S1 Q2 General Mathematics Initially,

At 𝑡 = 0 Amount of substance = 10𝑔

Lesson 1

EXPONENTIAL FUNCTIONS
At 𝑡 = 10 𝑑𝑎𝑦𝑠 Amount of substance = 5𝑔
At 𝑡 = 20 𝑑𝑎𝑦𝑠 Amount of substance = 2. 5𝑔
POPULATION GROWTH, EXPONENTIAL DECAY COMPOUND INTEREST
At 𝑡 = 30 𝑑𝑎𝑦𝑠 Amount of substance = 1. 25𝑔
EXPONENTIAL FUNCTIONS
● An exponential function with base b is a function An exponential model for this situation is
𝑥 𝑥 𝑡
of the form 𝑓(𝑥) = 𝑏 , 𝑦 = 𝑏 where
1 10
(𝑏 > 0, 𝑏 ≠ 1) 𝑦 = 10( ) 2
● Some of the most common applications in
real-life of exponential functions and their
transformations are population growth, EXPONENTIAL FUNCTIONS AND HALF-LIFE
exponential decay, and compound interest.
If the half-life of a substance is T units, and 𝑦0 is
Example 1: the amount of the substance corresponding to
At t = 0, there were initially 20 bacteria. Suppose 𝑡 = 0, then the amount y of substance remaining
that the bacteria doubles every 100 hours. Give an after t units of time is given by
exponential model for the bacteria as a function of
t. 𝑡
1 𝑇
𝑦 = 𝑦0( 2 )
Initially,
At 𝑡 = 0 Number of bacteria = 20
COMPOUND INTEREST
At 𝑡 = 100 Number of bacteria = 20(2)
● A starting amount of money (called the principal)
At 𝑡 = 200 Number of bacteria = 20(2)
2 can be invested at a certain interest rate that is
earned at the end of a given period (such as one
At 𝑡 = 300 Number of bacteria = 20(2)
3 year).
● If the interest rate is compounded, the interest
4
At 𝑡 = 400 Number of bacteria = 20(2) earned at the end of the period is added to the
principal, and this new amount will earn interest
in the next period. The same process is
An exponential model for this situation is repeated for each succeeding period: interest
𝑡
previously earned will also earn interest in the
100
𝑦 = 20(2) next period.
● If a principal P is invested at an annual rate of r,
compounded annually, then the amount after t
EXPONENTIAL MODELS AND POPULATION GROWTH 𝑡
Suppose a quantity y doubles every T units of years is given by 𝐴 = 𝑃(1 + 𝑟)
time. If 𝑦0 is the initial amount, then the quantity y
Example 3:
after t units of time is given by Mrs. Dela Cruz invested P100,000 in a company
that offers 6% interest compounded annually.
𝑡
Define an exponential model for this situation. How
𝑦 = 𝑦0(2) 𝑇 much will this investment be worth at the end of
each year for the next five years?

HALF-LIFE Initially,
● The half-life of a radioactive substance is the At 𝑡 = 0 Investment = 𝑃100, 000
time it takes for half of the substance to
decay. Investment
At 𝑡 = 1
= 𝑃100, 000(1. 06) = 𝑃106, 000
Example 2: Investment
Suppose that the half-life of a certain radioactive At 𝑡 = 2
= 𝑃106, 000(1. 06) = 𝑃112, 360
substance is 10 days and there are 10g initially,
determine the amount of substance remaining after Investment
30 days, and give an exponential model for the At 𝑡 = 3
= 𝑃112, 360(1. 06) = 𝑃119, 101. 60
amount of remaining substance.
Investment
At 𝑡 = 4
We use the fact that the mass is halved every 10 = 𝑃119, 101. 60(1. 06) = 𝑃126, 247. 70
days (from the definition of half-life). Investment
At 𝑡 = 5
= 𝑃126, 247. 70(1. 06) = 𝑃133, 822. 56
Let 𝑡 = 𝑡𝑖𝑚𝑒 𝑖𝑛 𝑑𝑎𝑦𝑠. Thus, we have:
An exponential model for this situation is
𝑡
𝑦 = 100, 000(1. 06) . The investment is worth
𝑃133, 822. 56

Example 4:
Example 5: Referring to Example 3, is it possible Question 2:
for Mrs. Dela Cruz to double her money in 8 At time t=0, 500 bacteria are in a petri dish , and
years? In 10 years? this amount triples every 15 days. (a) Give an
𝑡 exponential model for the situation. (b) How many
Using the model 𝑦 = 100, 000(1. 06) substitute bacteria are in the dish after 40 days?
𝑡 = 8 and 𝑡 = 10.

