Mathematics in the Modern Word

M4- Check-in Activity 1

BASADA, ALEXANDRA D.

BSN-1D

Solve the given problems completely.

1) Mr. Ang’s money became Php165,000 @ the end of 10 months. If the bank pays 12% annually, how
much was his money @ the start?

Interest can be calculated in two types:

1. Simple interest
2. Compound interest

NOTE:

Most savings bank account has an annual compound interest rate. Money in savings accounts will earn a
compound interest.

The formula is

where

a= future value of saving

p= principal amount of deposited

r= interest rate per year, in decimal form

n= number of times compounded

t= number of years

Remember the saving account always have a monthly compound interest.

Given

• a= 165, 000
• r= 0.12
 • n= 12
• t= 10 months = 0.83

The equation would be:

p= 149, 372. 35 pesos

Therefore, Mr. Ang's money is 149, 372.35 pesos.

2) Mr. So borrowed Php200,000 from a cooperative that charges 15% yearly. He used the loan to start
his food stand business. How much will he pay for the loan after 18 months?

Given:

P = Php 200,000

r = 0.15

t = 18/12

Solution:

I = Prt

= (200,000) (0.15) (18/12)

= 45,000

I = Php 45,000

Therefore, Mr. So would pay Php 45,000 for his loan after 18 months with yearly charges of 15%.