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Question
1. Engr. Trinidad loans from a loan firm an amount of 100,000 with a rate of simple interest of 20% but the interest was deducted from the loan at the time the money was borrowed. If at the end of one year, she has to pay the full amount of ?100,000, what is the actual rate on interest?
A. 23.5%
B. 24.7%
C. 25%
D. 25.8%
2. A sum of money doubles in size after 9 years when invested at 8% interest. At what rate of continuous compounding will an amount double in just half the time taken?
A. 12%
B. 3.8%
C. 15.8%
D. 17.1%
3.The cost to equip a condo unit with CCTV cameras is P50, 000. If the interest rate is 15% per year and it has a life of 6 years, find the equivalent annual cost.
A. 18,150
B. 13,650
C. 13,210
D. 18,110
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