SEATWORK ON MATHEMATICS OF FINANCE

GROUP 6
Nepomuceno, Angelika Mae C.
Ricalde, Jie C.
Rosales, Alexa Danielle I.
Rosales, Gilven M.
Solis, Iya P.
Taeza, Chanel Alessandra

1. A businessman charges his client Php 2 750 on a loan of Php 15 800 for 2 years and
3 months. What simple interest rate is he using?
Given:
I = Php 2 750
P = Php 15 800
r=?
t = 2 years and 3 months or 2.25 years
Solution:
𝐼 = 𝑃𝑟𝑡
𝐼 𝑃𝑟𝑡
= 𝑃𝑡
𝑃𝑡
𝐼
𝑟 = 𝑃𝑡
2750
𝑟 = (15800)(2.25)
𝑟 = 0.07735583685 𝑜𝑟 7.74%
Answer:
𝒓 = 𝟎. 𝟎𝟕𝟕𝟑𝟓𝟓𝟖𝟑𝟔𝟖𝟓 𝒐𝒓 𝟕. 𝟕𝟒%

2. What amount must be repaid on August 1, 2019, if Php 8 650 is borrowed on August
1, 2018, at 6% simple interest.
Given:
I=?
P = Php 8 650
r = 6% or 0.06
t = 1 year
Solution:
𝐼 = 𝑃𝑟𝑡
𝐼 = (8650)(0.06)(1)
𝐼 = 𝑃ℎ𝑝 519
𝑃ℎ𝑝 8650 + 𝑃ℎ𝑝 519 = 𝑃ℎ𝑝 9169
Answer:
𝑨𝒎𝒐𝒖𝒏𝒕 𝒕𝒐 𝒃𝒆 𝒑𝒂𝒊𝒅 = 𝑷𝒉𝒑 𝟗𝟏𝟔𝟗
3. In what time will Php 875 double itself at the rate of 7% simple interest?
Given:
I = Php 875
P = Php 875
r = 7% or 0.07
t=?
Solution:
𝐼 = 𝑃𝑟𝑡
𝐼 𝑃𝑟𝑡
= 𝑃𝑟
𝑃𝑟
𝐼
𝑡 = 𝑃𝑟
875
𝑡 = (875)(0.07)
𝑡 = 14.28571429 𝑜𝑟 14.29 𝑦𝑒𝑎𝑟𝑠
Answer:
𝒕 = 𝟏𝟒. 𝟐𝟖𝟓𝟕𝟏𝟒𝟐𝟗 𝒐𝒓 𝟏𝟒. 𝟐𝟗 𝒚𝒆𝒂𝒓𝒔

4. What amount should be paid at the end of 4 years if Php 30 000 earns 3.5%?
Given:
P = Php 30 000
r = 3.5% or 0.035
t = 4 years
A=?
Solution:
𝐴 = 𝑃(1 + 𝑟𝑡)
𝐴 = 30000(1 + (0.035)(4))
𝐴 = 𝑃ℎ𝑝 34200
Answer:
𝑨 = 𝑷𝒉𝒑 𝟑𝟒𝟐𝟎𝟎

5. Discount Php 78 000 at 4% for 18 months.

Given:
A = Php 78 000
r = 4% or 0.04
t = 18 months or 1.5 years
Solution:
𝐴
𝑃 = (1+𝑟𝑡)
78000
𝑃= (1+(0.04)(1.5))
𝑃 = 𝑃ℎ𝑝 73584.91
Answer:
𝑷 = 𝑷𝒉𝒑 𝟕𝟑𝟓𝟖𝟒. 𝟗𝟏
6. A man invested Php 8 500 for 4 years at 6% converted annually. What is the
accumulated amount?
Given:
P = Php 8 500
t = 4 years
r = 6% or 0.06
m=1
n = (m)(T) = (1)(4) = 4
i = r/m = 0.06/1 = 0.06
F=?
Solution:
𝐹 = 𝑃(1 + 𝑖)𝑛
𝐹 = 8500(1 + 0.06)4
𝐹 = 𝑃ℎ𝑝 10731.05
Answer:
𝑭 = 𝑷𝒉𝒑 𝟏𝟎𝟕𝟑𝟏. 𝟎𝟓

7. How much is the interest and accumulated amount of Php 25 000 invested for 3 years
at 4% converted quarterly.
Given:
P = Php 25 000
t = 3 years
r = 4% or 0.04
m=4
n = (m)(t) = (4)(3) = 12
i = r/m = 0.04/4 =0.01
F=?
I=?
Solution:
𝐹 = 𝑃(1 + 𝑖)𝑛
𝐹 = 25000(1 + 0.01)12
𝐹 = 𝑃ℎ𝑝 28170.63

