MODULE 10

MATHEMATICS OF FINANCE

Introduction

We all know that when we talk of money, we always have in mind finance as “the system that
includes the flow of money in our community.” It is the management of large amounts of money,
especially by governments or large companies. Adding up of money when it is deposited or invested in
banks or business enterprise, granting of credit are only some of the many processes that are involved in
mathematics of finance (Commission on Higher Education, 2016).

How much is the cost of college education? If you would like your son/daughter to enter a
university that does not charge tuition fees but all of the miscellaneous fees are charge to students as well
as the creation of projects and other requirements, social media devices are also needed in the study of
your son/daughter. What will you do as a parent? Knowing all of these things, we parents do sacrifices for
the sake of our sons and daughters. So, we resort to having part time jobs, save as early as, even before
our kids will enter school and even to the extent of borrowing money from banks or other lending
institution. Do you know how to borrow money from banks or other lending institutions? What is the role
of credit cards in the lives of Filipinos and other people from other countries? (Commission on Higher
Education, 2016)

Many investors purchase items in simple annuity when they have insufficient cash on hand to pay
the items. They prefer to pay the down payment to purchase items and the remaining balance will be paid
on an installment basis. On the other hand, if they have enough cash, they will use the remaining balance
as additional capital of their investment. Likewise, people are always told to diversify their investments
between stocks and bonds, but what’s the difference between the two types of investments? Stocks and
bonds represent two different ways for an individual to raise money to fund or expand its operations.
Stocks are simply sharing of individual companies. When a company issues stock, it is selling a piece of
itself in exchange for cash.

A person who buys a stock is buying an actual share of the company, which makes them a partial
owner—however small. Its why stock is also referred to as equity. On the other hand, Bonds represent
debt. When an individual or company issues a bond, it is issuing debt with the agreement to pay interest
for the use of the money. A government, corporation, or other individual that needs to raise cash will
borrow money in the public market and subsequently pay interest on that loan to investors. The concepts
about stocks and bonds will equip you with the knowledge, if in the future you want to be part owner of
big companies and even fund these companies and even the government.

In this module, the above concepts will be discussed in details at the fundamental level for your
understanding.

Learning Outcomes
At the end of this module, the students should be able to:
  Define simple and compound interest;
 Solve problems involving simple and compound interest;
 Define consumer loan and business loans;
 Describe the types of consumers’ loan;
 Cite the importance and the limitations of consumers’ loan;
 Solve problems on business and consumer loans (amortization and mortgage);
 Define a credit card and name some of the best credit cards in the Philippines;
 Differentiate simple from general annuities;
 Find the future and present values of simple and general annuities;
 Calculate the fair market value of a cash flow stream that includes annuity;
 Calculate the present value and period of a deferred annuity;
 Distinguish between stocks and bonds;
 Analyze the different market indices for stocks and bonds

LESSON 10.1:
Simple Interest (Nocon, R.C. ,2013)
 Simple interest is applied in loans, return of investment, and duration of an investment.

 It is charged only on the loan amount called principal or it is added money if you had savings or
investments in a bank. It is calculated by multiplying the principal by the rate of interest by the
number of payment periods in a year.
 Interest, I = Prt, I for interest, r for the rate of interest, and t for the amount of time in years the
money is borrowed or invested; length of time between the origin and maturity dates.
 Principal, P- amount of money borrowed or invested on the origin date

 Rate, r – annual rate, usually in percent, charged by the lender, or rate of increase of the
investment
 Maturity date-repayment date on which money borrowed or loan is to be completely repaid
 Time or term, t – amount of time in years the money is borrowed or invested; length of time
between the origin and maturity dates
 Interest, I – the amount paid or earned for the use of money
 Lender or creditor- person (or institution) who invests the money or makes the funds available
 Borrower or debtor – person or institution) who owes or makes the funds available
 Simple interest (Is) – interest that is computed on the principal and then added to it

Compound Interest (Nocon, R. C., 2013)

 Compound interest (Ic) – interest is computed on the principal and also on the accumulated past
interests
 Maturity value or future value (F) – amount after t years, that the lender receives from the
borrower on the maturity date
 Compound interest involves future value, present value as well as comparing investments.
 If the interest is calculated on the previous year’s amount instead of principal
except for the first year then it is called a compound interest
 Compound interest is calculated on the principal amount and also on the accumulated interest of
previous periods, and can be regarded as “interest on interest”

2
  Is the type of interest which results from the periodic addition of interest to the principal
 In compound interest the interest is compounded (or converted) over a period of time if allowed
to accumulate up to the end of the period then added to the original principal to become the new
principal for the next interest period.
 Compound interest is often applied to savings accounts, loans and credit cards.
 Compound amount is the amount at the end of the term.
 Compound amount (F), is the sum of the original principal and its compound interest.

Let’s look at the following problem and the illustration of its computation:
Example 1. Ma Ria won ₱100 000 from a gaming corporation and she plan to invest it for 5 years.
A cooperative group offers 2% simple interest rate per year. Rizal Commercial Banking Corporation
offers 2% compounded annually. Which of the two will you recommend to her being a best friend, and
why?

Table 1. Investment 1 Simple interest, with annual rate, r

Simple Interest (I) Amount after t years (Maturity
Time (t) Principal (P)
Solution Answer Value)
1 ₱100 000 (100 000) (0.02) (1) 2 000 100 000 + 2 000 = 102 000
2 ₱100 000 (100 000) (0.02) (2) 4 000 100 000 + 4 000 = 104 000
3 ₱100 000 (100 000) (0.02) (3) 6 000 100 000 + 6 000 = 106 000
4 ₱100 000 (100 000) (0.02) (4) 8 000 100 000 + 8 000 = 108 000
5 ₱100 000 (100 000) (0.02) (5) 10 000 100 000 + 10 000= 110 000
Commission on Higher Education with Philippine Normal University, (2016)

Table 2. Investment 2: Compound Interest with annual rate, r

Amount at the
Time (t)
start of year t
1 100 000
2 102 000
3 104 040
4 106 120.80
5 108 243.216
Commission on Higher Education with Philippine Normal University, (2016)
Compound Interest (I) Amount at the end of years t (Maturity
Solution Answer Value)
(100 000) (0.02) (1) 2 000 100 000 + 2 000 = 102 000
(102 000) (0.02) (1) 2 040 102 000 + 2 040 = 104 040
104 040 + 2 080.80 =
(104 040) (0.02) (1) 2 080.80
106 120.80
106 120.80 + 2 122.416 =
(106 120.80) (0.02) (1) 2 122.416
108 243.216
108 243.216 + 2 164.86 =
(108 243.216) (0.02) (1) 2 164.86
110 408.08

