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    Ge4 Final Exam

    Uploaded by

    Khent Balasabas
    The document contains 15 multi-part math word problems related to calculating interest, compound interest, average daily balances, loan payments, down payments, sales tax, and estimating annual percentage rates for loans. It concludes by discouraging cheating and encouraging honesty in exams.

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    © All Rights Reserved
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    Ge4 Final Exam

    Uploaded by

    Khent Balasabas
    17 views1 page
    The document contains 15 multi-part math word problems related to calculating interest, compound interest, average daily balances, loan payments, down payments, sales tax, and estimating annual percentage rates for loans. It concludes by discouraging cheating and encouraging honesty in exams.

    Original Title

    GE4 FINAL EXAM

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    The document contains 15 multi-part math word problems related to calculating interest, compound interest, average daily balances, loan payments, down payments, sales tax, and estimating annual percentage rates for loans. It concludes by discouraging cheating and encouraging honesty in exams.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    17 views1 page

    Ge4 Final Exam

    Uploaded by

    Khent Balasabas
    The document contains 15 multi-part math word problems related to calculating interest, compound interest, average daily balances, loan payments, down payments, sales tax, and estimating annual percentage rates for loans. It concludes by discouraging cheating and encouraging honesty in exams.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    FINAL EXAMINATION

    PROBLEM SOLVING
    Instruction: Solve the following questions and show your solutions.

    1. You deposit P1,500 in an account earning 10.4% interest. Calculate the simple interest earned in 6 months.

    2. Calculate the maturity value of a simple interest, eight-month loan of P7000 if the interest rate is 8.7%

    3. If you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty.
    Suppose you invested P5000 in a one-year certificate of deposit paying 8.5% interest. After 6 months, you decide to
    withdraw P2000. You interest penalty is 3 months simple interest on the P2000. What interest penalty do you pay?

    4. P10,000 is borrowed for 140 days at an 8% interest rate. Calculate the maturity value by the exact method and by the
    ordinary method. Which method yields the greater maturity Value? Who benefits from using the ordinary method rather than
    the exact method, the borrower or the lender?

    5. Calculate the compound amount when P8000 is deposited in an account earning 8% interest, compounded quarterly, for 5
    years.

    6. If you leave P2500 in an account earning 9% interest, compounded daily, how much money will be in the account after 4
    years?

    7. P20,000 is deposited for 5 years in an account earning 6% interest.


    a. Calculate the interest earned if interest is compounded annually
    b. Calculate the interest earned if interest is compounded semiannually
    c. How much more interest is earned on the account when the interest is compounded semiannually?
    d.
    8. You borrow P6000 to help pay your college expenses. You agree to repay the loan at the end of 5 years at 10% interest,
    compounded quarterly.
    a. What is the maturity value of the loan?
    b. How much interest are you paying on the loan?
    c.
    9. A credit card account had a P244 balance on March 5. A purchase of P316 was made on March 12, and a payment of P100
    was made on March 28. Find the average daily balance if the billing date is April 5.

    10. A charge account had a balance of P944 on May 5. A purchase of P255 was made on May 17, and a payment of P150 was
    made on May 20. The interest on the average daily balance is 1.5% per month. Find the finance charge on the july 1 bill.

    11. Donald Savchenko purchased new living room furniture for P2400. Assuming the sales tax is 7.75% of the purchase price,
    find each of the following.
    a. What is the total cost, including sales tax?
    b. If Donald makes a down payment of 15% of the total cost, find the down payment.
    c.
    12. Adele Paolo purchased a Chevrolet Tracker for a total price of P21,425, including taxes and license fee, and financed that
    amount for 5 years at an annual interest rate of 7.8%
    a. Find the monthly payment.
    b. What is the total amount of interest paid over the term of the loan?
    c.
    13. Chuong Ngo borrows P2500 from a bank that advertises a 9% simple interest rate and repays the loan in three equal monthly
    2 Nr
    payments. Estimate the APR. Round to the nearest tenth of a percent. APR=
    N +1

    14. Jill Richards purchases a stereo system for P1500. She makes a 20% down payment and agrees to repay the balance in 12
    equal payments. If the finance charge on the balance is 7% simple interest, estimate the APR. Round to the nearest tenth of a
    percent.
    15. Charles Ferrara borrows P4000 from a bank that advertises an 8% simple interest rate. If he repays the loan in six equal
    monthly payments, estimate the APR. round to the nearest tenth of a percent.
    Your seatmate spent countless hours studying for this exam. And yet here YOU are having the audacity to cheat. If YOU
    are a real friend then value your friend’s efforts. At least at the end of this semester you tried being honest and lastly It is
    better to know your mistakes than to receive fake grades.

    -From your #1 fan

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