𝐼 =𝐹−𝑃
𝐼 = 𝑃ℎ𝑝 28170.63 − 𝑃ℎ𝑝 25000
𝐼 = 𝑃ℎ𝑝 3170.63
Answer:
𝑭 = 𝑷𝒉𝒑 𝟐𝟖𝟏𝟕𝟎. 𝟔𝟑
𝑰 = 𝑷𝒉𝒑 𝟑𝟏𝟕𝟎. 𝟔𝟑
8. Accumulate Php 15 600 for 2 years at 2% compounded monthly.
Given:
A = Php 15 600
t = 2 years
r = 2% or 0.02
m = 12
n = (m)(t) = (12)(2) = 24
i = r/m = 0.02/12 = 0.0017
P=?
Solution:
𝐴
𝑃= 𝑟 𝑛
(1+𝑚)
15600
𝑃= 0.02 (24)
(1+ )
12
𝑃 = 𝑃ℎ𝑝 14988.81
Answer:
𝑷 = 𝑷𝒉𝒑 𝟏𝟒𝟗𝟖𝟖. 𝟖𝟏

9. Mr. Torres wants to have Php 15 000 in his account at the end of 10 years. How much
should he invest today in a bank that pays 8% compounded monthly?
Given:
A = Php 15 000
t = 10 years
r = 8% or 0.08
m = 12
n = (m)(t) = (12)(10) = 120
I = r/m = 0.08/12 = 0.0067
P=?
Solution:
𝐴
𝑃= 𝑟 𝑛
(1+𝑚)
15000
𝑃= 0.08
(1+ 12 )(120)
𝑃 = 𝑃ℎ𝑝 6741.73
Answer:
𝑷 = 𝑷𝒉𝒑 𝟔𝟕𝟓𝟕. 𝟖𝟓
10. How long will it take for Php 4 500 to amount to Php 6 100, if the interest rate is 5%
converted quarterly?
Given:
F = Php 6 100
P = Php 4 500
r = 5% or 0.05
m=4
i = r/m = 0.05/4 = 0.0125
t=?
n=?
Solution:
𝐹
𝑙𝑜𝑔
𝑃
𝑛 = 𝑙𝑜𝑔(1+𝑖)
𝐹
𝑙𝑜𝑔𝑃
𝑛=
𝑙𝑜𝑔(1+𝑖)
𝑛 = 24.48870072
𝑛
𝑡=𝑚
24.48870072
𝑡= 4
𝑡 = 6.1222 𝑜𝑟 6.12 𝑦𝑒𝑎𝑟𝑠
Answer:
𝒕 = 𝟔. 𝟏𝟐𝟐𝟐 𝒐𝒓 𝟔. 𝟏𝟐 𝒚𝒆𝒂𝒓𝒔

11. On November 15, 2014, ABC Foods Inc. invested Php 900 000 at 16% compounded
semi-annually. Determine the date when it accumulates to Php 1 322 239.30.
Given:
F = Php 1 322 239.30
P = Php 900 000
r = 16% or 0.16
m=2
I = r/m = 0.016/2 = 0.0125
t=?
n=?
Solution:
𝐹
𝑙𝑜𝑔𝑃
𝑛=
𝑙𝑜𝑔(1+𝑖)
1322239.30
𝑙𝑜𝑔 900000
𝑛= 0.016
𝑙𝑜𝑔(1+ 2 )
𝑛 = 4.998467389
𝑛
𝑡=
𝑚
4.998467389
𝑡=
2
𝑡 = 2.499233694 𝑜𝑟 2.5 𝑦𝑒𝑎𝑟𝑠
 Answer:
𝒕 = 𝟐. 𝟒𝟗𝟗𝟐𝟑𝟑𝟔𝟗𝟒 𝒐𝒓 𝟐. 𝟓 𝒚𝒆𝒂𝒓𝒔
From November 15, 2014 to May 15, 2017
May 15,2017

12. If Php 3 060 accumulates to Php 8 660 in 5 years, what is the rate compounded
monthly?
Given:
F = Php 8 660
P = Php 3 060
t = 5 years
m = 12
n = (m)(t) = (12)(5) = 60
i=?
r=?
Solution:
1
𝐹 𝑛
𝑖= (𝑃 ) −1
1
8660 60
𝑖= (3060)−1
𝑖 = 0.01748951144

𝑟 = (𝑖)(𝑚)
𝑟 = (0.01748951144)(12)
𝑟 = 0.2098741372 𝑜𝑟 20.99
Answer:
𝒓 = 𝟎. 𝟐𝟎𝟗𝟖𝟕𝟒𝟏𝟑𝟕𝟐% 𝒐𝒓 𝟐𝟎. 𝟗𝟖𝟕%