1. You borrowed P59, 000 for 2 years at 11%.

Compute for the total interest to be paid for the

whole 2 years.
2. Richard is starting a small business and he needs a capital of P50, 000. He already has P25, 000
and is considering to loan the other P25, 000 from one of the following lending companies.
Which will be the best company to loan from if Richard wants to pay the lowest interest rate
possible? (Note: all companies use ordinary interest) Show your solutions per company and
explain your final answer.
a. Company A, rate=6% time=120days
b. Company B, rate =10% time=60days
c. Company C, rate=5% time=150days
3. The Employee’s Union charges 10% interest for the short-term loans made less than a year. If
you borrow P20, 000 and must pay an amount for P2, 000 as an interest, what is the length of
your loan?
4. A commercial bank charges 9% interest for a 120 day loan, the exact interest amount is P264.
How much is the principal amount? (Note: Use Exact Method.)

1. You borrowed P59, 000 for 2 years at 11%. Compute for the total interest to be paid for the
whole 2 years.
2. Richard is starting a small business and he needs a capital of P50, 000. He already has P25, 000
and is considering to loan the other P25, 000 from one of the following lending companies.
Which will be the best company to loan from if Richard wants to pay the lowest interest rate
possible? (Note: all companies use ordinary interest) Show your solutions per company and
explain your final answer.
d. Company A, rate=6% time=120days
e. Company B, rate =10% time=60days
f. Company C, rate=5% time=150days
3. The Employee’s Union charges 10% interest for the short-term loans made less than a year. If
you borrow P20, 000 and must pay an amount for P2, 000 as an interest, what is the length of
your loan?
4. A commercial bank charges 9% interest for a 120 day loan, the exact interest amount is P264.
How much is the principal amount? (Note: Use Exact Method.)

1. You borrowed P59, 000 for 2 years at 11%. Compute for the total interest to be paid for the
whole 2 years.
2. Richard is starting a small business and he needs a capital of P50, 000. He already has P25, 000
and is considering to loan the other P25, 000 from one of the following lending companies.
Which will be the best company to loan from if Richard wants to pay the lowest interest rate
possible? (Note: all companies use ordinary interest) Show your solutions per company and
explain your final answer.
g. Company A, rate=6% time=120days
h. Company B, rate =10% time=60days
i. Company C, rate=5% time=150days
3. The Employee’s Union charges 10% interest for the short-term loans made less than a year. If
you borrow P20, 000 and must pay an amount for P2, 000 as an interest, what is the length of
your loan?
4. A commercial bank charges 9% interest for a 120 day loan, the exact interest amount is P264.
How much is the principal amount? (Note: Use Exact Method.)