President Ramon Magsaysay State University

Palanginan, Iba, Zambales

S.Y. 2021-2022

PROJECT 2

SUBMITTED BY:
Yesha Eiren R. Yap
BSN-1A
SUBMITTED TO:
Mr. Mark Joseph C. Quinto
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022

Simple Interest
1. How much interest is earned in 4 years on P 4,000.00 invested at an interest rate of 9%
per year.
Solution:
P= P4,000
r= 9% or 0.09
t= 4 years
I=Prt
I= (4,000)(0.9)(4)
I= P14,400

2. Anne plans to buy a refrigerator from the mall which cost P11,000.00. The loans charges
P2,000 interest in 6 months. Find the simple interest rate.
Solution:
P= P11,000
I= P2,000
t= 6 months
2,000
I
r= = 6 = 0.4×(100%) = 40%
Pt (11,000)( )
12
3. Mimi invests P100,000 in a bank account. At the end of the year her account is credited
with 3% interest. How much interest had her P100,000 earned in a year?
P = P100,000
r = 3% or 0.03
t = 1 year
𝐼 = 𝑃𝑟𝑡
= (100,000)(0.03)(1)
= 𝑃3,000
Compound Interest
1. Find the compound amount of P28,000.00 compounded semiannually for 3 years at 12%
interest rate.
P = P28,000
r = 12% or 0.12
n=2
t=3
𝑀 = 𝑃(1 + 𝑟 𝑛 ) 𝑛𝑡
(2)(3)
0.12
𝑀 = 28, 000 (1+ )
2
𝑀 = 𝑃39,718.54
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
2. Suzie deposits P7,000.00 into an account with an interest rate of 2.8% that is
compounded quarterly. Rounding to the nearest peso, what is the balance in Suzie’s
account after 6 years.
P=7,000.00
I= 2.8% or 0.028
n=4
t=6
nt
r
M= P(1+ )
n
0.028 (4)(6)
M=7,000 (1 + ¿¿
4
M= P8,275.71
3. Accumulate 8,500.00 for 2 years at 3.5% compounded semiannually.
M= P8,500
r= 3.5% or 0.035
n= 2
t=2
P= M
¿¿
8,500
P=
¿¿
P=P7,930.15
Credit Cards
1. An unpaid bill P4,000.00 had a due date of October 1. A purchase of P12,000.00 was
made on October 7 and another was on October 9 amounting to P3,200.00. An P500.00
was charge on October 23. A payment of P9,000.00 was made on October 13. The
interest on the average daily balance is 3.3% per month. Find the finance charge on the
October 30 bill.

Date Payments or Balance each No. of days Unpaid balance

Purchases Day unit balance times no. of
changes days
October 1- 4,000 6 24,000
October 6
October 7- 12,000 16,000 2 32,000
October 9
October 10- 3,000 19,000 3 57,000
October 12
October 13- -9000 10,000 9 90,000
October 22
October 23- 500 10,500 11 115,500
November 2
Total P318,500
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
318,500
Average daily balance= =P10,274.19
31
2. A bank lends a money in an investor amounting P18,000 that has 3% simple interest rate.
He agrees to a 3 monthly installment.
P= P18,000
r= 3% or 0.03
I=Prt (18,000) (0.03)
3
I= Prt (18,000) (0.03) ( )= P135
12
M= P+I= 18,000 + 135 =18,135
18135
Monthly Payment= = P6,045.00
3
1st month
1
I= Prt (18,000) (0.03) ( )= P45.00
12
2nd month
1
I= Prt (11,955) (0.03) ( )= P45.00 Principal 6,045-18,000
12
6,045-45= P6,000.00
3rd month
1
I= Prt (5,955) (0.03) ( )= P45.00 Principal 11,995-6,000
12
5,955-14.89= P5,940.11
b. APR
2 nr 2(3)(0.03)
= = 0.045 or 4.5%
n+r 3+1

