Ecc Gen Math

GENERAL MATHEMATICS SHS SECOND QUARTER
G11 SLEM # 13 – WEEK 5 – 2nd QUARTER
BASIC CONCEPTS OF STOCKS AND BONDS
Illustrate and distinguish between stocks and bonds
After going through this module, you are expected to:

• illustrates stocks and bonds, and
• distinguish stocks and bonds.
BRIEF INTRODUCTION OF THE LESSON
DEFINITION OF TERMS IN RELATION TO STOCKS
Stocks – share in the ownership of a certain company. Information may vary about stock
transactions; it can be obtained from tables published by newspapers and online.
Stocks are classified into two types, the common stock and the preferred stock.
➢ Common stock – is the one mostly owned by investors.

➢ Preferred stock – holds special treatment in relation to distribution and sharing earnings.
Stockholders/Investors – one of the many owners of a certain company who receive money called
dividend.
Dividend – are part of the company’s profit distributed to the stockholders. It is based on the number
of shares of stock that a stockholder owns.
Dividend Per Share – ratio of the dividends to the number of shares.
Stock Market - Investors can buy or sell shares of stock. These are the places where an investor
can buy or sell stocks such as Philippine Stock Exchange and Makati Stock Exchange.
Market value – the current price of a stock at which it can be sold.
Stock Yield Ratio – ratio of an annual dividend per share and the market value per share. It is also
called current stock yield.
Par value – the per share amount as stated on the company certificate. Unlike market value, it is
determined by the company and remains stable over time.
DEFINITION OF TERMS IN RELATION TO BONDS
Bonds – are interest bearing security which promises to pay amount of money on a certain maturity
date as stated in the bond certificate and a regular interest payment called coupons.
Coupon – the contract to pay a periodic payment on a specified date. The coupons can be detached
and cashed through banks.
Coupon Rate – the rate per coupon payment period.

Price of a Bond – the price of the bond at purchase time.
Par or Face Value (FV) – the amount payable on the maturity date.
Cases:
➢ If 𝑃 = 𝐹, the bond is purchased at par
➢ If 𝑃 < 𝐹, the bond is purchased at a discount.
➢ If 𝑃 > 𝐹, the bond is purchased at premium.
Term of a bond – fixed period of time (in years) at which the bond is redeemable as stated in the
bond certificate; number of years from time of purchase to maturity date.
Fair Price of a bond – present value of all cash inflows to the bondholder.
Bondholders – are lenders/debtors to the institution which may be a government or private

company. He can sell his bonds to the highest bidder. Bond issuers are the national government,
government agencies, government owned and controlled corporation, non-bank corporations,
banks, and multilateral agencies.
Bond Rate – the rate at which the bond pays interest on its par or face value.
Yield Rate – the true overall rate of return that an investor receives on the invested capital.
Stocks Bonds
A form of equity financing or raising
A form of debt financing or raising
money by allowing investors to be part
money by borrowing from investors.
owners of the company.
Stock prices vary every day. These Investors are guaranteed interest
prices are reported in various media payments and a return of their money
(newspaper, TV, internet, etc). at the maturity date.
Uncertainty comes from the ability of
Investing in stock involves some the bond issuer to pay the bond
uncertainty. Investors can earn if the holders. Bonds issued by the
stock prices increase, but they can lose government pose less risk than those
money if the stock prices decrease or by companies because the
worse, if the company goes bankrupt. government has guaranteed funding
(taxes) from which it can pay its loan.
Higher risk but with possibility of higher
Lower risk but lower yield.
returns.
Can be appropriate for retirees
Can be appropriate if the investment is (because of the guaranteed fixed
for the long term (10 years or more). This income) or for those who need the
can allow investors to wait for stock money soon (because they cannot
prices to increase if ever they go low. afford to take a chance at the stock
market).
CHECKING YOUR UNDERSTANDING

Choose the letter of the correct answer. Write it on a separate sheet of paper.
1. Which of the following cannot be true for stocks?
A. Stocks can be bought or sold

B. Stocks is mostly owned by investors
C. Stocks are published in newspaper and online.
D. Stocks is a written promise to pay a specified sum of money.
2. Which of the following is an example of bond?
A. Investors can earn if the security prices increase but they lose money if the prices
decrease
B. This suits for retirees since it is a guaranteed fixed income.
C. Investors can invest for a long term (10 years or more).
D. Investors can be part owners of the company.
3. Which statement best illustrates for stocks?
A. Lower risk but lower yield.

B. Higher risk but with possibility of higher returns.
C. Investors still need to consider the borrower’s credit rating.
D. Investors are guaranteed interest payments and return of their money at the
maturity date.
4. This refers to share in company’s profit for holders.
A. Par Value
B. Dividend
C. Coupon
D. Rate
COMPUTATION OF STOCKS AND BONDS

Illustrate and distinguish between stocks and bonds

• computes for stocks and bonds, and
• determine the difference between stocks and bonds.
Example: DMC Company purchased P5,000 shares of stocks at P195 par

value with a preferred dividend rate of 8. 5% quarterly. How much dividend will DMC
receive per quarter?
Given:
1
Par Value = P195 Dividend Rate = 82%
Total Number of Shares = P5,000 T = quarterly (1/4 of a year)
Solution:
𝑸𝑫 = 𝑷𝑽 × 𝑻𝑵𝑺 × 𝑫𝑹 × 𝑻𝑷
where: 𝑄𝐷 is the quarterly dividend

𝑃𝑉 is the par value
𝑇𝑁𝑆 is the total number of shares
𝐷𝑅 is the dividend rate
𝑇𝑃 is the time period
1
𝑄𝐷 = 𝑃195 𝑥 5,000 𝑥 0.085 𝑥
4
𝑄𝐷 = P20,718.75
Therefore, the quarterly dividend is P20,718.75
Example: ABC Corporation has a current market value of P52, gave a

dividend of P8 per share for its common stock. XYZ Corporation has a current market
value of P95, gave a dividend of P12 pe share. Use the stock yield ratio to measure
how much dividends shareholders are getting in relation to the amount invested.
Given:
ABC Corporation XYZ Corporation
Given: Given:
Dividend per share = P8 Dividend per share = P12
Market value = P52 Market value = P95
Find: Stock Yield Ratio (SYR)

Solution:
The stock yield ratio can be obtained by dividing the dividend per share and the maket
value.
𝐝𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞
𝑺𝒀𝑹 =
𝐦𝐚𝐫𝐤𝐞𝐭 𝐯𝐚𝐥𝐮𝐞
Hence,
8
ABC Corporation: 𝑆𝑌𝑅 = 52 → 𝑆𝑌𝑅 = 0.1538 → 𝑺𝒀𝑹 = 𝟏𝟓. 𝟑𝟖%
12
XYZ Corporation: 𝑆𝑌𝑅 = 95 → 𝑆𝑌𝑅 = 0.1263 → 𝑺𝒀𝑹 = 𝟏𝟐. 𝟔𝟑%
Therefore, ABC Corporation has a higher stock yield ratio than XYZ Corporation.
This means that, each peso would earn you more if you invest in ABC
Corporation than in XYZ Corporation. If all other things are equal, then it is wiser
to invest in ABC Corporation.
Example: RQS Corporation purchased a bond having a par value of

