GENERAL MATHEMATICS ORDINARY AND EXACT INTEREST

SIMPLE INTEREST Ordinary Interest- Also known as Bankers

Converting percent to decimal- Drop the Interest
percent sign and move the decimal point two Exact Interest- Interest based on a 365 day year.
places to the left. Formula: Days/360
Simple Interest- is a quick and easy method of Maturity Value(A)- It is the principal amount of
calculating the interest charge on loan. the bond to be paid by the borrower to the owner
-It is also determined by multiplying the interest at maturity.
rate by the principal by the number of days that - Also called as amount or balance
elapse between payment.
Interest- Amount paid or earned for the use of mon
Time or term(t)- amount of time in years the money
borrowed or invested
-length of time between the origin and maturity dates
- Convert months into years COMPOUND INTEREST
Both the principal and interest earned an
interest

PRINCIPAL(P)- Amount of money borrowed or - Interest on top of interest

invested on the origin date. - Compound interest is always greater than
- It is also called the face value or the present Simple interest.
value Compounding Period (k)
RATE(r)- Amount of money borrowed or Annually - Once per year
invested on the origin date. Semi-annually- Twice per year
It is also called the face value or the present value Quarterly- 4 times per year
- Always convert percentage to decimal Monthly- 12 times per year
Weekly- 52 times per year
Daily- 365 times per year

where:
F=Amount (future value) ANNUITY DUE- An annuity in which the
P=Principal (Initial value) periodic payment is made at the beginning of
r=Rate each payment interval.
t= time (year/s) DEFERRED ANNUITY- The periodic payment
K compounding period is not made at the beginning nor at the end of
each payment interval,but some later date.
GENERAL ANNUITY
GENERAL ORDINARY ANNUITY- First
where:
payment is made at the end of every payment
lc- Compound interest
interval.
F =Amount (future value)
GENERAL ANNUITY DUE- First payment is
P= Principal (Initial value)
made at the beginning of every payment interval.
SIMPLE ANNUITY
PERPETUITIES- A series of periodic
Annuities- A fixed sum of money paid to
payments which are to run infinitely forever.
someone At regular intervals, subject or a fixed
Future Value- is the total accumulation of the
compound interest rate.
payments and interest earned (keywords:
Annuity Certain- payable for definite duration.
amount/balance)
Begins and ends on a definite or fixed date.
Present Value- is the principal that must be
Simple Annuity - interest conversion or
invested today to provide the regular payments
compounding period is equal or the same as the
of an annuity (Keyword:borrow)
payment interval.
Future Value Formula:
Annuity uncertain -payable for indefinite
duration. dependent on some certain event
(
(ex: insurance)
Where:
General Annuity - interest conversion or
FV= future value
compounding period is unequal or not the same
P= Periodic payment
as the payment interval.
i= interest rate per time i = r/k
SIMPLE ANNUITY
n= total number of conversion periods. n = (t)(K)
ORDINARY ANNUITY- An annuity in which
the periodic payment is made at the end of each
payment interval.
Present value Formula:
Where:
PV= Present value
P= Periodic Payment
i= Interest rate per time i=r/K
n=(t)(k)
SIMPLE ANNUITY DUE
Future value of simple annuity due
Present value of simple Annuity due
REGULAR PAYMENT OF AN ANNUITY
Periodic Payment(P)- a payment made at regular
times.
Regular payment of an annuity
Simple ordinary annuity Formula
Regular payment of an annuity
Simple annuity due Formula
Where:
P= Periodic payment
FV= Future Value
PV= Present Value
I= Interest rate per time
n= Total number of conversion period
DEFERRED ANNUITY
Annuity in which the first payment is not made
at the beginning nor at the end of the payment
interval but a later date.
Period of deferment(d)- is a time during which a
borrower does not have to pay interest or repay
the principal on a loan.
Present value of a deferred annuity Formula:
PV= Present Value
P= regular payment
i= rate per conversion period
n= number of paying periods
d= number of deferred periods
Future Value of a deferred Annuity Formula:
Note: The future value of deferred annuity is the
same as the future value of simple ordinary
annuity.
PROPOSITION AND SYMBOLS
Proposition- as a declarative sentence that can
be classified as true or false, but not both.
KIND OF SENTENCES
1. Simple- is a sentence that has one
independent clause.
2. Compound- contains two or more
independent clauses joined by
conjunction.
SENTENCE CLASSIFICATION
1. Declarative - used to make a statement of
fact, wish, intent, of feeling.
2. Imperative- used to state a command,
request, or direction.
3. Interrogative- used to ask a question
4. Exclamatory- used to express strong
feelings.
KINDS OF PROPOSITION
1. Simple proposition- A proposition that
conveys one thought with no connecting
words.
2. Compound Proposition- A proposition
that contains two or more simple
propositions that are put together using
connective words.
Note: Different combinations of compound
proposițions can be formed by using
CONNECTIVES. Words such as and, or, not,
and if...then are examples of connectives.
CLASSIFICATION OF COMPOUND
PROPOSITION
Conjunction- Two simple propositions
connected using the word ‘AND’
Note: Connective “but” is also considered as
conjunction.
Disjunction- Two simple propositions that
connected using the word ‘OR’
Conditional- Two simple propositions that are
connected using the words if and then.
- The first part of the statement is called
ANTECEDENT
- The sentence that follows then is called the
CONSEQUENT
Biconditional- Conjunction of two conditional
statements where the antecedent and
consequent of the first statement have been
switched in the second statement.
Negation- Is a statement that is false whenever
the given statement is true, and true whenever
the given statement is false.
Note: Negation can be obtained by inserting the
word not in the given statement or by prefixing
it with the phrases such as it is not the case
that…
OPERATIONS ON PROPOSITIONS
Symbols- Are used to simplify work in logic.
TRUTH TABLE Disjunction- exclusive or
Is a tabular representation of all the
combinations of values for inputs and
their corresponding outputs.
-It is a mathematical table that shows all
- Exclusive disjunction is true when one
possible outcomes that would occur from all
component is true and the other is false
possible scenarios that are considered
Negation
Factual.
Conjunction

● ~p is false when p is true And-p is true

when p is false
Conditional

Formula:

Biconditional
- For the conjunction p ^q to be true,
both p and q must be true.

Disjunction- Inclusive or

● Inclusive disjunction is true unless

both components are false.
● Inclusive disjunction is true when at
least one statement is true.