Question

5. Suppose you invested PHP 25,000 at a simple interest at a rate of 2.5%, how much will be your investment after

10 years? a. PHP 43,750.00
C.PHP 45,730.00
b. PHP 31,250.00
d. PHP 47,350
​

Answer 1

b. PHP 31,250.00

Explanation:

Simple interest = principal × rate × time

Principal = PHP 25,000

Rate = 2.5%

Time = 10 years

Simple interest = principal × rate × time

= PHP 25,000 × 2.5% × 10

= 25,000 × 0.025 × 10

= 6,250

Simple interest = PHP 6,250

Investment after 10 years = principal + simple interest

= PHP 25,000 + PHP 6,250

= PHP 31,250

Investment after 10 years = PHP 31,250