the value today at Php 10,000 due 18 months from today.

Answer 4

D = 1,500

P = 8,500

Question 5

At 10% Simple discount, find the value today at Php 5,000 due in 1⁄2 year.

Answer 5

D = 250
P = 4,750

Question 6

At 10% Simple discount, find the value today at Php 850 due in 4 months

Answer 6

D = 28.05
P = 821.95

Question 7

What Simple Interest is equivalent to simple discount rate 12% in discounting an amount for 4 months?

Answer 7

r = 12.5%

Question 8

Rhineheart deposits P3,200 in a saving banks which pay interest at 8% compounded semi-annually. Assuming no withdrawals will be made, how many would she have after 4 years?

Answer 8

F = 4,379.42
I = 1,179.42

Question 9

Find the compound amount and interval if P5,000 is inverted at 12% compounded quarterly for 10 years?

Answer 9

F = 16,310.19
I = 11,310.19

Question 10

Accumulate P1,000 for 6 1/2years at 12.5% compounded quarterly.

Answer 10

F = 2,225.68
I = 1,225.68

Question 11

What sum needed to accumulate P, 2500 in 18 months if the interest rate is 15% compound semi- annually.

Answer 11

P = 1,643.79
I = 856.21

Question 12

Discount P6,525 for 3 years at 80% compounded annually and find the discount.

Answer 12

P = 1,118.83
I = 5,406.17

Question 13

Gladel sells a refrigerator to Rhodalyn. She will pay P2,500 now and P15,000 in 3 years. If many is worth 16% compounded annually, what is the cash value of the refrigerator?

Answer 13

CV = 12,109.87

Question 14

What is the nominal rate compounded semi-annually will P30,000 amount to P60,000 in 6 years?

Answer 14

i = .059463094
j = 11.89%

Question 15

Find the present value of P2000 which is due at the end of 90 days at rate of 5% simple discount.

Answer 15

P = 1,975.00

Question 16

At the birthday of the daughter, what should a mother invest in order to give her daughter with 30,000 of her 18th bday if money is worth 11% compounded monthly.

Answer 16

P = 1,716.40

Question 17

How long will 30,000 accumulate to P3,050
if the discount rate is 4 1/2%

Answer 17

4 months and 10 days

Question 18

Raphael sells a house and lot to Rhodelyn, she made a DP of 92,000 and 1,000,000 for Succeeding, 4 years is money is worth 12% compound quarterly, what is the cash value Of house & lot?

Answer 18

CV = 715,166.94

Question 19

What is the nominal rate compounded quarterly will 50,000 amount to 150,000 in 4 years?

Answer 19

I = .284301923
j = 28.43%

Question 20

Find the amount at the end of 14 years of a 6000 which is invested at the rate of 12% compounded quarterly in the first five years,10% compounded semi annually in the remaining years

Answer 20

F1 = 10,836.67
I = 4,836.67

F2 = 26,079.74
I = 20,079.74