Question

1. Suppose that P200,000.00 is invested at a certain rate of interest compounded annually for two years. If the accumulated interest at the end of 2 years is P42,000.00, find the rate of interest.

2.  A loan for P170,000 is to be paid in three years at the amount of P185,000 compounded annually. What is the effective rate of money?

3. If P3000 accumulates to P4500 when invested at a simple interest for ten years, what is the rate of interest?

Answer 1

1. The rate of interest= 10%

Solution-

2. Effective rate on money- 2.8%

Solution-

3. Rate of Interest= 5%

Solution=

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