CHAPTER 4

THE NATURE OF FINANCIAL MANAGEMENT

1.find the ordinary interest on ₱500,000 at 5 ½ % invested from April 1, 2017 to December 24, 2017
using actual and approximate time.
Give: ₱500,000 - Principal
51/2%-rate of interest
April1,2017-December 24,2017-TIME

APPROXIMATE TIME-263 days

ACTUAL TIME- 267 days

APPROXIMATE TIME
I=Pr(t / 360 )
=500,000(0.055)(263/360)
I =₱20,090.28

ACTUAL TIME
I=Pr(t/360)
=500,000(0.055)(267/360)
I=₱20,395.83

2.Find the ordinary interest and amount of ₱40,000 at 6% simple interest from June 1,2017 to March
30,2018 using approximate time.
₱ 40,000-PRINCIPAL
6% -RATE
JUNE 1,2017-MARCH 30,2018-TIME
APPROXIMATE TIME=299 DAYS
ORDINARY INTEREST
I =Pr(t/360)
=₱40,000(0.06)(299/360)
I = ₱1,993.33
AMOUNT
FV = ₱40,000(1+(0.06×0.83)
=₱40,000(1.0498)
FV =₱41,993.33

3.Find the simple interest on ₱ 20,000 borrowed on May 1 and will be paid after 6 months at 6.25%
interest using exact time.

₱20,000-PRINCIPAL
6.25%-RATE
6 months-TIME
EXACT TIME-365 DAYS
I=Prt
=₱20,000(0.0625)(0.5)
I=₱625

4.How much money should be invested in a financial institution that pays 3.25% simple interest in
the amount at the end of 5 years is ₱450,000.00?

3.25%-RATE
5 YEARS-TIME
₱450,000-AMOUNT
PRINCIPAL- ?
P=A/1+ rt
=₱450,000/1+(0.0325×5)
=₱450,000/1.1625
=₱387,096.77

5.What amount should be paid on July 5, 2017 on a loan of ₱100,000 made on January 25, 2018
with 4.7% simple interest?

July 5,2017-Jan. 25,2018-TIME

₱100,000-PRINCIPAL
4,7%-RATE
I=Pr(t/365)
=₱100,000(0.047)(204/365)
I =₱2,626.85
₱2.626.85+₱100,000=₱102,626.85

6.A businessman borrowed ₱2,500,000 for 5 years at 5 ½% simple interest.What amount must he
pay at the end of 5 years?
A = P(1 + rt)
=₱2,500,000(1+(0.055×5))
=₱2,500,000(1+0.275)
=₱2,500,000(1.275)
=₱3,187,500

7.An eligible Pag-IBIG member may borrow up to a maximum of 80% of his total accumulated
value(TAV)subject to the term and condition of the program.After a strong typhoon,Mang Liloy
applied for a calamity loan of ₱30,000.The current interest rate for the calamity loan is 5.95% per
annum.How much interest does Mang Liloy have to pay at the end of 1 year?
 ₱30,000-PRINCIPAL
5.95%-RATE
1 YEAR-TIME
I= ₱30,000(0.0595)(1)
I= ₱1,785
So,at the end of 1 year,the Calamity loan Mang Liloy has to return is ₱31,785.
8.What is the accumulated value of ₱50,000 for 5 years and 3 months at 6.5% simple interest?
₱50,000-PRINCIPAL
5YEARS & 3 MONTHS-TIME
6.5%-RATE
A=P(1+rt)
= ₱50,000(1+(0.065)(5)(3/12))
A= ₱54,062.5
9.How long will it take ₱200,000 to amount to half a million pesos if the interest rate is 8.25% per
annum?
F = P + Prt
500,000= 200,000+(200,000)(0.0825)t
500,000= 200,000+16,500t
500,000-200,000= 16,500t
300,000=16,500t
t=18.18