3
If you will be in the shoes of Ma Ria which investment will you choose? And why?
Possible answers: In investment 1, simple interest remains constant throughout the investment period,
while in investment 2, the interest from the previous year also earns interest. The interest grows every
year when compounded.
The process is quite long but with the use of the formula listed in the table below, each computation will
be simplified for a short period of time.
Table 3. Formula for Simple and Compound Interest
Simple interest, I = Prt Compound Interest
Amount, F = P (1 + i)n
where:
P is the original principal m = 1, if compounded annually
Amount, F = P + I, j is the rate of interest per year
F = P + Prt, m is the frequency of conversion m = 2 if compounded semi-annually
F = P (1 + rt) j
F = future value i = the interest rate per period m = 4, if compounded quarterly
m
t is the length of term in years
n = tm, the total number of conversion periodsm = 12, if compounded monthly
F
Principal, P = F - I Principal, P =
( 1+ⅈ )n
(Nocon, R. C., 2013)

Let’s analyze the following problems:

Example 1. What is the interest earned after 3 years if ₱15 000 is deposited in a savings account
and it earns 5% simple interest?
Solution: I = ? t = 3 years, P = 15 000 and r = 5% = 0.05 and so, using the formula, we
have Is = Prt I = (15 000) (0.05) (3) = ₱2 250
Example 2. What is the maturity value of ₱20 000 debt payable in 2 years at 13.75% simple
interest?
Solution: F = ? P= ₱20 000 t = 2 years r = 13.75% = 0.1375

Substituting the given to F = P (1 + rt) we have: F = 20 000[ 1+ ( 0.1375 ) ( 2 ) ]

F = ₱25 500
Is Is Is F
Derived Formulas: Is = Prt P = r= t= P=
rt Pt Pr 1+ rt
Example 3. A 5-year investment had a maturity value of ₱27,500. If the applied rate was 7.5%
simple interest, what was the original principal?
Solution: You are being asked to determine the principal P which corresponds to F = 27 500. With t = 5
and r = .075, we have
F 27 500
P= ¿ P ¿ ₱ 20 000
1+rt 1+ (.075 ) (5)

4
 Example 4. At what simple interest rate was ₱16 500 invested if it earned an interest of ₱1620
just after 1.5 years?
Solution: We are looking for the simple interest rate r. The problem gives us P = 16 500,
I1 = 1 620, and t = 1.5.
We now have
I1 1 620
r= ¿ = .0655 r = 6.55%
Pt (16 500 )( 1.5 )
Example 5: How long will it take a ₱30 000 debt to earn an interest of ₱4 500 if the simple
interest being charged is 9%?

Solution: We are looking for the length of the term t given P = 30 000, I = 4 500, and r = .09.
I1 4 500
t= ¿ t = 1.67 years
Pr ( 30000 )( .09 )
This is about 1 year and 8 months (0.67 year = (.67) (12)) months or approximately 8 months.
ALL ABOUT TIME
Keep in mind that the term t is expressed in years in the formulas. If the given term is in months,
days, or between two dates, you need to do some conversions.
no . of months
If t is given in months, then t= . For example, if the term is 39 months, then
12
39
t= =3.25 years.
12
no . of days no . of days
If t is given in days, then t= or t= . Unless otherwise specified, 360
360 365
days is used. The two possibilities result in two different methods of computing for the interest:
I
Ordinary interest o=¿ Pr ( no .of360days )¿
I
Exact interest e=¿ Pr ( no.365
of days
)¿
If the time given is between two dates, for example, March 21, 2011 and July 14, 2011, there are
two methods of computing for the time.
Actual time
This is obtained by counting each day, excluding the origin date, within the term. Add an extra
day to February if it falls on a leap year.
Approximate time

5
 This can be obtained by assuming that every month contains 30 days, and then counting each day
of the month excluding the origin date.
Actual time Approximate time Actual time
We now have 4 possible time factors: , , ,
360 360 365
Approximate time
. The first is known as the Banker’s Rule, and is the one used when the problem does
365
not specify which one to use.
If the dates coincide, we count by months. For example, the time between July 20, 2011 and
8
March 20, 2012 is 8 months. In this case, t= . However, a 3-month term starting on January 31 will
12
have a maturity date of April 30 because April has only 30 days.
Example 6: How much is the maturity value if ₱14 500 is placed in an account earning 6.25%
simple interest for 18 months?
Solution: It is F that you need to calculate. The given values are P(₱14 500), r(.0625) and
t ( 1812 ). Substituting in the formula for F, we have
F=P ( 1+ rt ) [
=14 500 1+ ( .0625 ) ( 1812 )] F= ₱15 589.38

Example 7: Find the present value of ₱100 000, which is an amount due in 200 days, if money’s
worth is 10.5% simple interest.
200
Solution: Given are F=100 000 , t= ∧r =.105
360
100 000
F ¿
P= 200 P = ₱94 488.19
1+rt 1+ (.105 ) ( )
360
Example 8: Find the actual and approximate time between July 14, 2011 and December 15,
2011.
Solution: We count the days per month, excluding the origin date.

Table 4. Actual and Approximate time in days

Month Actual time (in days) Approximate time (in days)
July 17* 16**
August 31 30
September 30 30
October 31 30
November 30 30
December 15 15
*31–14 **30–14 154 days 151 days
(Nocon, 2013)

6
Example 9: Find the maturity value of a 150 000-peso investment from May 24, 2011 to January 12,
2012 at 7.25% simple interest.
Solution: We are looking for F and we have P = 150 000 and r = .0725, from the table below,
you can see that the actual time is 233 days.
Table 5. Actual time in days
Month Actual time (in
days)
May 7*
June 30
July 31
August 31
September 30
October 31
November 30
December 31
January 12
*31–24 233 days
(Nocon, 2013)

Hence, F=P ( 1+ rt ) [
¿ 150 000 1+ ( .0725 ) ( 233
360 )]
F = ₱157 038.54

Example 10: Find the maturity value of a 50 000-peso debt at 8.15% from May 24, 2011 to
January 24, 2012.
Solution: If the dates coincide, we count by months. Since there are 8 months between the given
origin and maturity dates, we have

