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    CEE 109 Practice Problems 1

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    djgudmalin
    The document contains 12 practice problems related to simple and compound interest calculations. A student provided solutions to each problem, calculating interest amounts, rates, cash prices, present and future values, and time to double investments given principal amounts and interest rates compounded annually, quarterly or as simple interest over various time periods ranging from months to years. The problems addressed concepts like interest deducted upon borrowing, renewing loans, and periodic withdrawals from an investment account.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    CEE 109 Practice Problems 1

    Uploaded by

    djgudmalin
    20 views4 pages
    The document contains 12 practice problems related to simple and compound interest calculations. A student provided solutions to each problem, calculating interest amounts, rates, cash prices, present and future values, and time to double investments given principal amounts and interest rates compounded annually, quarterly or as simple interest over various time periods ranging from months to years. The problems addressed concepts like interest deducted upon borrowing, renewing loans, and periodic withdrawals from an investment account.

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    The document contains 12 practice problems related to simple and compound interest calculations. A student provided solutions to each problem, calculating interest amounts, rates, cash prices, present and future values, and time to double investments given principal amounts and interest rates compounded annually, quarterly or as simple interest over various time periods ranging from months to years. The problems addressed concepts like interest deducted upon borrowing, renewing loans, and periodic withdrawals from an investment account.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views4 pages

    CEE 109 Practice Problems 1

    Uploaded by

    djgudmalin
    The document contains 12 practice problems related to simple and compound interest calculations. A student provided solutions to each problem, calculating interest amounts, rates, cash prices, present and future values, and time to double investments given principal amounts and interest rates compounded annually, quarterly or as simple interest over various time periods ranging from months to years. The problems addressed concepts like interest deducted upon borrowing, renewing loans, and periodic withdrawals from an investment account.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    Name: Plate: Course and Code: CEE 109

    (Last Name, First Name, M.I.)


    SET 1
    Program: Instructor: Engr. Michelle A. Daarol

    Answer the following problems:

    Problem 1:

    If you borrow money from your friend with a simple interest of 12%, find the present worth of Php 20,000,
    due at the end of 9 months.

    Ans: Php 18, 348.6

    Problem 2:

    Mr. J. Dela Cruz borrowed money from a bank. He received from the bank Php 1,340 and promised to pay
    Php 1,500 at the end of 9 months. Determine the interest rate and the discount rate.

    Ans: 15.92%; 13.73%

    Problem 3:

    Kathy buys a television set from a merchant who asks for Php 1,250 at the end of 60 days. Kathy wishes to
    pay immediately, and the merchant offers to compute the cash price, assuming that the money is worth 8%
    simple interest. What is the original cash price of the television?

    Ans: Php 1233.55


    Name: Plate: Course and Code: CEE 109
    (Last Name, First Name, M.I.)
    SET 1
    Program: Instructor: Engr. Michelle A. Daarol

    Answer the following problems:

    Problem 4:

    A man borrowed Php 20,000 from Rizal Bank, which has a simple interest of 16%, but the interest has to be
    deducted from the loan at the time the money was borrowed, and the loan is payable in one year. How
    much does the man receive after interest?

    Ans: Php 16,800

    Problem 5

    You loan from a loan firm an amount of Php 90,000 with the rate of simple interest of 20%, but the interest
    was deducted from the loan when the money was borrowed. If at the end of one year, you have to pay the
    amount of Php 100,000. What is the actual rate of interest?

    Ans: 38.8%

    Problem 6:

    Determine the exact simple interest on Php 15,000 invested from Jan. 15 – Oct. 12, 1997, if the interest rate
    is 18%.

    Ans: Php 1997.26


    Name: Plate: Course and Code: CEE 109
    (Last Name, First Name, M.I.)
    SET 1
    Program: Instructor: Engr. Michelle A. Daarol

    Answer the following problems:

    Problem 7:

    Find the present worth of a future payment of Php 300,000 in 5 years with an interest rate of 8% per
    annum.

    Ans: Php 204,174.96

    Problem 8

    How long will it take the money to double itself if invested at 5% compounded annually?

    Ans: 14 years

    Problem 9:

    A sum of Php 1,000 is invested now and left for 8 years and then the principal is withdrawn. The interest
    accrued is left for another 8 years. If the nominal interest is 5%, what will be the withdrawal amount at the
    end of the 16th year?

    Ans: Php 705.42


    Name: Plate: Course and Code: CEE 109
    (Last Name, First Name, M.I.)
    SET 1
    Program: Instructor: Engr. Michelle A. Daarol

    Answer the following problems:

    Problem 10:

    A firm borrows Php 2000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus
    Php 2000 more for 2 years at 8%. What is the lump sum due?

    Ans: Php 6034.66

    Problem 11:

    Your father invested Php 5000 in 7% account for your education when you were born. If you withdraw Php
    4000 at the end of your 17th,18th,19th and 20th birthday, how much money will be left in your account at the
    end of your 21st birthday?

    Ans: Php 1700

    Problem 12:

    If money is worth 8% compounded quarterly, compute the (a) single payment compound amount factor
    and (b) single payment present worth factor for 6 years.

    Ans: 1.608; 0.622

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