14 if a house is sold for p300000000 and the bank

14. If a house is sold for P3,000,000.00 and the bank requires 20% down payment,
what is the amount of mortgage?
a. ₱ 2,400,000.00 c. ₱ 2,600,000.00
b. ₱ 2,500,000.00 d. ₱ 2,700,000.00
15. Using exact interest, what is the amount due (maturity value) if ₱ 20,000.00 is
invested at 9% simple interest for 150 days?
From the previous modules, you have learned about percent, mark-up,
markdown, mark-on, and solved problems involving buying and selling.
Solving Problems on Simple Interest
Our main goal in this module is for you to solve problems involving simple
interest. But before we discuss how to solve such problems, let us define first the
following terms:
A deposit is a financial term that means money is held at a bank. It is a
transaction involving a transfer of money to another party for safekeeping.
A loan is a money (or property) given with the promise that it will be paid back
in the future, usually with interest.
Services are professional support to aid customers. This is sometimes described
as the intangible product.
Utilities refer to the basic amenities like electricity and water.
Mortgage is a loan, secured by a collateral, that the borrower is obliged to pay
at specified terms.
Amortization is the process of reducing a cost or total in regular small
amounts.
Interest is described as the money paid regularly at a particular rate for the use
of money lent, or for delaying the repayment of a debt.
TOPIC 1:
What is It?
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Principal is the original amount invested or borrowed.
Rate is the amount of a charge or payment (usually in percent) with reference to
some basis of calculation.
Time can be defined as the duration or term used in solving simple interest.
At this point, let us deepen your understanding on how to solve problems
involving interest. Let us have the following examples:
A . Matoy started his small business by borrowing an amount of ₱ 20,000.00 payable
for 3 years as a simple interest rate of 8% annually. How much is the interest
that he has to pay?
Simple Interest (I):
𝐼 ? ? 𝑒 ? 𝑒 ? ? = 𝑃 ? 𝑖 ? 𝑐 𝑖 𝑝 𝑎 ? × ? 𝑎 ? 𝑒 × ? 𝑖 ? 𝑒
𝑰 = 𝑷 𝒓 𝒕
Given:
𝑰 =?
𝑷 = ₱ 20,000.00
𝒕 = 3 𝑦 𝑒 𝑎 ? ?
r = 8%
Solution:
𝑰 = 𝑷 𝒓 𝒕
𝑰 = ( ₱ 20,000) (0.08) (3)
𝑰 = ₱ 𝟒 , 𝟖 ? ? . ? ?
B. Meena was given ₱ 200,000.00 by her parents and she deposited it in a bank.
Find the maturity value of Meena ’ s money in five years if the bank offers a simple
interest of 1% per annum.
Maturity Value (F):
𝐹 = 𝑃 (1 + ? ? )
𝐹 = 𝑃 + 𝐼
Given:
𝑭 = ? 𝑷 = ₱ 200,000.00
𝒓 = 1% 𝒕 = 5 𝑦 𝑒 𝑎 ? ?
Solution:
𝑭 = 𝑷 ( ? + 𝒓 𝒕 )
𝑭 = ₱ 200,000 [1 + (0.01) (5)]
𝑭 = ₱ ? ? ? , ? ? ? . ? ?
C . Dereck borrowed ₱ 2,200,000.00 payable for 5 years to purchase a pick-up truck.
A bank offered him a car loan with simple interest rate of 6.75% per year. What is
the maturity value of the loan?
Given: Solution:

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