1.) A price tag of P1200 is specified if paid within 60 days but offers a 3% discount for cash in
30 days. Find the rate of interest.
a.37.11% c. 40.21%
b.38.51% d. 39.31%
2.) It is the practice of almost all bank in
...
1.) A price tag of P1200 is specified if paid within 60 days but offers a 3% discount for cash in
30 days. Find the rate of interest.
a.37.11% c. 40.21%
b.38.51% d. 39.31%
2.) It is the practice of almost all bank in the Philippines that when they grant a loan, the interest
for 1 year is automatically deducted from the principal amount upon release of money to a
borrower. Let us therefore assume that you applied for a loan with the bank and the P80000 was
approved at an interest rate of 14% of which P11200 was deducted and you were given ac check
of P68800. Since you have to pay the amount of P80000 one year after, what then will be the
effective interest rate?
a.16.28% c. 17.30%
b.38.51% d. 39.31%
3.) Mr. J. Dela Cruz borrowed money from the bank. He received from the bank P1,340.00 and
promised to pay P1,500.00 at the end of 9 months. Determine the simple interest rate and the
corresponding discount rate or often referred to as the “Banker’s Discount”.
a.15.92% ; 13.73% c. 12.95% ; 17.33%
b.18.28% ; 13.12% d. 19.25% ; 13.33%
4.) A man borrowed from the bank under a promissory note that he signed in the amount of
P25000.00 for a period of 1year. He received only the amount of P21,915.00 after the bank
collected the advance interest and an additional amount of P85.00 for notarial and inspection
fees. What was the rate of interest that the bank collected in advance?
a.13.64% c. 16.43%
b.18.37% d. 10.32%5.) Agnes Abanilla was granted a loan of P20,000 by her employer CPM Industrial Fabricator
and Construction Corporation with an interest at 6% for 180days on the principal collected in
advance. The corporation would accept a promissory note for P20,000 non-interest for 180days.
If discounted at once, find the proceeds in the note.
a. P18,800 c. P18,000
b. P19,000 d. P18,400
6.) P4000 is borrowed for 75days at 16% per annum simple interest. How much will be due at
the end of 75days?
a. P4186.43 c. P4133.33
b. P5124.54 d. P5625.43
7.) Mr. Almagro made a money market placement of P1,000,000 for 30 days at 7.5% per year. If
withholding tax is 20%, what is the net interest that Mr. Almagro will receive at the end of the
month?
a. P3,000 c. P6,000
b. P4,000 d. P5,000
8.) A bill for motorboat specifies the cost as P1,200 due at the end of 100days but offers a 4%
discount for cash in 30days. What is the highest rate, simple interest at which the buyer can
afford to borrow money in order to take advantage of the discount?
a. 18.4% c. 20.9%
b. 19.6% d. 21.4%
9.) In buying a computer disk, the buyer was offered the options of paying P250 cash at the end
of 30days or P270 at the end of 120days. At what rate is the buyer paying simple interest if he
agree to pay at the end of 120days?
a. 32% c. 28%
b.40% d. 25%10.) On March 1, 1996 Mr. Almagro obtains a loan of P1500 from Mr. Abella and signs a note
promising to pay the principal and accumulated simple interest at the rate of 5% at the end of
120days. On May 15, 1996, Mr. Abella discounts the note at the bank whose discount rate is 6%.
What does he receive?
a. P2,201.48 c. P1,513.56
b. P1,123.29 d. P938.20
11.) A deposit of P110,000 was made for 31days. The net interest after deducting 20%
withholding tax is P890.36. Find the rate of return annually.
a. 12.25 c. 12.75
b. 11.75 d. 11.95
12.) If you borrowed money from your friend with simple interest of 12%, find the present worth
of P50,000 which is due at the end of 7months.
a. P46,200 c. P46,729
b. P44,893 d. P45,789
13.) A man borrowed P2000 from a bank and promise to pay the amount for 1year. He received
only the amount of P1,920 after the bank collected an advance interest of P80. What was the rate
of discount and the rate of interest that the bank collected in advance?
a. 4% ; 4.17% c. 4% ; 4.71%
b. 3% ; 3.17% d. 3% ; 3.71%
14.) An engineer promised to pay P36,000 at the end of 90days. He was offered a 10% discount
if he pays in 30days. Find the rate of interest.
a. 64.6% c. 66.6%
b. 65.6% d. 67.6%
[Show More]
.png)
.png)
.png)
