Principal Rate Time Interest Maturity Value

₱ 60 000 4% or 3.5 years Solution Solution

0.04 Is= Prt F = P + ls
Is= 60 000 ⋅ 0.04 ⋅ 3.5 F = 60 000 + 8 400

Is = ₱8 400 F = ₱68 400

Solution 2.2% or 5 years ₱345 Solution
Is 0.022 F = P + ls
P = --- F = 3 136.36 + 345
Rt
F = ₱3 481.36
345 345
P= =
0.022 (5) 0.11

P = ₱3 136.36

₱125 000 2% or Solution Solution ₱135 000

0.02 ls According to my own
t= --- understanding
Pr
To get F the formula is
10 000 F = P + Is
t=
125 000 (0.02) So for me to get the simple
interest Is. The formula will
10 000 be like this.
t= ----------- F – P = ls
2500
ls = F - P
t = 4years ls = 135 000 – 125 000
ls = ₱10 000

Present Value Nomi Interest Interest per Time Total Compound Interest Maturity Value
nal Compunded conversion in number of
rate period (i) years conversions
(i(m)) (n)
₱80 000 2.1% Quarterly Solution 4 Solution Solution Solution
n = t⋅m n
i = j/m Ic = F – P F = P(1+i)
i = 0.021/4 n=4⋅4 F = 86, 991.19 - 80 000 F = 80 000(1+0.00525)
16
n = 16
i = 0.00525 F = 86, 991.19
lc = 6, 991.19
Solution 2% Monthly Solution 6 Solution Solution ₱70 000
-n
P = F (1+i) i = j/m n = t⋅m Ic = 70 000 - 62 090.63
P = 70 000 i = 0.02/12 n = 6 ⋅ 12 Lc = 7 909.37
-72
(1+0.0016) _ n = 72
i = 0.0016
P = 62 090.63
Solve the ff. problems

1. Marinel received ₱ 1,450,500.00 as her inheritance from her parents. She deposited the said
amount in a time deposit with 1% simple interest rate per annum, how much money will be
accumulated after 7 years?

Given:
P = ₱ 1 450 500.00 r = 1% or 0.01 t = 7 years Is = ?

Solution:
Is = Prt
Is = 1 450 500.00 ⋅ 0.01 ⋅ 7
Is = ₱ 101 535

2. Jenny is planning to deposit ₱17,000.00 Quezon Metropolitan Bank is offering 7.5%

compounded semi-annually for 5 years, while Quezon Premier Bank is offering 7% compounded
monthly for 5 years. Which bank should she deposit her money? Justify your answer by
computing and comparing the maturity value for each bank.

GIVEN
Quezon Metropolitan Bank Quezon Premier Bank
P = ₱ 17,000.00 P = ₱ 17,000.00
j = 7.5% or 0.075 j = 7% or 0.07
m=2 m =12
t = 5 years t = 5 years
i = j/m or 0.075/2 = 0.0375 i = j/m or 0.07/12
n = t ⋅ m or 5 ⋅ 2 = 10 n = t ⋅ m or 5 ⋅ 12 = 60

SOLUTION
n
F = P(1+i) F = P(1+i)n
F = 17,000.00 (1+0.0375)10
F = 24 565.75 F=

F = 24 099.63

She should deposit her money Quezon Metropolitan Bank