Scribd Logo
Upload

Welcome to Scribd!

  • 61 views

    Colegio de San Gabriel Arcangel

    Uploaded by

    C X
    Here are the solutions to the problems in Activity 2: 1. P13,154.50 (discounted P13,454.50 at 3% for 130 days) 2. P13,500.00 (present value of P15,024.00 at 11% for 8 months) 3. 5% (interest rate that makes P8,520 the present value of P9,500 due in 6 months) 4. 1 year (time it takes for P17,000 at 3.5% to grow to P17,230) 5. 6% (rate that makes P2,110 the present value of P2,850 due in 90 days) 6. 1 year (

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Colegio de San Gabriel Arcangel

    Uploaded by

    C X
    61 views3 pages
    Here are the solutions to the problems in Activity 2: 1. P13,154.50 (discounted P13,454.50 at 3% for 130 days) 2. P13,500.00 (present value of P15,024.00 at 11% for 8 months) 3. 5% (interest rate that makes P8,520 the present value of P9,500 due in 6 months) 4. 1 year (time it takes for P17,000 at 3.5% to grow to P17,230) 5. 6% (rate that makes P2,110 the present value of P2,850 due in 90 days) 6. 1 year (

    Original Title

    mmw 1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Here are the solutions to the problems in Activity 2: 1. P13,154.50 (discounted P13,454.50 at 3% for 130 days) 2. P13,500.00 (present value of P15,024.00 at 11% for 8 months) 3. 5% (interest rate that makes P8,520 the present value of P9,500 due in 6 months) 4. 1 year (time it takes for P17,000 at 3.5% to grow to P17,230) 5. 6% (rate that makes P2,110 the present value of P2,850 due in 90 days) 6. 1 year (

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    61 views3 pages

    Colegio de San Gabriel Arcangel

    Uploaded by

    C X
    Here are the solutions to the problems in Activity 2: 1. P13,154.50 (discounted P13,454.50 at 3% for 130 days) 2. P13,500.00 (present value of P15,024.00 at 11% for 8 months) 3. 5% (interest rate that makes P8,520 the present value of P9,500 due in 6 months) 4. 1 year (time it takes for P17,000 at 3.5% to grow to P17,230) 5. 6% (rate that makes P2,110 the present value of P2,850 due in 90 days) 6. 1 year (

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    Colegio de San Gabriel Arcangel

    City of San Jose del Monte, Bulacan, Philippines


    COLLEGE OF LIBERAL ARTS AND SOCIAL SCIENCES

    Program : Bachelor of Arts In Psychology


    Course code : GECO 4
    Description : Mathematics In The Modern World

    LAS #15
    Name:______________________ Score :____________________
    Date : _____________________ Section :____________________

    Activity Title : Simple Interest, Simple Discount

    Learning Target: 1. I can find the present value given the final amount.

    References : 1. Sirug, Winston S. Mathematics In the Modern World, Manila:


    Mindshapers Co. Inc.
    2.Anasin Gil. Module in Mathematics of Investment, Unpublished.

    DISCUSSION:
    Finding the Present Value (Discounting at Simple Interest Rate)
    Present Value – means current value of specified future amount. It is the value now of a sum of
    money expected to be received in the future, calculated by subtracting the interest and other
    value that will accrue in the intervening period.
    F
    Formula: Since F = P ( 1 + rt), therefore P =
    (1 + rt )

    In Algebra this can be written also as P = F ( 1 + rt)-1

    Example 1: If money is worth 6%, find the present value on P35,000


    due in 3 years.

    Solution: F = P35,000 r = 6% t=3

    P = F ( 1 + rt)-1
    P = P35,000( 1 + .06 * 3 )-1
    P = P29,661.02

    Example 2: Discount P15,000 for 8 months at 6% simple interest

    8
    Solution: F = P15,000 r = 6% t=
    12
    P = F ( 1 + rt)-1
    8 -1
    P = P15,000( 1 + .06 * )
    12
    P = P14,423.08
    Example 3: What principal will amount to P35,000 in 2 years if the interest rate is 6%
    Solution: F = P35,000 r = 6% t=2

    P = F ( 1 + rt)-1
    P = P35,000( 1 + .06 * 2 )-1
    P = P31,250.00

    ACTIVITY 1

    Name: ______________________________ Score: _____Rating: ______

    Course, Yr. & Section: _______________ Date: ____________

    Complete the table below

    Principal (P) Rate (r) Time (t) Final Amount (F)

    1. 20,000.00 5% 3 years

    2. 2½% 6 months 16,500.00

    3. 17,500.00 5 months 20,000.00

    4. 30,000.00 3% 36,000.00

    5. 3,750.00 4% 1 ½ year

    6. 7% 3 ½ months 49,000.00

    7. 22,500.00 9 months 27,000.00

    8. 14,500.00 6% 15,022.00

    9. 7¼% 15 months 11,015.00

    10. 6 ⅓% 11 months 23,420.00


    ACTIVITY 2

    Name: ______________________________ Score: _____Rating: ______

    Course, Yr. & Section: _______________ Date: ____________

    Solve the following problems.

    1. Discount P13,454.50 for 130 days at 3% simple interest.

    2. Find the present value on P15,024.00 for 8 months at a simple interest rate of 11%.

    3. If P8,520.00 is the present value of P9,500.00 which is due at the end of 6 months, Find the
    simple interest rate.

    4. When must P17,230.00 be due if its present value today at 3 ½ % is P17,000.00

    5. At what rate is P2,110.00 the present value of 2,850.00 due in 90 days?

    6. How long will it take P8,070.00 to accumulate to P9,020.00 if invested at 4 ¼ %?

    7. What principal will amount to P67,500.00 in 9 months if the interest rate is 12%?

    You might also like