10.Mrs.Florentina Manayam wants to borrow ₱92,500 to buy a hand tractor that will have used in
her farm.A local bank approved her lpad payable in 3 years and 9 months.If the local bank charges
9.5% interest in advance,What is the amount of loan that Mrs. Manayam must apply for?
₱92,500-PRINCIPAL
9.5%-RATE OF INTEREST
3 YEARS AND 9 MONTHS-TIME
I= ₱92,500(0.095)(3.75)
I= ₱32,953.13

₱92,500- ₱32,953.13= ₱59,546.87

Therefore,The amount of loan that Mrs. Manayam must apply for is ₱59,546.87.
11.Find the compound amount and interest if ₱400,000 is invested at 8% compounded quarterly for
5 years ang 6 months?
₱400,000-PRINCIPAL
8%-RATE
5 YEARS & 6 MONTHS-TIME
COMPOUNDED QUARTERLY- 4

INTEREST
A=P(1+r/n)^(nt)
A=₱400,000(1+(0.08/4)^(22)
A=₱618,391.87

COMPOUND INTEREST
A=₱618,391.87-A=₱400,000=A=₱218,391.87

12.what sum of money is required to pay a loan of ₱20,000 on May 20,2018.If the loan was made on
October 5,2017 at a rate of 6 ¾ % compounded quarterly?
0.0675 / 4 -i
n=2.33
P=20,000
A=P(1+( r / n)^(-n))
=20,000(1+0.016875)^(-2.33)
A=₱19,235.19

13.Find the amount and interest on ₱ 50,000 invested for 10 years at 5.25% interest compounded
semi-annually.
₱50,000-PRINCIPAL
10 YEARS-TIME
5.25%-RATE
SEMI-ANNUALLY-2
AMOUNT
A=P(1+( r / n)^(nt))
A=₱50,000(1+(0.0525/2)^(20)
A=₱83,952.46
INTEREST
₱83,952.46 - ₱50,000
=₱33,952.46

14.On the birth of his first son Zachary,Brian deposited ₱100,000 in a trust fund that pays 3.75%
interest compounded monthly.How much money is in the trust fund when reaches his 18th birthday?

₱100,000-PRINCIPAL
3.75%-RATE
18 YEARS- TIME
COMPOUNDED MONTHLY-12
A=P(1+ r/n)^(nt)
= ₱100,000(1+0.0375/12)^(12×18)
= ₱196,196.69
15.What is the interest rate compounded quarterly if ₱2,500,000 is invested and the amount
becomes ₱ 3,210,000 after 10 years?
₱2,500,000-PRINCIPAL
₱3,210,000-AMOUNT
10 YEARS-TIME
r=n[A/P]^(1/nt)-1
=4[3,210,000/2,500,000]^(1/24)-1
=0.025 × 100
=2.5%

16.Determine the rate compounded semi-annually at which ₱10,000 will accumulate to ₱18,000in 5
years.

₱10,000-PRINCIPAL
₱18,000-AMOUNT
5 YEARS-TIME
r=n[A/P]^(1/nt)-1
=2[18,000/10,000]^(1/10)-1
=0.121 × 100
=12.1%

17.How much money must be paid on the due date of October 20, 2020,on a loan of ₱80,000 made
on December 5,2015 with interest of 44 ½ % compounded quarterly?
₱80,000-PRINCIPAL
44.5%-RATE
DEC. 5,2015-OCT. 20,2020- TIME
A=P(1+r/n)^(nt)
=₱80,000(1+0.445/4)^(4×4 10/12)
=₱133,202.86