F=P ( 1+ rt ) [
¿ 50 000 1+ ( .0815 ) ( 128 )] F = ₱52 716.67

Sample problems: Compound Interest

Example 1. If 12% interest compounded quarterly (four times a year) is applied to some principal
j 0.12
for 7 years, then i = = =0.03 and n = tm = (7) (4) = 28 and the future value could be
m 4
calculated given the Principal amount.
Example 2. Find the compound amount at the end of 12 periods if the principal is ₱25 000 and
the interest per period is 10%.
Solution: F =? n = 12 P = 25 000 i = 0.10 F = P(1 + i)n
F = 25 00 (1 + .10)12 F = ₱78 460.71
Example 3. What is the maturity value of a 75 000-peso, three-year investment earning 5%
compounded monthly?
Solution: F=? P = 75 000 t=3 j = 0.05 m = 12 n = (3)(12) = 36

7
 n 36
j .05
F = P 1+( )m (
F = 75 000 1+
12 ) F = ₱87 110.42

Example 4. Harry needs to raise ₱80 000 in 15 months. What amount should he be able to set
aside now and invest in a fund earning 2% per month in order for him to reach his target amount?
Solution 80 000 is a future value so it is our F. 15 months is n and 2% is i, both for the
same reason that compounding is done monthly. P is given by

P = F ( 1+i )−n and so F = 80 000(1.02)-15 P = ₱59 441.18

Example 5. What present value, compounded quarterly at 8%, will amount to ₱65 893.71 in 4
years?
Solution: P =? m = 4, j = 0.08, F = 65 893.71, t = 4

P = F ( 1+i )−n P = 65 893.71 (1.02)-16 P = ₱48 000

LESSON 10.2: Consumer Loans and Credit Cards (Commission on Higher Education, 2016)
A. What is a consumer loan?
It is a loan that establishes consumer credit that is granted for personal use; usually unsecured and
based on the borrower’s integrity and ability to pay.
What are the types of consumer Loan?
Loans may be classified by:
 Purpose: Houses, holidays, motor vehicles higher studies
 Term: Short-term (<1 year), Medium-term (1 – 3 years) and Long-term (>3 years)
 Terms of repayment: Installment loans with regular Principal and Interest repayments, and non-
installment loans for emergency purposes repaid in one lump sum
 Security: Secured and unsecured loans

Examples of Loans:
 Auto loan
 Durable goods
 Education loans
 Personal loans
 Consolidation loans
Definition of Terms:
 Business Loan-money lent specifically for a business purpose. It may be used to start a
business or to have a business expansion
 Collateral-assets used to secure the loan. It may be real-estate or other investments.
 Consumer Loan-money lent to an individual for personal or family purpose
 Term of the Loan-time to pay the entire loan

Examples:

8
  Mr. Aragones decided to buy a house and lot for his family. The loan amounts to ₱2
500 000. He amortized the loan by paying ₱23 000 monthly for 20 years.
 Ms.Liwanag bought a car for ₱800 000. After deducting the down payment, her total
loan amounts to ₱750 000. She amortized the loan by paying ₱18 000 monthly for 5
years.
 Mr. Reolada applied for a salary loan from his social security insurance. He got a
₱20 000 loan. To pay for this loan, he has to pay ₱1 000 monthly for 2 years.
Definition of terms:
 Amortization Method – method of paying a loan (principal and interest) on installment
basis, usually of equal amounts at regular intervals.
 Mortgage – a loan, secured by a collateral, that the borrower is obliged to pay at specified
terms.
 Chattel Mortgage – a mortgage on a movable property.
 Collateral – assets used to secure the loan. It may be a real-estate or other investments
 Outstanding Balance – any remaining debt at a specified time

B. What is a credit card?

 A card that allows you to borrow money against a line of credit, otherwise known as the
card’s credit limit.
 You use the card to make basic transactions, which are reflected on your bill; the bank
pays the merchant, and later, when you receive the bill, you pay the bank.
 You will be charge interest on your purchases. To avoid paying interest, don’t carry a
balance over from month to month.
 Credit cards have high-interest rates, and your credit card balance and payment history
can affect your credit score.
 It’s important to pay on time and in full to avoid interest and late fees and maintain or
even improve your credit score.
 The bank decides your credit limit based on your credit history.
 Generally, you no longer have to sign for in-person credit card purchases.
 You will owe interest on your purchases if not paid off in 30 days.

Noy Finance VLog (2020, April 3)

Figure 1. Types of Credit Cards

LESSON 10.3. Annuity and Its Types (Calmorin , L.P., Deloso, M. P., & Malubay, H.A. ,2012)

For instance, an investor bought three freezers worth ₱25 000.00 each or a total of ₱75 000.00 for
his boneless bangus small enterprise industry. He paid the ₱15 000.00 down payment and the remaining
balance of ₱60 000.00 will be paid in 20 equal monthly payments or periodic payments on an installment

9
basis at 15% interest rate. He had ₱75 000.00 on hand, but he did not fully pay in cash because the
remaining balance of ₱60 000.00 will be used as additional capital of his investment.
If an annuity pay of the foregoing example is ₱3 450.00 every month for 20 months, the payment
interval is one month. The annuity term is 20 months. The first payment to the last payment is called
annuity term. The periodic payment is ₱3 450.00.
Meaning of Simple Annuity (Calmorin et al.,2012)
Annuity refers to pension, allowance, or income.
Simple annuity may be defined as periodic payments made at the end of the term. For example,
if a periodic payment is made monthly, at the end of the month is scheduled for annuity; if quarterly or 3
months, at the end of the third month; if biannually or 6 months, at the end of the 6 th month, and so on.
Kinds of Simple Annuity (Calmorin et al.,2012)
There are two kinds of simple annuity. These are (1) annuity certain and (2) annuity uncertain.
Annuity certain. This refers to the term of payment of annuity that is regular or fixed, for
instance, monthly, quarterly, biannually, or annually. The periodic payment interval is fixed or regular
that corresponds with the interest conversion period.
Annuity uncertain. This refers to no fixed annuity payment like pension, life insurance, and
many others.
Example 1. Suppose Mrs. Namit purchase a Cleopatra narra set worth ₱55 000. She paid ₱10
000as down payment and the remaining balance will be paid in 24 monthly equal payments or periodic
payments at 12% interest rate.
a) How much is the remaining balance?
b) How much are her monthly equal payments or periodic payments?
c) How much did she pay in 24 months as annuity term in all?
d) How much is the total cost of the Cleopatra narra sala set including down payment?

Remaining balance is obtained by subtracting the down payment from the selling price.
RB = SP – DP
*RB = Remaining Balance SP = Selling Price DP = Down Payment
a) To get the remaining balance simply subtract the down payment from the selling price. So
RB = 55 000 – 10 000 = ₱45 000

b) How much are her monthly equal payments?