1
P350,000 with a price quotation of 95 5%. What is the market value of the bond?
Given:
Par or Face Value = P350,000
1
Price Quotation = 955 % = 95. 20% = 0.952
Find: Market Value (𝑀𝑉)
Solution:
The market value of a bond can be obtained by multiplying the face value of bond (𝐹𝑣 )
to its price quotation (𝑄).
𝑀𝑉 = 𝐹𝑣 𝑄
𝑀𝑉 = 350000(0.952)
𝑴𝑽 = 𝟑𝟑𝟑𝟐𝟎𝟎
Therefore, the market value of the bond is P 333,200.00.
Example: Suppose that a bond has a face value of P150,000 and its
maturity date is 5 years from now. The coupon rate is 6% payable semi-annually. Find
the fair price of this bond, assuming that the annual market is 3.5%
Given:
Face Value (𝐹𝑣 ) = P150,000 Coupon Rate (𝑟) = 6%
Maturity Date = 5 years Market Rate = 3.5% Frequency of
Conversion (𝑚) = 2 (semi-annually)
Number of periods (𝑛) = 𝑚𝑡 = (2)(5) = 10
Find: Fair Price of the Bond

Solution:
First, find the amount of semi-annual coupon which is the product of the face value
and coupon rate semi-annually.
Amount of semi-annual coupon = face value x coupon rate semi-annually
1
= 150,000 𝑥 (0.06 𝑥 2)
= 150,000 𝑥 0.03
𝑨𝒎𝒐𝒖𝒏𝒕 𝒐𝒇 𝒔𝒆𝒎𝒊 − 𝒂𝒏𝒏𝒖𝒂𝒍 𝒄𝒐𝒖𝒑𝒐𝒏 = 𝑷𝟒, 𝟓𝟎𝟎
Bondholder receives 10 payments of P4,500 each, and P150,000 at 𝑡 = 5.
Let us find the present value of P150,000 for 5 years with market rate of 3.5%. We
shall use the formula of present value in compound interest formula which is;
𝐹
𝑃1 =
(1 + 𝑖)𝑛
150,000
𝑃1 =
(1 + 0.035)5
150,000
𝑃1 =
(1.035)5
150,000
𝑃1 =
1.18768631
𝑷𝟏 = 𝑷𝟏𝟐𝟔, 𝟐𝟗𝟓. 𝟗𝟕
Now let us compute the present value of p150,000 with 3.5% annual market rate for 5
years. We need to convert 3.5% to equivalent semi-annual rate since the coupon rate
is 6% payable semi-annually. We shall use the formula of present value of an ordinary
annuity which is,
𝟏 − (𝟏 + 𝒋)−𝒏
𝑷 = 𝑹[ ]
𝒋
Convert 3.5% to equivalent semi-annual rate:

𝐹1 = 𝐹2
𝑃(1 + 𝑗)𝑛 = 𝑃(1 + 𝑗)𝑛
2
1
𝑖 (𝑚)
𝑃(1 + 0.035) = 𝑃 (1 + )
2
𝑖 (𝑚)
1.017349497 = 1 +
2
𝒊(𝒎)
𝟎. 𝟎𝟏𝟕𝟑𝟒𝟗𝟒𝟗𝟕 =
𝟐
Thus,
1 − (1 + 𝑖)−𝑛
𝑃2 = 𝑅 [ ]
𝑖
1 − (1 + 0.017349497)−10
𝑃2 = 4,500 [ ]
0.017349497
1 − (1.017349497)−10
𝑃2 = 4,500 [ ]
0.017349497
1 − 0.84197317
𝑃2 = 4,500 [ ]
0.017349497
0.15802683
𝑃2 = 4,500 [ ]
0.017349497
𝑃2 = 4,500[9.10843871]
𝑷𝟐 = 𝑷𝟒𝟎, 𝟗𝟖𝟕. 𝟗𝟕
Now, the fair price is the sum of the two present values.
Fair Price = Present Value1 + Present Value2

𝐹𝑃 = 126,295.97 + 40,987.97
𝑭𝑷 = 𝑷𝟏𝟔𝟕, 𝟐𝟖𝟑. 𝟗𝟒
Therefore, a fair price of 𝑷𝟏𝟔𝟕, 𝟐𝟖𝟑. 𝟗𝟒 is equivalent to all future payments,

assuming an annual market rate of 3.5%.
ACTIVITY
A. The table below shows the data on 5 stockholders. Find the dividend of the 5
stockholders.
(Note: Use Dividend = Dividend Percentage x Par Value x Number of shares)
Number of
Stockholder Par Value (in Peso) Dividend (%)
Shares
A 55 3.5% 105
B 43 5.25% 125
C 36 1.75% 250
D 68 6% 400
E 52 2.15% 600
B. Answer the following problems completely.
1. Calculate the market value and determine if each of the following bonds
is purchased at a premium or a discount.
a. Par Value of P100,000 with Price Quotation of 9.15%]
b. Par Value of P200,000 with Price Quotation of 1.24%
2. RFO distributor bought 18,800 shares of stocks at P1.43 par value with
a preferred quarterly dividend rate of 8.5%. How much is the amount of
quarterly dividend?
3. Find the amount of a semi-annual coupon for a P350,00 bond which

pays 8% convertible semi-annually for its coupons.
4. A property holding declared a dividend of P10 per share for the common
stock. If the common stock closes at P86, how large is the stock yield
ratio on this investment?
5. RSP Company issued a P200,000 bond paying interest rate of 7.75%. If

the closing price is 110.12%, find the current yield of the bond. (Note:
Current Yield = Annual Interest divided by Current Price)

MARKET INDICES FOR STOCKS AND BONDS
Analyze the different market indices for stock and bonds.

• explain the terms in stock and market tables.
• differentiate stock indices and bond indices.
Let’s study some key points that we need for a well-diversified portfolio strategy for stocks
and bonds.
Stock Market Index – is a measure of a stock market, or a small subset of the market,
that helps investors compare current price levels with past prices to calculate market.
➢ This is the barometers of the stock market.
➢ The indices give a broad outline of the market movement and represent the
market.
➢ Some of the stock market major indices in the Philippines are:
a. PSE Composite Index or PSE

It is composed of 30 companies carefully selected to represent the general
movement of the market prices.
b. FTSE Philippines
c. PHS All Shares
d. Other indices are sector indices, each representing a particular sector (e.g.
financial institutions, industrial corporations, holding firms, service corporations,
mining/oil, property)
Visit https://www.pse.com.ph/stockMarket/home.html for example of Stocks.
Usefulness of indices
• Indices help to recognize the broad trends in the market.
• Index can be used as a benchmark for evaluating the investor’s portfolio.
• Indices function as a status report on the general economy. Impact of various
economic policies are reflected on stock market.
• The investor can use the indices to allocate funds rationally among stocks. To earn
returns on par with the market returns, he can choose the stocks that reflect the
market movements.
List of index values:

Val – Value of the index
Chg – change of the index value from the previous trading day.
(Chg = value today – value yesterday)
% Chg – ratio of Chg to Val
(% Chg = Chg divided by Val)
Stock Tables – shows about stocks information.
52-WK Hi/LO – highest/lowest selling price of the stock in the past 52
weeks.
HI/LO – highest/lowest price of the stock in the last trading day.
STOCK – three-letter symbol the company is using for trading.
DIV – dividend per share last year
VOL (100s) – number of shares (in hundreds) traded in the last
trading day.
CLOSE – closing price on the last trading day.
NETCHG – net change between the two last trading days.

