1.

If P1000 accumulates to P 1500 when invested at a simple interest for three

years, what is the rate of interest?
A. 14.12 %
C. 16.67%
B. 15.89 %
D. 16.97%
2. You loan from a loan firm an amount of P 100,000 with a rate of simple
interest of 20% but the interest was deducted from the loan at the time the
money was borrowed. If at the end of one year, you have to pay the full
amount of P 100,000, what is the actual rate of interest?
A. 23.5%
C. 25.0%
B. 24.7%
D. 25.8%
3. A loan of P 5,000 is made for a period of 15 months, at a simple interest rate
of 15%, what future amount is due at the end of the loan period?
A. P 5,937.50
C. P 5,712.40
B. P 5,873.20
D. P 5,690.12
4. If you borrowed money from your friend with simple interest of 12%, find the
present worth of P 50,000, which is due at the end of 7 months.
A. P 46,728.97
C. P 47,890.12
B. P 47,098.12
D. P 48,090.21
5. Mr. J Reyes borrowed money from the bank. He received from the bank P
1,842 and promised to repay P 2,000 at the end of 10 months. Determine the
rate of simple interest.
A. 12.19%
C. 11.54%
B. 12.03%
D. 10.29%
6. If you borrowed P 10,000 from a bank with 18% interest per annum, what is
the total amount to be repaid at the end of one year?
A. P 11,900
C. P 11,800
B. P 11,200
D. P 12,000
7. A price tag of P 1,200 is payable in 60 days but if paid within 30 days it will
have a 3% discount. Find the rate of interest.
A. 35.45%
C. 36.18%
B. 35.89%
D. 37.11%
8. A man borrowed P 2,000 from a bank and promised to pay the amount for
one year. He received only the amount of P 1,920 after the bank collected an
advance interest of P 80.00. What was the rate of discount?
A. 3.67%
C. 4.15%
B. 4.00%
D. 4.25%
9. A man borrowed P 2,000 from a bank and promised to pay the amount for
one year. He received only the amount of P 1,920 after the bank collected an
advance interest of P 80.00. What was the rate of interest that the bank
collected in advance?

A. 4.00%
B. 4.07%

C.
D.

4.17%
4.25%

10.What will be the future worth of money after 12 months, if the sum of P
25,000 is invested today at simple interest rate of 1% per year?
A. P 25,168
C. P 25,189
B. P 25,175
D. P 25,250
11.What will be the future worth of money after 12 months, if the sum of P
25,000 is invested today at simple interest rate of 1% per month?
A. P 28, 000
C. P 28,289
B. P 28,165
D. P 28,250
12.It is the practice of almost all banks in the Philippines that when they grant a
loan, the interest for one year is automatically deducted from the principal
amount upon release of money to a borrower. Let us therefore assume that
you applied for a loan with a bank and the P 80,000 was approved at an
interest rate of 14% of which P 11,200 was deducted and you were given a
check of P 68,800. Since you have to pay the amount of P 80,000 one year,
what then will be the effective interest rate?
A. 16.02%
C. 16.32%
B. 16.28%
D. 16.47
13.A deposit of P 110,000 was made for 31 days. The net interest after
deducting 20% withholding tax is P 890.36. Find the rate of return annually.
A. 11.50%
C. 11.95%
B. 11.75%
D. 11.75%
14.P 5,000 is borrowed for 75 days at 16% per annum simple interest. How much
will be due at the end of 75 days?
A. P 5,066.67
C. P 5,050.00
B. P 5,133.33
D. P 5,166.67
15.A businessman wishes to earn 7% on his capital after payment of taxes. If the
income from an available investment will be taxed at an average rate of 42%,
what minimum rate of return, before payment of taxes, must the investment
offer to be justified?
A. 12.07%
C. 12.67%
B. 12.34%
D.12.87%
16.A man borrowed P 20,000 from a local commercial bank which has a simple
interest of 16% but the interest is to be deducted from the loan at the time
that the money was borrowed and the loan is payable at the end of one year.
How much is the actual rate of interest.
A. 19.05%
C. 19.67%
B. 19.34%
D. 19.87%

17.P 4,000 is borrowed for 75 days at 16% per annum simple interest. How much
will be due at the end of 75 days?
A. P 4,033.33
C. P 4,133.33
B. P 4,333.33
D. P 4,666.67
18.Agnes Abanilla was granted a loan of P 20,000 by her employer CPM
Industrial Fabricator and Construction Corporation with an interest of 6% for
180 days on the principal collected in advance. The corporation would accept
a promissory note for P 20,000 non-interest for 180 days. If discounted at
once, find the proceeds of the note.
A. P 18,800
C. P 19,000
B. P 18,000
D. P19,100
19.If you borrow money from your friend with simple interest of 12%, find the
present worth of
P 20,000, which is due at the end of nine months.
A. P 18,992.08
C. P 18,348.62
B. P 18,782.18
D. P 18,120.45
20.A man borrowed from a bank under a promissory note that he signed in the
amount of
P 25,000.00 for a period of one year. He receives only the amount of P
21,915.00 after the bank collected the advance interest and an additional of
P 85.00 for notarial and inspection fees. What was the rate of interest that
the bank collected in advance?
A. 13.05%
C. 13.46%
B. 13.22%
D. 13.64%
21.Mr. Danilo Conde borrowed money from a bank. He receives from the bank P
1,340.00 and promised to pay P 1,500.00 at the end of 9 months. Determine
rate of simple interest.
A. 15.92%
C. 15.45%
B. 15.75%
D. 15.08%
22.Mr. J. Dela Cruz borrowed money from a bank. He receives from the bank P
1,340.00 And promised to pay P 1,500.00 at the end of 9 months. Determine
the corresponding discount rate or often referred to as the bankers
discount.
A. 13.15%
C. 13.46%
B. 13.32%
D. 13.73%
23.Annie buys a television set from a merchant who ask P 1,250 at the end of 60
days. Annie wishes to pay immediately and the merchant offers to compute
the cash price on the assumption that money is worth 8% simple interest.
What is the cash price?
A. P 1,124.67
C. P 1,289.08
B. P 1,233.55
D. P 1,302.67