18.Find the amount due on ₱ 200,000 in 4 years and 3 months at

a.4 ¼% compounded semi-annually
A=₱20,000(1+(0.0425/2)^(2×0.85)
A=₱20,727.86

b.5 ½% compounded quarterly

A=₱20,000(1+(0.055/)^(4×0.85)
A=₱20,950.53

c.6% compounded annually

A=₱20,000(1+(0.06/1)^(1×0.85)
A=₱21,015.51

d.7% simple interest

A=₱20,000(1+(0.07)(0.85))
A=₱21,190

19.If ₱25,000 is deposited in an account that earns interest compounded monthly becomes ₱
32,000 after 2 years,what is the interest rate?
₱25,000-PRINCIPAL
₱32,000-AMOUNT
2 YEARS-TIME
COMPOUNDED MONTHLY-12
r=n[A/P]^(1/nt)-1
r=12[32,000/25,000]^(1/24)-1
=0.124×100
=12.4%

20.A loan of ₱800,000 will be paid by a cash payment of ₱400,000 now, ₱120,000 at the end of 4
years ₱80,000 at the end of 6 years and the last payment at the end of 7 years.If money is worth
4% compounded annually,what is the value of the last payment?
₱800,000-PRINCIPAL
4%-RATE
7 YEARS-TIME
A=P(1+r/n)^(nt)
=₱800,000(1+0.04/1)^(7)
=₱105,274.54

21.Find the amount and present value of ₱15,000 payable every three month for 10 years.If money
is worth 5% compounded quarterly.
₱15,000-PRINCIPAL
10 YEARS-TIME
5%-RATE
A=P(1+r/n)^(nt)
A=₱15,000(1+0.125)^(-120)
A=₱3,378.22

22.Find the amount and present value of ₱40,000 payable every end of the month at 9%
compounded monthly for 5 years and 4 months.
₱40,000-PRINCIPAL
9%-RATE
5 YEARS AND 4 MONTHS-TIME
PRESENT VALUE
PV=₱40,000(1+0.0075)^(-64)
PV=₱24,795
AMOUNT
A=P(1+r/n)^(nt)
=₱40,000(1+0.09/12)^(64)
=₱64,527.30
23.A sala set is offered for sale for ₱50,000 down payment and ₱1,500 every 3 months for the
balance for 24 months.If interest is to be compounded at 4% compounded quarterly,what is the cash
prize equivalent of the sala set?

R=A (r/(1-(1+r)^-n
1,500=A(0.01/(1-(1+0.01)^-8)
A=₱11,477.52
₱11,477.52+₱50,000=₱61,477.52

24.A fund is to be created by investing ₱10,000 at the end of every month for 10 years.If money is
worth 8% compounded monthly,how much is the fund at the end of 10 years?

F=R(1+r)[(1+r)^n - 1÷r]
=₱10,000(1+(0.08/12))[(1+(0.08/12)^120)-1÷0.08/12]
=₱1,841,656.75

25.How much monthly deposit must be made for 8 years and 6 months in order to accumulate
₱125,000 at 7% compounded monthly?
8 YEARS AND 6 MONTHS-TIME
₱125,000-PRINCIPAL
7%-RATE
COMPOUNDED MONTHLY-12
F=R(1+r)[(1+r)^n - 1÷r]
₱125,000=R(1+0.07/12)[(1+0.07/12)^(102)-1 ÷(0.07/12)]
R=₱900.32

26.Nick wants to buy a secondhand tricycle worth ₱ 40,000.He can pay a down payment of ₱ 5,000
and the balance payable at the end of every month for 2 years.Find how much must Nick pay
monthly at 3 ½ % compounded monthly?
₱40,000-₱5,000=₱35,000-PRINCIPAL
3.5%-RATE
2 YEARS-TIME
MONTHLY-12
F=R(1+r)[(1+r)^n - 1÷r]
₱35,000=R(1+(0.035÷12)((1+0.035÷12)^(24)-1 ÷ (0.035÷12))
R=₱1,405.91
27.Jessa Mae wants to have ₱50,000 at the end of 4 years for her graduation expenses and
blowout party. She plans to deposit a certain amount at the end of each month to achieve this goal.If
her deposit pays 8% compounded monthly,what should be her monthly deposit?
₱50,000-PRINCIPAL
8%-RATE
4 YEARS-TIME
MONTHLY-12
F=R(1+r)[(1+r)^n - 1÷r]
₱50,000=R(1+(0.08+12))((1+(0.08÷12)^(48)- 1 ÷ (0.08÷12))
R=₱881.44