Buying or Selling Stocks
To buy or sell stocks, one may go to the PSE personally. Most transactions now a
days are done through phone call to a registered broker or by logging on to a
reputable online trading platform.
Bid Size – the number of individual buy orders and the total numbers
of shares they wish to buy at a given price.
Bid Price – the price these buyers are willing to pay for the stock.
Ask Price – the price the sellers of the stock are willing to sell the
stock.
Ask Size – how many individual sell orders have been placed in the
online platform and the total number of shares these sellers wish to share at
specific price.
Bond Market Indices - is made up of selected bonds and used to measure the value of
a part of the bond market. While it can be useful tool to gauge the value of specific
investments, a bond market index isn’t without its pitfalls, and should be used judiciously.
• It is a tool used by investors and financial managers to describe the market, and
to compare the return on specific investments.
The main platform for bonds or fixed income securities in the Philippines is the Philippine
Dealing and Exchange Corporation (PDEx)
Types of Bonds
1. Maturity-based bonds
Bonds categorized based on the length of time it will mature.
• Treasury Bills (T-bills) – Bonds that mature in less than 1 year (short term). The
most common tenors (length of maturity) for T-bills are 91 days, 181 days, and 364
days.
➢ Matures in less than a year (shorter investment time frame)
➢ Sold at a discount from their face value but the investor will get the full
amount upon maturity (works like a zero-coupon bond)
➢ Doesn’t pay income or coupon interest
• Treasury Bonds (T-bonds) – Bonds that have tenors of more than 1 year. The
most common maturity lengths for T-bonds are 2-year, 5-year, 7-year, 10-year, 20-
year, and 30-year bonds.
➢ Pays investor coupon interest (fixed income) at fixed intervals for the
duration of the bond
➢ Can present a higher risk due to the longer length of time before it matures
2. Issuer-based bonds
These are bonds that are classified according to who issued it:
• Treasury Securities – Bonds issued by the Bureau of Treasury
➢ Low(er) risk since investment is backed by the full faith and credit of the
government (vs other fixed income investments)
➢ The lower risk comes with a lower yield potential compared to other fixed
income instruments
• Government Bonds – Bonds that are issued by various government agencies like
HDMF, Government National Mortgage Association (GNMA), Federal National
Mortgage Association, and others.
➢ Low(er) default risk (similar with Treasury Securities)
➢ Favorable tax treatment
➢ Interest rate risk. Gov’t bonds may lose value if market interest rates rise
beyond the bond’s face value
• Municipal Bonds – Bonds issued by the local government units (LGUs).

➢ Low(er) default risk
➢ Low volatility
➢ Interest rate risk. Gov’t bonds may lose value if market interest rates rise
beyond the bond’s face value
• Corporate Bonds – Bonds issued by public and private companies.

➢ Potentially higher returns vs gov’t-issued banks
➢ Highly liquid
➢ Multiple options
➢ Higher risk compared to gov’t-issued bonds
ACTIVITY
Fill in the blanks.

1. _________ the price these buyers are willing to pay for the stock.
2. It is a tool used by investors and financial managers to describe the
____________, and to compare the return on specific investments.
3. This __________ issued by the Bureau of Treasury.
4. The measure of ___________, or a small subset of the market, that helps investors
compare current price levels with past prices to calculate market.
5. This __________ shows about stocks information.

1. What is the most major difference between bond and stock markets?
A. It was the trading and introducing new products and asset classes
B. The stock market has central places or exchanges where stocks are bought
and sold while bonds are default by issuers.
C. The market is facilitated by underwriters who set the initial price for securities.
D. Bond index can help investors track the performance of bond portfolios than
stock index.
2. Which of this is true for bonds coupon rate?
A. Temporary
B. Fluctuate
C. Auctioned
D. Fixed
3. Which of this need to consider before investing in bonds?
A. Be aware not only of the financial condition of the issuer of the bond but also
the prevailing market conditions.
B. Be aware that investing in bonds is relatively safer investment than investing in
stocks.
C. Be aware that these prices are determined by supply and demand.
D. Be aware that as the price of the bond may increase or decrease.
4. What is the main platform for bonds or fixed income securities in the Philippines?
A. Government National Mortgage Association (GNMA)

B. Philippine Dealing and Exchange Corporation (PDEx)
C. PSE Composite Index (PSE)
D. Local Government Units (LGUs)
5. What is the main platform for stocks securities in the Philippines?
A. Government National Mortgage Association (GNMA)
B. Philippine Dealing and Exchange Corporation (PDEx)
C. PSE Composite Index (PSE)
D. Local Government Units (LGUs).
BASIC CONCEPTS OF BUSINESS LOANS AND CONSUMER

LOANS
Illustrates and distinguish between business and consumer loans.

• identify business or consumer loan, and
• differentiate business loan from consumer loan or vice versa.
There are different types of loans. If we want to purchase goods and merchandise or we
want to open a small business, or we want to expand your business this involves a big
sum of money. Either you will borrow money from the bank in which a collateral is needed.
It may be a land title, real estate or other investments that you have. Or you want to buy
a brand-new car thru bank financing or in-house financing. Let us familiarize with the
following terms to understand more about which type of loan are best to purchase a new
car, expand your business or open a new business, or for mortgages.
Definition of Terms:
• Business Loan – money lent specifically for a business purpose. It may be used
to start a business or to have a business expansion.
• Consumer Loan – money lent to an individual for personal or family purpose
• Collateral – assets to secure the loan. It may be real estate or other investments.
• Guarantor – is a person who guarantees to pay for someone else’s financial
obligation if the borrower fails to do so,
• Term of the Loan – time to pay the entire loan.
Difference between business loan and consumer loan
Business Loans Consumer Loans
Terms
The terms for business loan are generally The term for consumer loan is longer with
shorter with an inclusion of greater interest lower interest rate.
rate.
Collateral
For business loans collateral may include In consumer loans may include also real
real estate or investment. In addition, they estate or investments depends on the
can use equipment, fixtures or furniture as loans applied.
collateral. To secure the assets of the
business, a business loan may also
require that the business owners make
personal assets available as well.
Guarantor
A business owner of the business required A consumer loan typically does not require
to sign themselves as guarantor of the a guarantor to sign the loan.
loan.
Documentation
For business loans, the lendee must For consumer loans, the bank or the
submit a credit report for evaluation, lending company or institution may require
income tax returns and company financial a credit report, bank statements, and an
statements to be compiled and income tax return, and if the lendee is
documented by a certified accountant. employed a certificate of employment and
employee pay slips.
Follow up
With business loans, annual reviews of However, with a consumer loan, once the
the relationship are often conducted by money has been distributed, there is
the bank. Many banks will require generally no further follow-up needed by
businesses to submit annual financial the bank as long as payments are made
reports for review. This can alert the bank as agreed.
to any impending issues with the
business that could threaten repayment
of the loan.
Loans
Business loans on the other hand, is a loan Consumer loan is when an individual
particularly meant for business reasons or borrows money for personal or family
purposes. Business loans includes purpose to secured or unsecured funds or
microloans, invoice financing, bank loans, money from a lender. Consumer loan
asset-based financing, cash flow loans as includes credit cards, mortgages, home
well as cash advances. equity lines of credit, refinances, auto
loans, student loans as well as personal
loans.
ACTIVITY
A. Fill in the blanks.

