# Word Problem

**Topics:**Investment, Depreciation, Finance, Bond, Time /

**Pages:**2 (460 words) /

**Published:**Mar 3rd, 2013

*Michael borrowed P30,000 from bank savings. He was charged 12% simple interest and he paid it within 10 months. How much was the interest paid?

-Rate

*You invested P500 and received P650 after three years. What had been the interest rate

-Principal

*How much principal should you invest at 4% in order to have P3,000 for a vacation to Europe in 3 years?

-Final Amount

*Find the final amount of the investment. P10,000 invested at 6% compounded quarterly for 5 1/2 years

-Present Value

*Mark is investing P5000 at 6% per annum, compounded quarterly for 3 years. Then, he will invest that amount along with some additional money at 7.25% per anum, compounded monthly for 3 more years so as to have P12500 at the end of six years. How much additional money must he invest?

-Effective Rate

*Find the effective rate equivalent to 10% compounded semi-annually.

-Nominal Rate

*What nominal amount rate compounded semi-annually is equivalent to 5% effective?

-Continuous Compounding

*Accumulate P6,000 for 3 ½ years at 12.6% compounded continuously.

-Amount Ordinary Annuity

*Jacob borrowed P25,000 for enrollment of his son in college in a cooperative. He agreed to pay the principal and the interest by paying monthly for 6 months at 12% interest compounded monthly. How much is the monthly installment?

-Present Value of Ordinary Annuity

*If money is worth 5% compounded quarterly, find the present value of P5,500 for 10years and 9 months.

-Deferred Ordinary Annuity

*Find the present value of a deferred annuity of P1,050 a year for 8 years that is deferred 2 years, If money is worth 7% effective.

-Problem on Amortization

*Arlette owes P10,000 with interest at 12% compounded semi-annually for three years. Find her periodic payment payable semi-annually and construct the amortization table.

-Sinking Fund

*Paula borrowed P5,000 from the Baranggay Tanod’s cooperative. In order to pay her dept, she decided to place eight equal