Calculating Interest

Interest

Business Mathematics

RECALL

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Multiple Choice

Which of the following is the charge or fee paid for using somebody else’s money.

• Principal

• Interest

• Interest Rate

• Maturity Value

Multiple Choice

Which of the following is the amount borrowed?

• Principal

• Interest

• Interest Rate

• Maturity Value

Multiple Choice

Which of the following is the rate paid for the use of money

• Principal

• Interest

• Interest Rate

• Maturity Value

Multiple Choice

Which of the following is NOT a formula of a simple interest?

• $$I\ =\ \Pr t$$  

• $$P=\frac{I}{rt}$$  

• $$t=\frac{I}{\Pr}$$  

• $$r=\frac{I}{rt}$$  

Multiple Choice

Which of the following is the the total amount to paid by the borrower?

• Principal

• Interest

• Interest Rate

• Maturity Value

Multiple Choice

Mckyla applied for a loan which is to be paid for about 15 months

• Short-term Credit

• Long-term Credit

Multiple Choice

Mari purchased an item to be payed in installment for 10 months.

• Short-term Credit

• Long-term Credit

Open Ended

What is the interest on a credit purchase of Php 30,000 at 8% for 10 months?

Open Ended

What is the interest on a credit purchase of Php 30,000 at 8% for 15 months?

Open Ended

Teresa borrowed Php 120,000.00 from her uncle. She agreed to pay an 8% annual interest rate. Calculate the amount she must pay if the loan period is 9 months.

Open Ended

Teresa borrowed Php 120,000.00 from her uncle. She agreed to pay an 8% annual interest rate. Calculate the amount she must pay if the loan period is 18 months.

Open Ended

A loan institution charges 12% simple interest for a 3-year, Php 60,000.00 loan. Find the total amount that must be paid at the end of 3 years

Open Ended

Find the maturity value if Php 120,000 was borrowed at 10% for 8 months

Multiple Choice

Which of the following interest considers 360 days for a year?

• Ordinary Interest

• Exact Interest

Multiple Choice

How many days are considered in Exact Interest?

• 360 days

• 365 days

• 400 days

• 425 days

Multiple Choice

Gillian wants to know which bank offers lower interest at a rate of 9%. She plans to borrow Php 30,000 for 90 days. IPB bank uses ordinary interest while ODB bank applies exact interest. Which bank should Gillian chose?

• IPB

• ODB