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St. Paul University Surigao: Lyca Mae G. Galanida BSA - 101

1. The document is an activity worksheet on simple and compound interest for a student named Lyca Mae G. Galanida. 2. It contains 6 practice problems calculating simple and compound interest with amounts, interest rates, and time periods provided. 3. It also includes short answer questions at the end for the student to explain their savings goals and how they can work to achieve them.

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Keziah Aliwanag
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59 views5 pages

St. Paul University Surigao: Lyca Mae G. Galanida BSA - 101

1. The document is an activity worksheet on simple and compound interest for a student named Lyca Mae G. Galanida. 2. It contains 6 practice problems calculating simple and compound interest with amounts, interest rates, and time periods provided. 3. It also includes short answer questions at the end for the student to explain their savings goals and how they can work to achieve them.

Uploaded by

Keziah Aliwanag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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St.

Paul University Surigao


St. Paul University System
8400 Surigao City, Philippines

LYCA MAE G.
Name: ___________________________________________ Date: ______________
GALANIDA
BSA - 101
Section:________________________Instructor’s MR. PRIMEL DIAGO
Signature:___________________

Activity No 2
SIMPLE AND COMPOUND INTEREST! S
C
O
I. Objectives: At the end of this activity, students should be able to R
a. Identify the simple and compound interest; E
b. Solve the given problem of simple and compound interest; and S
c. Explicate the given statement about saving goals.

II. Materials
Pen , Paper and scientific calculator

Solve the following dilemma using simple and compound interest. Show your solution.
1. A loan of P20,000 with a simple interest rate of 5% will be paid within 10 months. What value will
you substitute for t when you calculate the amount of interest?
I=Pxrxt
= 20,000 x 0.83
= P830

T = I / Pr
= 830 / 20,000(0.05)
= 830 / 1,000
= 0.83 or 10 months

CUT 2. Anabelle borrowed P12,000 that bears a simple interest. She has fully paid P12,750 after 3 months.
How much interest did she pay?
R = I / Pt
= 750 / 12,000 x (3/12)
= 750 / 3,000
= 0.25

I = PRT
= 12,000 x 0.25 x 3/12
= 3,000 x 3/12
= 9000 / 12
= 750

Mathematics of Finance
St. Paul University Surigao
St. Paul University System
8400 Surigao City, Philippines

3. What is the maturity value of a P40,000 after 3 years if the rate of interest is 6% per annum?
F = P (1 + r/n)nt
= 40,000 ( 1 + 0.06/1 )1(3)
= 40,000 ( 1 + 0.06)3
= 40,000 (1.191016)
= 47,640.64

4. Find the interest on P25,000 invested for 3 years at 7% compounded quarterly?


F = P (1 + r/n)nt
= 25,000 (1 + 0.07/4)3x4
= 25,000 (1 + 0.0175)12
= 25,000 (1.2314)
=30,785

I=F–P
= 30,785 – 25,000
= 5,785

5. How much must be invested today at 7% compounded monthly to have P3,000,000 in 20 years?
P = F / (1 + r/n)nt
= 3,000,000 / (1 + 0.07)12x20
= 3,000,000 / (1 + 0.0058)240
= 3,000,000 / 4.0067
= 748, 745.85

6. A man deposited P15,000 in a savings banks that pays 2.5% compounded monthly for 2 years and
9 months. What is the compounded amount at the end of the term?
F = P ( 1 + r/n)nt
= 15,000 (1 + 0.025/12)12(2.75)
= 15,000 (1 + 0.0208)33
= 15,000 (1.07097)
= 16,064.55

Mathematics of Finance
St. Paul University Surigao
St. Paul University System
8400 Surigao City, Philippines

Guide Question:
1. What are your savings goals that are reasonable for you to have for your future?

One of my savings goals is to build emergency fund, which is pool of money that you
earmark for unplanned expenses. When unexpected life events occur, the fund acts as an
insurance policy for your finances. For example, if you have a medical emergency or a
sudden job loss or appliance breakdown, you can use the money in your emergency fund to
pay for it so you don’t have to dig into your savings or debt.

2. What can you do NOW in order to reach those savings goals?

The amount I need to save will determined by the stability of my job, my income, any debts
may I have. My ultimate goal as of now is to focus and finish my studies and then find a job
with a high salary so I could start to save my emergency fund.

3. What do you think the expression “Make Your Money Work for You” means?

In my own view “Make Your Money Work For You” simply means cutting off all the
needless workers for you to buy and allowing your money to generate even more for you
without handling it, it simply means saving and only taking all that is required or typically
means first of all the needs.

Mathematics of Finance
Mathematics of Finance
Mathematics of Finance

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