24.A man borrowed money from a loan shark. He receives from the loan shark
and amount of P 1,342.00 and promised to repay P 1,500.00 at the end of 3
quarters. What is the simple interest rate?
A. 15.47%
C. 15.80%
B. 15.69%
D. 15.96%
25.Determine the exact simple interest on P 5,000 invested for the period from
January 15, 1996 to October 12, 1996, if the rate of interest is 18%.
A. P 664.23
C. P 665.21
B. P 664.89
D. P 666.39
26.The exact simple interest of P 5,000 invested from June 21, 1995 to
December 25, 1995 is P 100. What is the rate of interest?
A. 3.90%
C. 3.95%
B. 3.92%
D. 3.98%
27.On her recent birthday, April 22, 2001, Nicole was given by her mother a
certain sum of money as birthday present. She decided to invest the said
amount on 20% exact simple interest. If the account will mature on Christmas
day at an amount of P 10,000.00, how much did Nicole receive from her
mother on her birthday?
A. P 8,807.92
C. P 8,832.17
B. P 8,827.56
D. P 8,845.78
28.What is the ordinary interest on P 1,500.50 for 182 days at 5.2%?
A. P 39.01
C. P 39.82
B. P 39.45
D. P 39.99
29.Nicole has P 20,400 in cash. She invested it at 7% from March 1, 2006 to
November 1, 2006 at 7% interest. How much is the interest using the
Bankers Rule?
A. P 972.12
C. P 973.12
B. P 970.78
D. P 971.83
30.A bank charges 12% simple interest on a P 300.00 loan. How much will be
repaid if the loan is paid back in one lump sum after three years?
A. P 408.00
C. P 551.00
B. P 415.00
D. P 450.00
31.What will be the future worth of money after 12 months, if the sum of P
25,000 is invested today at simple interest rate of 1% per year?
A. P 30,000
C. P 28,000
B. P 29,000
D. P 27,859
32.Find the principal if it earns $ 300 interest when invested for 120 days at 4
% simple interest.
A. $ 25,000
C. $ 20,000
B. $ 15,000
D. $ 9,000

33.What is the principal amount if the amount of interest at the end of 2 years
is $ 450 for a simple interest rate of 6% per annum?
A. $ 2,800
C. $ 3,400
B. $ 3,200
D. $ 3,000
34.If $ 1,600 earns $ 48 in 9 months, what is the annual rate of interest?
A. 3%
C. 4%
B. 2.7%
D. 2.2%
35.If $ 1,000 accumulates to $ 1,250 when invested at simple interest for 3
years, find the interest rate.
A. 9 %
C. 8 1/3 %
B. 9 %
D. 8 %
36.A man borrowed money from the bank. He received from the bank $ 1,340
and promised to pay $ 1,500 at the end of 9 months. Determine the simple
interest rate.
A. 18.19 %
C. 15.92%
B. 17.69%
D. 16.32%
37.A man borrows $ 10,000 from a bank. The rate of simple interest is 15%, but
the interest is to be deducted from the loan at the time the money is
borrowed. At the end of one year he has to pay back $ 10,000. What is the
actual rate of interest?
A. 18.78%
C. 16.89%
B. 15.85%
D. 17.65%
38.If $ 4,000 is borrowed for 75 days at 16% per annum simple interest, how
much will be due at the end of 75 days?
A. $ 4,133
C. $ 4,220
B. $ 4,622
D. $ 4,413
39.A man borrowed $ 5,000 from a bank and agreed to pay the loan at the end
of 9 months. The bank deducted the interest and gave him $ 4,000 in cash.
What was the rate of simple interest charged to the man?
A. 20%
C. 33.33%
B. 30.33%
D. 25%
40.How many days must a $ 4,000 note bearing 4% simple interest run to
amount $ 4,135?
A. 302 days
C. 304 days
B. 310 days
D. 308days
41.Determine the exact simple interest on $ 1,200 for the period from January
16 to November 26, 1992, if the rate of interest is 24%
A. $ 222.29
C. $ 247.87
B. $ 208.12
D. $ 251.34

42.If $ 5,000 earned an interest of $ 100 when invested from June 1 to

December 25, 1995, determine the rate of simple interest?
A. 4.2%
C. 2.8%
B. 3.1%
D. 3.5%
43.Determine the exact simple interest on $ 5,000 for the period from January
15 to June 20, 1993, if the rate of simple interest is 14%.
A. $ 299. 18
C. $ 305.44
B. $ 287.11
D. $ 301.10
44.Determine the exact simple interest on $ 5,000 for the period from January
15 to Nov. 28, 1992, if the rate of interest is 22%.
A. $ 955.74
C. $ 942.32
B. $ 894.23
D. $ 825.43