3. An accountant brought a brand-new laptop amounting P50,00o. He gave a 50% down

payment and the balance was agreed to be 12 equals monthly installments. 10% was the
finance charge on the balance.
a. Down payment
50% of 50,000
0.10 ( 25,000 )=¿ P2,500.00
Amount finance
= 50,000-25,000
=P25,000.00
Interest owed
= 0.10 (25,000)
= 2,500
b. APR
n=12
r= 0.10
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
2 nr 2 ( 12 ) ( 0.10 ) 1
APR= = = 0.18 or 18%
n+r 12+ 1
Consumer Loan
1. Moana is a call center agent at home for 2 years. Her laptop was smashed by a figurine,
so she decided to find a shop that offers a 8% annual interest rate for 3 years. She decided
to buy one for ₱28,000.00. Find her monthly payment.
PMT= A [(r/n)/(1-(1+r/n )^(-nt) )]
A= ₱ 28,000.00
r= 8% 0r 0.08
n= 12
t= 3 years

PMT =A¿
= 28,000 ¿
= ₱ 868.83 (monthly payment)
2. Mike gets a payday loan for ₱650.00 and pays a fee of ₱50.00. The loan must
be repaid within 15 days. What is the APR?

Solution:

( 65500 ) 365
I=

[
= 650 )
(
]
50
365
100 %
15

= ( 2 8.077
15 )
100 %

= 181.17 %
3. Saddie bought a brand new car for ₱350,000.00. She was given a 20% annual interest rate
for 2 years. Find his monthly payment.

PMT= A ¿
A= ₱ 350,000.00
r= 20% 0r 0.20
n= 12
t= 2 years

Solution:
PMT = A ¿
= 350,000 ¿
= ₱ 17,745.87 (MONTHLY PAYMENT)
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022

Stocks
1. A 4% stock yields 6%. The market value of the stock is P100
4
Market value of the stock = x 100 = P66.66
6
2. A certain corporation declared a 3.56% dividend on a stock with a par value of P400.00.
Mr. Byers owns 200 shares of stock with a par value of P400.00. How much dividend
will he receive?
Dividend percentage
3.56% or 0.0356
Par value= P400.00
No. of shares = 200
= 0.0356 (400) (200)
Dividend= P2,848.00
3. Company A with a current market value of P50.00 are given a dividend of P6.50 per
share for its common stock. Company B, with a current market value of P122.00 gave a
dividend of 11.50 per share. How much dividends stakeholders are getting in relation to
amount invested.
Company A
Given:
Dividend per share =P6.50
Market Value= P50.00
6.50
Stock yield ratio= = 0.13% or 13%
50.00
Company B
Given:
Dividend per share =P11.50
Market Value= P122.00
11.50
Stock yield ratio= = 0.09% or 9%
122.00

Bonds
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
1. Determine the amount of the semi-annual coupon for a bond with a face value of
P60,000 that pays 4%, payable semi-annually for its coupons
Face value= P60,000.00
Coupon rate (r)= 4 or 0.04
Annual coupon amount= P60,000.00 (0.04) = P2,400.00
1
Semi-annual coupon amount = P60,000.00 ( ) = P30,000.00
2
Semi-annual coupon amount = P60,000.00 (0.04) (0.5)
Semi-annual coupon amount = P1,200.00
2. Harold invested P60,000.00 in various stocks and bonds. He earned 8% on his bonds
and 15% on his stocks. If Harold’s total profit on both types of investments was
P2,000.00, how much of the P60,000.00 did he invest in bonds?
Solution:
Let x = is the amount invested at 8% on his bonds
30,000 – x = is the amount invested at 15% on his stocks
Equation:
(interest earned at 8%) + (interest earned at 15%) = 2,000
[(x)(0.08)] + [(60,000 – x)(0.15)] = 2,000
0.08x + 9,000 – 0.15x = 2,000
8x + 900,000 – 15x = 200,000
-8x = 200,000 – 900,000
-8x = -700,000
x = 87,500 (amount invested in bonds)
60,000 – x = 60,000 – 87,500
= 27,500 (amount invested in stocks)
3. Find the yield on P2,000, 8% ACTS bond price at 86 plus P11.00 commission.
Given:
Par value= P2,000.00
r=8% or 0.08
commission= P11.00
Annual income= (2,000) (0.08) (1) = 160
Amount invested= (0.86 x P2,000) + 11
= 1,720+11
= 1,731
160
Yield= = 0.09 or 9%
1,731