8
If 𝑡 = 8, 𝑦 = 100, 000(1. 06) = 𝑃159, 384. 81
10
If 𝑡 = 10, 𝑦 = 100, 000(1. 06) = 𝑃179, 084. 77

Since her money still has not reached P200,000

after 10 years, then she has not doubled her
money during this time.

THE NATURAL EXPONENTIAL FUNCTION Question 3:

● While an exponential function may have various The half-life of a substance is 400 years. (a) Give
bases, a frequently used base is the irrational an exponential model for the situation (b) How
number 𝑒, whose value is approximately much will remain after 600 years if the initial
2.71828. Because 𝑒 is a commonly used base, amount was 200 grams?
the natural exponential function is defined
having 𝑒 as the base.
● The natural exponential function is the function
𝑥
𝑓(𝑥) = 𝑒
Example 5:
A large slab of meat is taken from the
refrigerator and placed in a pre-heated oven. The
temperature T of the slab t minutes after being
placed in the oven is given by
−0.006𝑡
𝑇 = 170 − 165𝑒 degrees celsius.
Construct a table of values for the following values
of t: 0, 10, 20, 30, 40, 50, 60, and interpret your
results. Round off values to the nearest integer.

t 0 10 20 30 40 50 60
T 5 15 24 32 40 48 55

The slab of meat is increasing in temperature at

roughly the same rate.

Question 1:
Robert invested P30,000 after graduation. If the
average interest rate is 5.8% compounded
annually, (a) give an exponential model for the
situation, and (b) will the money be doubled in 15
years?
Lesson 2 PROPERTY OF EXPONENTIAL INEQUALITIES
EXPONENTIAL EQUATIONS AND 1. If 𝑏 > 1, then the exponential function 𝑦 = 𝑏
𝑥

INEQUALITIES is increasing for all x. This means that

𝑥 𝑦
𝑏 < 𝑏 if and only if 𝑥 < 𝑦.
ONE-TO-ONE PROPERTY OF EXPONENTIAL FUNCTIONS 2. If 0 < 𝑏 < 1, then the exponential function
𝑥1 𝑥2 𝑥
● If 𝑥1 ≠ 𝑥2 then 𝑏 ≠ 𝑏 𝑦 = 𝑏 is decreasing for all x. This means
𝑥 𝑦
𝑥1 𝑥 that 𝑏 > 𝑏 if and only if 𝑥 < 𝑦.
● Conversely, if 𝑏 = 𝑏 2 then 𝑥1 = 𝑥2
Example 4: Solve the inequality
Example 1: Solve the equation

Both 9 and 3 can be written using 3 as the base.

Write both sides with 4 as the base.

Since the base 3 > 1, then this inequality is

equivalent to x < 2x − 4 (the direction of the
inequality is retained)

Example 2: Solve the equation

Both 125 and 25 can be written using 5 as the base.

Example 5: Solve the inequality

Example 3: Solve the equation

Both 9 and 3 can be written using 3 as the base.

Example 6: Lesson 3
The half-life of 𝑍𝑛 − 71 is 2.45 minutes. At t = 0,
there were 𝑦0 grams of 𝑍𝑛 − 71 71, but only
1 LOGARITHMIC FUNCTIONS
256 RICHTER SCALE, SOUND INTENSITY, AND PH LEVEL
of this amount remains after some time. How much
time has passed?
LOGARITHMIC FUNCTIONS
A function in the form of
𝑓(𝑥) = 𝑙𝑜𝑔𝑏𝑎 or 𝑦 = 𝑙𝑜𝑔𝑏𝑎

We solve the equation LOGARITHM

Let a, b, and c be positive real numbers such that
b ≠ 1. The logarithm of a with base b is denoted by
𝑙𝑜𝑔𝑏𝑎, and is defined as
𝑐
𝑐 = 𝑙𝑜𝑔𝑏𝑎 if and only if 𝑎 = 𝑏

Reminders:
1. In both the logarithmic and exponential forms, b
is the base. In the exponential form, c is an
exponent.
2. In the logarithmic form 𝑙𝑜𝑔𝑏𝑥, x cannot be
negative.
3. The value of 𝑙𝑜𝑔𝑏𝑥 can be negative.

TYPES OF LOGARITHMS
1. Common Logarithms
● Are logarithms with base 10; 𝑙𝑜𝑔 𝑥 is a short
notation for 𝑙𝑜𝑔10𝑥 .

2. Natural Logarithms
● Are logarithms to the base 𝑒 (approximately
2.71828) and are denoted by “ln”. In other
words, ln x is another way of writing 𝑙𝑜𝑔𝑒𝑥.

