ACTIVITY : CASE ANALYSIS

Scenario:
Mr. Dela Cruz wants to invest his money to a certain company. He asks Mr. San Pedro, his
friend to help him in choosing a scheme that would give a good deal in investing his
money.
Mr. Dela Cruz has Php 200,000.00 to invest. His friend presented to him a table that would
show the future value of his money using two methods in computing for the inter-est. The
interest rate in both schemes is at 3.5%.

Year Scheme 1 Scheme 2

1 Php 207,000.00 Php 207,000.00
2 Php 214,000.00 Php 214,245.00
3 Php 221, 000.00 Php 221,743.58
4 Php 228,000.00 Php 229,504.60
5 Php 235,000.00 Php 237,537.26
Year Scheme 1 Scheme 2
6 Php 242,000.00 Php 245, 851.07
7 Php 249,000.00 Php 254,455.85
8 Php 256,000.00 Php 263, 361.81
9 Php 263,000.00 Php 272,579.47
10 Php 270,000.00 Php 282, 119.75
11 Php 277,000.00 Php 291, 993.94
12 Php 284,000.00 Php 302, 213.73
ANALYSIS
Answer the following questions.
1. If you were Mr. Dela Cruz, which scheme are you going to choose? Why?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________

2. How much is he going to earn if he will invest his money in each scheme for 12
years?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

3. How many years will it take for Mr. Dela Cruz to have a total money of Php 263,
000.00 in scheme 1?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________

4. How many years will it take for Mr. Dela Cruz to have a total money of almost Php
324,000 in scheme 2?
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
APPLICATION
Find the Simple Interest and Compound Interest. Show your
solution.

1. At what simple interest rate is Php 16,500 invested if it earns an interest of Php 1,620
just after 1.5 years?
2. What is the maturity value of a 75,000-peso, three-year investment earning 5%
interest compounded monthly?
3. Find the compound amount after 5 years and 9 months if the principal is Php 150,000
and the interest rate is 7% compounded annually.