Fifty Thousand Pesos Split into Two Simple Interest Investment

Problem
A man wants to invest a sum of P50,000 in two investments. The first investment earns a rate of interest 4 times that of the second investment. In 3 years the first investment grows to P37,200. For 10 years, the second investment grows to P24,000.

  1. Find the sum invested in each rate of interest.
    A.   P35,000 and P15,000
    B.   P35,500 and P14,500
    C.   P30,000 and P20,000
    D.   P32,000 and P18,000
     
  2. Find the rate of interest of each.
    A.   8% and 2%
    B.   6% and 4%
    C.   7% and 3%
    D.   5% and 1%

 

Interest

The amount of money earned for the use of borrowed capital is called interest. From the borrower’s point of view, interest is the amount of money paid for the capital. For the lender, interest is the income generated by the capital which he has lent.