Problems on Profit and Loss
REPUBLIC OF THE PHILIPPINES
ILOCOS SUR POLYTECHNIC STATE COLLEGE
COLLEGE OF BUSINESS MANAGEMENT
NORTH CLUSTER
STA. MARIA, ILOCOS SUR
IN PARTIAL FULLFILLMENT
TO THE REQUIREMENTS
OF THE SUBJECT
BUSINESS MATH
PRESENTED BY:
MONICA D. APALLA
BSHRM 1A
PRESENTED TO:
MR. MARVIN GALCON
SUBJECT INSTRUCTOR
PROBLEM SOLVING INVOLVING INTEREST
1. You put $1000 into an investment yielding 6% annual interest; you left the money in for two years. How much interest do you get at the end of those two years?
Given:
P = $1000
r = 0.06 (because I have to convert the percent to decimal form)
t = 2
Find: I
Solution:
I = Prt
I = (1000) (0.06) (2)
I= 120
2. You invested $500 and received $650 after three years. What had been the interest rate?
Given:
P = $500
I = $650 – 500 = $150
t = 3
Solution:
I=Prt
150 = (500) (r) (3) 150 = 1500r 150/1500 = r = 0.10
3. You have $50,000 to invest, and two funds that you'd like to invest in. The You-Risk-It Fund (Fund Y) yields 14% interest. The Extra-Dull Fund (Fund X) yields 6% interest. Because of college financial-aid implications, you don't think you can afford to earn more than $4,500 in interest income this year. How much should you put in each fund?
The problem here comes from the fact that I'm splitting that $50,000 in principal into two smaller amounts:
|I |P |r |t | |Fund X |? |? |0.06 |1 | |Fund Y |? |? |0.14 |1 | |total |4,500 |50,000 |--- |--- | |* The amount in Fund Y is (the total) less or 50,000 – x.
|I |P |r |t | |Fund X |? |x |0.06 |1 | |Fund Y |? |50,000 – x |0.14 |1 | |total |4,500 |50,000 |--- |--- | |* I can now multiply across (right to left) and fill in the "interest" column.
|I |P |r |t | |Fund X |0.06x |x |0.06 |1 | |Fund Y |0.14(50,000 – x) |50,000 – x |0.14 |1 | |total
ILOCOS SUR POLYTECHNIC STATE COLLEGE
COLLEGE OF BUSINESS MANAGEMENT
NORTH CLUSTER
STA. MARIA, ILOCOS SUR
IN PARTIAL FULLFILLMENT
TO THE REQUIREMENTS
OF THE SUBJECT
BUSINESS MATH
PRESENTED BY:
MONICA D. APALLA
BSHRM 1A
PRESENTED TO:
MR. MARVIN GALCON
SUBJECT INSTRUCTOR
PROBLEM SOLVING INVOLVING INTEREST
1. You put $1000 into an investment yielding 6% annual interest; you left the money in for two years. How much interest do you get at the end of those two years?
Given:
P = $1000
r = 0.06 (because I have to convert the percent to decimal form)
t = 2
Find: I
Solution:
I = Prt
I = (1000) (0.06) (2)
I= 120
2. You invested $500 and received $650 after three years. What had been the interest rate?
Given:
P = $500
I = $650 – 500 = $150
t = 3
Solution:
I=Prt
150 = (500) (r) (3) 150 = 1500r 150/1500 = r = 0.10
3. You have $50,000 to invest, and two funds that you'd like to invest in. The You-Risk-It Fund (Fund Y) yields 14% interest. The Extra-Dull Fund (Fund X) yields 6% interest. Because of college financial-aid implications, you don't think you can afford to earn more than $4,500 in interest income this year. How much should you put in each fund?
The problem here comes from the fact that I'm splitting that $50,000 in principal into two smaller amounts:
|I |P |r |t | |Fund X |? |? |0.06 |1 | |Fund Y |? |? |0.14 |1 | |total |4,500 |50,000 |--- |--- | |* The amount in Fund Y is (the total) less or 50,000 – x.
|I |P |r |t | |Fund X |? |x |0.06 |1 | |Fund Y |? |50,000 – x |0.14 |1 | |total |4,500 |50,000 |--- |--- | |* I can now multiply across (right to left) and fill in the "interest" column.
|I |P |r |t | |Fund X |0.06x |x |0.06 |1 | |Fund Y |0.14(50,000 – x) |50,000 – x |0.14 |1 | |total