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John wants to invest his savings cost P131, 568 in a business. Corporation A offers a simple interest rate of 3.25% within 330 days, Corporation B offers a simple interest rate of 2.21% within 330 days exact time, while Corporation C offers 3.11% simple interest rate within 11 months. Which among the offers will John choose to invest his money? Show your solutions to support your answer.

User The Well
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Final answer:

After computing the simple interest for each offer using the provided principal of P131,568, John should invest his money with Corporation A as it offers the highest simple interest of P3,533.79 over the 330 days period.

Step-by-step explanation:

John is looking to invest his savings of P131,568 and is considering offers from three different corporations that offer simple interest over a period of 330 days or 11 months. To determine which offer is best, we will calculate the simple interest for each option and compare the results.

For Corporation A, the formula for simple interest is principal × rate × time. Using John's principal of P131,568, a rate of 3.25%, and a time period of 330/365 (since there are 365 days in a year), we can calculate:

Interest A = P131,568 × 0.0325 × (330/365) = P3,533.79

Similarly, for Corporation B, we use the same formula with a rate of 2.21%:

Interest B = P131,568 × 0.0221 × (330/365) = P2,026.68

For Corporation C, the time period is 11 months, which is the same as 330 days for the purpose of this calculation, using a rate of 3.11%:

Interest C = P131,568 × 0.0311 × (330/365) = P3,340.35

Comparing the interest amounts, Corporation A offers the highest simple interest of P3,533.79, followed by Corporation C's P3,340.35, and then Corporation B's P2,026.68. Therefore, John should choose to invest his money with Corporation A as it offers the highest return on investment.

User Leandro Caniglia
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