FDNBUSM 01 · Simple Interest and Discount — Hard Exam
Conventions
Independent original practice cases. Amounts are Philippine pesos (PHP); enter numeric answers without currency symbols. Use the stated interest and payment timing. j is a nominal annual rate, i an effective payment-period rate, n the number of payments, and t years. Payment and compounding periods coincide unless stated otherwise. The factors are a(i,n) = [1 − (1 + i)^−n]/i and s(i,n) = [(1 + i)^n − 1]/i; at i = 0 both equal n. Keep full calculator precision and round money to 2 decimals only at the end; numeric money tolerance is PHP 0.02. Percentage answers are in percent, not decimal form. Report percentage and fractional-period/year answers to at least four decimal places unless exact; whole payment-count answers remain integers. Ignore taxes, fees and rounding of actual bank installments unless explicitly given. The Week 8 syllabus lists Annuities and Sinking Funds for Quiz 2; an exact calendar date was not verified.
Questions
01A PHP 75,000 note runs from 18 January to 6 August 2026 at 9%. Using actual time and ordinary interest (exclude the start, include the end), what interest is due?
- PHP 3,698.63
- PHP 3,661.64
- PHP 3,750.00
- PHP 3,712.50
02A borrower needs PHP 76,000 now. A lender offers a six-month bank-discount note at 10% annually, with no fees. What face value is required?
- PHP 72,200
- PHP 80,000
- PHP 79,800
- PHP 76,000
03A PHP 100,000 face-value 120-day note is discounted at 12% on a 360-day year. What is its annualized simple borrowing rate on proceeds?
- 12.5%
- 12%
- 4.1667%
- 13.6364%
04A PHP 80,000 note earns 10% simple interest for nine months. It is sold three months before maturity at 8% bank discount. What are the sale proceeds?
- PHP 78,400
- PHP 84,000
- PHP 84,720
- PHP 84,280
05Under the U.S. Rule, PHP 60,000 at 12% simple interest receives PHP 15,000 after three months. What final payment settles it three months later?
- PHP 48,600
- PHP 45,000
- PHP 48,204
- PHP 46,350
06Two 90-day offers each deliver PHP 90,000 now, with a 360-day year and no fees. Offer A charges 8% simple interest; B charges 8% simple bank discount. Which repayment is smaller?
- Both repay PHP 91,836.73
- A; it repays PHP 91,800
- B; it repays PHP 91,800
- Both repay PHP 91,800
07For equal positive principal, annual rate and elapsed actual days, which statement is always correct?
- Ordinary interest exceeds exact interest.
- Exact interest exceeds ordinary interest.
- Approximate time always exceeds actual time.
- Ordinary interest equals bank discount.
08A simple-interest investment must grow from PHP 50,000 to PHP 57,500 in 18 months. What annual rate is required?
- 15%
- 6.6667%
- 7.5%
- 10%
09A PHP 48,000 obligation is due in four months and PHP 30,000 in ten months. Replace both by one payment at month 10 using 9% simple interest, with month 10 as focal date. What payment is equivalent?
- PHP 81,510
- PHP 79,080
- PHP 80,160
- PHP 78,000
10A bank-discount formula yields zero proceeds on a positive face-value note. What must hold?
- dt = −1
- dt = 1
- d = 0
- t = 0