28.If you can save ₱875 at the end of each month,how long will it take you to accumulate ₱100,000
if you get a 6% compounded monthly,what should be her monthly deposit?
n=In[1+ FV(r)/R ÷ In(1+r)]
n=In[1+(100,000(0.08)÷875) ÷ In(1+0.08)
n=30.05

29.The present value of an annuity is ₱ 75,000 .Quarterly payments of ₱5,000 are invested at 4%
compounded quarterly.How many regular payments will be made?
n=In[1+ FV(r)/R ÷ In(1+r)]
n=In[1+(75,000(0.04)/5,000)÷ In(1+0.04)
n=11.98

30. Russel purchased a brand new car.He paid ₱250,000 down payment,and ₱16,500 payable
every 17th day of each month for 5 years.If money is worth 8% compounded monthly,what is the
equivalent cash price of a car?

=₱250,000[(1+0.08)^(5)-1]÷(1+0.08)^(5)(0.08)
=₱679,342.84

31.What amount must be set aside on Harveys 7th birthday which will provide 24 quarterly payments
of ₱5,000 for school expenses,if the first payment is to be made on his 18th birthday being a
freshman in college?assume that money is worth 6% compounded quarterly?
₱5,000-R
0.08-r
n=24
k=24
A=R(1+r)^(-k)[1-(1+r)^(-n)÷r]
A=₱5,000(1+(0.08/4)^(-24))[1(1+(0.08/4)^(-24)÷(0.08/4)]
=₱58,795.97

32. Find the value on May 30, 2019 of a sequence of P15,000 monthly payments, the first payment
to be made 5 years after, and the last payment on December 30, 2029, if money is worth 5 ¾ %
compounded monthly.
₱15,000-R
5.75%-r
n=60
k=60
A=R(1+r)^(-k)[1-(1+r)^(-n)÷r]
A=15,000(1+(0.0575/12)^(-60))[1-(1+(0.0575/12)^(-60)÷(0.0575/12)
=₱ 585,934.99

33. Find the periodic payment of each of the following:

Present Value No. of Payments Deferred Payments Rate

₱5,000 10 YEARS 4 YEARS R=4 ¼ ,m=12

₱10,000 12 YEARS 5.5 YEARS R=5%, m=1

₱12,500 5 ¾ YEARS 2 ½ YEARS R=6% , m=4

₱50,000 5 ½ YEARS 3 YEARS R=5 ¾ % , m=2

₱20,000 10 YEARS 4 YEARS R=7.5% , m=4

a.R=₱60.69
b.R=₱1,475.53
c.R=₱750.45
d.R=₱6,361.39
e.R=₱962.72

34. A debt of 350,000 is to be amortized by 6 equal semi-annual payments with interest at 6%

compounded semi-annually. Find the periodic payment and construct an amortization schedule.

PERIODIC PAYMENT
R= A[r/(1-(1+r)^(-n ) )]
R= ₱350,000[ 0.03÷1-(1+0.03)^-6
R=₱ 64,609.13

AMORTIZATION SCHEDULE:
PAYMENT BALANCE INTEREST PAID PERIODIC PAYMENT PRINCIPAL
REPAID

1 350,000 10,500 64,609.13 54,109.13

2 285,390.87 8,561.73 64,609.13 56,047.4

3 220,781.74 6,623.45 64,609.13 57,985.68

4 156,172.61 4,685.18 64,609.13 59,923.95

5 91,563.48 2,746.90 64,609.13 61,862.23

6 26,954.35 808.63 64,609.13 63,800.5

TOTAL 33,925.89 387,654.78 353,728.89

●
35.Monthly payments of P8,000 each are used to settle a loan for 8 months at 8% compounded
monthly. Find the present value of the loan and construct an amortization schedule.
PRESENT VALUE OF THE LOAN
A= ₱8,000
r=0.08÷12=0.006666666
n= 8/12 × 12 = 8
compounded monthly=12