Rewrite the following exponential equations in

logarithmic form, whenever possible
Rewrite the following logarithmic equations in [2] SOUND INTENSITY
exponential form. In acoustics, the decibel (dB) level of a sound is

𝑙
𝐷 = 10𝑙𝑜𝑔 −12
10

Where 𝑙 is the sound intensity in watts/m2 (the

−12 𝑤𝑎𝑡𝑡𝑠
quantity 10 2 is the least audible sound a
𝑚
human can hear.

𝑝𝐻ecibel level of sound in a quiet office is

−6 𝑤𝑎𝑡𝑡𝑠
10 2
𝑚
a) What is the corresponding sound intensity in
APPLICATIONS decibels?
Some of the most common applications in real-life
of logarithms are the Richter scale, sound
intensity, and pH level.

[1] RICHTER SCALE

In 1935, Charles Richter proposed a logarithmic
scale to measure the intensity of an earthquake. b) How much more intense is this sound than the
He defined the magnitude of an earthquake as a least audible sound a human can hear?
function of its amplitude on a standard
seismograph. The following formula produces the
same results but is based on the energy
released by an earthquake.

The magnitude R of an earthquake is given by

[3] ACIDITY AND THE PH SCALE
2 𝐸 The pH level of a water-based solution is defined
𝑅 = 3
𝑙𝑜𝑔 4.40 +
10 as 𝑝𝐻 =− 𝑙𝑜𝑔[𝐻 ]

Where 𝐸 (in joules) is the energy released by the +

Where [𝐻 ] is the concentration of hydrogen ions
4.40
earthquake (the quantity 10 joules is the in moles per liter. Solutions with a 𝑝𝐻 of 7 are
energy released by a very small reference defined neutral; those with 𝑝𝐻 < 7 are acidic, and
earthquake. those with 𝑝𝐻 > 7 are basic.

Example 1: Suppose that an earthquake released Example 3. A 1-liter solution contains 0.00001
approximately 10
12
joules of energy. moles of hydrogen ions. Find its pH level.

a) What is its magnitude on a Richter scale?

Determine whether the given is a logarithmic

function, a logarithmic equation, a logarithmic
inequality or neither.

b) How much more energy does this earthquake

release than the reference earthquake?
Lesson 4
SOLVING LOGARITHMIC
EQUATIONS AND INEQUALITIES
BASIC PROPERTIES OF LOGARITHMS

LAWS OF LOGARITHMS

PROPERTY OF LOGARITHMIC EQUATIONS

If 𝑏 > 1, then the logarithmic function 𝑦 = 𝑙𝑜𝑔 𝑥
𝑏
is increasing for all x.

If 0 < 𝑏 < 1, then the logarithmic function

𝑦 = 𝑙𝑜𝑔𝑏𝑥 is decreasing for all x.

This means that 𝑙𝑜𝑔 𝑢 = 𝑙𝑜𝑔 𝑣 if and only if

𝑏 𝑏
𝑢 = 𝑣.

TECHNIQUES.
Some strategies for solving logarithmic equations:
1) Rewriting to exponential form;
2) Using logarithmic properties;
3) Applying the one-to-one property of
logarithmic functions;
4) The Zero Factor Property: If ab = 0, then a = 0
or b = 0.

Find the value of the following equations Use logarithms to solve for the value of x in the
𝑥
exponential equation 2 = 3

Incorrect method *below*

Sample Problem 1: Sample Problem 3: Population Growth
The 2013 earthquake in Bohol and Cebu had a The population of the Philippines can be modeled
magnitude of 7.2, while the 2012 earthquake that 0.0251𝑥
by the function 𝑃(𝑥) = 20, 000, 000𝑒
occurred in Negros Oriental recorded a 6.7
where x is the number of years since 1955 (e.g. x
magnitude How much more energy was released
= 0 at 1955). Assuming that this model is accurate,
by the 2013 Bohol/Cebu earthquake compared to
in what year will the population reach 200 million?
that by the Negros Oriental earthquake?

Sample Problem 4:
Based on this model, we will reach 100 million in
the year 2019. But last July 2014, the Philippines
officially welcomed its 100 millionth baby. Hence
mathematical models must always be reviewed
and verified against new data.

In a bacteria culture, an initial population of 5,000

bacteria grows to 12,000 after 90 minutes. Assume
that the growth of bacteria follows an exponential
𝑘𝑡
model 𝑓 𝑡 = 𝐴𝑒 representing the number of
bacteria after t minutes.

a) Find A and k, and

b) Use the model to determine the number of
bacteria after 3 hours.