*Monthly periodic payments are determined by multiplying the remaining balance by the interest
rate plus the remaining balance divided by the annuity term.
(RB × IR+ RB)
PPm =
AT

10
 PPm = Monthly Periodic Payments
RB = Remaining Balance
IR = Interest Rate
AT = Annuity Term
To find the monthly equal payments or periodic payments, the steps are listed as follows:
Step 1. Multiply the remaining balance (RB) by the interest rate (IR).
Step 2. Add the product to the remaining balance (RB).
Step 3. Divide the sum by the annuity term (AT) to get the periodic payments (PPm).
( RB x IR + RB )
P P m=
AT
To substitute to the formula, consider the computation below.
Given:
RB = ₱45 000.00
IR = 12%
AT = 24 months
Solution:
( RB x IR + RB )
b. PPm =
AT
( 45 000 x 0.12+ 45 000 ) ( 5 400+45 000 )
= =
24 24
( 50 400 )
=
24
PPm = ₱2 100.00
*The monthly equal payments or periodic payments amount to ₱2 100.00.

c. How much did she pay in 24 months as annuity term in all?

Finding Full Payment (Calmorin et al.,2012)
Full payment is obtained by multiplying the periodic payments by the annuity term.
FP = PPm x AT
Where:
FP = Full Payments
PPm = Monthly Equal Payments or Periodic Payments
AT = Annuity Term

11
 To get the full payments (FP) in 24 months as annuity term (AT), the steps are listed as follows:
To substitute to the formula, consider the computation below.
c. FP = PP x AT
= 2 100.00 x 24
FP= ₱50 400.00
*She paid ₱50 400.00 in 24 months.

d. How much is the total cost of the Cleopatra narra sala set including down payment?

Finding the Total Cost (Calmorin et al.,2012)

Total cost is determined by adding the full payment and down payment.
TC = FP + DP
Where:
TC = Total Cost
FP = Full Payments
DP = Down payment
To find the total cost of the Cleopatra narra sala set including down payment, just add the full
payments (FP) and down payment (DP).
TC = FP + DP
= 50 400.00 + 10 000.00
TC = ₱60 400.00
*The total cost of the Cleopatra narra sala set including down payment is ₱60 400.00.
Example 2
Suppose an investor bought three freezers for his boneless bangus small enterprise
industry worth
₱25 000.00 each or a total of ₱75 000.00. He paid the ₱15 000.00 down payment and the remaining
balance will be paid in 20 monthly equal payments of periodic payments on an installment basis at 15%
interest rate. (a) How much is the remaining balance? (b) How much are the periodic payments or
monthly equal payments? (c) How much did she pay in 20 months as annuity term in all?
a) How much is the remaining balance?
RB = SP — DP
Given:

12
 SP = ₱75 000.00
DP = ₱15 000.00
Solution:
RB = SP — DP
= 75 000.00 — 15 000.00
RB = ₱60 000.00
*The remaining balance is ₱60 000.00
b). How much are the periodic payments or monthly equal payments?
( RB x IR + RB )
P P m=
AT
Given:
RB = ₱60 000.00
IR = 15%
AT = 20 months
Solution:
( RB x IR + RB )
PPm =
AT
( 60 000.00 x 0.15+60 000.00 )
=
20
( 9 000.00+60 000.00 )
=
20
PPm = ₱3 450.00 a month
*The periodic payments or monthly equal payments amount to ₱3 450.00.
c) How much did she pay in 20 months as annuity term in all?
FP = PPm x AT
Given:
PPm = ₱3 450.00
AT = 20

Solution:
FP = PPm x AT
= 3 450.00 x 20

13
 FP = ₱69 000.00
*She paid ₱69 000.00 in 20 months as annuity term.
d) How much is the total cost of the three freezers including down payment?
TC = FP + DP FP = Future Payment DP = Down Payment
TC = 69 000 + 15 00 = ₱84 000* the total cost of the three freezers
If the payment for each for each period is fixed, and the compound interest is fixed over a
specified time, the payment is called an annuity payment. Accounts associated with streams of annuity
payments are called annuities.
If the payment is made at the end of each period, the annuity is called an ordinary annuity. If
payment is due at the beginning of each period, the annuity is called annuity due. Each payment in an
annuity is called periodic payment. The time between the successive payments dates of an annuity is
called the payment interval. The interval between the beginning of the first payment period and the end
of the last payment period is called the term of the annuity.
The following are examples of annuities:
o Rent payment
o Pension
o Monthly payment of car loan or mortgage

The flowchart below gives the different kinds of annuities. It shows the difference Between
Simple Annuity and General Annuity

Annuity

Annuity Annuity
Certain Uncertain

Simple General
Annuity Annuity

General
Ordinary Annuity Due
Deffered
Ordinary
General
Perpetuities
Annuity Annuity Annuity Due
Annuity 14
 Figure 2. Flow chart of the different kinds of Annuities
Oronce (2016)

Definition of Terms: Oronce, O.A. (2016)

Annuity – a fixed sum of money paid to someone at regular intervals, subject to a fixed
compound interest rate,
Annuity Certain – payable for a definite duration. Begins and ends on a definite or fixed date
(monthly payment of a car loan).
Annuity Uncertain – annuity payable for an indefinite duration (example: insurance); dependent
on some certain event.
Simple Annuity – interest conversion or compounding period is equal or the same as the
payment interval.
General Annuity – interest conversion or compounding period is unequal or not the same as the
payment interval.
Ordinary Annuity (Ao) – annuity in which the periodic payment is made at the end of each
payment interval.
Deferred Annuity – the periodic payment is not made at the beginning nor at the end of each
payment interval, but at some later date.
General Ordinary Annuity – first payment is made at the end of every payment interval.
General Annuity Due – first payment is made at the beginning of every payment interval.
Perpetuities – a series of periodic payments which are to run infinitely or forever.

Example 1. Determine if the given situations represent simple annuity or general annuity.
a. Payments are made at the end of each month for a loan that charges 1.75%
interest compounded quarterly.
b. A deposit of ₱9 500 was made at the end of every three months to an account that
earns 6.5% interest compounded quarterly.
Solution:
a. Since the payment interval at the end of the month is not equal to the
compounding interval, quarterly, the situation represents a general annuity.
b. Since the payment interval at the end of every three months (or quarterly) is equal
to the compounding interval, quarterly, the situation represents a simple annuity.
Example 2. Difference between Ordinary Annuity and Annuity Due
Determine whether the situation describes an ordinary annuity or an annuity due. Justify your
answer.
a. John’s monthly mortgage payment is ₱40 165.85 at the end of each month.
b. The rent for a condominium unit is ₱15 000 and due at the beginning of each
month.