R = A[r/(1-(1+r)^(-n ) )]
₱8,000=A [0.006666666÷1-(1+0.006666666)^-8
A= ₱62,121.90

AMORTIZATION SCHEDULE:

PAYMENT BALANCE INTEREST PAID PERIODIC PRINCIPAL

PAYMENT REPAID

1 62,121.90 414.15 8,000 7,585.85

2 54,121.90 360.81 8,000 7,639.19

3 46,121.90 307.48 8,000 7,692.52

4 38,121.90 254.15 8,000 7,745.85

5 30,121.90 200.81 8,000 7,799.19

6 22,121.90 147.48 8,000 7,852.52

7 14,121.90 94.15 8,000 7,905.85

8 6,121.90 40.81 8,000 7,959.19

TOTAL: 1,819.84 64,000 62,180.16

36.An obligation will be amortized by quarterly payments of ₱5,000 for 10 years.If interest is 6%
compounded quarterly,find:
a.the present value of the loan.
R = A[r/(1-(1+r)^(-n ) )]
5,000 = A [0.015÷1-(1+.015)-⁴⁰
A= ₱149,579.23

b.the outstanding principal after 7 years.

R = A[r/(1-(1+r)^(-n ) )]
₱5,000 = A [0.015÷1-(1+0.015)-¹²
A= ₱30,560.00

c.the remaining liability just after the 15th payment.

R = A[r/(1-(1+r)^(-n ) )]
₱5,000 = A [0.015÷1-(1+0.015)-²⁵
A = ₱16,087.82

d.how much of the 15th payment is the interest,and how much goes to the principal.
Interest of 15th payment
₱1,118.69 interest

Principal

₱ 3,881.31 principal

37. A living room set cost ₱68,000.The buyer pays ₱25,000 down payment and the balance will be
paid by equal monthly installments for 18 months with interest rate of 4% compounded monthly.Find
the monthly payments and construct an amortization schedule.

FIND THE MONTHLY PAYMENT

R = A[r/(1-(1+r)^(-n ) )]
R=₱68,000[(0.04÷12)/1-(1+(0.04÷12)^(-18)]
= ₱2,787.76

AMORTIZATION SCHEDULE:

PAYMENT BALANCE INTEREST PAID PERIODIC PAYMENT PRINCIPAL

REPAID

1 43,000 143.33 3,898.54 3,755.21

2 40,212.24 134.04 3,898.54 3,764.5

3 37,424.48 124.75 3,898.54 3,773.79

4 34,636.72 115.46 3,898.54 3,783.08

5 31,848.96 106.16 3,898.54 3,792.38

6 29,061.2 96.87 3,898.54 3,801.67

TOTAL 722.61 3,898.54 22,670.63

38.A couple purchased a house and lot and signed a mortgage contract with a bank for
P8,000,000to be paid in equal monthly payments over 25 years with interest at 5.25%. Find the
monthly payment and make out a partial amortization schedule showing the distribution of the first 6
payments as to interest and repayment of principal.
₱8,000,000-AMOUNT
5.25%-RATE
25 YEARS-TIME
n=300
R=A[r/1-(1+r)^(-n)]
R=8,000,000[0.004375/1-(1+0.004375)^(-300)
R=₱47,939.82

AMORTIZATION SCHEDULE

PAYMENT BALANCE INTEREST PAID PERIODIC PRINCIPAL

PAYMENT REPAID

1 8,000,000 35,000 47,939.82j 12,939.82

2 7,952,060.18 34,790.26 47,939.82 13,149.56

3 7,904,120.36 34,580.53 47,939.82 13,352.29

4 7,856,180.54 34,370.79 47,939.82 13,569.03

5 7,808,240.72 34,161.05 47,939.82 13,778.77

 6 7,760,300.9 33,951.95 47,939.82 13,988.5

TOTAL: 512,853.95 287,638.92 80,777.97

39.You need to put a new roof on a building in 10 years at an estimated cost of P20,000. How much
will you invest every month, so by earning interest at 5% compounded monthly, there will be P20,000
in the bank after 10 years?

