Direction: Answer the following and give the solution.

TEST I. Solve the following problems. Show your solutions (3 points each) 1. Your father invested #50 000 for five years at 10%, and the proceeds from the investment will all be collected at the end of five years. Using a simple interest assumption, compute for the cumulative interest and the total. Year Principal Rate Time Interest Cumulative Total interest P50 000 10% P5 000 P50 000 10% P5 000 W N P50 000 10% P5 000 P50 000 10% P5 000 P50 000 10% P5 0002. On May 1, 2014, ABC Company borrowed P5 million from DAE Bank at the rate of 15% a year. The loan is paid at the rate of P500 000 every October 31 and April 30 until the full amount is paid, Compute for the interest and payments. Amortization table for P5-million loan Amortization dates Payments Interest Principal payment Principal balance 5 000 000 October 31, 2014 500 000 4 500 000 April 30, 2015 500 000 4 000 000 October 31, 2015 500 000 3 500 000 April 30, 2016 500 000 3 000 000 October 31, 2016 500 000 2 500 000 April 30, 2017 500 000 2 000 000 October 31, 2017 500 000 1 500 000 April 30, 2018 500 000 1 000 000 October 31, 2018 500 000 500 000 April 30, 2019 500 000