GENERAL MATHEMATICS

PROBLEM SET NO. 2

NAME: SCORE:
SECTION: SATG SBTG SGTG SLTG SNTG

TEST I. Identify the following. Write your answer on the space provided. Strictly no erasure.
_____________________ 1. The amount earned for one year calculated by multiplying the principal by the interest rate
_____________________ 2. The amount of money originally invested, added to the total amount of interest earned on that
investment
_____________________ 3. An annuity in which interest compounding period is the same as the payment interval.
_____________________ 4. An interest that is based on a 360 – day year.
_____________________ 5. It computes for the ordinary interest using an exact time.
_____________________ 6. The present value of the installment payments plus the down payment if there is any.
_____________________ 7. A fixed sum of money paid to someone at regular intervals, subject to a fixed compound
interest rate.
_____________________ 8. An annuity payable for an indefinite duration.
_____________________ 9. An annuity in which the interest compounding period is not the same as the payment interval.
_____________________10. annuity in which the periodic payment is made at the beginning of each payment interval.
_____________________ 11. These are payments that you make on a recurring basis.
_____________________ 12. The amount of interest charged to the principal amount and the Interest earned on previous
time periods.
_____________________ 13. Process of compounding every instant
_____________________ 14. The amount of money borrowed or invested.
_____________________ 15. The amount of money originally borrowed plus the interest paid for borrowing.

TEST II. Solve the following problems:

1. Errol borrowed 50,000 from Shawn on June 5 and agreed to pay it fully, including the 5% simple interest rate, on
October 15 the same year. On August 30, Errol made a partial payment of 15,000. If Shawn decided to apply the
installment basis rule number 1, how much more should Errol pay on the agreed due date?

ANSWER:

2. Manny deposits 20,000 in an account earning 2.5% compounded quarterly for 3 years. How much must he
deposit in another account that pays 3.5% simple interest rate in order to yield the same interest for the same
period of time?

ANSWER:

3. Mrs. Cortez invested 300,000 at 2.5% simple interest rate for 42 months. How much must he invest at 3%
compounded continuously for 30 months to yield the same interest?

ANSWER:
4. Ellaine is saving 200 a month in an account earning 3% interest compounded monthly in order to accumulate
10,000. How long will it take her to reach her goal?

ANSWER:

5. A house and lot is offered for sale for 2,000,000. The owner is willing to accept 15,000 at the end of each month for
8 years with interest at 6% compounded monthly if a down payment is made. Determine the down payment.

ANSWER:

6. Pia plans to deposits a monthly equal amount in a bank so that at the end of 8 years, she will have 1,200,000. If the
bank pays 5% compounded monthly, how much interest will Pia earn?

ANSWER:

7. A student saves ₱1,000 pesos every 3 months in a bank that pays 2.5% compounded monthly. How much will be
the student’s savings after 4 years?

ANSWER:

8. Mr. Mercado paid 200,000 as down payment for a farm. The remaining amount is to be settled by paying 16,200 at
the end of each month for 5 years. If interest is 5% compounded semi-annually, what is the cash price of his farm?

ANSWER: