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MATH INVS - Mathematics of Investment

Problem Set 1
Jose Arnaldo B. Dris
Department of Mathematics and Physics
Institute of Arts and Sciences
Far Eastern University
josearnaldobdris@gmail.com

December 5, 2015

Show your solutions. Write your answers neatly and legibly in an


FEU quiz booklet. Use a BLACK-INK ballpen and BOX your final an-
swers.

(1) Find the unknown quantities for every given set of conditions
in the following table. Assume a simple interest rate model and peso
currency throughout. NOTE : In (g) and (h), use actual time.

Item P r t I F
(a) 15, 800 10.75% 3, 575
(b) 20, 000 12.25% 1, 200
(c) 9.75% 2.5years 30, 000
(d) 10% 1.5years 50, 000
(e) 20, 000 11.5% 9months
(f ) 10% 1, 500 58, 500
(g) 12% 150days 1, 200
(h) 12, 500 10% 120days
(i) 30, 000 10.5% 55, 000
(j) 11.75% 4, 500 22, 800

(2) Re-compute the missing values in (1g) and (1h) using approxi-
mate time.

(3) Solve the following problems:

1
(a) At what simple interest rate will a sum of money be doubled in
6 years?

(b) If money is worth 12%, how much must be invested to have


25, 000 in 2 years?

(c) A man got a loan of 20, 000 with an interest of 3, 500 in 1.5 years.
What is the interest rate?

(d) If an investment of 20, 000 accumulates to 38, 000 in 2 years, find


the interest rate.

(4) Find the ordinary and exact interest and the amount due on
20, 000 at 15% from January 15 to October 20, 2000 using the

(a) actual, and

(b) approximate number of days.

(5) Find the amount if 30, 000 is invested at 14.25% for 100 days using

(a) exact interest, and

(b) ordinary interest.

Deadline: December 14, 2015