Welcome to

General
Mathematics
class
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 1. LOANS
MONEY
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LOANS
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 LOAN
-debt provided by one entity
(individual/organization) to
another entity at an interest
rate.
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 SECURED LOAN UNSECURED LOAN

borrower gives the lender loan that is not protected

the right to take in case the borrower failed
possession of pledged to meet the terms of
borrower’s asset in case repayment.
the borrower failed to
settle the obligation.
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 CONSUMER LOAN BUSINESS LOAN

lent to business borrowed for the purpose

companies to fund their of making personal or
business operating costs family purchases
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 ELEMENTS:

1. COLLATERAL- asset presented by a borrower

given to the lender in case the borrower defaulted the
loan.
2. GUARANTOR- an individual who agrees to pay
back a loan if the borrower fails to pay the loan on
time.
3. DOCUMENTATION- credit-related documents
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 MORTGAGE
-loan that makes use
of real property such
as house or lot as
collateral.
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 WORD PROBLEMS INVOLVING LOANS

Mapagbigay Credit Union allows its members to borrow up to

₱2,000.00 and to repay in 24 equal installments. Maria borrowed
₱1,200.00 and paid ₱52.00 for every installment. What is the cost
of the loan?
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 WORD PROBLEMS INVOLVING LOANS

A cooking machine for Shawarma costs ₱5,000.00. It can be bought

if a down payment of ₱2,000.00 is made followed by 24 monthly
installments of ₱130.00. What is the total cost of the credit?
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 WORD PROBLEMS INVOLVING LOANS

Good Bikes, Inc. adds 12% simple interest to cover other operating
costs. Brylle buys a ₱10,000.00 bike with a down payment of
₱3,000.00 and pays the remainder and interest over nine months.
What is the finance charge for the transaction?
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 YOUR TURN!
Solve what is being asked in the given problem.
1.Determine the cost of the loan if man borrows ₱3,000.00 and pays ₱180.00 in 18 equal
installments.

2.Determine the cost of the loan if man borrows ₱4,000.00 and pays ₱180.00 in 24 equal
installments.

3.What is the total cost of credit if a ₱12,000.00 cabinet is purchased with a down payment
of ₱4,000.00 and succeeding 24 nstallments of ₱350.00?

4.What is the total cost of credit if a ₱24,000.00 refrigerator is purchased with a down
payment of ₱10,000.00 and succeeding 24 nstallments of ₱600.00?

5.What is the finance charge if a ₱120,000.00 computer laboratory material is bought at

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10% over nine months after a downpayment of ₱40,000.00?

 AMORTIZATION
-paying-off a loan in regular
installments over a specific
period of time.
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 AMORTIZATION
TABLE/SCHEDULE
-table where the
series of payments
to amortize the loan
is summarized.
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 PAYMENT ON AN AMORTIZED LOAN
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 WORD PROBLEMS INVOLVING LOANS

An amortized car loan of ₱1,000,000.00 for purchasing a brand new

car is granted to Mr. Grenada by a bank. If the loan is to be paid in
5 years at an annual interest rate of 12%, find the monthly
amortization.
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 WORD PROBLEMS INVOLVING LOANS

A smart phone was bought at an amortized loan of ₱20,000.00 with

18% annual interest to be paid in five months. Find the monthly
amortization. Construct an amortization schedule for this loan.
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 WORD PROBLEMS INVOLVING LOANS

A ₱65,000.00 loan at 12% compounded semiannually is to be

amortized every 6 months for three years. Find the semiannual
payment and construct an amortization table.
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 WORD PROBLEMS INVOLVING LOANS

A catering business took out a bank loan and plans to repay it

through five annual amortizations amounting to ₱192,819.34 each.
If the bank charged an interest of 9% compounded annually, find
the outstanding principal after the third year.
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 WORD PROBLEMS INVOLVING LOANS

A&A Partnership’s loan application for ₱5,000,000.00 was

approved. They will use the money to furnish their newly-
constructed shop and agreed to repay the debt every month for five
years. If money is worth 12% compounded monthly, how much is
their outstanding principal after three years?
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 YOUR TURN!

Solve what is being asked in the given problem.

1.Mr. Tan pays the bank ₱14,500.00 monthly for his 15-year housing loan. If the bank
earns 6% compounded monthly, find

a.The present value of his loan

b.The outstanding principal after the 30th payment
c.The outstanding principal after 10 years
d.The amount already paid after 10 years
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Thank
you!
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