1. Ms. Judith takes out a loan of ₱62,000 which needs to be repaid in 4 years.

The
interest rate is 4% percent per annum compounded monthly. What is the outstanding
balance after 2 years and 3 months?
A=62,000
t= 4
r=4% = 0.04
m= 12
-n= -(12)(t)= -(4)(12)=-48
i= r/m = 0.04/12= 0.0333333
Ani
R=
1−¿ ¿
62000(¿ 0.0333333)
R=
1−¿ ¿
206.6666667
R=
1−¿ ¿
206.6666667
R=
1−¿ ¿
206.6666667
R=
0.1476294462
R= 1399.901388
R= 1399.90
Outstanding Balance
R= 1399.90
9
t= 4 years - 2 years and 3 months = 4- =1.75
4
r=4% = 0.04
m= 12
-n= -(12)(1.75)= -(4)(12)= 21
i= r/m = 0.04/12= 0.0333333

A= R ¿]
 −21
1−( 1+0.0333333 )
A= 1399.90[ ]
0.0333333
A= 1399.90[20.24929069]
A=28346.98203
A= 28346.98
2. Mr. Tan loan an amount of 50,000 pesos the said loan will be amortized for 6.5%
quarterly payment for 3 years. Mr. Chua has a loan of 150,000 the payment shall be
made 3 times more than the quarterly payment of Mr. Tan. With the same interest rate
how many payments are needed to fully paid the said loan
Solution:
Mr. Tan quarterly payment
Given: A=50,000
t= 3 years
r=6.5% = 0.065
m=4
-n= -(m)(t)= -(3)(4)=-12
i= r/m = 6.5%/4= 0.01625
Ani
R=
1−¿ ¿
50,000(0.01625)
R=
1−¿ ¿
812.5
R=
1−¿ ¿
812.5
R=
0.1758746053
R= 4619.76872
Mr. Chua number of payments
Given: R= 3(4619.76872) = 13859.30616
r=6.5% = 0.065
m=4
i= r/m = 6.5%/4= 0.01625
 −A i
−log [ +1]
n= R
log (1+i)
−150,000(0.01625)
−log [ +1]
n= 13859.30616
log(1+0.01625)

−150,000(0.01625)
−log [ +1]
n= 13859.30616
log (1+0.01625)
−2437.5
−log [ +1]
n= 13859.30616
log (1.01625)
−log [−0.1759507782+1]
n=
log (1.01625)
−log [0.8240492218]
n=
log (1.01625)
−log [0.8240492218]
n=
log (1.01625)
0.08404684643
n=
0.007000558602
n= 12.00568261
n= 12

3. In order to provide ₱30000 for the replacement of a refrigerator at the end of 7 years, a
housewife will deposit equal amounts in a fund at the end of each month. How much will be the
money at its 4th year
Given: S=30,000
R= 8%=0.08
m=12
t=7
n= 12(7)=84
i= 0.08/12= 0.0066666667
 R=?
Si
R=
( 1+ i )n −1
30,000 (0.00666667)
R=
( 1+ 0.00666667 )84 −1
200
R=
( 1.00666667 )84−1
200
R=
0.0747220514
R= 267.5864321
R= 267.59

( 1+ i )n −1
S= R[ ]
I

(1+ 0.00666667 )12(4 )−1

S=267.5864321[ ]
0.00666667

(1.00666667 )48−1
S=267.5864321[ ]
0.0066667
S= 267.5864321[56.34991507]

S= 15,078.47272

S= 15,078.47

4. A man deposits ₱24000 in a savings and loan association, which pays 8% interest annually.
The fund is to provide equal payments. Find the annual payment. How much is the fund after 3
years?
Given:
A= 24,000
r=0.08
m=1
i= 0.08/1=0.08
t=3
n= tm= 3(1)=3
A= R ¿]
24,000(0.08)
R=
1−(1+ 0.08)−3
1920
R= −3
1−( 1.08 )
1920
R=
0.2 06167759
R= 9312.804337

R= 9312.80

( 1+ i )n −1
S= R[ ]
I

( 1+0.08 )3−1
S= 9312.804337 [ ]
0.08
S= 9312.804337[15.7464]

S= 143343.1422
S= 143343.14

5. What is the total interest of ₱20,000 that are paid at the end of every 3 months that
accumulated to ₱400,000 at 10% compound quarterly?

R= 20,000
S= 400,000
r=10%=0.10
m=4
i= 0.10/4 =0.025
Si
log[+ 1]
n= R
log(1+i)
(10000)
log[ +1]
n= 20,000
log(1+0.025)
 1
−log[ +1]
n= 2
log(1+0.025)
3
log [ ]
n= 2
log (1 .025)
0.1760912591
n=
0.01072386539
n=16.42050255
n=16

( 1+ i )n −1
S= R[ ]
I
This case every cents counts so we will use n=16.42050255
instead of 16. I= FV- Rn

I= ₱400,000- 20,000(16.42050255)

I=71589.949
Total Interest is approximately 71589.95