Sample Problem 2: Interest Compounded Annually

𝑡
Using the formula 𝐴 = 𝑃(1 + 𝑟) where A is the
future value of the investment, P is the principal, r
is the fixed annual interest rate, and n is the
number of years. How many years will it take an
investment to double if the interest rate per annum
is 2.5%?
Sample Problem 5: Lesson 5
Chains or cables suspended between two points
and acted upon by a gravitational force follow the
ILLUSTRATING SIMPLE AND
shape of a catenary. The equation 𝑦 =
𝑥
𝑒 +𝑒
−𝑥
COMPOUND INTEREST
2
is an example of such a DEFINITION OF TERMS
curve (see figure). Assuming
1) Lender or Creditor
this is the curve assumed by
➢ Person (or institution) who invests the
a suspended cable, how far
money or makes the funds available.
apart are the cables when y
= 4? Approximate your
2) Borrower or Debtor
answer to two decimal
➢ Person (or institution) who owes the
places.
money or avails of the funds from the
lender.

3) Origin or Loan Date

➢ Date on which money is received by the
borrower.

4) Repayment Date or Maturity Date

➢ Date on which the money borrowed or loan
is to be completely repaid.

5) Time or Term (t)

➢ Amount of time in years the money is
borrowed or invested;
➢ Length of time between the origin and
maturity dates.

6) Principal (P)
➢ Amount of money borrowed or invested
on the origin date.

7) Rate (r)
➢ Annual rate, usually in percent, charged
by the lender, or rate of increase of the
investment.

8) Interest (I)
➢ Amount paid or earned for the use of
money.

9) Simple Interest (Is)

➢ Interest that is computed on the principal
and then added to it.

10)Compound Interest (Ic)

➢ Interest is computed on the principal and
also on the accumulated past interests.

11) Maturity Value or Future Value (F)

➢ Amount after t years that the lender
receives from the borrower on the
maturity date.
 SIMPLE INTEREST VS. COMPOUND INTEREST Example 2:
Suppose you won 10,000 pesos and you plan to How much interest is charged when PhP 50,000 is
invest it for 5 years. A cooperative group offers a borrowed for 9 months at an annual interest rate of
2% simple interest rate per year. A bank offers 2% 10%?
compounded annually. Which will you choose and
why? The compound interest. As shown in the Given:
two tables below, I can get more interest in P = 50,000
investment 2. r = 10% = 0.10
t = 9 months = 9/12 year
INVESTMENT 1 (SIMPLE INTEREST)

Example 3:
Complete the table by finding the unknown.
INVESTMENT 2 (COMPOUND INTEREST)
Principal (P) Rate (r) Time (t) Interest
(a) 2.5% 4 1,500
36,000 (b) 1.5 4,860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

(a) The unknown principal can be obtained by

FORMULA FOR ANNUAL SIMPLE INTEREST

Where,
𝐼𝑠 = 𝑠𝑖𝑚𝑝𝑙𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝐼𝑠 = 𝑃𝑟𝑡 𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙, 𝑜𝑟 𝑡ℎ𝑒 𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑
𝑟 = 𝑠𝑖𝑚𝑝𝑙𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒
𝑡 = 𝑡𝑒𝑟𝑚 𝑜𝑟 𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠 (b) The unknown rate can be obtained by

Example 1:
A bank offers 0.25% annual simple interest rate for
a particular deposit. How much interest will be
earned if 1 million pesos is deposited in this
savings account for 1 year?
(c) The unknown time can be obtained by
Given:
P = 1,000,000
r = 0.25% = 0.0025
t = 1 year

(b) The unknown interest can be obtained by

 Lesson 6
FORMULA FOR MATURITY (FUTURE) VALUE
COMPOUND INTEREST
Where, The following table shows the amount at the end of
𝐹 = 𝑃 + 𝐼𝑠 each year if principal 𝑃 is invested at an annual
𝐹 = 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑢𝑡𝑢𝑟𝑒 𝑣𝑎𝑙𝑢𝑒
𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 interest rate 𝑟 compounded annually. Computations
𝐼𝑠 = 𝑠𝑖𝑚𝑝𝑙𝑒 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 for the particular example 𝑃 = 𝑃ℎ𝑃 100,000 and 𝑟 =
𝐹 = 𝑃 (1 + 𝑟𝑡) 5% are also included.

Example 3:
Find the maturity value if 1 million pesos is
deposited in a bank at an annual simple interest
rate of 0.25% after (a) 1 year and (b) 5 years?

