PORTFOLIO

IN
GENERAL
MATHEMATICS

SUBMITTED BY: COLLINE A. AYSON

11 - AMETHYST

SUBMITTED TO: SIR. MYCHO GALLENGCANAO

SUBJECT TEACHER
WEEK 1 & 2
SIMPLE AND COMPOUND INTERST

 INTEREST
 Interest is the amount paid for the use of another amount of money, called the principal amount or
simply principal. Interest is expressed in terms of percent, and is stated as rate of the principal involved
per annum.

 SIMPLE INTEREST
Simple interest refers to the amount earned for one year calculated by multiplying the principal by the
interest rate. Only the principal, no more no less, is considered for the computation of interest. This kind
of interest is applied for transactions that usually last only for less than a year. It is also important to note
that simple interest I is directly proportional to the principal P, interest rate r, and then the term t. In
symbols.
Example:
An amount of ₱150,000 is invested for 9 months at 4%. Find the interest and the maturity value.
Solution:

Given: principal ( P)=₱ 150,000

rate ( r )=4 %∨0.04

9
term (t )=9 months or =0.75
12
To find the interest, we are using the formula I =Prt .

I =Prt
I =( ₱ 150,000 ) ( 0.04 ) (0.75)
I =₱ 4,500 This is now the interest of ₱150,000 in 9 months.
The maturity value or the amount A is the sum of the principal and the interest.

A=P+ I
A=₱ 150,000+ ₱ 4,500
A=₱ 154,500

 MATURITY VALUE
Is the amount to be paid to the holder of a financial obligation at the obligation’s maturity.

 FUTURE VALUE
 Future value, on the other hand, is the sum to which today’s investment will grow by a specific future
date, when compounded at a given interest rate.
Technically speaking, future value and maturity value are the same. Future value is the term mostly
used for investment and deposits, while maturity value is used for insurance or bonds. Present value,
meanwhile is the value today for an amount of money in the future.

 PRESENT VALUE

The formula for the maturity value A is A=P(1+rt) .

A
By dividing both sides of this equation by 1+rt , the result is P=
1+rt
This formula is used to find the principal if the maturity value, the rate, and the term are given. In this
case, the principal is referred to as the present value.

Example:
Find the present value of a loan due on December 24, 2015, with a maturity value of ₱340,600
and a rate of 6% in 159 days.

Solution:
The problem can be illustrated using the time value scale as follows:

Present value
6% in 159 days Maturity value

? ₱340,600
December 24, 2015 May 31, 2016
A=340,600
R=6 %=0.06
159
T=
360

A
Substitute using the formula P=
1+rt

₱ 340,600
P= P= ₱ 331,807.11
Present value 159
1+ ( 0.06 ) ( )
360 So, the present value is ₱331,807.11
₱ 340,600
P=
1.0265
  COMPOUND INTEREST

Compound interest is also the amount earned for one year calculated by multiplying the principal by
the interest rate. Borrowing, bonding, and saving in financial institutions apply compound interest.
Compound interests are usually used for long-term transactions.

Example:
Find the compound amount and compound interest on a loan of ₱50,000 at 6% for 6 years
compounded semi-annually.

Solution:
Given: Principal P= ₱ 50,000
Nominal rate ¿ 6 %
Interest rate (i) per conversion periods is 6 % ÷ 2 quarters=3 %=0.03.
Number of the conversion periods is 6 years ×2=12 periods .

The compound amount at the end of 6 years is

An =P¿
An =₱ 50 , 000 ¿
An =₱ 71 ,288.044

And the compound interest is

I n= An −P
I n=₱ 71 , 288.044−₱ 50 , 000.00
I n=₱ 21 , 288.004
WEEK 3 & 4
ANNUITIES

 Annuity
Is a term that refers to a deposit or investment agreement between a potential depositor or investor and a
financial institution that promises to pay out steady amount of money over time. This agreement contains
the commercial terms such as deposit terms (e.g., lump-sum or installment deposit), interest rate, and
disbursement terms (e.g., interest and principal payments in installment). The ultimate purpose of an
annuity is to make sure that the investor will get steady source of funds.

 Ordinary annuity
Ordinary annuities or fixed annuities, where payments are made at the end of each period and usually
applied when borrowing money and making repayments.

 Annuity due
Annuity due, where payments are made at the beginning of the period and usually applied when saving or
investing money.

 Simple annuity
Is an annuity where compounding and payment periods happen at the same time.

Example:
Paluwagan sa Kooperatiba Program
Your mom decided to join their office cooperative and agreed to contribute ₱1,000 per month beginning
in January 2016 which will earn 3% compounded monthly. How much will be the future value of your
mom’s contribution at the end of April 2016?

