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    Q2 GM Week 2

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    wilzl sarreal
    1) The document discusses topics related to simple and compound interest, including formulas to calculate interest, maturity value, future value, and present value. 2) Examples are provided to demonstrate calculating compound interest with various frequencies of compounding over different time periods. 3) George Polya's 4-step problem solving method is explained and examples show how to use the method to solve simple interest problems by identifying known and unknown values, selecting the appropriate formula, performing calculations, and checking the answer.

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    Q2 GM Week 2

    Uploaded by

    wilzl sarreal
    66 views34 pages
    1) The document discusses topics related to simple and compound interest, including formulas to calculate interest, maturity value, future value, and present value. 2) Examples are provided to demonstrate calculating compound interest with various frequencies of compounding over different time periods. 3) George Polya's 4-step problem solving method is explained and examples show how to use the method to solve simple interest problems by identifying known and unknown values, selecting the appropriate formula, performing calculations, and checking the answer.

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    Q2-GM-Week-2

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    1) The document discusses topics related to simple and compound interest, including formulas to calculate interest, maturity value, future value, and present value. 2) Examples are provided to demonstrate calculating compound interest with various frequencies of compounding over different time periods. 3) George Polya's 4-step problem solving method is explained and examples show how to use the method to solve simple interest problems by identifying known and unknown values, selecting the appropriate formula, performing calculations, and checking the answer.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    66 views34 pages

    Q2 GM Week 2

    Uploaded by

    wilzl sarreal
    1) The document discusses topics related to simple and compound interest, including formulas to calculate interest, maturity value, future value, and present value. 2) Examples are provided to demonstrate calculating compound interest with various frequencies of compounding over different time periods. 3) George Polya's 4-step problem solving method is explained and examples show how to use the method to solve simple interest problems by identifying known and unknown values, selecting the appropriate formula, performing calculations, and checking the answer.

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    You are on page 1of 34

    General Mathematics

    2 Quarter
    nd
    WEEK 2

    Prepared by: Mart Amelson O. Diquit


    General Mathematics
    2 Quarter
    nd
    Computes interest, maturity value, future value, and present value in
    simple interest and compound interest environment.

    Prepared by: Mart Amelson O. Diquit


    COMPOUND INTEREST
    COMPOUND INTEREST
    COMPOUND INTEREST
    COMPOUND INTEREST
    Example 1: Given: P= ₱18,500, r = 3% and compounded annually for 3 years,
    find the maturity value (F) and the compound interest (Ic ).
    COMPOUND INTEREST
    Example 2: Given F = ₱15,000, r = 2% compounded
    annually for 4 years, find the present value (P).
    COMPOUND INTEREST
    Compounding More Than Once a Year
    ● Frequency of conversion (m) - number of
    conversion period in one year
    ● Conversion or interest period – time between
    successive conversions of interest
    ● Total number of conversion periods (n)
    n = mt = (frequency of conversion) 𝑥 (time in years)
    COMPOUND INTEREST
    Compounding More Than Once a Year
    ● Nominal rate () - annual rate of interest or
    interest rate per year
    ● Rate (j) of interest for each conversion period
    COMPOUND INTEREST
    Compounding More Than Once a Year
    n (𝒎)
    𝒊
    ()
    ❑

    ()
    ❑

    ()
    ❑
    COMPOUND INTEREST
    Compounding More Than Once a Year
    FORMULA FROM THE INTERNET
    COMPOUND INTEREST
    Example 1: Given 𝑃=₱50,000.00, =0.03, 𝑚=4, 𝑡=4, Find F
    and Ic .
    COMPOUND INTEREST
    Example 2: Given 𝑃=₱50,000.00, =0.03, 𝑚=4, 𝑡=4, Find F
    and Ic .
    COMPOUND INTEREST
    Example 3: Given F =₱45,000.00, =0.02, 𝑚=2, 𝑡=4, Find Ic
    .
    COMPOUND INTEREST
    Example 4: Given F =₱45,000.00, =0.02, 𝑚=2, 𝑡=4, Find Ic
    .
    General Mathematics
    2 Quarter - Week 2
    nd
    • Solves problems involving simple and compound interests.
    • Apply different formulas in Simple Interest and Compound Interest
    environment.

    Prepared by: Mart Amelson O. Diquit


    George Polya’s 4 – Step Rule
    1. Explore. This step involves careful reading,
    analyzing, identifying the given and unknown facts in
    the problem and expressing the unknown in terms of
    variables.
    2. Plan. In this step, writing an equation that describes
    the relationships between or among the variables is
    involved.
    George Polya’s 4 – Step Rule
    3. Solve. This step requires working out with the
    written equation and other number relations to
    determine the required quantities that answer the
    question in the problem.
    4. Check. The final step that employs the use of other
    approaches to examine the appropriateness of the
    answer.
    Simple Interest
    Mariel deposited ₱ 16,000.00 in a bank that offers
    a simple interest rate of 1.75%. If she placed the
    money for 7 years, how much interest will she
    earn?

    EXPLORE:
    Required: Is = ?
    Given:
    ● P = ₱ 16,000.00
    ● r = 1.75% or 0. 0175
    ● t= 7 years
    Simple Interest
    Mariel deposited ₱ 16,000.00 in a bank that offers
    a simple interest rate of 1.75%. If she placed the
    money for 7 years, how much interest will she
    earn?