MATURITY (FUTURE) VALUE AND COMPOUND INTEREST

Where,
𝑡 𝐹 = 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑢𝑡𝑢𝑟𝑒 𝑣𝑎𝑙𝑢𝑒
𝐹 = 𝑃 (1 + 𝑟) 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚
𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑜𝑟 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒
𝑟 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒
𝑡 = 𝑡𝑒𝑟𝑚/𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
𝐼𝑐 = 𝐹 − 𝑃
𝐼𝐶 = 𝑐𝑜𝑚𝑝𝑜𝑢𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡

Example 1:
Find the maturity value and the compound interest
if PhP 10,000 is compounded annually at an
interest rate of 2% in 5 years.
Example 2: Example 4:
Suppose your father deposited in your bank How much money should a student place in a time
account PhP 10,000 at an annual interest rate of deposit in a bank that pays 1.1% compounded
0.5% compounded yearly when you graduated annually so that he will have PhP 200,000 after 6
from kindergarten and did not get the amount until years?
you finished Grade 12. How much will you have in
your bank account after 12 years?

COMPOUNDING MORE THAN ONCE A YEAR

INTEREST IS COMPOUNDED SEMI-ANNUALLY, OR EVERY 6 MONTHS.

Under this option,the interest rate every six months

is 1%.

PRESENT VALUE P at COMPOUND INTEREST

𝑡
𝐹 = 𝑃 (1 + 𝑟) Where,
𝐹 = 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑢𝑡𝑢𝑟𝑒 𝑣𝑎𝑙𝑢𝑒
𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚
𝐹 𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑜𝑟 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒
𝑃= 𝑡 𝑟 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒
(1+𝑟) 𝑡 = 𝑡𝑒𝑟𝑚/𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
−𝑡
= 𝐹(1 + 𝑟)
■ The investment scheme introduces new
Example 3: concepts because interest is compounded twice
What is the present value of PhP 50,000 due in 7 a year, the conversion period is 6 months, and
years if money is worth 10% compounded the frequency of conversion is 2.
annually? ■ As the investment runs for 5 years, the total
number of conversion periods is 10.
■ The nominal rate is 2% and the rate of interest
for each conversion period is 1%.

DEFINITION OF TERMS
1) Frequency of Conversion (m)
➢ Number of conversion periods in one year.

2) Conversion or Interest Period

➢ Time between successive conversions of
interest.

3) Total number of conversion periods n

➢ 𝑛 = 𝑚𝑡 = (𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛) × (𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠)

(𝑚)
4) Nominal rate (𝑖 )
➢ Annual rate of interest

5) Rate (𝑗) of interest for each conversion period

(𝑚)
𝑖 𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
➢ 𝑗= 𝑚
= 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛
 (𝑚)
NOTE ON RATE NOTATION: r, 𝑖 ,j Example 2:
Find the maturity value and interest if PhP 10,000
In earlier lessons, r was used to denote the interest is deposited in a bank at 2% compounded monthly
rate. Now that an interest rate can refer to two for 5 years.
rates (either nominal or rate per conversion
(𝑚)
period), the symbols 𝑖 and 𝑗 will be used
instead.

Examples of nominal rates and the corresponding

frequencies of conversion and interest rate for
each period.

PRESENT VALUE P at COMPOUND INTEREST

𝐹
MATURITY VALUE, COMPOUNDING m TIMES A YEAR 𝑃 = (𝑚) 𝑚𝑡
𝑚𝑡 𝑖
(𝑚)
𝑖 (1 + 𝑚
)
𝐹 = 𝑃 (1 + 𝑚
)
𝐹 = 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑢𝑡𝑢𝑟𝑒 𝑣𝑎𝑙𝑢𝑒
𝐹 = 𝑚𝑎𝑡𝑢𝑟𝑖𝑡𝑦 𝑓𝑢𝑡𝑢𝑟𝑒 𝑣𝑎𝑙𝑢𝑒 𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚
𝑎𝑡 𝑡ℎ𝑒 𝑒𝑛𝑑 𝑜𝑓 𝑡ℎ𝑒 𝑡𝑒𝑟𝑚 𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑜𝑟 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒
𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑜𝑟 𝑝𝑟𝑒𝑠𝑒𝑛𝑡 𝑣𝑎𝑙𝑢𝑒 𝑖
(𝑚)
= 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒
(𝑚)
𝑖 = 𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒 𝑚 = 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛
𝑚 = 𝑓𝑟𝑒𝑞𝑢𝑒𝑛𝑐𝑦 𝑜𝑓 𝑐𝑜𝑛𝑣𝑒𝑟𝑠𝑖𝑜𝑛 𝑡 = 𝑡𝑒𝑟𝑚/𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
𝑡 = 𝑡𝑒𝑟𝑚/𝑡𝑖𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎𝑟𝑠
Example 3:
Example 1: Find the present value of PhP 50,000 due in 4
Find the maturity value and interest if PhP 10,000 years if money is invested at 12% compounded
is deposited in a bank at 2% compounded semi annually.
quarterly for 5 years.

First, compute for the interest rate per conversion

period given by

The total number of conversion periods is

The present value can be computed by substituting

these values in the formula
Thus, Lesson 7
ANNUITIES
ANNUITY

Example 4:
What is the present value of PhP 25,000 due in 2
years and 6 months if money is worth 10%
compounded quarterly?