Solution:
Since interest rate is at 3% compounded monthly, the interest per month is computed as follows:

3%
= 0.0025 or 0.25%
12

January 2016 : ₱1,000

February 2016 : ₱1,000 + ₱1,000(1 + 0.0025) = ₱2,002.50
March : ₱1,000 + ₱1,000(1.0025) + ₱1,000(1.0025)2 = ₱3,007.51
April : ₱1,000 + ₱1,000(1.0025) + ₱1,000(1.0025)2 + ₱1,000(1.0025)3 = ₱4,015.03

Your mom’s contribution of ₱1,000 per month for four months already earned ₱15.03.
  GENERAL ANNUITY
The basic difference of the general annuity from a simple annuity from a simple annuity is that the
general annuity’s compounding and payment periods do not happen the same time. For example, a life
insurance’s contribution is monthly while the interest is compounded quarterly.

 FUTURE AND PRESENT VALUES OF SIMPLE AND GENERAL ANNUITIES

The value today of a set of cash flows in the future with a specific rate of return is called present value
of an annuity. It is essentially the amount of money that one has to invest today in one lump-sum payment
in order to accumulate the same amount of money produced by contributing regularly to the annuity over
some particular period of time. This is also called single-payment annuity. Cash flow is the movement of
funds which could either be an inflow or an outflow

 FAIR MARKET VALUE

Many times, your parents face a financial decision as to what is more practical and strategic option in
selecting two compelling cash flow offers (e.g., selling a property). Fair market value or economic value
of cash flow stream with annuity is the value of a payment stream on a particular date. It is a single
amount that represents the economic substitute for a payment stream.

 DEFERRED ANNUITY
Many insurance companies nowadays require their costumers to deposit a fixed amount per
contribution for a specified period of time. When an insurance costumer decides to be committed with an
insurance company, it means that he or she is willing to set aside disposable income. This situation
explains the concept of deferred annuity, which is a type of annuity wherein an amount of money is set
aside into a financial instrument with the agreement that it will be regularly disbursed but only after a
guaranteed period of time of several years.
WEEK 5&6
STOCK VS. BONDS

 Bond
It is also referred as bills, notes, debt securities, or debt obligations.

 Corporate bond
Are bonds issued by the most established corporation. In Philippines, most bond issuers are from the
banking sector, real estate, and telecommunications industry.

 Secured bond
Are bonds that are backed up by corporate collaterals that have substantial value such as property, plant,
or equipment.

 Unsecured bond
Are not collateralized by any substantial corporate asset. Also known as debenture bonds, these bonds
are only issued with “good faith.” The upside is that the interest is usually higher due to the risks that the
unsecured bondholders’ take.

 Convertible bond
Are bonds that can be interchanged with shares of stock. These are also hybrid type of bond because of
their debt or equity features.

 Callable bond
Are bonds that can literally be recalled or redeemed the issuer even before the bonds mature. This
situation usually happens when there is fluctuation in interest rates, and the issuer can resort to issue new
bonds at a lower rate.

 Stocks
are defined as shares of ownership in a corporation.

 Common Stockholder
 The common stockholder’s major difference over preferred stockholders is that they have voting rights as
to who they feel should be part of the company’s board of directors. Most of the time, the voting rights of
common stockholders are equivalent to the number of shares they own. This means that the larger your
common stock ownership the more power you have over the company in terms of voting rights. Common
stockholders are also personally invited to attend the election of the company’s board of directors. This
means that even if the common stockholder owns a very little share, he or she is still part of the voting
process.

 Preferred stockholder
The preferred stockholder’s advantage, on the other hand, is that they get preference in dividend
payments; however, they do not have voting rights. Dividends are a portion of the company’s earnings
distributed among its stockholders. There are times that the dividends are not paid on a regular basis and
eventually accumulate. In this case, cumulative preferred stockholders must be paid all past and present
dividends first common stockholders can receive any dividends. Regardless of the type of ownership,
both types of stockholders receive a portion of the corporation’s profit where they invested.

 Cash dividend
From the term itself, it is a type of dividend that is paid through cash. The cash dividend is by far the most
common of the dividend types used. There are various dates in cash dividend that should be noted. First is
the date of declaration. This is where the board of directors decides to pay a certain dividend amount in
cash to those investors holding the company’s stock on a specific date. Second is the date of record,
which is the date on which dividends are allocated to the company’s stockholders. The last one is the date
of payment, the date when the company issues cash dividend payments to its stockholders.

 Stock dividend
is the issuance by a company of its stock to its shareholders. In other words, instead of receiving cash as
profit, the stockholder receives more shares of stocks, or a portion thereof. Stock dividend usually occurs
when a company does not have sufficient cash. A transaction is considered stock split when the
transaction is for a greater proportion of the previously outstanding shares. To record a stock dividend,
transfer from retained earnings to the capital stock and to the additional paid-in capital accounts an
amount equal to the fair value of the additional shares issued. The fair value of the additional shares
issued is based on their fair market value when the dividend is declared.

 Property dividend
Aside from cash and stock, a company can also opt to issue a nonmonetary dividend or property to the
stockholders. The property dividend is recorded at the fair market value of the assets or property
distributed. Any difference or variance in the fair market value of the property and its book value will be
treated as gain or loss. Fair market value of the property is the estimated market value that a buyer is
willing to pay the seller, while book value is the value of the property recorded in the company’s balance
sheet or simply recorded balance in the books of a company.
  Scrip dividend
Similar with stock and property dividends, a certain company may not have enough liquidity to distribute
cash dividends in the near future; so instead, it issues a scrip dividend. A scrip dividend is essentially an
obligation to pay or simply a promissory note (which may include interest) to pay shareholders at a
specific date. This dividend is supported by a note payable to the stockholders.