1. ___________ is an asset to secure the loan.
2. A kind of loan that the term of the loan usually shorter and include a higher
interest rate is__________.
3. A person who guarantees to pay for someone else’s financial obligation if the
borrower fails to pay. _____________
4. Once the money has been distributed, there is no further follow-up needed by
the bank if payments are agreed upon. This refers to ____________.
5. Money lent to an individual for personal or family purpose is called
___________.
B. Identify whether the following is a consumer or business loan.
1. Due to pandemic, Mrs. Reyes needs to follow the protocol imposed by IATF in
order to operate her salon. She needs to renovate her Nail Art and Foot SPA Salon
and buy other equipment needed. In order to pursue her plan, she wants to borrow
money from the bank.
2. Darren owns a milk tea store at their subdivision. He wants to put another branch
in a new mall near in their subdivision. He decided to have a loan to set up the new
business as soon as possible.
3. Ivan plans to buy a motorbike. He got a loan of P80,000.
4. Andrew decided to expand his Korean Food Grocery. He decided to borrow money
from the bank to pursue the expansion.
5. Mr. Nestor Dela Cruz decided to change his laptop and buy other gadgets which
he will need for his online class. He uses his credit card to purchase these items
payable for six months.
SOLVING PROBLEMS ON AMORTIZATION

Solve problems on business and consumer loans (amortization and mortgage)

• solve problems involving business or consumer loans; and
• differentiate amortization from mortgage or vice versa.
The trend now in buying goods and merchandise, availment of services, and the like are made easy
and convenient through credit cards. One important approach in annuities is the repayment of debts
by periodic or installment payments.
When a debt is amortized by equal payments at equal intervals the debt becomes the present value
of an annuity.
Amortization Method - A method of paying a loan (principal and interest) on installment basis,
usually of equal amounts at regular interval. This can only be used for intangible assets such as
licenses, trademarks, patents and loans.
Examples: Solve problems involving amortization.
1. Mr. Martinez bought a LED TV set for P60, 000. He made a 15% down payment and paid
P3,150 a month for 1½ years. Find the total amount (cost) and the total charges (interest,
service/finance charges and other fees) Mr. Martinez paid for the TV set.
Given:
Price of TV set = P60,000
Down payment = 15% of price of TV set
Monthly payment = P3,150
Solutions:
Down payment = 15% x Price of TV set = 15% x 60,000 = P9,000
Total amount of Monthly Payment = Monthly payment x No. of years
= 3,150 x 1½ years
3
= 3,150 x ( 2 x 12)
= 3,150 x 18
Total Amount of Monthly Payment = P56,700
Total Cost of TV set = Down payment + Total Amount of Monthly Payment
= 9,000 + 56,700
= P65,700
Total Charges = Total Cost of TV set – Price of TV set
= 65,700 – 60,000
Total Charges = P5,700
2. A loan of P100,000 is to be amortized by equal payments at the end of each quarter for 18
months. If interest is 10.5% compounded quarterly, find the periodic payment and construct
an amortization schedule.
Given:
P = P100,000 i= 10.5% m = 12 t = 18 mos.
Solution:
j = 10.5% ÷ 4 n = 18 ÷ 12 = 1.5
= 2.625% = 1.5 x 4
j = 0.02625 n=6
1−(1+𝑗)−𝑛
Let us use the ordinary annuity formula 𝑃 = 𝑅 and substitute all the known value.
𝑗
1 − (1 + 𝑗)−𝑛
𝑃=𝑅
𝑗
1 − (1 + 0.02625)−6
100,000 = 𝑅
0.02625
1 − (1.02625)−6
100,000 = 𝑅
0.02625
1 − 0.8560142
100,000 = 𝑅
0.02625
0.14398578
100,000 = 𝑅
0.2625
100,000 = 𝑅(5.48517266)
100,000 5.48517266
=𝑅
5.48517266 5.48517266
100,000
𝑅=
5.48517266
𝑹 = 𝑷𝟏𝟖, 𝟐𝟑𝟎. 𝟗𝟕
To compute the following
1. Interest paid = Unpaid Balance x i = 100,000 x 0.02625 = P2,625
2. Principal Repaid = Periodic Payment – Interest paid
= 18,230.97 – 2,625 = P15,605.97
Payment No. = Previous Unpaid Balance – Principal Repaid
Payment No. 2 = 100,000 – 15,605.97 = P84,394.03
Amortization Schedule:
Periodic 10.5% Interest Principal Repaid Unpaid Balance
Payment Period Payment at the Paid at the end at the end of 3 at the end of 3
end of 3 months of 3 months months months
0 - - - P100,000
1 18,230.97 2,625 15,605.97 84,394.03
2 18,230.97 2,215.34 16,015.63 68,378.40
3 18,230.97 1,794.93 16,436.04 51,942.37
4 18,230.97 1,363.49 16,867.48 35,074.88
5 18,230.97 920.72 17,310.25 17,764.63
6 18,230.97 466.32 17,764.65 0.00
TOTAL P109,385.82 P9,385.80 P100,000.02
Note: You can make the Amortization Schedule using excel.
ACTIVITY
Solve the following problems. Round amounts to the nearest centavo.
1. Sandra is required to pay 24 equal installments of P2,300 payable at the end of each month for
a loan at 7.5% compunded quarterly. Find the amount of his loan.
2. Mrs. Cabuslay obtained a housing loan of P1,800,000, which she would like to pay on equal
installment at the end of each month for 15 years. She pay the 10% downpayment of the amount
of the loan. Find his periodic installment if she is required to pay 7.5% interest compounded
monthly. Construct an amortization schedule for his first 10 periodic payments.
I. Choose the letter of the correct answer. Write it on a separate sheet of paper.
1. Darren obtain a loan of P50,000 from PAGIBIG Fund to be amortized by equal payment at
the end of each 6 months for 3 years at 8% interest compounded semi-annually. Find the
periodic payment.
A. P9,538.10 B. P8,676.15 C. P7,728.20 D. P6,936.25
2. Mr. Salvador is required to pay 12 quarterly installments of P12,500 each for a loan of 8%
compounded quarterly. How much is his loan?
A. P213,219.98 C. P132,191.77
B. P175,204.65 D. P121,178.54
For questions #3 – 5, read the passage below:

