9SPC PT1 Group2

ST. ANDREW’S SCHOOL, INC.
La Huerta, Parañaque City

Tel. No. 826-21-29
www.andreans.edu.ph
RESEARCH TEMPLATE
Performance Task 1
Mathematics 9
GROUP NO. 2 DATE JANUARY 4, 2021

SECTION. ST. PEDRO CALUNGSOD
CN NAMES
B02 AJERO, Karrel Andrei E.
B21 SORIANO, Sebastian Gabriel
G06 MORO, Pauline Mei M.
G11 RODRIGUEZ, Janine Ysabela D.
I. RESEARCH PROBLEM
Interest is what is being charged when someone borrows money. This is how people who lend money earn
from letting people borrow their money. According to ifec.org’s article on borrowing money during the
pandemic, the number of loan applications in the first quarter of 2020 at the height of the pandemic increased
by 65%, the demand for loans is also expected to increase. This claim is also supported by the Banko Sentral
ng Pilipinas, stating that the growth in loans for household consumption grew at a pace of 30.2% in May and
33.3% in April of 2020. As the number of loan applications increase, how does the interest rate affect the total
debt in relation to the duration it took to pay, and is it really cost effective to borrow money?
II. SITUATION/ SCENARIO
Mr. Cruz borrowed 5,000 pesos from a lending company in the first week of August. According to their
agreement, for every week that Mr. Cruz fails to pay his debt, he would be charged for 20% interest. He is
planning to pay in the third week of September, how much would be his total?
III.VARIABLES USED
• I - interest (This is the dependent variable because its value relies on the number of weeks.)
1
• N - number of weeks (This is the independent variable. Its value does not depend on any other
variables.)
IV. RELATIONSHIP OF THESE VARIABLES

The relationship between these two variables is direct, due to the fact that when the number of weeks that Mr.
Cruz fails to pay his debt increases, the interest that he will have to pay will increase too.
V. MATHEMATICAL EQUATION
formula for direct variation - y=kx
I = kn
1,000 (20% of 5,000) = k(1)
1,000 = k(1)
1 = 1
1,000 = k - Constant of the variation
y = 1,000k - Equation of the variation
Using the equation of the variation, how much would be the interest (I) in the span of 6 weeks (n)
y = 1,000 (6)
y = 6,000
VI. TABLE OF VALUES
(n) number of 1 2 3 4 5
weeks
______________
x
(I) interest 1000 2000 3000 4000 5000
______________
y
2
VII. GRAPH
10,000
9,000
8,000
7,000
6,000
Interest
5,000
4,000
3,000
2,000
1,000
0 1 2 3 4 5 6 7 8 9 10
Number of months
VIII. GENERALIZATION
From the given situation, Mr. Cruz lost 1,000 pesos due to the interest. The opportunity cost in this specific
situation is what Mr. Cruz could have earned from the money if he did keep it. In addition, the lender traded
off the initial PhP 5,000 for an opportunity to gain more money from the interest. The lender is the producer
which gains profit by interest, while the borrower is the consumer who is paying this interest in exchange for
being able to borrow the money during that time.
Based on the mathematical equation, graph and table of values, the interest increased for every week that Mr.
Cruz did not pay his debt, thus having a total of 6,000 in 6 weeks. He originally borrowed PhP 5,000 but due
to the interest, he is expected to pay PhP 11,000 which is more than 110% more than the original amount he
borrowed. The relationship of the variables is direct, seeing that as the number of weeks increase, which is the
independent variable, the interest also increases, the dependent variable.
The negative effects of borrowing money and high interest is visible in this situation, but apart from that, several
articles and papers support this idea. According to Mr. Syed Ahmad’s paper on researchgate.net, some of the
negative effects of high interest rates are the exploitation of people’s situation, burden of debt and
unemployment rates, but due to the needs of households, especially in our current state, many people are still
resort to lending institutions and settling for high interest rates.
3
SOURCES
Research problem
https://www.forbes.com/sites/mikepatton/2016/01/30/the-importance-of-interest-rates-to-the-economy-investors-and-retirees/?sh=506ae34c6cbc
https://business.inquirer.net/302019/ph-economy-awash-with-cash-but-lockdown-crimped-may-loan-growth-says-bsp
https://www.payplan.com/advice/debt-and-your-health/borrowing-money-during-the-coronavirus-outbreak/
http://www.sunwebhk.com/2020/01/bakit-nababaon-sa-utang.html
Conclusion
https://www.researchgate.net/publication/340446436_Negative_effects_of_interest_in_our_social_development_and_its_solution_through_Isla
mic_finance_concepts#:~:text=According%20to%20the%20analysis%20of,are%20happening%20by%20the%20interest.

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ST. ANDREW’S SCHOOL, INC.

La Huerta, Parañaque City

GROUP NO. 2 DATE JANUARY 4, 2021

II. SITUATION/ SCENARIO

IV. RELATIONSHIP OF THESE VARIABLES

VI. TABLE OF VALUES

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