● A sequence of payments made at equal

First, compute for the interest rate per conversion (fixed) intervals or periods of time.
period given by ● Annuities may be classified in different ways, as
follows.

Annuities
According to Simple Annuity General Annuity
The total number of conversion periods is
payment An annuity where the An annuity where the
interval and payment interval is payment interval is
interest the same as the not the same as the
The present value can be computed by substituting period interest period. interest period.
these values in the formula
Ordinary Annuity (or
Annuity Due
Annuity Immediate)
According to A type of annuity in
A type of annuity in
time of which the payments
which the payments
payment are made at the
are made at the end
beginning of each
Thus, of each payment
payment interval.
interval.
Contingent Annuity
Annuity Certain An annuity in which
According to An annuity in which the payments extend
duration payments begin and over an indefinite (or
end at definite times. indeterminate) length
of time.

DEFINITION OF TERMS
1) Term of an annuity (t)
➢ Time between the first payment interval
and last payment interval.

2) Regular or Periodic payment (R)

➢ The amount of each payment.

3) Amount (Future Value) of an annuity (F)

➢ Sum of future values of all the payments
to be made during the entire term of the
annuity.

4) Present value of an annuity (P)

➢ Sum of present values of all the
payments to be made during the entire
term of the annuity.
Example 1:
Suppose Mrs. Remoto would like to save P3,000 AMOUNT (FUTURE VALUE) OF ORDINARY ANNUITY
every month in a fund that gives 9% compounded 𝑛
monthly. How much is the amount or future value (1 + 𝑗) −1
of her savings after 6 months? 𝐹 = 𝑅 𝑗
𝑅 = 𝑟𝑒𝑔𝑢𝑙𝑎𝑟 𝑝𝑎𝑦𝑚𝑒𝑛𝑡
𝑗 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 𝑝𝑒𝑟𝑖𝑜𝑑
𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠

Illustrate the cash flow in a time diagram

Thus, the amount of this annuity is P18,340.89.

Example 2:
In order to save for her high school graduation,
Find the future value of all the payments at the end Marie decided to save P200 at the end of each
of term (t=6) month. If the bank pays 0.250% compounded
monthly, how much will her money be at the end of
6 years?

Add all the future values obtained from the

previous step.

Thus, the amount of this annuity is P18,340.89. Hence, Marie will be able to save P14,507.85 for
her graduation.
Example 3:
Suppose Mrs. Remoto would like to know the PRESENT VALUE OF ORDINARY ANNUITY
present value of her monthly deposit of P3,000 −𝑛
when interest is 9% compounded monthly. How 1−(1 + 𝑗)
much is the present value of her savings at the end 𝑃 = 𝑅 𝑗
of 6 months?
𝑅 = 𝑟𝑒𝑔𝑢𝑙𝑎𝑟 𝑝𝑎𝑦𝑚𝑒𝑛𝑡
𝑗 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 𝑝𝑒𝑟𝑖𝑜𝑑
𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑦𝑚𝑒𝑛𝑡𝑠

Example 4:
Mr. Ribaya paid P200,000 as down payment for a
car. The remaining amount is to be settled by
paying P16,200 at the end of each month for 5
years. If interest is 10.5% compounded monthly,
what is the cash price of his car?
Discount the payment of each period to the
beginning of the term. That is, find the present
value of each payment. Recall the formula

The timediagram for the installment payments is

given by:

Add the discounted payments to get the present

value.

Thus, the cost of the TV set at the beginning of the

term is P17,536.79.

Alternate Solution: CASH VALUE = DOWN PAYMENT + PRESENT VALUE

Since we already know from Example 1 that the
accumulated amount at the end of 6 months is
P18,340.89, then we can simply get the present
value of this amount using the formula
Example 5: Lesson 8
Paolo borrowed P100,000. He agrees to pay the
principal plus interest by paying an equal amount PROPOSITIONS
of money each year for 3 years.What should be his LOGIC
annual payment if interest is 8% compounded ● Logic has been studied since the classical Greek
annually? period (600 – 300 BC).
● The Greeks, most notably Thales, were the first
to formally analyze the reasoning process.
● Aristotle (384 – 322 BC), the “father of logic”,
and many other Greeks searched for universal
truths that were irrefutable.
● A second great period for logic came with the
use of symbols to simplify complicated
logical arguments.
● George Boole (1815 – 1864) is considered the
“father of symbolic logic.”
● He developed logic as an abstract
The cash flow of this annuity is illustrated in the mathematical system consisting of defined
time diagram given below. terms (propositions), operations (conjunction,
disjunction, and negation), and rules for using
the operations.

