Exercise 1
Directions: Read each problem carefully. Choose the letter of the correct answer and write
it in the blank.
1. Mang Juan paid a P600,00 interest on P20,000.00 that he borrowed for a period of 3
months. What was the monthly rate of interest?
a. 1%
b. 10%
c. 0.1%
d. 0.01%
2. How long will it take P2,500.00 double to P5,000.00 when interest rate is 5% a
month?
a. 1 month
b. 2 months c. 3 months
d. 4 months
3. Charles put P25,000.00 into a savings account where the money earns 6% interests
per year. How much interest will the money earn in one year?
a. P150.00
b. P1,050.00
c. P1,500.00
d. P15,000.00
4. At 10% interest per year, how much will a deposit of P20,000.00 earn in 2 years? a.
P400.00
b. P4,000.00
c. P40.00
d. P44,000.00
5. Lhea applied a loan of P50,000.00 at a yearly interest of 8%. If she paid back the
redit union of P58,000.00, what is the time period of her loan?
d. 4 years
c. 3 years
b. 2 years
a. 1 year
​