    PLAN:

    FORMULA:
    𝐼𝑠=𝑃rt
    Simple Interest
    Mariel deposited ₱ 16,000.00 in a bank that offers
    a simple interest rate of 1.75%. If she placed the
    money for 7 years, how much interest will she
    earn?

    SOLVE:
    𝐼𝑠=𝑃rt
    𝐼𝑠=16,000(0.0175)(7)
    𝐼𝑠=₱ 1,960.00
    Simple Interest
    Mariel deposited ₱ 16,000.00 in a bank that offers
    a simple interest rate of 1.75%. If she placed the
    money for 7 years, how much interest will she
    earn?

    CHECK:
    𝑃=𝐼𝑠/𝑟t
    P= 1,960/(0.0175)(7)
    P=₱ 16,000.00

    .
    Simple Interest
    Janine has a loan with an interest rate of 1.5%.
    The amount of interest is ₱ 2,250.00 for a period
    of 3 years. How much is her loan?

    Explore:
    Required: P = ?
    Given:
    ● 𝐼𝑠 = ₱ 2,250.00
    ● r = 1.5% or 0.015
    ● t = 3 years
    Simple Interest
    Janine has a loan with an interest rate of 1.5%.
    The amount of interest is ₱ 2,250.00 for a period
    of 3 years. How much is her loan?

    Plan:
    FORMULA:
    𝑃=𝐼𝑠/𝑟t
    Simple Interest
    Janine has a loan with an interest rate of 1.5%.
    The amount of interest is ₱ 2,250.00 for a period
    of 3 years. How much is her loan?

    Solve:
    𝑃=𝐼𝑠/𝑟t
    𝑃=2,250/(0.015)(3)
    𝑃= ₱ 50,000
    Simple Interest
    Janine has a loan with an interest rate of 1.5%.
    The amount of interest is ₱ 2,250.00 for a period
    of 3 years. How much is her loan?

    Check:
    𝐼𝑠=𝑃rt
    𝐼𝑠 =(50,000)(0.015)(3)
    𝐼𝑠= ₱ 2,250.00

    Thus, the amount of her loan is ₱ 50,000.00


    Thank you for
    listening!
    COMPOUND INTEREST

    ● 1. Jasmin borrowed money from a bank at the rate of


    1.89% compounded semi – annually. If the amount
    she borrowed is ₱ 13,000.00, how much interest will
    she need to pay at the end of 6 years?

    ● Explore. The known values are


    ● P = ₱ 13,000.00
    ● 𝑖𝑖(2)=0.0189
    ● m=2
    ● t=6
    ● mt=12
    ● 𝑗𝑗=𝑖𝑖22=0.01892=0.00945
    COMPOUND INTEREST

    ● 1. Jasmin borrowed money from a bank at the rate of


    1.89% compounded semi – annually. If the amount
    she borrowed is ₱ 13,000.00, how much interest will
    she need to pay at the end of 6 years?

    ● Explore. The known values are


    ● P = ₱ 13,000.00
    ● 𝑖𝑖(2)=0.0189
    ● m=2
    ● t=6
    ● mt=12
    ● 𝑗𝑗=𝑖𝑖22=0.01892=0.00945
    COMPOUND INTEREST

    ● 1. Jasmin borrowed money from a bank at the rate of


    1.89% compounded semi – annually. If the amount
    she borrowed is ₱ 13,000.00, how much interest will
    she need to pay at the end of 6 years?

    ● Plan. Since the problem suggest that it is


    compounding more than once a year the formulas:
    ● 𝐹𝐹=𝑃𝑃(1+𝑗𝑗)𝑚𝑚𝑚𝑚and 𝐼𝐼𝑐𝑐=𝐹𝐹−𝑃𝑃 will be employed.
    ● There is a need to find first the maturity value
    because it is an important element in the compound
    interest formula.
    COMPOUND INTEREST

    ● 1. Jasmin borrowed money from a bank at the rate of


    1.89% compounded semi – annually. If the amount
    she borrowed is ₱ 13,000.00, how much interest will
    she need to pay at the end of 6 years?

    ● Solve: Using the formula we will arrive at:


    ● 𝐹𝐹=𝑃𝑃(1+𝑗𝑗)𝑚𝑚𝑚𝑚𝐹𝐹=13,000(1+

    ● After finding the maturity value, we can solve for the


    compound interest:
    ● 𝐼𝐼𝑐𝑐=𝐹𝐹−𝑃𝑃 𝐼𝐼𝑐𝑐=14,553.29−13,000 𝐼𝐼𝑐𝑐=₱ 1,553.29
    COMPOUND INTEREST

    ● 1. Jasmin borrowed money from a bank at the rate of


    1.89% compounded semi – annually. If the amount
    she borrowed is ₱ 13,000.00, how much interest will
    she need to pay at the end of 6 years?

    ● Check. As for checking, the formula in finding the


    present value can be used.
    ● Thus, the compound interest is ₱ 1,553.29
    ASSIGNMENT
    On Yellow Pad paper, Make a research about what
    is savings account. Then, find the interest rate used
    in One of the local banks in your municipality, and
    4 commercial banks operating in the entire
    Philippines. Do not forget to include Internet
    sources in your answer.

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