Mr. Cruz bought a car for P900,000. After deducting the down payment, her total loan
amount is P825,000. She amortized the loan by paying P18,500 monthly for 5 years with
5% interest compounded monthly.
3. How much is the amount of the car after 5 years?
A. P1,008,500 C. P1,058,792
B. P1,028,654 D. P1,048,827
4. How much is the total interest?
A. P108,500 B. P128,654 C. P158,792 D. P148,827
5. How much was the down payment made by Mr. Cruz?
A. P55,000 B. 65,000 C. P75,000 D. P85,000
II. Read and analyze the given problem. Write your answer on a separate sheet of paper.
Suppose your father applied a housing loan of P750,000 in PAGIBIG Fund, which he
would like to pay on equal installment at the end of each month for 15 years. Find his periodic
payment installment if he is required to pay 6.75% interest compounded monthly. Construct
an amortization schedule for his first 18 periodic payments.
SOLVING PROBLEMS ON MORTGAGES
Solve problems on business and consumer loans (amortization and mortgage)
After going through this module, you are expected to solve problems involving mortgages.
Let us familiarize with the following terms.
Mortgage - A loan, secured by a collateral, that the borrower is obliged to pay at specified terms.
Example of this is purchasing a house and lot or a real estate property
There are different types of mortgages

1. Fixed-rate mortgage – the rate of interest is the same throughout the term of mortgage. This is
the most common type of mortgage.
2. Adjustable-rate mortgage – the interest rate goes with the situation of the economy and the
lending rates of the prime banks.
3. Graduated-payment mortgage – the buyer pays a smaller payment at the beginning, then
makes bigger payments towards the end of the payment period.
Chattle Mortgage - is a mortgage on a movable property.

Collateral – assts used to secure the loan. It may be real-estate or other investments.
Mortgagor – is the borrower in a mortgage.
Mortgagee – is the lender in a mortgage.
A mortgage is a business loan or a consumer loan that is secured with a collateral. For example, if a
house and lot is purchased or a real estate property, the purchased property will be used as a
mortgaged property or collateral. A down payment is usually required before the mortgage is granted
to the buyer. However, some government lending institutions, such as Pag-ibig Fund, GSIS and some
private offices do not require down payments for their members/employees.
Let us solve problems involving mortgages for further understanding.
Examples: Solve problems involving mortgage.
1. Mr. Alfonso borrowed P1,500,000 to buy a house and lot. Find the total amount of interest he
will pay if his monthly payment for a 25-year mortgage is P8,400.
Given:
P = P1,500,000 Monthly Payment = P8,400
Mortgage Year = 25 Find: Total interest.
Solution:
Total amount to be paid = Monthly mortgage x No. months per year x years
= 8,400 x 12 months x 25 years
Total Amount to be paid = P2,520,000
Total Interest Paid = Amount to be paid – Amount borrowed
= 2,520,000 – 1,500,000
Total Interest Paid = P1,020,000
The above problem is example of Chattel Mortgage.
2. Mr. Castro bought a car that cost P1,318,000. The downpayment is 15% of the cost. After paying
the downpayment, the remaining amount is payable for 5 years with 5% interest compounded
monthly. How much is the monthly payment? How much is the amount of car after 5 years? How
much is the total interest?
Given:
P = P1,318,000 Down payment = 15% of present value
n = 5 years i = 5% m = 12 R=? F=? j=?
Solution:
Compute the Down payment = 15% of Present Value
= 15% x 1,318,000
Down payment = P197,700
Present Value = Principal Amount – Downpayment
= 1,318,000 – 197,000
Present Value = P1,121,000
n = mt = (12)(5) = 60 j = i÷m = 5% ÷ 12 = 0.0041667
𝑷
Solve the monthly payment using 𝑹 = 𝟏−(𝟏+𝒋)−𝒏
[ ]
𝒋
1,121,000
𝑅=
1 − (1 + 0. 0041667)−60
[ ]
0.0041667
1,121,000
𝑅=
1 − (1. 0041667)−60
[ ]
0.0041667
1,121,000
𝑅=
1 − 0.77920384
[ 0.0041667 ]
1,121,000
𝑅=
0.22079616
[ 0.0041667 ]
1,121,000
𝑅=
52.9906545
𝑹 = 𝑷𝟐𝟏, 𝟏𝟓𝟒. 𝟔𝟕
Hence, the monthly payment for 5 years is P21,154.67
Total Monthly Payment at the end of 5 years = R x n

= 21,154.67 x 60
Total Monthly Payment at the end of 5 years= P1,269,280.20
F = Total Monthly Payment at the end of 5 years + Downpayment

F = 1,269,280.20 + 197,000
Total Amount of car at the end of 5 years = P1,466,280.20
Total interest Paid = Amount of car at the end of 5 years – Principal Amount
= 1,466,280.20 – 1,318,000
Total Interest Paid = P148,280.20

ACTIVITY
A. Fill in the blanks.

1. A__________ is a mortgage with stable interest rate through out of the term.
2. A __________ are secured loans attached to a personal movable property.
3. A __________ is an entity that lends money to a borrower for the purpose of purchasing real
estate.
4. A __________ is a loan, secured by a collateral that the borrower is obliged to pay at
specified terms.
5. In a mortgage transaction, the borrower is known as the _______.
B. Solve the following problems. Write your solution in separate sheet of paper
1. How much is the mortgaged amount of a house and lot that has a cash value of P750,000 if
the bank offers a minimum amount of 20% down payment?
2. Supposed your sister obtained a condominium unit worth P2,600,000 and the bank requires
a 35% down payment, how much is the mortgaged amount.
3. Mr. Morales borrowed an amount of P120,000 is to be amortized by paying a monthly in 1.5
years. If money is worth 10% compounded monthly, how much is the monthly installment?
1. Supposed that a house and lot is purchased for P2,600,000 and the bank requires 25% down
payment. How much is the loan mortgaged amount?
A. P2,000,000 C. P1,900,000
B. P1,950,000 D. P1,850,000
2. Dela Cruz family obtained a P1,000,000 mortgage. If the monthly payment is P38,000 for four
years, how much is the total interest paid?
A. P934,000 C. P714,000
B. P824,000 D. P604,000
3. How much is the monthly payment of Mr. and Mrs. Dela Vega on a P1,800,000 mortgage at 9%
interest for 20 years?
A. P16,195.07 B. P17,290.10 C. P18,395.13 D. P19,400.15
4. Mr. Ignacio obtained a 15-year mortgage for P5,400,000. If his monthly payment is P42,500,
how much is the total amount paid?
A. P6,750,000 C. P8,550,000
B. P7,650,000 D. P9,450,000
5. In problem No. 4, how much is the total interest paid?
A. P1,350,000 C. P3,150,000
B. P 2,250,000 D. P4,040,000
ILLUSTRATE, SYMBOLIZE, AND DISTINGUISH BETWEEN SIMPLE

AND COMPOUND PROPOSITIONS
Illustrates and symbolizes propositions and distinguishes between simple and

compound propositions.