15
 Solution:
a. Because the payments are made at the end of each month, John’s stream of
monthly mortgage payments is an ordinary annuity.
b. Since the payments come at the beginning of each month, the stream of rental
payments is an annuity due.

Example 3. Mr and Mrs Arellano are planning to have their own house and lot but have limited
budget. Suppose Mr and Mrs Arellano deposits ₱20 000 at the end of each year for 5 years in an
investment account that earns 10% per year compounded annually, what is the amount of this annuity?
This is a simple ordinary annuity problem because payments are made at the end of each
year.
The amount of annuity is the amount of down payment for the house and lot chosen by
the couple.
The annual interest rate r is 10% or 0.01. Because the interest is compounded annually, so
r 0.1
r = i = 0.1. (i = = =0.1 ¿ . The number of conversion period, n = 5.
k 1
Table 6. Total amount of annuity

Period Payment per Period Amount in 5 years

1 ₱20 000
2 ₱20 000
3 ₱20 000
4 ₱20 000
5 ₱20 000
Total
Oronce, O.A. (2016)
20 000 (1 + 0.1)4 or ₱29 282.00
20 000 (1 + 0.1)3 or ₱26 620.00
20 000 (1 + 0.1)2 or ₱24 200.00
20 000 (1 + 0.1)1 or ₱22 200.00
₱20 000.00
₱122 102.00

Note: The ₱20 000.00 deposited at the end of the first year will draw interest in 4 years, so it will
amount to 20 000 (1 + 0.1)4 or ₱29 282.00. The ₱20 000.00 deposited at the end of the second year will
draw interest for 3 years, so it will amount to 20 000 (1 + 0.1) 3 or
₱26 620.00, and so on.

Sample Problems involving General Annuity:

1. What is the present value of a general ordinary annuity of ₱ 2 000 payable annually for 9
years if the money is worth 5% compounded quarterly?
Solution
5 % .05
Given: P = 2 000 n = 9 ∙ 4=36 i= = = 0.0125 c=3 p = 12 b=
4 4
p 12
= =4
c 3

16
 1−( 1+i )−n 1−( 1+ 0.0125 )−36
PV =P
[ ( 1+i )b−1 ] PV =2 000
[ ( 1+0.0125 )4 −1] = ₱14 155.99

2. Allysie wants to save ₱100 000 for her first-year college. She deposits ₱3 500 at the
beginning of each month in an account that earns 4% per year compounded semi-annually.
Will Allysie have enough money saved at the end of two years?
Solution
Given: P= ₱3 500 n = 2*2 = 4 i = 4%/2 = 0.02 c = 6 p = 1 b = p/c = 1/6 FV = ?

1−( 1+i )−n

FV = P [ i ][ i
b
( 1+ i ) −1
+i
] FV = 3 500

1−( 1+ 0.02 )−4

[ 0.02 ][ 0.02
b
(1+ 0.02 ) −1
+ 0.02
]
FV = 3 500(4.12) (6.07) = ₱87 529.40
*Because ₱87, 529.40 is less than ₱100 000, Allysie will not have enough money at the
end of 2 years.

LESSON 10.4 Stocks and Bonds Commission on Higher Education with Philippine Normal
University, (2016)
Some corporations may raise money for their expansion by issuing stocks. Stocks are shares in
the ownership of the company. Owners may be considered as part owners of the company. There are two
types of stocks: common stock and preferred stock. Both will receive dividends or share of earnings of
the company. Dividends are paid first to preferred shareholders.
Stocks can be bought or sold at its current price called the market value. When a person buys
some shares, the person receives a certificate with the corporation name, owner name, number of shares
and per value per share.
Bonds are interest bearing security which promises to pay amount of money on a certain maturity
date as stated in the bond certificate. Unlike the stockholders, bondholders are lenders to the institution
which may be a government or private company. Some bond issuers are the national government,
government agencies, government-owned-and-controlled corporations, non-bank corporations, banks and
multilateral agencies.
Bondholders do not vote in the institution’s annual meeting but the first to claim in the
institution’s earnings. On the maturity date, the bondholders will receive the face amount of the bond.
Aside from the face amount due on the maturity date, the bondholders may receive coupons
(payments/interests), usually done semi-annually, depending on the coupon rate stated in the bond
certificate.
Table 7. Difference of Stocks from Bonds

17
 Stocks Bonds

A form of security financing or raising A form of debt financing, or raising money

money by allowing investors to be part by borrowing from investors.
owners of the company.

Stock prices vary every day. These prices Investors are guaranteed interest payments
are reported in various media (newspaper, and a return of their money at the maturity
TV, internet, etc). date.

Investing in stock involves some uncertainty.
Investors can earn if the stock prices
increase, but they can lose money if the stock
prices decrease or worse, if the company
goes bankrupt.
Uncertainty comes from the ability of the
bond issuer to pay the bondholders. Bonds
issued by the government pose less risk than
those by companies because the government
has guaranteed funding (taxes) from which it
can pay its loans.

Higher risk but with possibility of higher Lower risk but lower yield.
returns.

Can be appropriate if the investment is for
the long term (10 years or more). This can
allow investors to wait for stock prices to
increase if ever they go low.
Can be appropriate for retirees (because of
the guaranteed fixed income) or for those
who need the money soon (because they
cannot afford to take a chance at the stock
market)

Commission on Higher Education with Philippine Normal University, (2016)

Definition of terms in relation to stocks Commission on Higher Education with Philippine

Normal University, (2016
 Stocks — share in the ownership of a company
 Dividend — share in the company’s profit
 Dividend Per Share — ratio of the dividends to the number of shares
 Stock Market — a place where stocks can be bought or sold. The stock market
in the Philippines is governed by the Philippine Stock Exchange (PSE)
 Market Value — the current price of a stock at which it can be sold
 Stock Yield Ratio — ratio of the annual dividend per share and the market value
per share. Also called current stock yield.
 Par Value — the per share amount as stated on the company certificate. Unlike
market value, it is determined by the company and remains stable over time
Examples to illustrate given terms.
Example 1. A certain financial institution declared a ₱30 000 000 dividend for the
common stocks. If there are a total of 700 000 shares of common stock, how much is
the dividend per share?
Given: Total Dividend = ₱30 000 000
Total Shares = 700 000
Find: Dividend per Share

18
 Total Dividend
Dividend per Share =
Total Shares
30 000 000
=
700 000
= 42.86
Therefore, the dividend per share is ₱42.86.

