Choose the letter of the correct answer.

1. Find the interest on Php55,000 at 5 % simple interest for 4 years.

a) Php12,500
b) Php11,980
c) Php11,400
d) Php12,100
2. Find the amount on Php150,000 at 6 % simple interest for 10 months.
a) Php155,345.50
b) Php157,812.50
c) Php159,214.25
d) Php158,543.65
3. If a principal of Php12,500 earns interest of Php1,720 in 2 years and 9 months, what
interest rate is in effect?
a) 5%
b) 4%
c) 4.5%
d) 6%
4. A principal earns interest of Php1,960 in 3 years and 6 months at a simple interest rate of
6 %. Find the principal invested.
a) Php8,512.43
b) Php8,600.15
c) Php8,615.39
d) Php8,700.03
5. How long will it take for Php80,000 to earn Php24,000, if it is invested at 6 % simple
interest?
a) 5.02 years
b) 4.12 years
c) 4.62 years
d) 4.92 years
6. Find the actual time from April 21, 2011 to October 4, 2011.
a) 166 days
b) 163 days
c) 165 days
d) 167 days
7. Mr. Garcia borrowed Php480,000 for 9 months from Ms. Andres who charged 5 %
discount interest. How much money did Mr. Garcia receive?
a) Php457,250
b) Php462,790
c) Php459,300
d) Php465,400
8. How much loan would Mr. Enriquez ask for if he needs Php25,000 cash which will be
repaid in 1 year and 3 months with 5 4/5% discount interest?
a) Php27,126.32
b) Php26,034.94
c) Php26,954.18

d) Php25,765.36
9. At what rate compounded monthly will Php4,222 accumulate to Php16,444 in 2 years and
10 months?
a) 48.96%
b) 46.98%
c) 40.80%
d) 49.86%
10. How long will it take for Php5,115 to amount to Php11,620, if invested at 8%,
a) 11.08 years
b) 8.25 years
c) 9.34 years
d) 10.66 years

m =1 ?

11. Discount Php9,700 for 6 years and 3 months at 5% compounded quarterly.

a) Php7,510.27
b) Php7,902.34
c) Php8,001.28
d) Php7,110.43
12. Find the present value of Php8,400 due at the end of 4 years and 4 months, if money is
worth 6% compounded monthly.
a) Php6,814.30
b) Php6,184.03
c) Php6,481.03
d) Php5,998.35
13. What rate compounded semi-annually is equivalent to 7% compounded quarterly?
a) 6.89%
b) 7.06%
c) 7.26%
d) 6.56%
14. Find the rate converted quarterly which is equivalent to 7% effective.
a) 6.09%
b) 6.98%
c) 6.29%
d) 6.82%
15. If interest is compounded quarterly, find the nominal rate which yield an effective rate of
2 %.
a) 2.23%
b) 3.02%
c) 2.92%
d) 2.32%

Answers
Choose the letter of the correct answer.
1. Find the interest on Php55,000 at 5 % simple interest for 4 years.
a) Php12,500
b) Php11,980
c) Php11,400
d) Php12,100
2. Find the amount on Php150,000 at 6 % simple interest for 10 months.
a) Php155,345.50
b) Php157,812.50
c) Php159,214.25
d) Php158,543.65
3. If a principal of Php12,500 earns interest of Php1,720 in 2 years and 9 months, what
interest rate is in effect?
a) 5%
b) 4%
c) 4.5%
d) 6%
4. A principal earns interest of Php1,960 in 3 years and 6 months at a simple interest rate of
6 %. Find the principal invested.
a) Php8,512.43
b) Php8,600.15
c) Php8,615.39
d) Php8,700.03
5. How long will it take for Php80,000 to earn Php24,000, if it is invested at 6 % simple
interest?
a) 5.02 years
b) 4.12 years
c) 4.62 years
d) 4.92 years
6. Find the actual time from April 21, 2011 to October 4, 2011.
a) 166 days
b) 163 days
c) 165 days
d) 167 days
7. Mr. Garcia borrowed Php480,000 for 9 months from Ms. Andres who charged 5 %
discount interest. How much money did Mr. Garcia receive?
a) Php457,250
b) Php462,790
c) Php459,300
d) Php465,400
8. How much loan would Mr. Enriquez ask for if he needs Php25,000 cash which will be
repaid in 1 year and 3 months with 5 4/5% discount interest?
a) Php27,126.32
b) Php26,034.94
c) Php26,954.18

d) Php25,765.36
9. At what rate compounded monthly will Php4,222 accumulate to Php16,444 in 2 years and
10 months?
a) 48.96%
b) 46.98%
c) 40.80%
d) 49.86%
10. How long will it take for Php5,115 to amount to Php11,620, if invested at 8%,
a) 11.08 years
b) 8.25 years
c) 9.34 years
d) 10.66 years

m =1 ?

11. Discount Php9,700 for 6 years and 3 months at 5% compounded quarterly.

a) Php7,510.27
b) Php7,902.34
c) Php8,001.28
d) Php7,110.43
12. Find the present value of Php8,400 due at the end of 4 years and 4 months, if money is
worth 6% compounded monthly.
a) Php6,814.30
b) Php6,184.03
c) Php6,481.03
d) Php5,998.35
13. What rate compounded semi-annually is equivalent to 7% compounded quarterly?
a) 6.89%
b) 7.06%
c) 7.26%
d) 6.56%
14. Find the rate converted quarterly which is equivalent to 7% effective.
a) 6.09%
b) 6.98%
c) 6.29%
d) 6.82%
15. If interest is compounded quarterly, find the nominal rate which yield an effective rate of
2 %.
a) 2.23%
b) 3.02%
c) 2.92%
d) 2.32%