24 Question Bank - Engineoring Economics by Jaime R.

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Question Bank 2

It P1000 accumulates to P15P0 when invested at a simple interest for three years,
what is the rate of interest?

A. 14.12%
B. 15.89%
c. 16.67 %
D. 16.97 %

t(r*t ',,
F = P(1+ in)
15oo=tooo[t+i(s)]
i= 0.1667
i =16 67%

.'. The rate of interest is 16.67 %.

You loan from a loan firm an amount of P 100,000 with a rate of simple interest of
2g7o but the interest was deducted from the loan at the time the money was
5fiowed. lf at the end of one year, you have to pay the full amount oiP 100,000,
what is the actual rate of interest?

A. 23.5Yo
B. 24 7 nto
c. 25.0%
D. 25.8%

,'/n7)zrn.'

lnterest = 0.20(1 00,000)

lnterest = 20,000

Amount received = 100,000 - 20,000

Amount received = 80,000