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Mathematics in The Modern World Test 1

This document contains a mathematics assignment with 4 problems involving calculating compound and simple interest. The problems cover topics like calculating the present value of an investment compounded annually over 4 years, finding the interest rate if additional money is paid after 2 years, determining the principal if money is compounded bi-monthly over 2 years, and accumulating a principal over 7 years at 11.5% compounded annually. The assignment also includes 4 simple interest problems involving calculating interest earned over a period of time, finding the maturity value of a loan, and determining how long it will take an amount to earn a given interest at a stated rate. Students are asked to show their work and solutions to solve these 8 financial mathematics problems.

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2K views6 pages

Mathematics in The Modern World Test 1

This document contains a mathematics assignment with 4 problems involving calculating compound and simple interest. The problems cover topics like calculating the present value of an investment compounded annually over 4 years, finding the interest rate if additional money is paid after 2 years, determining the principal if money is compounded bi-monthly over 2 years, and accumulating a principal over 7 years at 11.5% compounded annually. The assignment also includes 4 simple interest problems involving calculating interest earned over a period of time, finding the maturity value of a loan, and determining how long it will take an amount to earn a given interest at a stated rate. Students are asked to show their work and solutions to solve these 8 financial mathematics problems.

Uploaded by

Adi Das
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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Ramon Magsaysay Memorial Colleges

General Santos City A.Y 2021-


2022
CN 7000 Mathematics in the Modern
World
Midterm Second Activity and Assignment

Group 5:
Barcelona, Johnfred
Pascua, Reajelle
Pillo, Princess Ashley
Quilog, Mario Jr.
Silongan, Nurhassim Namil

SOLVE THE FOLLOWING PROBLEMS


COMPLETELY. SHOW ALL YOUR
SOLUTIONS.
A.
1.) What is the present value of P65,000 at 11% compounded annually for 4 years?
Given:
P = P65,000
j = 11% 0r 0.11
m=1
t=4
i = 0.11
n = 4 (1) = 4
Find: F

Formula: F = P(1+i) n

Solution:

F =65,000(1+0.11) 4

F =65,000(1 . 11)4

F = 65,000(1.51807041)
F = 98,674.58
Answer: P98,674.58

2.) Ryza borrows P150,000. At what rate compounded bi-monthly will her interest be if she agrees
to pay P10,000 more at the end of 2 years?
Given:
P = P10,000
F = P150,000
m=6
t=2
n = 2(6) = 12
Find: j

F 1n
Formula: j = m
P [( ) ]
−1

Solution:
1
150,000
j=6
[( 10,000 ) 12
−1 ]
j=6¿
j = 6 [0.25]
j = 1.52
Answer: 1.52%

3.) If money is worth 6% compounded bi- monthly, find the principal of P125,700 for 2 years?
Given:
P = P125,700
m=6
t=2
n = 2(6) = 12
j = 6% or 0.06
Find: F
j mt
Formula: F = P (1+ ¿¿
m
Solution:
0.06 6 (2)
F = 125,700 (1+ ¿¿
6
F = 125,700 (1+0.1)12

F = 125,700 (1.01)12

F = 125,700 (1.127)
F = 141,641.91
Answer: P141,641.91

4.) Accumulate P95,000 for 7 years at 11.5% compounded annually?


Given:
P = 95,000
t=7
j = 11.5% or 0.115
m=1
n = 7(1) = 7
i = 0.115
Find: F

Formula: F = P ( 1+i )n

Solution:

F = 95,000 (1+0.115)7

F = 95,000 (1 .115)7

F = 95,000 (2.143)
F= 2.143
F = 203,539.02
Answer: P203,539.02

B.
1.) How much was borrowed if a simple interest rate of 2.10% was offered payable in 4 months
with interest of P35.00?
Given:
I = P35.00
r = 2.10% or 0.021
t = 4 months or 0.33
Find: P
I
Formula: P =
rt
35.00
Solution: P =
(0.021)(0.33)
35.00
P=
0.007
P = 5,000
Answer: P5,000

2.) The loan of P1350 is to be repaid in 1 year at 4.5% simple interest. How much is added to the
loan?
Given:
P = P1,350
r = 4.5% or 0.045
t = 1 year or 1
Find: I
Formula: I = Prt
Solution:
I = 1,350 (0.045) (1)
I = 60.75
Answer: P60.75
3.) What is the maturity value of a loan of P64,000 earning an interest of P12,733?
Given:
Present value = P64,000
Interest: P12,733
Find: Maturity value or final value (f)
Formula: f = P + i
Solution:
f = 64,000 + 12,733 = 76,733
Answer: P76,733
4.) How long will it take for P21,000 at 9% simple interest to earn P5600?
Given:
P = P21,000
f = P56,000
r = 9%
Find: t

I F−P
Formula: t = or t =
pr pr
Solution:
56,000−21,000
t=
21,000(0.09)
35 ,000
t=
1 ,890
t = 18.5
Answer: 18.5 years

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