1) Dick takes a loan of $8,000 to buy a used truck at the rate of 9 % simple Interest.

Calculate the
annual interest to be paid for the loan amount.
Given: P = 800 , R= 9% / 0.09 , T = 1
Solution:
I=PxRxT
= 8,000 x 0.09 x 1
= 720.00
Annual Interest to be paid = $720

2) Steve invested $ 10,000 in a savings bank account that earned 2% simple interest. Find the
interest earned if the amount was kept in the bank for 4 years.
Given: P = 10,000 , R= 2% / 0.02 , T = 4
Solution:
I=PxRxT
= 10,000 x 0.02 x 4
= $ 800
Interest earned for the investment = $ 800

3) You borrow $10,000 for 3 years at 5% simple annual interest.

1. How much should be deposited now in a savings account that earns at the rate of 5% simple
interest, if a man wants to have 7000php. at the end of 10 months?
Given: F=7000 r=5% or .05 t=10/12
𝐹
Formula: 𝑃 = 1+𝑟𝑡
7000
Solution: 𝑃 = 10
[1+(.05)( )]
12
7000
𝑃 = 1+0.0416…
𝑃 = 6,720
2. At the end of 5 years, Eric paid his friend 10000php. If money is worth 10%, find the principal
amount borrowed by Eric?
Given: F=10,000 r=10% or .10 t=5 yrs.
𝐹
Formula: 𝑃 = 1+𝑟𝑡
10000
Solution: 𝑃 = 1+(.10)(5)
10000
𝑃= 1+.50
𝑃 = 6,666.67
3. Discount 5000php.for 6 months at 6% simple interest.
Given: F=5000 r=6% or .06 t=6/12
𝐹
Formula: 𝑃 = 1+𝑟𝑡
5000
Solution: 𝑃 = 6
[1+(.06)( )]
12
5000
𝑃 = 1+.03

𝑃 = 4,854.369

1. Francine deposited 5,000 in a bank paying 4% simple interest for 3 years. How would she
have in her account at the end of three years assuming that no withdrawals were made?

P = 5,000
r = 4% or .04
t=3

F = P (1 + rt)
F = 5,000 (1 + (.04)(3))
F = 5,600

2. Cheska borrowed 20,000 and repaid the loan after 2 years and 6 months with interest at 11%
simple interest. Find the total amount paid by Cheska.

P = 20,000
r = 11% or .11
t = 2.5

F = P (1 + rt)
F = 20,000 (1 + (.11)(2.5))
F = 25,500

3. Zita makes an investment by lending 24,000 to Timothy for 2 years at an interest of 11% per
annum. What is the maturity value of the investment?

P = 24,000
r = 11% or .11
t=2

F = P (1 + rt)
F = 24,000 (1 + (.11)(2))
F = 29,280
1. At what simple interest rate is ₱420 the interest on ₱8000 for 11 months?
 I 420
r= r= r = 0.0573 or 5.73%
Pt (8000)( 11⁄12 )

2. What simple interest rate is needed to earn an interest of ₱16000 of an investment of

I 16000
r= r= r = 0.1667 or 16.67%
Pt (24000)(4)

3. If the total interest earned by the ₱11,000 investment for 2 years was ₱2,400, what is the
simple interest rate?

I 2400
r= r= r = 0.1091 or 10.91%
Pt (11000)(2)
1. Leah earned P360 as interest after some time in her investment of P4000. If the interest on
the investment was 10% per annum, find how long the man invested his money?

Given : Solution :
I: P360 t =_ I___
P: P4,000 Pr
r: 0.1 t =_ 360 __
(4,000)(0.1)
t = 0.9 years

2. Dumbo loans P15000 at 6 ½ % simple interest, how long will it take him to get P2800
interest?

Given : Solution :
I: 2,800 t =_ I___
P: 15,000 Pr
r: 0.065 t= 2,800____
(15,000)(0.065)
t = 2.87 years

3. Crecita accumulate 26000 at 6% simple interest rate. What is the term if she earned 20,000
interest?

Given : Solution :
I: 20,000 t =_ I___
P: 26,000 Pr
 r: 0.06 t= 20,000___
(26,000)(0.06)
t = 12.82 years

1. Find the approximate time between June 5 and Dec 12, 1996
2. An investment was made from July 15, 2009 to January 29, 2010. Find the exact time.
Find the exact time between the dates.

1. July 18 2006 to July 18, 2015