Example 2. A certain corporation declared a 3% dividend on a stock with a par value of ₱500.
Mrs. Agkis owns 200 shares of stock with a par value of ₱500. How much is the dividend she
received?

Solution:

Given: Dividend Percentage = 3%

Par Value = ₱500
Number of Shares = 200
Find: Dividend

The dividend per share is ₱500 x 0.03 = ₱15. Since there are 300 shares, the total
dividend is ₱15/share x 200 shares = ₱3 000.

In summary,

Dividend = Dividend Percentage x Par Value x Number of Shares

= 0.03 (500) (200)
= 3 000

Thus, the dividend is ₱3 000.

Example 3. Corporations A, with a current market value of ₱52, gave a dividend of ₱8 per share
for its common stock. Corporation B, with a current market value of ₱95, gave
dividend of ₱12 per share. Use the stock yield ratio to measure how much dividend
shareholders are getting in relation to the amount invested.
Solution:
Corporation A: Corporation B:
Given: Dividend per Share = ₱8 Given: Dividend per Share
= ₱12
Market Value = ₱52 Market Value
= ₱95
Find: Stock Yield Ratio Find: Stock Yield Ratio

Dividend per Share

Stock Yield Ratio = Stock Yield Ratio =
Market Value
Dividend per Share
Market Value

19
 8 12
= =
52 95
= 0.1538 = 15.38% = 0.1263 =
12.63%

Corporation A has a higher stock yield ratio than Corporation B. Thus, each peso would earn you
more if you invest in Corporation A than in Corporation B. If all other things are equal, then it is wiser to
invest in Corporation A.
As Example 3 shows, the stock yield ratio can be used to compare two or more investments.
Definition of terms in relation to bonds
 Bond — interest-bearing security which promises to pay
(1) a stated amount of money on the maturity date, and
(2) regular interest payments called coupons.
 Coupon — periodic interest payment that the bondholder receives during the
time between purchase date and maturity date; usually received semi-annually
 Coupon Rate — the rate per coupon payment period; denoted by r
 Price of a Bond — the price of the bond at purchase time; denoted by P
 Par Value or Face Value — the amount payable on the maturity date; denoted
by F

If P = F, the bond is purchased at par.

If P < F, the bond is purchased at a discount.
If P > F, the bond is purchased at premium.

 Term (or Tenor) of a Bond — fixed period of time (in years) at which the bond
is redeemable as stated in the bond certificate; number of years from time of
purchase to maturity date
 Fair Price of a Bond — present value of all cash inflows to the bondholder

Examples to illustrate given terms.

Example 4. Determine the amount of the semi-annual coupon for a bond with a face
value of ₱300 000 that pays 10%, payable semi-annually for its coupons.

Given: Face Value F = ₱300 000

Coupon Rate r = 10%

Find: Amount of the Semi-annual Coupon

Annual coupon amount: 300 000(0.10) = 30 000

Semi-annual coupon amount: 30 000 ( 12 ) = 15 000

Thus, the amount of the semi-annual coupon is ₱15 000.

20
 The coupon rate is used only for computing the coupon amount, usually paid semi-annually. It
is not the rate at which money grows. Instead current market conditions are reflected by the market rate,
and is used to compute the present value of future payments.

Example 5. Suppose that a bond has a face value of ₱100 000 and its maturity date is 10 years from
now. The coupon rate is 5% payable semi-annually. Find the fair price of this bond,
assuming that the annual market rate is 4%.

Given: Face Value F = ₱100 000

Coupon Rate r = 5%
Time to Maturity = 10 years
Number of Periods = 2(10) = 20
Market Rate = 4%
Find: Fair Price of the Bond

Amount of semi-annual coupon: 100 000 ( 0.052 )=2500

The bondholder receives 20 payments of ₱2 500 each, and ₱100 000 at t = 10.

Present value of ₱100 000:

F 100 000
P= = =67 556.42
( 1+ j ) ( 1+0.04 )10
n

Present value of ₱100 000:

Convert 4% to equivalent semi-annual rate:
2
ⅈ ( 2)
( )
( 1+0.04 )1 = 1+
2
ⅈ( 2)
=0.019804
2

Thus,

1−( 1+ j )−n 1−( 1+0.019804 )−20

P=R = 2 500 = 40 956.01, and
j 0.019804
Price=67 556.42+ 40 956.01=108 512.43

Thus, a price of ₱108 512.14 is equivalent to all future payments, assuming an annual
market rate of 4%.

Assessment Task 10.1

Solve the following problems systematically and write your solution in a
separate short bond paper
[12]

21
 1) On June 3, 2019, Paula obtains a loan from a bank to be repaid on December 3, 2019.
If the bank charges 10.5% discount interest rate, what must be the face value of anon-
interest-bearing note that will have proceeds of ₱250 000?

2) What is the maturity value of a simple interest note drawn on November 2019 and
due on February 17, 2020.The notes earns 13.5% interest per year and has a face
value of 100 000?

3) A personal computer was bought on installments-₱5 000 down payment and a

balance of ₱22 000 in 2 years. What is the cash price if the interest is 20%
compounded quarterly?

4) Find the compound amount if ₱82 000 is invested at 11% compounded quarterly for
3 years and 5 months.

5) As debt payment, ₱315 000 is due in 4 years and 7 months. If the debtor wishes to
repay the debt now, and the lender applies 9% compounded semi-annually when
discounting debts, how much would he have to pay?

6) At what rate converted quarterly will ₱30 000 become ₱40 000 in 7 years?

