NATIONAL APPRENTICESHIP SERVICE

REGIONAL GUAVIARE- CDATTG

BASIC FINANCIAL MATHEMATICS COURSE

QUESTIONNAIRE FOR EVIDENCE OF KNOWLEDGE

SIMPLE INTEREST

PROPOSED EXERCISES

1) An investment made today for $1,200,000 generates at the end of one year the sum of
$1,536,000. Requested:
a) The amount earned from interest. R/. $ 336.000
b) The interest rate of the financial operation. R/. 28% p.a.

' '
P=$ 1 200.000 I =1 536.000−1' 200.000=336.000
'
F=$ 1 536.000 336.000
i= ' =0 , 28 → 28 % Anual
F=? 1 200.000
I =?
2) How much should be invested today to have in one semester the sum of $ 8,500,000 and earn
interest of $ 480,000. What is the interest rate. R/. 8,020,000, 5.985% semiannually

' '
F=$ 8 500.000 P=8 500.000−480.000=8 ' 020.000
I =$ 480.000 480.000
i= =0,05985 → 5,985 % Semestral
P=? 8 ' 020.000
i=?
3) Calculate the value of the interest generated by an investment today of $ 10,000,000 at the
following rates:
a) 1.2% biweekly. R/. 120,000 biweekly
b) 2.5% per month. R/. 250,000 per month
c) 7% quarterly. R/. 700,000 quarterly
d) 10% every four months. R/. 1,000,000 per four-month period
e) 15% semiannual. R/. 1,500,000 semiannual

I =10000.000∗0,012=120.000 Quincenales
I =10000.000∗0,012=120.000 Quincenales
I =10000.000∗0,025=250.000 Mensuales
I =10000.000∗0 , 07=700.000 Trimestrales
I =10000.000∗0 , 1=1' 000.000 C uatrimestral
I =10000.000∗0 , 15=1 ' 500.000 Semestrales
4) If you invested $1,500,000 during one year, at the end of which you were given $2,000,000.
What was your profitability? R/. 33.33% p.a.

P=$ 1 ' 500.000 2 ' 000.000

−1
F=$ 2' 000.000 1 ' 500.000
n=1 Año i= =0,3333→ 33 , 33 % Anual
1
i=?
5) You were granted a loan in the amount of $5,000,000 for one quarter, at the end of which you
must repay $5,600,000. What was the cost of the loan? R/12% quarterly
Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

P=$ 5 ' 000.000 5 ' 600.000

−1
F=$ 5 ' 600.000 5 ' 000.000
n=1Trimestre i= =0 ,12 →12 % Trimestral
1
i=?
6) A person purchases a sound equipment for the amount of $ 1,800,000 and pays it as follows:
20% down payment and the rest in 4 equal quarterly installments of $ 420,000. Taking into account
the time value of money, it can be said that $2,040,000 was paid for the sound equipment, if an
interest rate of 6.5% per quarter is charged? R/. No, it is necessary to consider the interest rate
applied, a fundamental element in the time value of money. Actually, the sound system on credit
costs $ 2,174,400.

P=$ 1 ' 800.000 1 ' 680.000

CI =20 % → 360.000 +360.000
sin interes →
n=4 Trimestres 2 ' 040.000
F=$ 2' 040.000
Cuota=$ 420.000 → $ 1 ' 680.000 F=1' 440.000(1+ 0,065∗4)
Coninteres →
i=6 , 5 % Trimestral F=2 ' 174.400
7) An apartment valued at $ 60,000,000 is acquired on credit, and it is desired to pay it off in one
year with equal bimonthly installments of $ 11,000,000. Construct the economic diagram from the
buyer's and seller's point of view.

P=$ 60 ' 000.000

F=$ 66 ' 000.000

8) A loan of $25,000,000 is received from a banking institution to be repaid in two years, at a rate of
10% quarterly in advance. Construct the economic diagram.

P=$ 25 ' 000.000

F=$ 40 ' 000.000

Instructor: Héctor Alexander Solano González.

Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

9) A loan for $ 15,000,000 is paid in 4 equal quarterly installments plus interest. If the interest rate is
7% per quarter. Construct the economic diagram.

