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Directions: Answer the following word problems on a separate sheet of paper.

1. If a 5% interest for P600.00 loan for 5 years. How much is the interest?

A. P150.00

B. P160.00

C. P165.00

D. P170.00

2. 6 ½% interest for P5, 350 in 6 years, what is the interest?

A. P2,000

B. P2,086.50

C. P2,080

D. P2,087

3. Rebecca wants to borrow P500 to buy her favorite video game player and a

couple of games. She asks a friend to lend her this amount, offering to pay

him back P548 in 9 months. What is the annual interest rate for this shortterm loan?

A. 8%

B. 12.8%

C. 10%

D. 5%

4. 3.5% interest of P10, 500 for 10 years

A. P3,675

B. P3.600

C. P3, 500

D. P3, 560

5. What is the future value of a loan of P2800 to be repaid in 8 months at an

annual interest?

A. 2831

B. 3050

C. 2968

D. 2034