Assessment Task 10.2

A. Identify whether the following is a consumer or business loan. Wriite CL for consumer loan
and BL for business loan in the lined space beside each question.[5]

1) Mr. Agustin plans to have a barbershop. He wants to borrow some money from the
bank in order for him to buy the equipment and furniture for the barbershop.
________
2) Mr. and Mrs. Craig want to borrow money from the bank to finance the college
education of their son. ________
3) Mr. Alonzo wants to have some improvements on their 10-year old house. He wants
to build a new room for their 13-year old daughter. He will borrow some money
from the bank to finance this plan. ________
4) Mr. Lim wants to have another branch for his cellphone repair shop. He decided to
apply for a loan that he can use to pay for the rentals of the new branch.
________
5) Trillas runs a trucking business. He wants to buy three more trucks for expansion of
his business. He applied for a loan in a bank. ________

B. Solve the following problems systematically and write your solution in a separate short bond
paper
1) A loan of ₱200 000 is to be repaid in full after 3 years. If the interest rate is 8% per
annum. How much should be paid after 3 years? [2]

2) For a purchase of a house and lot worth ₱3 800 000, the bank requires 20% down
payment, find the mortgaged amount. [3]

22
 Assessment Task 10.3
Solve completely and write your solution in a separate short bond paper.
A. Prof. Rementilla bought one laptop worth ₱20,000.00. She paid ₱3,000.00 as
down payment and the remaining balance will be paid on installment basis for 18
months of periodic payments at 12% interest rate.
1. How much is the remaining balance? [1]
2. How much are the monthly periodic payments? [1]
3. How much did she pay in 18 months as annuity term in all? [2]
4. How much is the total cost of the laptop including the down payment?

[2]
B. Prof. Pablo purchased a personal computer that cost ₱40,000.00. He paid
₱5,000.00 as down payment and the remaining balance will be paid on
installment basis for 2 years of quarterly periodic payments at 15% interest rate.
1. How much is the remaining balance? [1]
2. How much are the quarterly periodic payments? [1]
3. How much did he pay in 2 years as annuity term in all? [2]
4. How much is the total cost of the personal computer including the down
payment? [2]
C. Mr. Salomon paid ₱200,000 as down payment for a car. The remaining amount
is to be settled by paying ₱16,200 at the end of each month for 5 years. If
interest is 10.5% compounded monthly, what is the cash price of his car?
[3]

Assessment Task 10.4

A. A. Classify whether the following is a characteristic of stocks or bonds. Write S for
stocks and B for bonds in the lined space beside each statement.

1. A form of equity financing or raising money by allowing investors to be part

owners of the company.

2. A form of debt financing, or raising money by borrowing from investors.

B. Answer the following problems systematically. Write the solutions on your activity sheets.
3. A land developer declared a dividend of ₱10 000 000 for its common stock.
Suppose there are 600 000 shares of common stock, how much is the dividend
per share?

4. A certain company gave out ₱25 dividend per share for its common stock. The
market value of the stock is ₱92. Determine the stock yield ratio.
.
5. A food corporation declared a dividend of ₱25 000 000 for its common stock.
Suppose there are 180 000 shares of common stock, how much is the dividend
per share?

23
Summary
Simple and Compound Interest
 The amount of money borrowed is called the principal.
 The payment for the use of borrowed money is called interest.
 The maturity value is the sum of the principal and interest earned.
 The length of the transaction period is called the term.
 Simple interest is one wherein only the original principal earns interest for the duration
of the term. You compute for the simple interest using the formula I s = Prt.
no . of months
 If the term t of the transaction is given in months, then t = .
12
no . of days no . of days
 If t is given in days, then t = or t = . Unless otherwise specified,
360 365
360 days is used.
 If the time given is between two dates, for example March 21, 2019 and July 14, 2019,
you can use either actual or approximate time.
Actual time is obtained by counting each day, excluding the origin date, within
the term. Add an extra day to February if it falls on a leap year.
Approximate time can be obtained by assuming that every month contains 30
days, and then counting each day of the month excluding the origin date.
actual time approximate time
There are four possible time factors , ,
360 360
actual time approximate time
, . The first is known as the Banker’s Rule,
365 365
and is the one used as default.
 If the dates coincide, we count by months.
 Discount Interest is one that is charged in advance and is taken from the amount of the
loan applied for on the origin date. You compute for the discount interest using the
formula Id = Fdt
 The actual amount received by the borrower on the origin date is called the proceeds.
Denoted by P, it is the difference between the maturity value and the discount interest:
P = F - Id.
 Compound interest is a type of interest which results from the periodic addition of
simple interest to the principal.
 Compound amount is the amount at the end of the term (after several compounding). To
compute for the compound amount F, the formula is
F = P (1 + i)n .

CONSUMER LOANS AND CREDIT CARDS

Consumer loans are loans given to individuals for personal or family purpose while business
loans are loans for businesses. Consumer loans and business loans may require a collateral. The
collateral for both loans may be real estate or other investments. For business loans, they can use
equipment, fixtures or furniture as collateral. Consumer loans do not usually require a guarantor.
Business loans require the business owners to sign as guarantors. For consumer loans, the bank or the
lending institution may require a credit report, bank statements, and an income tax return, and if the
lendee is employed, a certificate of employment and employee pay slips. For business loans, the lendee
has to submit a credit report, income tax returns and company financial statement. The term of the

24
business loan is generally shorter than the consumer loan. The interest rate for the business loan is
usually higher than that for the consumer loan.
The Basics of a Mortgage
A mortgage is a business loan or consumer loan that is secured with a collateral. Collaterals are
assets that can secure a loan. If a borrower cannot pay the loan, the lender has a right to the collateral.
The most common collaterals are real estate property. For business loans, equipment, furniture and
vehicles may also be used as collaterals. Usually, the loan is secured by the property bought. For
example, if a house and lot is purchased, the purchased house and lot will be used as a mortgaged
property or a collateral. During the term of the loan, the mortgager, the borrower in a mortgage, still has
the right to possess and use the mortgaged property. In the event that the mortgager does not make
regular payments on the mortgage, the mortgagee or the lender in a mortgage can repossess the
mortgaged property. The most common type of mortgage is the fixed-rate mortgage wherein the interest
remains constant throughout the term of the loan.
A loan given to customer for the tuition fee is an example of a consumer loan; while the loan
given to the Exponent Corporation to pay for the business expansion is an example of a business loan.
A consumer loan is a loan given to customers for personal, family, or consumable items such as
a car and home. A business loan is debt that the company is required to repay according to the loan’s
terms and conditions.
Although computation for consumer loans and business loans are similar, they are different in
some aspects like collateral, guarantor, documentation, terms, and follow-up. The table below
summarizes these differences.