• identify propositions;
• Represent proposition using symbol; and
• distinguish between simple and compound propositions.
What is logic?
Logic has been studied since the classical Greek period (600-300BC). The Greeks, most
notably Thales, were the first to formally analyze the reasoning process. Aristotle (384-
322BC), the “father of logic”, and many other Greeks searched for universal truths that
were irrefutable. A second great period for logic came with the use of symbols to simplify
complicated logical arguments. Gottfried Leibniz (1646-1716) began this work at age 14
but failed to provide a workable foundation for symbolic logic. George Boole (1815-1864)
is considered the “father of symbolic logic”. He developed logic as an abstract
mathematical system consisting of defined terms (propositions), operations (conjunction,
disjunction, and negation), and rules for using the operations. Boole’s basic idea was that
if simple propositions could be represented by precise symbols, the relation between the
propositions could be read as precisely as an algebraic equation. Boole developed an
“algebra of logic” in which certain types of reasoning were reduced to manipulations of
symbols. LOGIC is the systematic study of valid rules of inference such as the relations
that lead to the acceptance of one proposition (the conclusion), in other word logic is the
analysis and appraisal of arguments.
Logic also applied in computer science such as in the design of computing machines, the
specification of systems, artificial intelligence, computer programing and program
languages.
In logic we study sentences and relationships between certain kind of sentences. We

restrict our study of logic to declarative sentences that are unambiguous statements or
propositions.
PROPOSITIONS is a sentence that could be either true (T) or false (F) but NOT both.
Specifically, it is a declarative sentence, and no other forms of sentences. It declares,
informs, or states something
and is always ends with a simple period. It is derived from a statement that contains a
subject and predicate. In symbolic logic we use variables or letters such as p, q, r, s, and
t to symbolize propositions.
Examples:
1. Open your book to page 100. - - - - - - - - - -an imperative
2. Did you enjoy the show? - - - - - - - - - - - - - an interrogative
3. What an exciting game! - - - - - - - - - - - - - -an exclamatory
4. The sun rises in the East - - - - - - - - - - - - -true, declarative
5. Four plus three is ten - - - - - - - - - - - - - - - -false, declarative
6. That was a good movie - - - - - - - - - - - - - - an ambiguous

7. Manila is the capital of the Philippines. - - - true, declarative
8. The square root of two is less than two - - - true, declarative
9. Negative 100 is an integer - - - - - - - - - - - -true, declarative
√2
10. 𝑓 (𝑥 ) = is rational function - - - - - - - - - false, declarative
𝑥+1
We can use letters or variables to represent propositions. Thus, sentences 4, 5, 7 to 10

can be represented as p, q, r, s, t and u respectively. In symbolic logic as follows:
1. p: The sun rises in the East.

2. q: Four plus three is ten.
3. r: Manila is the capital of the Philippines
4. s: The square root of two is less than two
5. t: Negative 100 is an integer
√2
6. u: 𝑓(𝑥 ) = is rational function
𝑥+1
Let us now compare sentences 1, 2, 3 and 6 with sentences 4, 5, 7 to 10. Sentences 1,

2, 3, and 6 are not declarative sentences. Hence sentences 1, 2, 3 and 6 are not
propositions.
Sentences 4, 5, 7 to 10 are example of simple proposition. A proposition is simple if it

cannot be broken down any further into other component propositions.
Let us determine the truth value for 4, 5, and 7 to 10 propositions.
p: The sun rises in the East. (True)

q: Four plus three is ten. (False)
r: Manila is the capital of the Philippines. (True)
s: The square root of two is less than two (True)
t: Negative 100 is an integer (True)
𝑥 2 + 𝑥 √2 −3𝑥−5
u: 𝑓(𝑥 ) = is rational function (False, since the numerator is
𝑥+1
not polynomial even there are many terms)
As discussed, a proposition is a declarative sentence that could be classified as either

true (T) or false (F) and can be simple or compound proposition.
A compound proposition is the result of combining simple propositions or producing a

new proposition from existing propositions. We combine propositions by using logical
connectors or operators Some logical connectors involving propositions p and/or q may
be expressed as follows:
not p, p and q, p or q, if p then q.
Examples
pI: I am reading a book, or I am writing a novel.
p2: It is not the case that √2 is a rational number.
P3: Either logic is fun and interesting, or boring.
P4: If you study hard, then you will get good grades.
We can determine the simple propositions that make the propositions p 1, p2, p3, and p4
Propositions Simple components
p1 r: I am reading a book.
f: I am writing a novel.
p2 i: √2 is a rational number
p3 b: Logic is fun.
g: Logic is interesting.
a: Logic is boring.
p4 h: You study hard.
d: You get good grades.
Then, the compound propositions may be expressed as:

pI: r or f
p2: not i
p3: b and g, or a
p4: If h then d
ACTIVITY
A. Determine whether each of the following statements is a proposition or not.

If a proposition give its truth value.
1. Students are excited to learn logic.
2. An angle that measure exactly 900 is a right angle.
3. President Ramos was the first President of the Philippines.
4. Noynoy Aquino was a great President.
5. In 2023, February will have 29 days,
6. How did you get the correct answer?
7. Ferdinand Magellan did not arrive the Philippines in 1521.
8. If an integer is odd, then its square is also odd.
9. 2 is even and prime.
10. You can have ice cream or cake for snack.
B. From its proposition in A, identify whether it is simple or compound

propositions. If it is a compound, identify its primitive component.
1. Which of the following is a proposition?
A. Bicol is an island in the Philippines. C. That was a hard examination!
B. What is the range of the function? D. Smile.
2. The truth value in QUESTION 1 is ….
A. True C. Both true and false
B. False D. Neither true nor false
3. Which of the following is NOT a proposition?

A. Twice a number equals the sum of two and a number.
B. The constant π is an irrational number.
C. Find a real number whose absolute value is 5.
D. Four is a natural number.
4. Which of the following is a compound proposition?
A. 3.75 is an integer.
B. Smile at your classmates.
C. Life is too short so enjoy it.
D. The ground is not wet.
5. The truth value for this statement “x + 2 = 2x when x = −2” is…

A. True
B. False
C. Both true and false
D. Neither true nor false
PERFORMS THE DIFFERENT TYPES OF OPERATIONS ON PROPOSITIONS
Performs the different types of operations on propositions.

• perform the operations on propositions, and
• represent proposition using symbol.
Logical connectors involving propositions 𝑝 and/or 𝑞 are expressed as follows:
The simple logical operator is the negation operator denoted by

¬𝒑 𝒐𝒓 ~𝒑 (read as not p).
Examples: What is the negation of the following statement?

