ERICA BIANCA GAMBA

BSBA - III MM

MATH3N 7:00-8:00PM

REACTION PAPER

Mathematics is not always that I am always happy about. The reason

is because I always have it at the back of my mind that I am not good at it

and I cannot improve myself. At first from reading the subject description

itself, Mathematics of Investment, all I can say about it was that it is all

about investments, interest and computations. Solving some maths has

been a challenge for me since then, but I get to see the beauty of it

especially when you understand what you are really solving. I got really

excited to attend this class and meet the teacher. Hearing our instructor

talk for the first time was ear-catchy because his ideas were unique and

how he delivered them were at sense especially by relating the topic into

reality and citing some business in order for us to understand more and

relate it with our course as a marketer in the future.

The first topic discussed was investment itself. And this was the only

time I got to understand what the importance and meaning of math of

investment is. The second night, we discussed about Simple Interest. We

started by listing down various vocabulary words like Principal, Rate of

Interest, Ordinary Interest, Exact Interest, etc. and find its definition. We
learnt more about how to solve a few problems by using the formula of

simple interest, I=Prt which means the interest is equal to the principal

multiplied by rate and multiplied it by time. The most interesting part was

when we did a challenging and interesting problems as an example. I also

learned to compare what is simple interest and what is simple discount.

I have also learned what annuity, depreciation and depreciation is all

about. I realized that learning this subject is so important because annuities

are used mainly to supplement more traditional sources of retirement

income such as Social Security and pension plans. Although the

distinguishing characteristic of an annuity is a stream of income that cannot

be outlived, most annuities offer optional to the principal protection

benefits. Referred to collectively as living benefits, they offer exposure to

the market's upside while protecting against the effects of market declines

on your account value or future income.

By discussing the amortization and sinking funds in chapter 5, I have

learned that in order to repay the principal at the end, the borrower is

required to make periodic deposits in an interest earning account, called a

sinking fund sufficient to accrue the original loan amount at the end of the

loan term. Both sinking funds and amortizations involve you making regular

payments in installments to reach a certain figure and use it toward a

specific purpose.
 In the last chapter that we have discussed, I realized that insurance

plays an important role not only for us as a future marketers but also as an

individual because insurance is a practice or arrangement by which a

company or government agency provides a guarantee of compensation for

specified loss, damage, illness, or death in return for payment of a

premium. I realized that we should get an insurance to invest the funds

securely, so it can grow, and pay out when there's a claim. Insurance helps

us to own a house, as mortgage lenders need to know your house is

protected. It covers you for repairs and replacement of any damage that's

covered in your policy.

All this time, I knew that Mathematics of Investment is all about

interest, computations, solutions and formulas but I didn’t even think about

its significance. I was right but it is more of those. Through Sir Rolando

Noces, I have realized that Mathematics of Investment is more of

computations and formulas, annuities, depreciation, amortization and

sinking fund, and also insurances but it’s of exploring the real world.