N386, Learning Task No.4.2

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Tuesday, 1:30 – 3:30 PM

Learning Task for Lesson No.4.2


1. Complete the following tables below. Show all necessary solutions neatly and
systematically. Unorganized solutions will not be considered.
Table 1
Principal (P) Rate (r) Time (t) Interest (I) Maturity Value
(F)
₱70,000 4% 8 a) ₱22,400 b) ₱92,400
c) ₱25,000 12% 5 ₱15,000 d) ₱40,000
e) ₱300,000 10.5% f) 3.3 ₱157,500 ₱457,500
Solutions:
a) I =Prt
I =( ₱ 70,000 )( 0.04 ) ( 8 )
I =₱ 22,400

b) F=P+ I
F=( ₱ 70,000 )+( ₱ 22,400)
F=₱ 92,400

c) I =Prt
I
P=
rt
₱ 15,000
P=
( 0.12 ) ( 5 )
P=₱ 25,000

d) F=P+ I
F=( ₱ 25,000 )+ ( ₱ 15,000 )
F=₱ 40,000

e) F=P+ I
P=F−I
P= ( ₱ 457,500 )+ ( ₱ 157,500 )
P=₱ 300,000

f) I =Prt
I ₱ 157,500
t= =
Pr ( ₱ 457,500 ) ( 0.105 )
t=3.28 ≈ 3.3
Table 2
P r l m i t n lc C
₱2,000 a) 17.56% Semi- b) 2 c) 0.0878 2 d) 4 e) ₱800 ₱2,800
annually
₱5,000 f) 1.6% quarterly g) 4 h) 0.004 5 yrs and i) 22 ₱500 j) ₱5,500
6 months
Legend:
P – Principal amount r – Nominal rate l – Interest compounded
m – Frequency of conversions in a year i – Interest rate per period t – Time in years
n – Total number of conversions Ic – Compound interest C – Compound amount
Solutions:
r r
a) i= f) i=
m m
r =ℑ r =ℑ
r =( 0.0878 ) ( 2 ) r =( 0.004 )( 4 )
r =0.1756∨17.56 % r =0.016∨1 .6 %

b) Semi−annually=2 periods per year g) Quarterly=4 periods per year


∴ m=2 ∴ m=4

( )
1
C n
( )
1
C n( ) h) i= −1
c) i= −1 P
P

( )
1
₱ 5,500 22
( )
1
₱ 2,800 4 i= −1
i= −1 ₱ 5,000
₱ 2,000
i=0.00434168
i=0.0877573
i ≈ 0.004
i ≈ 0.0878

d) n=mt i) n=mt
n=( 2 ) ( 2 ) n=( 4 ) (5.5 )
n=4 n=22

e) l c =C−P
l c =₱ 2,800−₱ 2,000 j)l c =C−P
l c =₱ 800 C=l c + P
C=₱ 500+ ₱ 5,000
C=₱ 5,500
Checked:
n
C=P ( 1+ i ) Checked:
4
C=₱ 2,000 ( 1+0.0878 ) C=P ( 1+ i )
n

4 22
C=₱ 2,000 ( 1 .0878 ) C=₱ 5,000 ( 1+0.004 )
C=₱ 2,000 ( 1.4 ) C=₱ 5,000 ( 1 .004 )
22

C=₱ 2,800 True √ C=₱ 5,000 ( 1.1 )


C=₱ 5,500 True √

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