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Module 10: Mathematics of Finance Lesson 1: Activity 1: FV PV (1+r)
Module 10: Mathematics of Finance Lesson 1: Activity 1: FV PV (1+r)
Module 10: Mathematics of Finance Lesson 1: Activity 1: FV PV (1+r)
Lesson 1: Activity 1
Jianne invested Php 50,000 in a friend’s business with a definite annual interest rate of
4%. How much is her money’s worth after 3 years? What if the interest rate of 4% is
compounded quarterly, how much will she get after 3 years?
Solution:
FV= P50,000 (1+0.04)3
= P50,000 (1.04)3
= P50,000 (1.12)
= P56,243.20
2. What if the interest rate of 4% is compounded quarterly, how much will she get after 3
years?
Given:
PV= P50,000
r= 4% or 0.04
m= 3
t= 3 years
Formula:
FV =PV 1+ ( mt )
mt
Solution:
( 0.044 )
= 50,000 1+ 4x3
0.04
= 50,000 (1+
4 )
12
= 50,000 (1 + 0.01)12
= 50,000 (1.01)12
= 50,000 (1.13)
= 56,341.25
Activity 2
JJ wants to have P1,000,000.00 after 5 years. How much money does he need to invest
now at 8% annual interest rate to reach his target?
1. How much money does he need to invest now at 8% annual interest rate to reach his
target?
Given:
FV= P1,000,000
r= 8% or 0.08
t= 5 years
Formula:
FV
PV =
¿¿
Solution:
P 1,000,000
=
¿¿
P 1,000,000
=
(1.469)
= P680,735.19
Activity 3
JL has P1,000,000.00. He plans to invest it and wants to grow his money to
P2,000,000.00 after 5 years.
At what interest rate should he invest his money to reach his goal amount?
Given:
PV= 1,000,000
FV= 2,000,000
t= 5 years
Formula:
FV =PV (1+r )t
Solution:
2,000,000 1,000,000(1+ r )5
= =
1,000,000 1,000,000
= 2 = (1+r)5
= 25 = (1+r)
= 1.148698355 – 1 = r
r = 0.148698355 or 14.87%
LESSON2A – PAPER AND PEN – ACTIVITY 1
A very good friend borrowed money from you. You lent her P10,000 with the following
conditions on charging one-time interest on the full amount:
1% if she returns the money after a month
3% if she returns it after 6 months
5% if she returns it after 1 year
How much interest can you collect if your good friend pays you
After 2 months? __________
After 2 years? _____________
I=PxRxT
Q1 - after 2 months
P= 10,000
T = 2MONTHS/12MONTHS = 0.1
R= 2% OR 0.02
=10,000 X .02X 0.1
I =P20
1. 29 ≡ 8 (mod 3)
Given:
a= 29
b= 8
mod n= 3
Formula:
Solution:
3/(29-8)
3/21
=7
Answer: 29 and 8 are congruent to mod 3 because they are both divisible
to 7.
2.) 15 ≡19(mod 8)
Given:
a= 15
b= 19
mod n = 8
Formula:
Solution:
8(15-19)
8(-4)
= -0.5
Answer:
15 and 19 are not congruent to mod 8 because they are not divisible in
the same number.