Mutual Bonds
1. A mutual fund has P400,000,000.00 worth of stock, P2,000,000.00 worth of
bonds, and P5,000,000.00 in cash. The fund’s total liabilities amount to
P7,000,000.00. There are 32,000,000 shares outstanding. You invest P8,000.00 in
this fund.
a. Solve for the Net Asset Value.
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
b. How many shares will you buy?
Solution:
a. Find the NAV:
b. Find the number of shares:
𝑁𝐴𝑉 =
𝐴−𝐿
𝑁
=
(400,000,000 + 2,000,000 + 5,000,000) − 7,000,000
32,000,000
= 𝑃12.5
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 =
𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑
𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
=
8,000
= 640 shares
12.5

2. An employee invested P4,500.00 on a company that has a mutual fund of

P10,000,000.00 worth of stock, P5,000,000.00 worth of bonds, and P6,000,000.00
in cash. The fund’s total liabilities amount to P1,000,000.00. There are
13,000,000 shares outstanding.
a. Solve for the Net Asset Value.
b. How many shares will you buy?
Solution:
a. Find the NAV:
b. Find the number of shares:
𝑁𝐴𝑉 =
𝐴−𝐿
𝑁
=
(10,000,000 + 5,000,000 + 6,000,000) − 1,000,000
13,000,000
= 𝑃1.54
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠ℎ𝑎𝑟𝑒𝑠 =
𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑
𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒
4,500
=
1.54
=P2,922.07
3. What is the net asset value of an investment company with 10,000,000 in assets,
600,000 in current liabilities, and 2,000,000 shares outstanding?
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
Assets 10,000,000
Liabilities 600,000
Equity = P 9,400,000
9,400.000
Net asset value (per share): = 4.7%
2,000,000
Treasury Bills
1. A water cooperative invest in a P30,000.00 Philippine Treasury bill at 8.56%
interest for 30 days. The bank through which the bill is purchased charges a service
fee of P90.00. What is the cost of the treasury bill?
Principal = P30,000.00
r = 8.56% or 0.0856
t = 30 days or 30/360
𝐼 = 𝑃𝑟𝑡
30
= (30,000)(0.0856)( )
360
= 𝑃214.00
2. A ₱23,000.00 Philippine Treasury bill, purchased at 2.5% interest, matures in 30
days. The purchaser named Ana was charged a fee of P80.00. What is the cost of
the treasury bill?
Solution:
Principal = ₱23,000.00
r = 2.5% or 0.025
t = 30 days or 30/360

𝐼 = 𝑃𝑟𝑡

= (23,000) (0.025) ( 360

30
)
= ₱47.92

Cost = (face value – interest) + service fee

= (23,000 – 47.92) + 80
= ₱23,032.08
 President Ramon Magsaysay State University
Palanginan, Iba, Zambales
S.Y. 2021-2022
3. A ₱92,000.00 Philippine Treasury bill was purchased at 7.6% interest which
matures in 24 days and charged with a fee of P4,500.00. What is the cost of the
treasury bill?
Solution:
Principal = ₱92,000.00
r = 7.6% or 0.076
t = 120 days or 120/360
𝐼 = 𝑃𝑟𝑡

= (92,000) (0.076) ( 120

360 )

= ₱2,330.66

Cost = (face value – interest) + service fee

= (92,000 – 2,330.66) + 4,500
= ₱94,169.34