P=$ 15 ' 000.000

F=$ 19' 200.000

10) Construct the economic diagram of the previous exercise, assuming that interest is paid in
advance.

P=$ 15 ' 000.000

F=$ 19' 200.000

11) Roberto borrowed $ 6,300,000 to pay in 4 months. If the interest rate is 30% simple annual
interest, what is the amount of interest to be paid?
R/. $ 630.000

P=$ 6 ' 300.000 n=4 meses

i=30 % Anual → 2 , 5 % M I=?

I =6 ' 300.000∗0,025∗4=630.000
12) Pedro has a capital of $ 3,200,000. It invests 70% of its capital at 6.3% quarterly and the
remainder at 11.6% semiannually. How much total interest do you receive each month? R/. $65.600

Capital=$ 3' 200.000 i 2=11, 6 % S → 1,933333333 % M

P1=70 % → $ 2' 240.000 I 1=2' 240.000∗0,021=47.040
i 1=6 , 3 % T → 2 ,1 % M I 2=960.000∗0,01933333333=18.559,9999968
P2=30 % → $ 960.000 I =47.040+18.559,9999968=65.600
Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

13) An investment of $14,400,000 earns interest of $2,092,800 in 8 months. Calculate: a) The

simple annual interest rate, b) The effective rate for the period. R/. 21.8 % p.a., 14.533% in 8
months.

P=$ 14 ' 400.000 2 ' 092.800

i= =14,533 % en 8 M
I =$ 2' 092.800 14 ' 400.000

( )
n=8 meses 16 ' 492.800
i=? −1
14 ' 400.000
i=? Anual i= ∗12=21 , 8 % Anual
8

14) How long will it take a loan of $4,500,000 to produce $253,130 of simple interest, if the interest
rate is 45%? R/. 0.1250025 years.

P=$ 4 ' 500.000

I =$ 253.130
i=45 %
n=?
253.130
n= =0,125002469133802 Años
4 ' 500.000∗0 , 45

15) In how much time will a certain amount of money double if it is invested at 40% simple interest.
R/. 2.5 years.

P=$ 1 ' 000.000

F=$ 2' 000.000
i=40 %
n=?
2 ' 000.000
−1
1 ' 000.000
n= =2 ,5 Años
0, 4
16) How much will a merchant pay for a credit granted by a candy and chocolate factory, when
buying for $ 3,500,000 with a 25-day term, if he is charged an interest rate of 3% per month? R/.
$3.587.500

P=$ 3 ' 500.000 I =?

n=25 dias F=3 ' 500.000 ( 1+ 0 , 01∗25 )=3 ' 587.500
i=3 % M
17) An employee obtains a loan from his company for $ 4,200,000 to buy household appliances and
agrees to repay the loan two years later. There is an agreement that as long as the debt exists, it
will pay monthly interest of 2.5% per month. How much interest will you have to pay each month?
R/. $ 105.000

P=$ 4 ' 200.000 I =?

i=2 , 5 % Mensual I =4 ' 200.000∗0,025∗1=105.000
Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

18) A person buys on credit a stove with a cash price of $ 1,765,000. He agreed to make a down
payment of $500,000 and final payment 3 months later. If you agree to pay an interest rate of 42%
on the balance, how much will you have to pay in 3 months? R/. $ 1.397.825.

Contado=$ 1' 765.000 i=3 , 5 % Mensual

Credito=$ 500.000 F=?
P=1 ' 265.000 F=1 ' 265.000 (1+ 0,035∗3 )=1 ' 397.825
n=3 meses
19) A person signs a promissory note for a debt of $ 7,498,000 with a term of 4 months. If the
normal interest rate is 2.8% per month and the default interest rate is 65%, calculate the total
amount due if the note is paid 25 days past due. R/. $ 8.676.227,39.

