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MODULE 4 - Consumer Math
MODULE 4 - Consumer Math
Activity 1
Simple Interest
1. What is the maturity value if ₱ 20 000 is invested for 3 years at 12% simple
interest?
3.
How
5. How much should be invested today in a fund that pays 13 ½% in order to have ₱
158 000 in 3 ½ years?
6. How long will it take for ₱ 35 200 to earn ₱ 7 400 if invested at 5 ½% simple
interest?
7. What simple interest rate is applied if ₱ 5 000 becomes ₱ 5 500 in 100 days?
8.
8.
8.
Mr
. de Leon borrowed some money at the rate of 5% per annum for the first 2 years, at
the rate of 9% per annum for the next 3 years, and at the rate of 12% per annum for
the period beyond 5 years. If he pays a total interest of
₱ 10 625 at the end of 9 years, how much money did he borrow?
9. Find the exact and ordinary interest earned if ₱ 40 000 is invested at 15% simple
interest for 200 days.
10. Determine the interest and maturity value of ₱ 70 000 if it is invested a 15% simple
interest for 145 days using exact and ordinary interest.
Activity 2
Simple Discount
1. Find the proceeds of ₱ 50 000 due at the end of 8 months if the discount rate is 10 ½
%?
3. Discount (or find the present value of) ₱ 20 000 for 150 days at a discount rate of
7%.
5. How long will it take for ₱ 20 500 to amount to ₱ 30 000, if the discount rate is 5
4/5%?
6. ABC bank charges 10 ¼% for discounting loans. If Aldrin agrees to repay
₱ 55 000 after 7 months, how much does he receive now?
7. If ₱ 25 000 is the present value of ₱ 30 500 due at the end of 16 months, find the
discount rate.
8. Mary needs ₱ 100 000 on June 12, 2018, and will settle the loan on February 12,
2019. What is the size of the loan she should borrow from Mr. Sotto who charges
5% discount rate?
10. If ₱ 11 200 is the present value of ₱ 13 700 due at the end of 16 months, find
a. discount interest rate
b. simple interest rate
Activity 3
Compound Interest
4. Maricel borrows ₱ 10 000 with interest at 15% compounded monthly. How much
should she pay at the end of 2 years and 6 months to settle her debt?
5. When her granddaughter was born, Melay invested ₱ 20 000 at 12% compounded
quarterly. How much money will her granddaughter have on her 18th birthday?
6. Find the amount at the end of 15 years if ₱ 55 000 is invested at an interest rate of 5%
compounded semi-annually for the first 10 years and 3% compounded quarterly for the
next 5 years.
7. Manolo deposited ₱ 120 000 in a fund that pays 5% compounded annually for the first
3 years, 4 ½% compounded semi-annually for the next 2 years and 3% compounded
quarterly thereafter. If money is invested for 10 years, how much is in the fund after 10
years?
Activity 4
Present Value
1. Find the present value of ₱ 300 000 due at the end of 5 years if it is invested at 5%
compounded:
a. annually
b. semi-annually
c. quarterly
d. monthly
2. What sum is needed to accumulate to ₱ 50 000 in 3 years and 5 months if the interest
rate is 7% compounded monthly?
3. Jake wants to have ₱ 20 000 in 2 years to buy a new cell phone. How much money
should he invest today in a fund that earns 3% compounded quarterly to get this
amount?
4. How much must be deposited today in a bank to accumulate ₱ 100 000 after 5 years if
the money earns 3.5% compounded semi-annually?
7. A certain amount was invested in a fund at a rate of 7 ½% simple interest for the first
5 years, at 18% compounded monthly for the next 5 years, and at 14% compounded
semi-annually for the remaining years. If the total amount in the fund after 13 years
is ₱ 95 300, find the initial amount invested in the fund.
Activity 5
Credit Cards