Identify whether the problem is simple interest or compound interest.
1. Pete borrows P11,000.00 for 5 months at interest rate of 15% per year. Find the interest, and the total amount she is obligated to pay?
2. Jose deposited P25,000.00 in an account that pays 6% interest rate. How much money will he have at the end of 3 years?
3. Ana lend his brother P 8, 000.00 at 16% interest compounded monthly. How much is the interest and maturity value of Ana’s money after two years?
4. Daryl is a starting a business and he tried to loan in a bank. He loaned P 600, 000.00 with a 8% interest rate compounded quarterly. How much must he repay after 10 years?
Answers
Answer:
1.ANS:11687.5
2.4500 ... OR.. 29500.i think it's correct. thank you
Given: Four problems on simple interest and compound interest
To find: Indentification of imple interest and compound interest problems
Solution: Simple interest is the amount of interest charged on a particular sum of money at a particular rate of interest over a given period of time.
Whereas, compound interest is the interest charged on the principal sum of money and also on the interest accumulated within the given period of time.
The given problems have been classified as simple and compound interest as mentioned below:
1. Simple interest (since there is no mention of the interest being calculated compoundedly)
2. Simple interest (since there is no mention of the interest being calculated compoundedly)
3. Compound interest (since it is mentioned the interest will be compounded monthly)
4. Compound interest (since it is mentioned the interest will be compounded quarterly)