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Discount Solved Problem (Simple Interest)

The document contains several word problems involving calculating rates of discount and interest from financial transactions. It provides the details of loans given at a discount off the full repayment amount or with interest collected up front. For each problem, it shows the calculation of the rate of discount as the discount amount divided by the original loan amount, and the rate of interest as the interest amount divided by the discounted repayment amount. Sample calculations show rates of discount ranging from 1.6% to 8.33% and rates of interest ranging from 5% to 47.2%.

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Angeli Mae Santos
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3K views3 pages

Discount Solved Problem (Simple Interest)

The document contains several word problems involving calculating rates of discount and interest from financial transactions. It provides the details of loans given at a discount off the full repayment amount or with interest collected up front. For each problem, it shows the calculation of the rate of discount as the discount amount divided by the original loan amount, and the rate of interest as the interest amount divided by the discounted repayment amount. Sample calculations show rates of discount ranging from 1.6% to 8.33% and rates of interest ranging from 5% to 47.2%.

Uploaded by

Angeli Mae Santos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A MAN BORROWED P 5,000 FROM A BANK AND PROMISE TO PAY THE AMOUNT OF P1,600 AFTER

THE BANK COLLECTED AN ADVANCE INTEREST OF P 80.00. WHAT WAS THE RATE OF DISCOUNT AND
THE RATE OF INTEREST THAT THE BANK COLLECTED IN ADVANCE ?

SOLUTION:
𝟖𝟎
𝑹𝒂𝒕𝒆 𝒐𝒇 𝑫𝒊𝒔𝒄𝒐𝒖𝒏𝒕 = 𝒙𝟏𝟎𝟎 = 𝟎. 𝟎𝟏𝟔 𝒔𝒂𝒚 𝟏. 𝟔%
𝟓𝟎𝟎𝟎
𝟖𝟎
𝑹𝒂𝒕𝒆 𝒐𝒇 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕 = 𝒙𝟏𝟎𝟎 = 𝟓%
𝟏𝟔𝟎𝟎

MR. SOLOMON LENT 12,500 TO A FRIEND. HE REQUIRE HIS FRIEND TO RETURN THE BORROWED
MONEY IN THE AMOUNT OF 14,000 AND AT THE SAME TIME COLLECTED AN ADVANCE INTEREST OF
250.00. COMPUTE FOR THE RATE OF DISCOUNT AND THE RATE OF INTEREST THAT MR . SOLOMON
COLLECTED IN ADVANCE .

250
RATE OF DISCOUNT = ----------- X 100 = 2%
12,500

250
RATE OF INTEREST = ----------- X 100 = 16.66%
1,500

A PRICE TAG OF P1500 IS PAYABLE IN 60 DAYS BUT IF PAID WITHIN 30 DAYS IT WILL HAVE A 3%
DISCOUNT. F IND THE RATE OF INTEREST.

SOLUTION :
𝑫𝒊𝒔𝒄𝒐𝒖𝒏𝒕 = 𝟎. 𝟎𝟑(𝟏𝟓𝟎𝟎) = 𝟒𝟓
𝑨𝒎𝒐𝒖𝒏𝒕 𝒕𝒐 𝒃𝒆 𝒑𝒂𝒊𝒅 𝒐𝒏 𝟑𝟎 𝒅𝒂𝒚𝒔 = 𝟏𝟓𝟎𝟎 − 𝟒𝟓 = 𝟏𝟒𝟓𝟓
𝑰 = 𝑷𝒓𝒕
𝟑𝟎
𝟒𝟓 = 𝟏𝟏𝟒𝟓(𝒓) ( )
𝟑𝟔𝟎
𝒓 = 𝟎. 𝟒𝟕𝟐 = 𝟒𝟕. 𝟐% (𝒓𝒂𝒕𝒆 𝒐𝒇 𝒊𝒏𝒕𝒆𝒓𝒆𝒔𝒕)
Maricor borrowed P30,000 from a bank and promise to pay the amount for two years. She
received only the amount of P25,500 after the bank collected an advance of P2500. What
was the rate of discount and the rate of interest that the bank collected in advance?

Solution:

𝟐, 𝟓𝟎𝟎
𝐑𝐚𝐭𝐞 𝐨𝐟 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭 = ( ) × 𝟏𝟎𝟎
𝟑𝟎, 𝟎𝟎𝟎
𝐑𝐚𝐭𝐞 𝐨𝐟 𝐝𝐢𝐬𝐜𝐨𝐮𝐧𝐭 = 𝟖. 𝟑𝟑%
𝟐, 𝟓𝟎𝟎
𝐑𝐚𝐭𝐞 𝐨𝐟 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 = ( ) × 𝟏𝟎𝟎
𝟐𝟓, 𝟓𝟎𝟎
𝐑𝐚𝐭𝐞 𝐨𝐟 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 = 𝟗. 𝟖𝟎%

Lalaine owe P80,000 due at the end of 5 years without interest. What should Lalaine’s
creditor be willing to accept today if he discounts at 8% simple interest?

Solution:

𝑫𝒊𝒔𝒄𝒐𝒖𝒏𝒕 = 𝟖𝟎, 𝟎𝟎𝟎 (𝟎. 𝟎𝟖)(𝟓)


𝑫𝒊𝒔𝒄𝒐𝒖𝒏𝒕 = 𝟑𝟐, 𝟎𝟎𝟎
𝑷 = 𝟖𝟎, 𝟎𝟎𝟎 − 𝟑𝟐, 𝟎𝟎𝟎
𝑷 = 𝟒𝟖, 𝟎𝟎𝟎

Discount P8,350 for 6 months at 10% simple interest. What is the discount?

Solution:

𝐅 =𝐏+𝐈
𝐅 = 𝐏 + 𝐏𝐧𝐢
𝟔
𝟖, 𝟑𝟓𝟎 = 𝐏 + 𝐏 ( ) (𝟎. 𝟏𝟎)
𝟏𝟐
𝐏 = 𝟕, 𝟗𝟓𝟐. 𝟑𝟖
𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 = 𝟖, 𝟑𝟓𝟎 − 𝟕, 𝟗𝟓𝟐. 𝟑𝟖
𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 = 𝟑𝟗𝟕. 𝟔𝟐
A price tag of a T-shirt is P1200 is payable in 60 days but if paid within 30 days it will have a
3% discount. Find the rate of interest.

Solution:

Discount = 0.03(1200) = 36
Amount to be paid on 30 days = 1200 – 36 = 1164
I=Pni
36 = (1164) (30/360) (i)
i = 37%

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