LET’S CHECK

Activity 1. Problem solving. Having been able to discuss and have examples of
the concepts above. Kindly apply the concepts and show your solution for each
item.
1. 2.5+4+0.75+1+1.1
Interest rate = 9.35
2. DRP = 12% - (2% + 1.5% + 1.5% + 1%)
12% - 6%
DRP = 6%
3. 4+4 + 4.5+𝐼𝑥
2 2
8(2) = 4.5 + 𝐼𝑥
16 – 4.5 = 𝐼𝑥
𝑰𝒙 = 𝟏𝟏. 𝟓%
4. 4.5+5+5.25 = 6+𝐼𝑥 4
4 4
3.6875(4) = 6 + 𝐼𝑥
14.75 – 6 = 𝐼𝑥
𝑰𝑿 = 𝟖. 𝟕𝟓%
5. a. PV = 150,000

b. 150,000 x 12% = 18,000 + 150,000 = 168,000

168,000 x 12% = 20,160 + 168,000 = 188,160
188,160 x 12% = 22,579.2 + 188,160
PV of 1 = 210,739.2

𝑟
1−(1+ )−𝑡×𝑛
c. 𝑃𝑉𝐴𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 = 𝑃 × ( 𝑛
𝑟 )
𝑛
0.12
1 − (1 + 2 )−3×2
𝑃𝑉𝐴𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 = 𝑃𝐻𝑃150,000 × ( )
0.12
2

𝑃𝑉𝐴𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 = 𝑃𝐻𝑃737,598.65
𝑟
𝑟 1+
d. 𝑃𝑉𝐴𝑑𝑢𝑒 = 𝑃 × (1 − (1 + 𝑛)−𝑡×𝑛 ) × ( 𝑟
𝑛
)
𝑛
0.12
0.12 −3×1 1+
1
𝑃𝑉𝐴𝑑𝑢𝑒 = 𝑃𝐻𝑃150,000 × (1 − (1 + 1
) )× ( 0.12 )
1
𝑃𝑉𝐴𝑑𝑢𝑒 = 𝑃𝐻𝑃403,507.65