Investment problem

In annual simple interest that an investment earns is given by the equation I = Pr, where I is the interest, P is the principal, or the
amount invested, and r is the simple interest rate.
Example 1: Ms. Cally invested 200, 000 pesos to Abaca Multipurpose Cooperative that offers 2% interest per annum. If she
invested her money for 2 years, how much interest she earns?
Step 1: Let p = 200, 000
r = 2%
Step 2: Formula: I = Pr
Step 3: I = (200, 000) (2%)
Step 4: I = (200, 000) (0.02)
I = 4000.00
Step 5: Ms. Cally earns P 4, 000.00 for 2 years.

Example 2: In bank A, Mr. Bernardo invested a certain amount of money in a special deposit account at 3.2% monthly interest. In
bank B, at 4.0% monthly interest, he invested P100,000 more than his investment in Bank A. If he deposited these investments at
the same time, how much was invested at each bank if the total interest after a month is P36,400.
Step 1: Let p = investment in Bank A
p + 100,000 = investment in Bank B
Step 2:
Interest + Interest = Total , Formula: I = Pr
at A at B Interest

Step 3: p(3.2%) + (p + 100,000)(4.0%) = P36,400

Step 4: 0.032p + 0.04p + (100,000)(4.0%) = P36,400
0.032p + 0.04p + 4000 = P36,400
0.032p + 0.04p = P36,400 - 4000
0.072p = 32400
p = 32400 ÷ 0.072
p = P 450,000
Step 5: p = investment in Bank A = P 450, 000
p + 100,000 = investment in Bank B = P 550, 000
Mixture problem
The solution of a value mixture problem is based on the equation V = AC, where V is the value of an ingredient, A is the amount of
mixture, and C is the cost per unit of the mixture.
Example: Mani peanut Company wants to mix 20 kilos of peanuts worth P 90.00 a kilo with cashew nuts worth 150 a kilo in order
to make an experimental mix worth P 110.00 a kilo. How many kilos of cashew nuts should be added to the peanuts?
Step 1: Let n = number of kilos of cashew nuts

Step 2: Number of kilos x(multiply) Cost/Kilo = value

Peanuts 20 x 90 = 90(20)
Cashew Nuts n x 150 = 150n
Experimental mix n + 20 x 110 = 110(n+20)

Value of
Value of Value of
+ = experimental
peanut Cashew mix

Step 3: 90(20) + 150(n) = 110(n + 20)

Step 4: 1800 + 150n = 110n + 2200
150n – 110n = 2200 – 1800
40n = 400
n = 400 ÷ 40 = 10
Step 5: 10 kilos of cashew nuts is needed for the mix
Uniform motion problem
The solution of a uniform motion problem is based on the equation d = rt, where d is the distance traveled, r is the rate of travel,
and t is the time spent traveling.
Conditions:
Vehicles traveling towards each other or in opposite direction (distance1 + distance2 = Total distance)
Vehicles traveling towards the same direction in parallel tracks (distancefast – distanceslow = distance between)
Vehicles traveling from same point and overtaking the other (distance1 = distance2)
Example 1: A cyclist leaves Monumento heading east at the same time another cyclist leaves Muñoz, 60 km away, heading west on
the same highway. The east bound cyclist can average 25 kph. The other cyclist can average only 15 kph. The cyclist ride until they
meet. How long does it take?
Step 1: Let t = the number of hours it takes for the two cyclist meet
Rate Time Distance
Step 2:
Cyclist 1 25 t 25t
Cyclist 2 15 t 15t
distance 1 + distance 2 = distance between the two towns
Step 3: 25t + 15t = 60 km
Step 4: 40t = 60 km
t = 60 ÷ 40 = 1.5
Step 5: it will take 1.5 hours for the two cyclist to meet.

Example 2: Two trains left a station at the same time traveling in parallel tracks. Both are headed in the same direction. One train
travels at 100 kph while the other at 125 kph. After how many hours will they be 10 kilometers apart?
Step 1: Let t = the number of hours it takes for the trains to be 10 km apart.
Rate Time Distance
Step 2:
Train 1 100 t 100t
Train 2 125 t 125t
distance 1 - distance 2 = distance between the two towns
Step 3: 125t - 100t = 10 km
Step 4: 25t = 10 km
2 60𝑚𝑖𝑛𝑠
t = 10 ÷ 25 = 5 hr x 1 ℎ𝑟 = 24 mins
Step 5: it will take 24 mins for the two trains to be 10 kilometers away.

Example 3: A car leaves Valenzuela City 20 mins after a truck leaves the same city. The truck is traveling at an average speed of
60kph and the car is traveling at an average speed of 80 kph. How long will it take to overtake the truck?
Step 1: Let us convert 20 mins to hour
1 ℎ𝑜𝑢𝑟 20 1
20 min x (60 𝑚𝑖𝑛) = 60 = 3 ℎ𝑟
Let t = the number of hours it will take for the car to overtake the truck
1
t + 3 = The number of hours traveled by the truck
Rate Time Distance Since the truck and the car started traveling
Step 2:
Car 80 t 80t from the same place and ended at the same
Truck 60 1 1
t+ 60( t + ) point, they have traveled equal distance
3 3

distance 1 = distance 2
1
Step 3: 80t = 60( t + 3)
Step 4: 80t = 60t + 20
80t – 60t = 20
20t = 20
t = 20 ÷ 20 = 1
Step 5: It will take the car 1 hour to overtake the truck.
Solve the following problems:

1. A high – protein diet supplement that cost P 270 per kilo is mixed with vitamin supplement that cost P 130 per kilo. How many
kilos of each should be used to make 20 kilos of a mixture that cost P 186 per kilo?

2. Suppose P 200, 000.00 is invested, part in stock paying 8% interest and the remainder in another stock paying 5% interest. If
the total interest earned is P 13 660, how much was invested at each rate?

3. Two trains started toward each other at the same time from stations 732 km apart. One train traveled at 148 kph and the
other at 96 kph. In how many hours did they meet?

4. Two small planes start from point and ride in opposite directions. The first plane is flying 25 kph slower than the second plane.
In 2 hours, the plane are 470 km apart. Find the rate of each plane.

5. A passenger train leaves a train depot 1 hour after a freight train leaves the same depot. The freight train is traveling 15 mph
slower than the passenger train. Find the rate of each train if the passenger train overtakes the freight train in 3 hours.

6. A car traveling at 48 kph overtakes a cyclist who, riding at 12 kph, has had a 3 hours headstart. How far from the starting
point does the bus overtake the cyclist?