P=$ 7 ' 498.000

n=4 meses
i=2 , 8 % M
F=?
i mora =65 %
n mora=25 dias
498.000∗0 ,65
∗25
12
I =7 ' =338.451,3888889
30
F=7 ' 498.000 ( 1+0,028∗4 ) +338.451,3888889=8 ' 676.227 , 39

20) Mr. Milton García signs a promissory note for a loan of $ 7,000,000 at a rate of 45% for a 90-
day term. You agree to pay a delinquent interest rate equal to 25% above the normal rate. Calculate
the interest due and the total amount payable if the note is settled 12 days after the due date. R/ $
131,250 and $ 7,918,750.

P=$ 7 ' 000.000

i=45 % → 3 ,75 % M
n=90 dias →3 Meses
i mora =25 %+i
n mora=25 dias
F=?
I =?
i=( 0,0375∗0 , 25 ) +0,037=4,6875 % Mensual
000.000∗0,046875∗12
I =7 ' =131.250
30
F=7 ' 000.000 ( 1+0,0375∗3 ) +131.250=7 ' 918.750

21) Isabel invested $ 5,500,000 in a financial institution for a term of 28 days. If at maturity he
received $ 5,620,000, a) what yield did he obtain, b) what annual interest rate did he earn? R/ $
120,000 and 31.42%.

P=$ 5 ' 500.000 n=28 dias

Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

( )
F=$ 5 ' 620.000 5 ' 620.000
I =? −1
5 ' 500.000
i=? i= ∗360=28 ,05 % Anual
28
I =5 ' 620.000−5' 500.000=120.000

22) A computer costs $ 3,250,000 cash. A student agrees to make a down payment of 25% of the
cash price and the remainder in 90 days, with a 15% surcharge on the cash price. What simple
annual interest rate does the student pay? R/. 80% per year.

Contado=$ 3' 250.000 3 ' 250.000

Cuota I =25 % → $ 812.500 −812.500
n=90 dias →0 ,25 Años 2' 437.500
I =15 % → $ 487.500
i=? 487.500
i= =80 % Anual
P=$ 2 ' 437.500 2' 437.500∗0 , 25
23) Luis obtains a loan for the amount of $ 7,500,000 for a term of two and a half years and a
simple interest rate of 2.6% per month. How much will you pay in interest? How much will you pay
at the end of the term for the loan received? R/. $ 5.850.000 y $ 13.350.000.

P=$ 7 ' 500.000 I =?

n=2 ,5 años →30 mese I =7 ' 500.000∗0,026∗30=5 ' 850.000
i=2 , 6 % Mensual F=7 ' 500.000 ( 1+0,026∗30 )=13 ' 350.000
F=?
24) A loan of $7,000,000 at 9.5% quarterly simple interest is requested. How much interest must be
paid after 9 months? What is the value of the amount? R/ $ 1,995,000 and $ 8,995,000.

P=$ 7 ' 000.000 I =?

n=3 Trimestres I =7 ' 000.000∗0,095∗3=1 ' 995.000
i=9 , 5 % Trimestral F=7 ' 000.000 ( 1+0,095∗3 )=8' 995.000
F=?
25) A person obtains a loan for $ 2,890,000 on February 3, 2007 and pays off the principal plus
interest on July 3, 2007. Obtain the interest and the amount, if the interest rate was 3% per month.
R/ $ 433,500 and $ 3,323,500
P=$ 2 ' 890.000 I =?
n=5 mensual I =2 ' 890.000∗0 , 03∗5=433.500
i=3 % mensual F=2 ' 890.000 ( 1+ 0 , 03∗5 )=3 ' 323.500
F=?
26) The interest earned on a loan of $ 8,000,000, in a term of 7 months, was $ 350,000. Calculate
the effective rate for the period and the annual interest rate. R/. 4.38% y 7.5%.

P=$ 8 ' 000.000 i=? Anual

I =$ 350.000 350.000
i= =4,375 % en 7 meses
n=7 mese 8 ' 000.000
i=?
Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

i= ( 0,04375
7 )∗12=7 , 5 % Anual
27) Cristina requests a loan of $6,000,000 for the purchase of a printer. Agrees to pay $210,000 in
interest after 36 days. What effective rate per period do you pay for the loan? R/. 3.5%.

