ASSESSMENT 3 1. Find the missing value. Principal Rate Time 15% (b) P500 2.5 years P1,250 5% (d) P900 92% 18 months 7 years Simple Interest P.65.625 P40 P375 2. (Simple Interest) Consider a 2.200 pesos at 7% interest for 100 days. Find the simple interest using: (a) Exact Interest (b) Ordinary Interest (c) Banker's Rule 3. Suppose that you have a choice of two loans: one at 5% simple interest for 6 years, and one at 6% simple interest for five years. Which will result in the smaller future value? Does it depend on the principal? 4. (Compound Interest) Find the compound interest and future value for each. Principal Rate Compounded Time (a) P825 4% Annually 10 years (b) P3,250 2% Semiannually 5 years (c) P625 8% Quarterly 12 years (d) P750 3% Monthly 1 year 5. Find the future value of an annuity if you invest P500 quarterly for 20 years at 5% interest compounded quarterly 6. (Amortization) A store was purchased for P725; 000 and the buyer made a 10% down payment. The balance was financed with a 6:35% loan for 27 years. Find the monthly payment. 7. You decide to buy P1,800,00 home. If you make a 25% down payment, you can get a 20-year mortgage at 9%, but if you can make a 10% down payment, you can get a 25-year mortgage at 7%. Which is the better options for you