 Liquidating dividend
This is a kind of dividend that a stockholder may like to have depending on his or her investment goals.
This occurs when the company’s board of directors wishes to return the stock investment which was
originally contributed by the stockholders in the form of a dividend. A liquidating dividend is usually a
glaring sign that the company is already winding down its business. Thus, the company already fully
distributes its assets to the rightful owners including the stockholders.

 Consumer credit
Consumer credit is the term used for a type of loan that is offered to businesses (which could either be a
sole proprietorship, partnership, or corporations) and individuals or other retail customers. These loans
are usually paid through a series of regular payments or installment with imputed interest. The repayment
of a loan in equal installments that are applied to the principal and interest over a period of time is called
the amortization of a loan.

 Closed-end Credit
is a type of installment loan in which the principal amount and the interest borrowed are repaid in a
specific number of equal payments.

 Open-end Credit
is a type of installment loan in which there is no fixed amount borrowed or number of payments. Regular
payments are made until the loan is paid off. A line of credit is a preapproved amount of open-end credit
based on the borrower’s ability to pay.

 Cash price
Is the price paid all at once at the time of the purchase.

 Down payment
is a fractional payment to the loan.
  Amount financed
Is a total amount granted by the lending institution to pay off the balance

 Installment price
Includes all installment payments, finance charges, and down payment.

 Character
Character. In this area, the lender is looking for such things as credit history, training and knowledge,
experience, financial competency, and plans for the future. In short, the character is the reputation of the
borrower.

 Capacity
This refers to the ability to service the debt, replace assets as they wear out, and provide money for living
the possible expansion. In short, capacity is the ability of the borrower to repay loan by assessing the
income against the debts of the borrower. Capacity is also the borrower’s liquidity status.

 Capital
This is what is left behind a borrower when the liabilities are deducted from the asset. This is also what is
being put toward a potential investment. A large capital of the borrower will equate to less chances of
default.

 Collateral
This is the lender’s security in a loan transaction.

 Conditions
These are the commercial terms of a loan transaction such as the principal amount, interest rate, and the
term of the loan.
WEEK 7 & 8
PROPOSITION

 Propositions
In your everyday life, you provide information about yourself, people, things, and/or events.
When you say for example, “the weather is hot,” you have just stated something which philosophers call a
proposition. This is a statement in declarative form which expresses a single and complete idea, and bears
either truth or falsity. What you say though the proposition is your belief, doubt, or knowledge.

 Hypothetical propositions
Are propositions made up of two or more component propositions where the predicate of the propositions
does not assert the subject the subject of the proposition in an absolute manner. Moreover, hypothetical
propositions do not talk about relations between the subject and the predicate neither within the
proposition nor of quantities. There are two kinds of hypothetical propositions: simple and compound.

A proposition is said to be simple if it has only one subject and one predicate. “The dress is red,” “The
chair is wooden,” and “My mother is working” are some examples of simple propositions.

 Compound proposition
Is a proposition wherein two simple sentences are combined together by a connector. Thus, the
proposition “Her dress is red, and her shoes are blue” is a compound proposition because it can be
separated into two simple propositions – (1) her dress is red (2) her shoes are blue.

 Categorical Propositions
Categorical propositions are statements about the relationship between categories or classes of things.
Example 1:

i. No Filipino is immortal.
ii. All Batangueňo are Filipinos.
iii. Therefore, no Batangueňo is immortal.

 Quantifier
As discussed earlier, is either universal or particular. The copula is the verb that connects the subject term
to the predicate term.
  Antecedent
Is the component proposition that comes after the term if, where it serves as the sufficient condition for
the second component proposition to follow.

 Consequent
A necessary condition. That is why, if you use a conditional proposition, it only turns out false if the
antecedent is already true which is a sufficient condition for the consequent to be obtained, yet the
consequent turns out false.

 Contradictories
Two propositions are said to be contradictories if one is the denial or the negation of the other, that is, if
they cannot be both true or both false. Thus, two standard-form categorical propositions, having the same
subject term and predicate term but different in both quantity and quality, are contradictories. Observe the
following A- and O-proposition.

 Contraries
The opposition is said to be a contrary if the two propositions cannot be both true, that is, if the truth of
one entails the falsity of the other. Although contraries cannot be both true, they may be both. For
example, the A-proposition “All architects are good in mathematics” and the E-proposition “No architects
are good in mathematics” cannot be both true, but they can be both false.

 Subcontraries
Two proposition are subcontraries if they cannot be both false, although they may both true. The
propositions I and O are subcontraries. They have the same subject and predicate terms, but they differ in
quality.

 Subalternation
One other relation that can be seen from the four standard-form categorical propositions is when two
propositions have the same subject and predicate term both agree in quality, but they differ in quantity.
These propositions are called corresponding propositions.