Table 8. Differences Between Business Loan and Consumer Loan

Business Loan Consumer Loan
1. Collateral real estate, equipment, furniture,
fixtures, inventory, or personal real estate
assets of the business owners
2. Guarantor the business owners have to sign
does not require guarantor
the loan as guarantors
3. Documentation requires credit report, tax, returns,
requires a credit report or tax
and the last three years of financial
returns
statements
4. Terms shorter and includes a higher
longer than the business loan
interest rate
5. Follow-up annual reviews of the relationship no further follow-up once the loan
are often conducted is released

Credit Card
 Line of credit you can access with your card
 Purchases usually require signature
 Pay interest if balance is not paid off in 30 days
 Use for hotel reservations and car rentals

25
 Most annuities involve relatively small periodic payment and longer period of time, they are
affordable for the average persons. If longer periods of time are involved, the procedure will be very
tedious; hence, formulas are needed to simplify computations of the future value of the annuity.
Amount (Future Value) of an Ordinary Annuity (annuity Immediate)

( 1+i )n−1
FV = P , P is the periodic payment, i interest rate per period, n is number of
i
conversion periods

P [ 1−( 1+ i )−n ] r
To find the present value, PV = P is periodic payment, i interest per period, i = n is
i m
the total number of conversion period, n = t × m
Present Value of General Annuity

1−( 1+i )−n

PV =P
[ b
( 1+i ) −1 ] r
where P = regular payment, i = rate per conversion period, i = , i
m
interest per period and m = no of compounding periods in a year, n no. of conversion period for the whole
p , the number of months∈a payment interval
term, b =
c , number of months∈a compounding period
Future Value of General Ordinary Annuity

( 1+i )n−1
FV = P
[ ( 1+i )b−1 ]
Present Value of General Annuity Due Future Value of General Annuity Due

1−( 1+i )−n 1−( 1+i )−n

PV = P [ i
i
b ][
( 1+ i ) −1
+i
] FV = P [ i ][
i
b
( 1+ i ) −1
+i
]
Regular Payment, P of General Annuity

( 1+ i )m −1 ( 1+ i )m −1
P = PV
[ 1−( 1+i )−n ] [
P = FV
( 1+i )−n−1 ]
Stocks and Bonds (Commission on Higher Education, 2016)
A stock is a security that gives the holder the ownership of a portion of a company and the right
to receive portion of the company’s income that might be distributed. The owner of stocks is called a
stockholder. Some companies give portion of company’s income to their stockholders. This portion is
called dividend.
Stocks are traded in a stock market. This is a place where companies are listed publicly for
investors to buy the shares of the company. The market index or simply, index is an indicator of the
performance of a portion of the stock market.

26
 The value of a share of a stock is the present value of the expected future dividends over time,
that is, P is the value per share of a stock, D 1, D2, D3, ...are the dividends paid at time 1, 2, 3,, and so on,
D1 D2 D3
and r is required rate of return, then P is given by P = 1
+ 2
+ 3
+… .
( 1+ r ) ( 1+ r ) (1+r )
A bond is a security that gives the owner the right to receive a predetermined amount in a certain
future date called maturity date. The predetermined amount that the owner of the bond will receive
maturity date is called the face value or par value of the bond. The price of the bond is the amount at
which the right to receive the face value at maturity date is bought.
Some bonds pay interests to the owner during the life of the bond. These interests are called
coupons and they are paid at regular time intervals. Bonds that do not provide coupons and that only pay
the face value at maturity date are called zero-coupon bonds or pure discount bonds.
The yield-to-maturity (YTM) of a bond is the rate r such that the present value of all the
coupons and the face value of the bond at r compounded per period is equal to the price of the bond.
The price P of a bond with face value V, coupon per period equal to C, maturity t years and YTM per
1−( 1+r )−mt
period r is calculated as P=C [ r ]
+
V
( 1+r )
mt
where m is the number of periods in a year.

All the above concepts will help you fully understand mathematics of finance.

References:

Alcala, J., Dimasuay,L., Palacio, J. (2016). Bonds. General Mathematics, Quezon City, C & E
Publishing , Inc. 139-143, 158 – 159.

Calmorin , L.P., Deloso, M. P., & Malubay, H.A. (2012). Simple Annuities. Mathematics of
Investment with Computer Application. Quezon City. Rex Printing, Company, Inc. 69-100.

Nocon, R. C. ( 2013). Essential Business Mathematics, Theory of Interest*Business Calculus,

Types of Interest. Quezon City, C& E Publishing, Inc. 2 – 49.
Oronce, O.A. (2016). Annuity. General Mathematics. Manila, Rex Book Store, Inc. 207-220.

Oronce, O.A. (2016). Stocks and Bonds. General Mathematics. Manila, Rex Book Store, Inc.
247-261

Comission on Higher Education with Philippine Normal University, (2016). Teaching Guide for
Senior High School, General Mathematics. Diliman, Quezon City. Creative Contribution-
NonCommercial-ShareAlike4.0, International License. 159-198, 199-236, 237-251, 253-266.

Retrieved from:
Lupogan, O. Simple Interest in Tagalog ( 2016, November 1) https://www.youtube.com/watch?
v=iVngCr4rCHE

Lupogan, O. (2016, November 2). Compound Interest in Tagalog,

https://www.youtube.com/watch?v=3b8UaUqiSCg&t=137s

27
Team Lyqa (2020, March 23). Simple Interest Problems. CSE and UPCAT Review.
https://www.youtube.com/watch?v=RIRZOCE_HGI

Team Lyqa (2020, April 6). Compound Interest Problems. CSE and UPCAT Review.
https://www.youtube.com/watch?v=qBaI1qGyC54

NoyFinance Vlog (2020,February 14). Top Five Credit Cartds for Beginners in the Phils. (2020).
https://www.youtube.com/watch?v=cJjd3Ob-FfE

Noy Finance VLog (2020, April 3). Credit Card Philippines Beginner Mistakes to Avoid-Credit
Card 101. https://www.youtube.com/watch?v=8gn2wzTmOUg

EconClips (2016, September 19) Investment Loan vs Consumer Loan/ What’s the Difference?
https://www.youtube.com/watch?v=7q5MbmyxShI

Orubia, A. (2019, October 2). Negosyo Small Business Loan for Philippine Business.
https://www.youtube.com/watch?v=VjOhCrBVaR8

Srauterkus (2015, Jume 8). Types of Consumer Loans.

https://www.youtube.com/watch?v=twbC1YH90bM

Money Coach (2016, July 16) Loans 101 (Loans Basics 1/3).
https://www.youtube.com/watch?v=fuiiJuB7tJs

Yadna Investment Academy (2016, Sept 6) What is Annuity? Types of Annuities/ Retirement
Planning Tips. https:// www.youtube.com/watch?v=LL-eWwY1gC4

Judson Salenger (2015, May 14). What is Annuity.

https:// www.youtube.com/watch?v=Rab6cWee1bc

World Glossary (2017, March 8). What is an annuity?

https:// www.youtube.com/watch?v=jQk13MA1wm4

28