MATHEMATICS

Lesson 1:
(Ka Mylyn)
1. If I was Ms. Jenelyn, I would choose the simple interest. As a borrower, I will have benefit if I
choose simple interest since it costs less to repay a debt that is not compounded over time.
The amount left to repay lowers with each payment I make, and the faster they pay off the
loan, the less interest they will have to pay back.
2. I would select compound interest if I were Ms. Joy. I will receive interest on both my original
investment and the amount I earned in interest the first year if I retain an investment for a year
after the first year. That implies that the longer I keep my money in the bank, the bigger my
interest payments will be, not just on the principal, but also on the additional interest I receive
each year.

(Ka Elvie)
1. If I was Ms. Jenelyn, I would prefer the simple interest over compounded interest since simple
interest charges less interest overall than because it just charges interest on the principal
amount. As a borrower, it will help me save money.
2. If I were Ms. Joy, I would select compound interest because it is extremely effective in terms of
investing. My balance will increase quicker and my profits will be bigger if I let my investment
to compound interest for a longer period of time. When it comes to compounding interest, time
is indeed money.
Lesson 2:
I.
Principal Rate Time Interest Final Amount
1200 1% 1 year 12 1212
100 5% 2 months 5/6 100 5/6
50,000 5% 2 years 5,000 55,000

II. Find the future value of P1000 at 7.5% after 3 years compounded quarterly.
Given: P = 1000
r = 7.5%
t = 2 years
c = 4 (quarterly)

r
A = P(1+ )ct
c
0.075 4(3)
A = 1000 (1 + )
4
A = 1249.72
Therefore, the future value is ₱1249.72.

Lesson 3:
1.
Given: P = P88,800
r = 10.25%
t = 18 months

I = Prt
I = 88,800 x .1025 x 1.5
I = 13, 653
Answer: She should pay an interest of P13,653.

2.
Given: P = P88,000
r = 0.5%
t = 6 years

A = P (1 + r) t
A = 88,000 (1 + 0.005)6
A = 90,673. 22

Ic = 90,673. 22 – 80,000
Ic = 2,673.22
Answer: Mark will gain P 2,673.22 interest.