R=Fr/(1+r)^(n)-1
R=20,000(0.05/12)/1+(0.05/12)^120)-1
R= ₱128.80

40. What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half
a million pesos at the end of 10 years to settle a loan? What is in the fland at the end of 5 years?
AT THE END OF 10 YEARS
R=Fr/(1+r)^(n)-1
R=500,000(0.05/1)/(1+(0.05/1)^10-1)
R= ₱39,852.29

AT THE END OF 5 YEARS

R=Fr/(1+r)^(n)-1
R=500,000(0.05/1)/(1+(0.05/1)^(5)-1)
R= ₱90,487.40

41. What quarterly deposits into a sinking fund eaming + compounded quarterly are necessary to
accumulate to P75,000 in 1 year and 9 months?

R=Fr/(1+r)^(n)-1
R=75,000(0.045/4)/(1+(0.045/4)^(7)-1)
R= ₱10,358.07

42. Construct a sinking fund table showing the growth of a fund of P8,000 at the rate of 3.5%
compounded quarterly. How much is the quarterly deposit?

R=Fr/(1+r)^(n)-1
R=8,000(0.035)/(1+0.035)^(4)-1
R= ₱1,973.94

SINKING FUND TABLE

PERIOD PAYMENT INTEREST AMORTIZATION BALANCE

1 1,973.94 0 1,973.94 1,973.94

2 1,973.94 17.27 1,991.21 3,965.15

3 1,973.94 34.69 2,008.63 3,982.57

4 1,973.94 54.27 2,028.26 4,002.15

5 1,973.94 72.02 2,045.96 4,019,90

6 1,973.94 89.92 2.063.86 4,037.80

43. When Xian was born, his father Brian deposited a sum of money for the college education of
Xian. Brian approximates that when Xian enrolls in college, the annual tuition fee will be about
P200,000. So for the duration of his 4-year college course, Brian needs about 800,000. How
much did he deposit semi-annually in a fund that earns interest at the rate of 5.5% compounded
semi-annually?

R=Fr/(1+r)^(n)-1
R=800,000(0.055/2)/(1+(0.055/2)^(8)-1)
R= ₱90,766.36

44.A fund of about P5 million is to be created by 40 quarterly payments at the rate of 4%

compounded quarterly. Find the quarterly deposit. Construct a table showing the growth of the
fund for the first 6 quarters.