1. p: √2 is a rational number. ------- ~𝒑: √2 is not a rational number.
or ~𝒑: √2 is an irrational number.
2. q: 6 is not an odd number. ------- ~𝒒: 6 is an odd number.
~𝒒: 6 is an even number.
The conjunction operator is the binary operator which when applied to two propositions p and q
denoted by 𝒑 ∧ 𝒒 (read as p and q). The conjunction p∧q of p and q is the proposition that is true when
both p and q are true and false otherwise.
The disjunction operator is the binary operator which, when applied to two propositions p and q, yields
the proposition “p or q”, denoted 𝒑 ∨ 𝒒. The disjunction p ∨ q of p and q is the proposition that is true
when either p is true, q is true, or both are true, and is false otherwise. Thus, the “or” intended here is
the inclusive or. In fact, the symbol ∨ is the abbreviation of the Latin word vel for the inclusive “or”.
Implication/Conditional operator is the proposition 𝒑 → 𝒒 that is often read “if p then q. 𝒑 → 𝒒 is also
read as “p implies q”. p is called the hypothesis and q is called the conclusion.
The biconditional of propositions p and q is denoted by p ↔ q: (p if and only if q). The proposition may
also be written as “p iff q”. The propositions p and q are the components of the biconditional.
Some Special Negation:

The De Morgan’s Laws
(𝑝 ∧ 𝑞) = ~𝑝 ∨ ~𝑞
~(𝑝 ∨ 𝑞) = ~𝑝 ∧ ~𝑞
Examples:
Perform the following operations. Write the answer in statement form.
Let p and q be the following propositions:

𝑝: Andrew is good in English.
𝑞: Andrew is good in Mathematics.
1. ~𝑝
2. 𝑝 ˅ 𝑞
3. 𝑞 ∧ 𝑝
4. ~𝑝 ˄ 𝑞
5. ~(~𝑝 → 𝑞)
6. 𝑝 ↔ 𝑞
7. ~(𝑝 ∧ 𝑞)
8. ~(𝑝 ∨ 𝑞)
Solution:
1. Andrew is not good in English.
2. Andrew is good in English or Andrew is good in Mathematics.
3. Andrew is good in Mathematics and Andrew is good in English.
4. Andrew is not good in English and Andrew is good in Mathematics.
5. If is not the case that Andrew is not good in English, then Andrew is good in Mathematics.
(The presence of double negation leads to a similar statement which is “If Andrew is good in
English, then he is good in Mathematics.”
6. Andrew is good in Mathematics, if and only if, he is good in English.
7. Andrew is not good in English or, he is not good in Mathematics.
8. Andrew is not good in English and he is not good in Mathematics.
ACTIVITY
A. Express the following propositions in symbols, where p, q, and r are defined as follows:
p: The sun is shining.
q: It is raining.
r: The ground is wet.
1. If it is raining, then the sun is not shining.
2. It is raining and the ground is wet.
3. The ground is wet if and only if it is raining and the sun is shining.
4. The sun is shining, or it is raining.
5. The ground is not wet.
B. Translate the following symbolic form in statement where:

p: President Duterte is a good President.
q: Government officials are corrupt.
r: People are happy.
1. 𝑝 → ~𝑞
2. 𝑝 ˅ ~𝑞 → 𝑟
3. 𝑝 → ~𝑞
4. ~𝑝 ∧ 𝑞 → ~𝑟
5. 𝑝 ↔ ~𝑞 ∧ 𝑟

1. Consider the proposition, “If the sum of two angles is 90°, then they are complementary.” Which
of these is the hypothesis?
A. If
B. Then
C. They are complementary
D. The sum of two angles is 90°
For number 2 – 3: Write the proposition in symbol with the first proposition
as p and the second proposition as q.
2. The sum of the interior angles of a triangle is 180° and the polygon is a triangle. In symbol:
A. p∧q B. p ∨ q C. p→q D. p↔q
3. If the sum of the interior angles of a triangle is not 180°, then the polygon is not triangle. In
symbol:
A. p∧q B. p ∨ q C. p→q D. p↔q
4. Negate: Darren is good in volleyball.
A. Darren is good. C. Darren is not good in volleyball.
B. Darren is lousy in volleyball. D. Volleyball is good for Darren.
5. What is the conclusion of the statement, “If the polygon is a triangle then, the sum of the interior
angles of a triangle is 180°”?
A. If
B. Then
C. The triangle is a polygon.
D. The sum of the interior angle of a triangle is 180°.

CONSTRUCTING TRUTH TABLES
Determines the truth values of propositions and illustrates the different forms of
conditional propositions.

• construct a truth value;
• determine the truth values of propositions; and
• illustrates the different forms of conditional propositions.
Let say that p and q are two simple propositions, and that the truth values of a simple proposition
which is either true or false are T and F (or 1 and 0), respectively. Using a truth table, the truth value
of p and q are shown below:
The 2- column truth table
Negation p tells us ~p that p ~p if p is true, ~𝑝
T F is T F not true, or false. If p is
false, ~𝑝 F is not false, T or F T true.
The truth table for p ∧ q (conjunction of p and q) is shown below:

p q 𝒑 ∧ 𝒒 The truth table shown on the side tells us that if there are two simple
T T T propositions, p and q, there four possible arrangements or assignments
T F F of their truth values. The 3rd column means that the conjunction 𝒑 ∧ 𝒒 is
F T F true in only one instance, and that is when p and q are both true.
F F F
The truth table for 𝒑 ∨ 𝒒 (Disjunction of p or q) as shown below:

p q 𝒑 ∨ 𝒒 In disjunction, there are also four arrangements for their truth values.
T T T Observe that 𝒑 ∨ 𝒒 is false only if both p and q are false. This means
T F T that the disjunction is true if at least one of the simple propositions is
F T T true.
F F F
The truth table for 𝒑 → 𝒒 (conditional of p implies q) is shown below:

p q 𝒑→𝒒 The 3rd column for this table shows that the conditional 𝒑 → 𝒒 is
T T T false only if p is true and q is false. Otherwise, such conditional
T F F statement is true.
F T T
F F T
The truth table for 𝒑 ↔ 𝒒 (biconditional of p iff q) is shown below

p q 𝒑↔𝒒 The table shows that the biconditional statement 𝒑 ↔ 𝒒 is true if both p
T T T and q are true, and that it is false, if both p and q are false.
T F F
F T F
F F T
Order of Operations are essential in constructing a truth table:

- Grouping: (), [], {}
- ~
- ∧, left to right
- ∨, left to right
- →
- ↔
Examples:
1. Determine the truth value of each of the following if p is true, q is false and r is false. (Follow
the order of operations.)
a. ~𝑝 ∨ 𝑞 = F ∨ F = F (False)
b. (𝑝 ∨ 𝑞) ∧ (~𝑞 →∼ 𝑟) = (T ∨ F) ∧ (T → T) = T ∧ T = T (True)
c. ~(p ∧ q) ↔ ( ~p ∨ r) = (~p ∨ ~q) ↔ (~p ∨ r)
= (F ∨ T) ↔ (F ∨ F)
=T↔F
~(p ∧ q) ↔ (~p ∨ r) = F (False)
2. Construct the truth table for (𝒑 ∨∼ 𝒒) → (∼ 𝒑 ∧ 𝒒)
p q ∼𝒑 ∼𝒒 𝒑 ∨∼ 𝒒 ∼ 𝒑 ∧𝒒 (𝒑 ∨∼ 𝒒) → (∼ 𝒑 ∧ 𝒒)
T T F F T F F
T F F T T F F
F T T F F T T
F F T T T F F
Forms of Conditional Propositions

