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Simple Interest Review

The document discusses simple interest rates and calculations. It provides examples of how to calculate interest earned on deposits over time at given interest rates. It also includes a quiz with additional simple interest rate word problems.

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Leciram Santiago Masikip
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742 views

Simple Interest Review

The document discusses simple interest rates and calculations. It provides examples of how to calculate interest earned on deposits over time at given interest rates. It also includes a quiz with additional simple interest rate word problems.

Uploaded by

Leciram Santiago Masikip
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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SIMPLE INTEREST

A REVIEW
A bank offers 0.25% annual simple interest
rate for a particular deposit. How much
interest will be earned if 1 million pesos is
deposited in this savings account for 1 year?

Given: P = 1,000,000 I = 0.25% = 0.0025 t = 1 year


How much interest is charged when
P50,000 is borrowed for 9 months at an
annual interest rate of 10%?

9
Given: P = 50,000 r = 10% = 0.10 t = year = 0.75 years
12
Maturity (Future) Value

a. F = P + Is

b. F = P(1 + rt)
Example 1:
Find the maturity value if 1
million pesos is deposited in a bank
at an annual simple interest rate of
0.25% after
(a) 1 year (b) 5 years?
QUIZ
1. How much should you invest at the simple
interest is 7.5% in order to have P300,000 in 2 years

2. How much money will you have after 4 years


and 3 months if you deposited P 10,000 in a bank
that pays 0.5% simple interest?

3. How long will 1 million pesos earn a simple


interest of 100,000 at 1% per annum?

4. How much should you invest at the simple


interest is 7.5% in order to have P300,000 in 2
years

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