R=Fr/(1+r)^(n)-1
R=5,000,000(0.04/4)÷(1+(0.04/4)^(40)-1)
R= ₱102,277.99

TABLE SHOWING THE GROWTH OF THE FUND FOR THE FIRST 6 QUARTERS.
PERIOD PAYMENT INTEREST AMORTIZATION BALANCE

1 102,277.99 0 102,277.99 102,277.99

2 102,277.99 1,022.78 103,300.77 205,578.76

3 102,277.99 1,033.01 103,311.01 205,588.99

4 102,277.99 1,033.11 103,311.1 205,589.09

5 102,277.99 1,033.111 103,311.101 205,589.091

6 102,277.99 1,033.11101 103,311.101 205,589.091

45. You purchased an appliance in a certain appliance center worth P55,000 using your credit card.
The credit card company charges a monthly interest rate of 4% and a minimum payment of 5%
Assuming you only pay the minimum amount at the end of the month, what is the remaining balance
after 6 payments?
1ST PAYMENT
0.05×55,000=2,750
INTEREST PAID-0.04×55,000=2,200
PRINCIPAL PAID-2,750-2,200=550
REMAINING BALANCE-55,000-550=54,450
2ND PAYMENT
0.05×54,450=2,722.50
INTEREST PAID-0.04×54,450=2,178
PRINCIPAL PAID-2,722.50-2,178=544.5
REMAINING BALANCE-54,450-544.5=53,905.5
3RD PAYMENT
0.05×53,905.5=2,695.28
INTEREST PAID-0.04×53,905.5=2,156.22
PRINCIPAL PAID-2,695.28-2,156.22=539.06
REMAINING BALANCE-53,905.5-539.06=53,366.45
4TH PAYMENT
0.05×53,366.45=2,668.32
INTEREST PAID-0.04×53,366.45=2,134.66
PRINCIPAL PAID-2,668.32-2,134.66=533.66
REMAINING BALANCE-53,366.45-533.66=52,832.78
5TH PAYMENT
0.05×52,832.78=2,641.64
INTEREST PAID-0.04×52,832.78=2,113.31
PRINCIPAL PAID-2,641.64-21,113.31=528.33
REMAINING BALANCE-52,832.78-528.33=52,304.45
6TH PAYMENT
0.05×52,304.45=2,615.22
INTEREST PAID-0.04×52,304.45=2,092.18
PRINCIPAL PAID-2,615.22-2,092.18=523.04
REMAINING BALANCE-52,304.45-523.04=51,781.41
46. If you purchased shoes and bags from a department store and used your credit card, the
purchase amounted to 12,000, and you decided to pay it in 18 months at 21% APR, compute the
finance charge.

R=AMOUNT BORROWED × INTEREST RATE/1-(1÷(1+í)^(n)

R=12,000×(0.21/365)/1-(1/(1+(0.21/365)^(18)
R=670.32
THE MONTHLY PAYMENT-670.32
THE TOTAL AMOUNT- 670.32(18)=12,065.76
THE FINANCE CHARGE-12,065.76-12,000=65.76
47. Here is a bill from a credit card company that a credit card user received: May 1: Unpaid
Balance-P42,500.75: May 10: Payment Received-P2,125.00, May 15: Purchases-P1,450, Compute
the total amount due at the end the billing period which is May 25.
UNPAID BALANCE-₱42,500.75 MAY 1
PAYMENT RECEIVE-₱2,125.00 MAY 5
PURCHASE-₱1,450 MAY 15
₱2,125.00-₱1,450=₱765->0.0765
I=Prt
=₱42,500.75(0.0765)
=₱3,251.31
₱42,500.75+₱3,251.31=₱45,752.06+₱765=₱46,517.06
48. A businessman invested P5,000,000 in a money market offered by a local bank. The money
market7 pays an interest of 45% APR. How much is the amount of his investment after 3 years?
1ST INTEREST-5,006,164.38
2ND INTEREST5,006,171.98
3RD INTEREST-5,006,171.99
4TH INTEREST-5,006,171.99
5TH INTEREST-5,006,171.99
6TH INTEREST5,006,171.99

THE AMOUNT OF HIS INVESTMENT IS ₱11,758,329.05

49.A dining set that costs P120,000 is being sold for a down payment of P20,000 and equal
installment for 30 months at 0.9% per month. How much is the monthly payment?

R=Fr/(1+r)^(n)-1
R=100,000(0.0009/12)/(1+(0.0009÷12)^(20)-1
R= ₱4,996.44
50 A credit card has a balance of P129,776.71 on March 1. The credit card holder paid P10,000 on
March 15. He made a purchase of P8,862.54 on March 16 and did not use the credit card until the
end of the month. The monthly interest rate is 3.50% on purchases and 3.50% on cash advances.
How much is the minimum amount to pay at the end of March?

the total amount to pay at the end of the March is P 133,981.48