P=$ 6000.000 210.000

i= =3 , 5 %
I =$ 210.000 6 ' 000.000
i=?
28) A laptop computer can be purchased for $ 1,475,000 cash or $ 1,567,187.5 on credit with a 5-
month term. If the money can be invested at 15% per annum, which payment alternative is more
advantageous to the buyer? R/. It is indifferent whether to buy on purchase or on credit.

Contado=$ 1' 475.000 n=5 mese

invertir i=15 % anual
Credito=$ 1' 567.187 ,5
F=1 ' 475.000 ( 1+0 , 15∗1 )=1' 696.250

29) A microwave oven costs $520,000 if paid in cash and $560,000 if paid after 4 months. If the
person borrowed $520,000 for 4 months at 9% per annum to buy the oven and pay cash, is it worth
it? R/. Whether it is in your best interest to apply for the loan.

P=$ 520.000 → contado/ prestamo

P=$ 560.000 → credito
n=4 meses → credito/ prestamo
i=9 % Anual → prestamo
F=520.000 1+ (
0 , 09
12 )
∗4 =535.600

If it is in your best interest to apply for the loan, you will save $24,400.

30) Gloria wishes to invest $20,000,000 in two banks so that her total interest income is $120,000
per month. One bank pays 7.32% and the other offers 2.32% quarterly. How much should you
invest in each bank? R/. $ 13.333.333 y $ 6.666.667.

'
Invertir=$ 20 000.000 en dos bancos
I totales =$ 120.000 Mensual
i banco1 =7 ,32 %
i banco2 =2 ,32 % Cuatrimestral
Pbanco 1=?
Pbanco 2=?

120.000=( 20' 000.000−x ) ( 0,0061 ) (1 )+ ( x ) ( 0,0058 ) ( 1 )

120.000=122.000−0,0061 x +0,0058 x
120.000=122.000−0,0003 x
120.000−122.000=−0,0003 x
−2.000=.−0,0003 x
Instructor: Héctor Alexander Solano González.
Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

−2.000
=x
−0,0003
'
6 666.666,667=x
' '
20 000.000−6 666.666,667=13 ' 333.333 ,33
31) A businessman borrowed $20,000,000 for four months at an interest rate of 2.5% per month,
payable at maturity. The contract stipulates that in the event of default, a 3.2% monthly fee must be
paid on the overdue balance. How much will you have to pay if you cancel after four months and 25
days? R/. $ 22.586.666,67.

P=$ 20 ' 000.000

n=4 meses
i=2 , 5 % Mensual
i mora =3 ,2 % Mensual
n mora=25 dias
F=20 ' 000.000 ( 1+0,025∗4 )=22 ' 000.000
F=22 ' 000.000 1+ ( 0,032∗25
30 )
=22 ' 586.666 , 67

32) A one-year loan of $6,700,000 bears interest at 2.3% per month for the first 6 months and 2.8%
per month for the last 6 months; all of this interest will be paid at maturity of the principal obligation
and there will be no interest on interest. What will be the total amount payable per year. R/. $
8.750.200.

P=$ 6 ' 700.000 '

I =6 700.000∗0,023∗6=924.600
n=1 año '
I =6 700.000∗0,028∗6=1 ' 125.600
i=2 , 3 % Mensual primeros 6 meses I =2 ' 050.200
i=2 , 8 % Mensual ultimos 6 meses ' '
F=6 700.000+2 050.200=8 ' 750.200
33) A person borrowed $ X at 25% per annum and then invested it at 30% per annum. If the profit
he made on this operation was $650,000 per year, how much had he received in loans? R/. $
13.000.000.

P=$ X
i=25 % Anual
i=30 % Anual
I =$ 650.000 A nual
30 % 5%
x 650.000
0 ,3∗650.000
I= =3 ' 900.000
0 , 05
3 ' 900.000∗1
P= =13 ' 000.000
0 ,3

Instructor: Héctor Alexander Solano González.

Economist
 NATIONAL APPRENTICESHIP SERVICE
REGIONAL GUAVIARE- CDATTG
BASIC FINANCIAL MATHEMATICS COURSE

Instructor: Héctor Alexander Solano González.

Economist