Question
Mra Smith depoeited Php 24050000 in an account that gives 3% simple annual interest. How much is in the acocunt after five yoars? Mr. Reyes borrowed Php 25000000 from a bank that charges 4% per annum. How much should he pay after three years?
Answer
4.6
(151 Votes)
Rosie
Master · Tutor for 5 years
Answer
2. The total amount in Mrs Smith's account after five years is Php 25252500. 3. Mr. Reyes should pay Php 27500000 after three years.
Explanation
Both these questions deal with problems around the concept of Simple Interest.1. The first referenced question asks to find the total amount in the account after 5 years. The basic formula to calculate Simple Interest is: I = Prt, where 'P' is Principal amount, 'r' is the rate of interest and 't' is the time. In this case, different components are P=Php 24050000, r=3% and t=5 years. After getting the amount of Simple Interest, we need to add it to the Principal amount to calculate the total amount in the account: P + I.2. The second question states that Mr. Reyes borrowed money from a bank and has to return the amount with annual interest of 4% after 3 years. Again, we use the formula of Simple Interest, where P = Php 25000000, r=4% and t=3 years. He will have to pay back the Principal amount in addition to the Interest calculated : P + I.