PROPOSITIONS
● A proposition is a declarative sentence that is
either true or false, but not both.
● If a proposition is true, then its truth value is true,
which is denoted by T; otherwise, its truth value
is false which is denoted by F.
● Propositions are usually denoted by small
letters. For example, the proposition

p: Everyone should study logic

● may be read as

P is the proposition “Everyone should study logic.”

● If a sequence of propositions is considered, we

denote the propositions by 𝑝1, 𝑝2, ...

Example 1:
Determine whether each of the following
statements is a proposition or not. If it is a
proposition, give its truth value.

p: Mindanao is an island in the Philippines.

q: Find a number which divides your age.
r: my seatmate will get a perfect score in the logic
exam.
s: Welcome to the Philippines!
t: 3 + 2 = 5
𝑥
u: 𝑓(𝑥) = (𝑥+1)
is a rational function.
v: What is the domain of the function?
r: I am lying.
𝑝1: It is not the case that 2 is a rational number.
𝑝2: Either logic is fun and interesting, or it is boring.
𝑝3: If you are a Grade 11 student, then you are a
Filipino.
𝑝4: If you are more than 60 years old, then you are
entitled to a Senior Citizen’s card, and if you are
entitled to a Senior Citizen’s card, then you are p: Jethro is a boy.
more than 60 years old. q: He is a grade 5 pupil.

○ Solution: The conjunction of the proposition p

COMPOUND PROPOSITION and q is given by
● Compound proposition is a proposition formed
from simpler proposition using logical p ˄ q: Jethro is a boy and he is a grade 5
connectors involving propositions p and/or q pupil.
may be expressed as follows:
2) Disjunction
𝑛𝑜𝑡 𝑝 ○ If two simple propositions p and q are
𝑝 𝑎𝑛𝑑 𝑞 connected by the word ‘or’, then the resulting
𝑝 𝑜𝑟 𝑞 compound proposition “p or q” is called a
𝐼𝑓 𝑝, 𝑡ℎ𝑒𝑛 𝑞 disjunction of p and q and is written in
symbolic form as “p ˅ q”.
● A proposition is simple if it cannot be broken ○ Example: Form the disjunction of the
down any further into other component following simple propositions:
propositions.
p: Joyce will pass all her subjects.
Example 2: q: She will be retained
For each of the propositions in Example 1,
determine whether it is a simple or a compound ○ Solution: The disjunction of the proposition p
proposition. If it is a compound proposition, identify and q is given by
the simple components.
p ˅ q: Joyce will pass all her subject or she
𝑝1: It is not the case that 2 is a rational number. will be retained.
𝑝2: Either logic is fun and interesting, or it is boring.
3) Conditional
𝑝3: If you are a Grade 11 student, then you are a ○ If two simple propositions p and q are joined
Filipino. by a connectivity ‘if then’, then the resulting
compound proposition “if p then q” is called a
𝑝4: If you are more than 60 years old, then you are
conditional proposition or an implication and
entitled to a Senior Citizen’s card, and if you are is written in symbolic form as “p → q” or “p ⇒
entitled to a Senior Citizen’s card, then you are q”.
more than 60 years old. ○ Here, p is called hypothesis (or antecedent
and q is called conclusion (or consequent) of
Example 3: the conditional proposition (p ⇒ q). The
Determine whether the following statements are conditional p→q may also be read “p implies
q”.
propositions. If it is a proposition, determine its
○ Examples:
truth value if possible. 1. If Ariel works hard then he will be
successful.
1) a: Is the traffic heavy along Katipunan Avenue 2. If you eat more then you lose your diet.
today? 3. If ABC is a triangle, then A + B + C =
2) b: Please close the door. 180 degrees.
3) c: x + 2 = 11 4. If Jonathan is in Grade 11, then he is a
4) d: 144 is a perfect square. Senior High School student
5) e: Keep right while passing through the corridor.
4) Biconditional
○ If two proposition p and q are connected by
BASIC LOGICAL CONNECTIVES the connective ‘if and only if’ then the
● If the proposition is compound, then it must be resulting compound proposition “p if and only
one of the following: if q” is called a biconditional of p and q and is
1. conjunction written in symbolic form as p ↔ q.
2. disjunction ○ The proposition may also be written as “p iff
3. conditional q”.
4. biconditional ○ The propositions p and q are the components
5. negation of the biconditional.
○ Examples:
1) Conjunction 1. “Two sides of a triangle are congruent if
○ If two simple propositions p and q are and only if two angles opposite them are
connected by the word ‘and’, then the congruent.”
resulting compound proposition “p and q” is 2. Larseny is a STEM student if and only if
called a conjunction of p and q and is written she likes Science.
in symbolic form as “p ˄ q”.
○ Example: Form the conjunction of the
following simple propositions:
5) Negation d) The negation of the disjunction of p and q
○ An assertion that a statement fails, or denial In symbol: ~ (p ˅ q).
of a statement is called the negation of the In words: It is not the case that either
statement. Bang is beautiful, or Joan is cute.
○ The negative of a statement is generally
formed by introducing the word ‘not’ at some
proper place in the statement or by prefixing SYMBOLS
the statement with “it is not the case that” or ● If x and y are the frequently used letters in
“It is false that”. algebra, the letters p, q, or r are often used to
○ The negation of a statement p in symbolic represent propositions in logic.
form is written as “~p”. ● The table below shows the several symbols for
○ Example: Write the negation of the connectives, together with the respective types
statement. of compound propositions.