• Conditional proposition if p then q in symbol (𝒑 → 𝒒) takes several forms. These forms,
known as inverse, converse, and contrapositive can be expressed as follows:
Let p and q are propositions. Given the implication 𝒑 → 𝒒
Inverse of 𝒑 → 𝒒 ∼ 𝒑 →∼ 𝒒
Converse of 𝒑 → 𝒒 𝒒→𝒑
Contrapositive 𝒑 → 𝒒 ∼ 𝒒 →∼ 𝒑
Examples: Say p and q are propositions. Given the implication 𝒑 → 𝒒
1. Give the inverse, converse and contrapositive of each of the following:

a. Conditional 𝒑 → 𝒒
If this book is interesting, then I am staying at home.
Answer:
b. Inverse ∼ 𝒑 →∼ 𝒒:
If this book is not interesting, then I am not staying at home.
c. Converse 𝒒 → 𝒑:
If I am staying at home, then this book is interesting.
d. Contrapositive∼ 𝒒 →∼ 𝒑:
If I am not staying at home, then this book is not interesting.
2. Construct the truth table for the above example.
p q ∼𝒑 ∼𝒒 ∼ 𝒑 →∼ 𝒒 𝒒→𝒑 ∼ 𝒒 →∼ 𝒑
T T F F T T T
T F F T T T F
F T T F F F T
F F T T T T T
ACTIVITY
A. Express the following propositions in symbols, where p, q and r are defined as follows:
p: The fish is cooked.
q: Dinner is ready.
r: I am hungry.
1. The dinner is ready, if and only if I am hungry.
2. The fish is cooked or if dinner is ready, then I am hungry.
3. It may or may not the case that I am hungry.
4. If the fish is not cooked, then the dinner is not ready, and I am hungry.
5. I am not hungry, or dinner is ready if and only if the fish is cooked.
B. Express the following proposition in words, using the given proposition in Activity A.
1. 𝑝 ∧ (~𝑝)
2. 𝑝 ∧ (~𝑞)
3. ~(𝑞 ∧ 𝑟)
4. ((~𝑝) ˅ 𝑞 ) ∧ 𝑟
5. ~𝑝 ∧ 𝑞 → ~𝑟

Consider the truth table below to answer items numbers 1 – 4.
p q 𝒑 ∧𝒒 𝒑 ∨𝒒 ∼ (𝑝 ∧ 𝑞) (𝒑 ∧ 𝒒) ∨ ∼ (𝒑 ∨ 𝒒)
T T
T F
F T
F F
1. If the logical values of the third column is arranged in order, what is the correct order?
A. 𝑻𝑭𝑻𝑭 B. 𝑭𝑻𝑭𝑻 C. 𝑻𝑭𝑭𝑭 D. 𝑻𝑻𝑻𝑭
2. If the logical values of the fourth column is arranged in order, what is the correct order?
A. 𝑻𝑭𝑻𝑭 B. 𝑭𝑻𝑭𝑻 C. 𝑻𝑭𝑭𝑭 D. TTTT
3. If the logical values of the fifth column is arranged in order, what is the correct order?
A. 𝑭𝑭𝑻𝑻 B. 𝑭𝑭𝑭𝑻 C. 𝑻𝑭𝑭𝑭 D. 𝑻𝑻𝑻𝑭
4. If the logical values of the sixth column is arranged in order, what is the correct order?
A. 𝑻𝑭𝑻𝑭 B. 𝑭𝑻𝑭𝑻 C. 𝑻𝑭𝑭𝑻 D. 𝑭𝑻𝑻𝑭
5. Aside from 𝑝 ↔ 𝑞, which of the following illustrates a biconditional?
A. (𝒑 → 𝒒) ∧ (~𝒑 → ~𝒒) C. (𝒑 → 𝒒) ∨ (~𝒑 → ~𝒒)

B. (𝒑 → 𝒒) ∧ (𝒒 → 𝒑) D. (𝒑 → 𝒒) ∨ (𝒒 → 𝒑)

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GENERAL MATHEMATICS SHS SECOND QUARTER

G11 SLEM # 13 – WEEK 5 – 2nd QUARTER

BASIC CONCEPTS OF STOCKS AND BONDS

Illustrate and distinguish between stocks and bonds

After going through this module, you are expected to:

BRIEF INTRODUCTION OF THE LESSON

DEFINITION OF TERMS IN RELATION TO STOCKS

➢ Common stock – is the one mostly owned by investors.

Dividend Per Share – ratio of the dividends to the number of shares.

Market value – the current price of a stock at which it can be sold.

DEFINITION OF TERMS IN RELATION TO BONDS

Coupon Rate – the rate per coupon payment period.

Price of a Bond – the price of the bond at purchase time.

Bondholders – are lenders/debtors to the institution which may be a government or private

CHECKING YOUR UNDERSTANDING

1. Which of the following cannot be true for stocks?

A. Stocks can be bought or sold

2. Which of the following is an example of bond?

3. Which statement best illustrates for stocks?

A. Lower risk but lower yield.

4. This refers to share in company’s profit for holders.

G11 SLEM # 14 – WEEK 5 – 2nd QUARTER

COMPUTATION OF STOCKS AND BONDS

After going through this module, you are expected to:

BRIEF INTRODUCTION OF THE LESSON

Example: DMC Company purchased P5,000 shares of stocks at P195 par

where: 𝑄𝐷 is the quarterly dividend

Therefore, the quarterly dividend is P20,718.75

Example: ABC Corporation has a current market value of P52, gave a

Find: Stock Yield Ratio (SYR)

Example: RQS Corporation purchased a bond having a par value of

Find: Fair Price of the Bond

Bondholder receives 10 payments of P4,500 each, and P150,000 at 𝑡 = 5.

Convert 3.5% to equivalent semi-annual rate:

Fair Price = Present Value1 + Present Value2

Therefore, a fair price of 𝑷𝟏𝟔𝟕, 𝟐𝟖𝟑. 𝟗𝟒 is equivalent to all future payments,

(Note: Use Dividend = Dividend Percentage x Par Value x Number of shares)

3. Find the amount of a semi-annual coupon for a P350,00 bond which

5. RSP Company issued a P200,000 bond paying interest rate of 7.75%. If

G11 SLEM # 15 – WEEK 5 – 2nd QUARTER

Analyze the different market indices for stock and bonds.

After going through this module, you are expected to:

BRIEF INTRODUCTION OF THE LESSON

a. PSE Composite Index or PSE

List of index values:

NETCHG – net change between the two last trading days.

• Municipal Bonds – Bonds issued by the local government units (LGUs).

• Corporate Bonds – Bonds issued by public and private companies.

Fill in the blanks.

CHECKING YOUR UNDERSTANDING

A. Government National Mortgage Association (GNMA)

G11 SLEM # 16 – WEEK 6 – 2nd QUARTER

BASIC CONCEPTS OF BUSINESS LOANS AND CONSUMER

After going through this module, you are expected to:

BRIEF INTRODUCTION OF THE LESSON

A. Fill in the blanks.

B. Identify whether the following is a consumer or business loan.

G11 SLEM # 17 – WEEK 6 – 2nd QUARTER

SOLVING PROBLEMS ON AMORTIZATION

After going through this module, you are expected to:

BRIEF INTRODUCTION OF THE LESSON

Examples: Solve problems involving amortization.

Solve the following problems. Round amounts to the nearest centavo.

CHECKING YOUR UNDERSTANDING