NEW ERA UNIVERSITY

FAAP ASCU-AAI Level III Reaccredited

No.9 Central Ave. New Era, Quezon City

1CED-D Group 4 COLLAB

LESSON 2A ACTIVITY 1

A very good friend borrowed money from you. You lent her P10, 000 with the
following conditions on charging one-time interest on the full amount.
❖ 1% if she returns the money after a month
❖ 3% if she returns it after 6 months
❖ 5% if she returns it after 1 year

How much interest can you collect if your good friends pay you after two
months? After two years?

P = P10,000

R = 2% and 10 P = P10,000.00

Solve I = P x r r = 5% or 0.05

= P10,000x1x2 t = 2 years

= P10,000x1x2 I=Pxrxt

=200 = P10,000.00 x .05x2 or (P10,000.00 x 5% x 2)

=1,000.00
P10,000.00 + P200.00 F=P+I

After 2 Months= P10,200.00 = P10,000.00 + P1,000.00

After 2 years = P11,000.00

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 NEW ERA UNIVERSITY
FAAP ASCU-AAI Level III Reaccredited
No.9 Central Ave. New Era, Quezon City

ACTIVITY 2

A Bank is offering 5% simple interest per annum

on a savings account. If an amount of Php 50,
000 is deposited, how much is the interest two
years? What is the total amount to be withdrawn
after two years?

P = P50, 000. 00
t = 2 years
r = 5% interest rate

Solution:
I=Pxrxt
= P5, 000. 00 x .05/month x 2 years or (P50, 000. 00 x 5% x 2)
Interest in two years = P5, 000. 00

F=P+I
= P50, 000. 00 + P5, 000. 00
Total amount to be withdrawn after two years =
P55, 000. 00

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 NEW ERA UNIVERSITY
FAAP ASCU-AAI Level III Reaccredited
No.9 Central Ave. New Era, Quezon City

ACTIVITY 3

Mrs. Santillan borrowed an amount

of Php 10, 000. 00 and paid back to
the investor with a final amount of
Php 12, 800. 00

Principal = P10, 000. 00

Final amount = P12, 800. 00

Formula: F = P + I
I=F–P

Solution:

P12, 800. 00 – P10, 000. 00

The interest = P2, 800. 00

(2800)/10, 000. 00

Rate of interest = 28%

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 NEW ERA UNIVERSITY
FAAP ASCU-AAI Level III Reaccredited
No.9 Central Ave. New Era, Quezon City

ACTIVITY 4

Ms. DJ borrowed a certain amount of money from a

loan company to make a house improvement and to
be paid after three years at 10% rate per annum. If she
paid a sum of Php 180, 000. 00 how much was the
amount of borrowed principal?

Principal (P) =?

Final amount (F) = P180, 000. 00

Rate (r) = 10% per annum.
Time (t) = 3 years

Solution:
F=P+Prt

F/(1+rt) = P(1+rt) = CANCEL (1+rt)

F/(1+rt) = P

P = 180, 000. 00/1+.01x3

= 180, 000. 00/1.3

The amount of borrowed principal = Php 138, 461. 53

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 NEW ERA UNIVERSITY
FAAP ASCU-AAI Level III Reaccredited
No.9 Central Ave. New Era, Quezon City

LESSON 2B ACTIVITY 1

Cheeseka got a P10, 000.00 loan from a

bank with an interest rate 6%
compounded annually for three years.

P = P10, 0000.00

r = 6%

m=1

t = 3 years

Solution:

10, 000(1+0.06/1)*3
10, 000(1.06)*

Interest: Php 1, 910.16

After three years: Php 11, 910. 16

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 NEW ERA UNIVERSITY
FAAP ASCU-AAI Level III Reaccredited
No.9 Central Ave. New Era, Quezon City

ACTIVITY 2

Mitche plans to deposit his Php 450, 000 in any

of his selected accounts that earns 4% interest.
How much money is in the account after five
years compounded; a. semi-annually b. quarterly
c. monthly?

Semi-annually QUARTERLY:
65, 000.00 (1+0.04) * 2(5) 450, 000.00 (1+0.04/4) * 4 (5)
45, 000.00 (1.01*2) 10 450, 000.00 (1.01) * 20
45, 000.00 ( 1.2190) 450, 000.00 (1.2202)

Answer: P548, 550.00 Answer: P549, 090.00

MONTHLY:
45, 000.00 (1+0.04/12) * 12(15)
45, 000.00 (4,33) * 60
45, 000.00 (1.5462)

Answer: P695, 790.00

Submitted by: RODRIGUEZ, NICO S. 1CED-D

Submitted to: PROF. DANILO B. DE GUZMAN

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