PERFORMANCE

TASK
IN
GENERAL
MATHEMATICS
(BUSINESS MATHEMATICS)

WESTERN LEYTE COLLEGE OF ORMOC CITY, INC.

SENIOR HIGH SCHOOL
GRADE 11
ABM A

HARRIETTE MAE L. LABRADA

JHONALIE R. ARRADAZA
KYLA SHANE CHU
SIMPLE INTERST (IS) Interest that is computed on the Principal
Amount and then added to it.

Formula: Is = Prt
where:

Is = Simple Interest
P = Principal
r = Rate
t = Time

REAL LIFE SITUATIONS INVOLVING SIMPLE INTEREST:

1. Liza went to the bank and borrowed P150, 000 for the expenses of her 18th
birthday at 6% interest for 2 years. How much interest will Liza have to pay?

I= ?
P = P150, 000
R = 6% = 0.06
T = 2 years

I = Prt
= (150,000) ( 0.06) ( 2)
Interest = P18, 000
Liza has to pay P18, 000 for her interest. Therefore, the maturity value of her
loan is P168, 000.

2. Julia, an entrepreneur, is planning to open a branch of Redbucks here in

Ormoc City. For a source of capital, she went to OCCCI Coop. to loan
P500,000 with 12% interest rate at 5 years. How much is the amount of
Julias interest?

I= ?
P = P500, 000
R = 12% = 0.12
T = 5 years

I = Prt
= (500,000) ( 0.12)(5)
Interest = P300, 000
The amount of Julias interest is P300, 000. Therefore, the maturity value of
her loan is P800, 000.
 COMPOUND INTEREST (IC) Interest that is computed on the
Principal Amount and also on the accumulated past interest.

Formula: Compound Interest = Compound Amount Principal

A = P (1 +r) n
where:

A = Compound Amount
P = Principal
r = Interest Rate
n = Total compounding periods

REAL LIFE SITUATIONS INVOLVING COMPOUND INTEREST:

1. Kathryn invested P23, 000 at 6% interest compounded semi-annually, for 6
years. Find the compound amount and compound interest.

Compound Interest = ?
A=?
P = P23, 000
r = 3%
n = 6 years x 2(semi-annually) = 12

A = P (1 + r)n
= 23,000 (1 + 0.03)12
= 23,000 (1.425760887)
A = P32,792.50

Compound Interest = Compound Amount Principal

= P32,792.50 P23,000
Compound Interest = P9,792.50

Kathryns compound interest on her investment which is compounded semi-

annually for 6 years is P9, 792.50. While the compound amount of her
investment is P32, 792.50
2. On January 1, 2016, Janine borrowed P12, 000 at 2.75% interest rate
compounded quarterly for 2 years. How much interest should she pay?

Compound Interest = ?
A=?
P = P12,000
r = 2.75% = 0.0275
n = 2 years x 4(quarterly) = 8

A = P (1 + r)n
= 12,000 (1 + 0.0275)8
= 12,000 (1.242380552)
A = P14, 908.57

Compound Interest = Compound Amount Principal

= P14, 908.57 P12,000
Compound Interest = P2, 908.57

Janines compound interest on her investment which is compounded

quarterly for 2 years is P2, 908.57. While her compound amount is P14,
908.57.
ORDINARY ANNUITY (Annuity immediate)
- a type of annuity in which payments are made at the end of
each payment interval.
(1+) 1 where:
Formula: FV ordinary annuity= R
R = Regular Payment
1(1+)
PV ordinary annuity= R
j=

n = mt
r = Interest Rate
m = Time Conversion
t = Time in years

REAL LIFE SITUATION INVOLVING ORDINARY ANNUITY:

1. Anthony deposited his savings in a bank at the end of each year for 5 years,
for he is saving to buy a new motorcycle. The bank paid 7% interest
compounded annually. If he deposited P30, 000 every year, how much did he
have deposited, including the interest, after his 5th deposit?

FV = ? n= mt = 12 months in a year x 5
R = P30, 000 years = 60
m = 12 months in a year r = 7% = 0.07
t = 5 years j=
0.07
= 0.0058
12

(1+) 1
FV ordinary annuity= R

(1+0.0058)60 1
= P30, 000
0.0058

(1.414809206) 1
= P30, 000
0.0058
0.414809206
= P30, 000
0.0058

= P30, 000 (71.51882864)

FV ordinary annuity = P2, 145, 564.86
Anthony deposited P2, 145, 565.86 overall including the interest after his 5th
deposit.
CASH VALUE OR CASH PRICE
- is equal to the down payment (if there is any) plus the
present value of the instalment payments.
Formula: Cash Value = Down Payment + Present Value

REAL LIFE SITUATION INVOLVING CASH PRICE:

1. Karen planned to buy a car from Ford. If she will pursue on buying the car,
she will pay P398, 000 and the remaining amount will be settled by paying
P58, 000 for 4 years. If the interest is 7.25% compounded monthly, what is
the cash price of her car?

CV = ?
PV = ?
R = P58, 000
r = 7.25% = 0.0725
0.0725
j= 12
= 0.0060
m = 12 months in a year
t = 4 years
n= mt = 12 months in a year x 4 years = 48

1(1+)
PV ordinary annuity= R
1(1+0.0060)48
= P58, 000
0.0060
1(0.750407084)
= P58, 000
0.0060
1(0.750407084)
= P58, 000
0.0060
0.249592916
= P58, 000
0.0060
= P58, 000 (41.59881933)
PV ordinary annuity = P2, 412, 731.52

Cash Value = Down Payment + Present Value

= P398, 000 + P2, 412, 731.52
Cash Value = P2, 810, 731.52
The Cash Price of Karens car is P2, 810, 731.52.
PERFORMANCE
TASK
IN
GENERAL
MATHEMATICS
(BUSINESS MATHEMATICS)

WESTERN LEYTE COLLEGE OF ORMOC CITY, INC.

SENIOR HIGH SCHOOL
GRADE 11
ABM A

HARRIETTE MAE L. LABRADA

JHONALIE R. ARRADAZA