p: School year 2020 – 2021 will start on June TYPES OF COMPOUND PROPOSITION
1.

○ Solution: The negation of p is given by

~p: School year 2020 – 2021 will not start on

June 1.

OR ~p: It is not the case that the school year TRY THIS!
2020 – 2021 will start on June 1. A. Convert each compound proposition to symbols.
OR ~p: It is false that the school year 2020 – Let p represent the proposition “Facebook is a
2021 will start on June 1. source of information.” q represents the proposition
“Social Media spreads fake news.”

Negation of the ~ (p ˅ q) means a. Facebook is a source of information and social

Disjunction p or q ~p˄~q media spreads fake news.
b. Facebook is not a source of information or
Negation of the ~ (p ˄ q) means social media does not spread fake news.
Conjunction p and q ~p˅~q c. It is not the case that social media spreads fake
news and Facebook is a source of information.
○ Example: Let p represent the proposition d. If Facebook is a source of information, then
“Bang is beautiful”, and Let q represent the social media spreads fake news.
proposition “Joan is cute”. e. Social Media spreads fake news if and only if
Facebook is a source of information.
1. Write the following in symbols and then in
words. Solution:
a) The conjunction of the negation of p and
q
In symbol: The negation of p and q are ~
p and ~ q, respectively. Thus, the
B. Convert each symbol to a compound
conjunction of the negations of p and q in
proposition.
symbols is ~ p ˄ ~ q.
In words: Bang is not beautiful, and Joan
Let p represent the proposition “Television network
is not cute.
remains shut down” and q represent the
proposition “The network paid their taxes.” Write
b) The disjunction of the negation of p and q
each symbolic statement in words.
In symbol: ~ p ˅ ~ q.
In words: Either Bang is not beautiful, or
Solution:
Joan is not cute.
a. Television network remains shut down or the
network paid their taxes.
c) The negation of the conjunction of p and
b. The network did not pay their taxes and
q
television network remained shut down.
In symbol: ~ (p ˄ q).
c. If the television network remains shut down,
In words: It is not the case that Bang is
then the network paid their taxes.
beautiful and Joan is cute.
d. It is not the case that the television network
remains shut down and the network paid their
taxes.
Another solution of letter d: by Negation of the TRY THIS!
Conjunction p and q Classify each proposition as simple or compound.
Classify each compound proposition as
Television network did not remain shut down or the conjunction, disjunction, conditional, or
network did not pay their taxes. biconditional, and negation.

e. It is not the case that the network paid their 1. My daughter will take a nursing course.
taxes or the television network remains shut SIMPLE
down. 2. His uncle’s name is not Manny. COMPOUND;
NEGATION
Another solution of letter e: by Negation of the 3. A positive integer n is divisible by 3, if and only
Disjunction p or q if, the sum of the digits of n is divisible by 3.
COMPOUND; BICONDITIONAL
The network did not pay their taxes and the 4. Either Hazel wants to go to Davao or she
television network did not remain shut down. wants to visit her mother in Misamis Oriental.
COMPOUND; DISJUNCTION
Commas – indicate which simple statements 5. Mich is a diligent and intelligent student.
are grouped together. COMPOUND; CONJUNCTION
Parentheses (in symbolic statements) – are used
to tell what type of statements are being
considered. If there are no parentheses, we
follow the dominance of connectives
(Biconditional, Conditional, Disjunction or
Conjunction (equal in value), and last will be
Negation.

Example:
a. Irene is a Math teacher (d) or Science teacher
(e), and works at Talisayan National High School
(f).

Solution: (d ˅ e) ˄ f

b. Identify the symbolic statement as conjunction,

disjunction, negation, conditional or biconditional.

Solution:
W ˄ (S → T)
Conjunction: The parentheses separate the
statement “˄” connective.

W˅S↔T
Biconditional: The double arrow is the dominant
connective and there are no parentheses.