11

GENERAL MATHEMATICS
MODULE

Quarter 2: Week 1- 8

DIVISION OF ANGELES CITY

1
 GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Simple Interest

Name _________________________________ Week 1

Section ________________________________ Date ______________

Definitions:
Lender or Creditor – person (or institution) who invests the money or makes the funds available
Borrower or Debtor – person (or institution) who owes the money or avails of the funds from the lender
Origin or Loan Date – date on which money is received by the borrower
Repayment Date or Maturity Date – date on which the 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 date
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
Interest (I) – amount paid or earned for the use of money
Simple Interest (Is) – interest that is computed on the principal and then added to it
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

Simple Interest Formula

The simple interest formula is: 𝑰 = 𝑷 ∙ 𝒓∙ 𝒕

From this, we can derive and get the formulas for P, r and t.
I

a. b. 𝑟 c. 𝑡
P r t

where I = interest, P = Principal, r = rate of interest

and t = time or term in years or fraction of a year

• To find the maturity value, simply add interest to the principal.

Maturity Value or (Amount or Balance)

𝐹= +𝐼 or 𝐹 = (𝐼 + rt)
F = Maturity Value/ Future Value P = Principal I = Interest

Example 1: Tessa borrowed Php 20 000.00 at 12% interest for 2 years. Find the interest (I) and the
maturity value (F).
Solutions:
Given: Php = 20000 r = 12% or 0.12 t = 2 years

a. Interest (I) b. Future Value

𝐼 = rt 𝐹 = +𝐼
= 20 000 𝑥 0.12 𝑥 2 = 20 000 + 4 800
𝐼 = Php 4 800.00 𝐹 = Php 24 800.00

2
Note: If we are not asked for the amount of interest, but only for the future value, we can make use of
formula:
𝐹 = (𝐼 + rt)
= 20,000 [1 + (12%)(2)]
= 20,000 [1 + (. 12)(2)]
= 20,000 [1 + 0.24]
= 20,000 [1 .24]
𝐹 = hp 24 800.00

Knowing the maturity value, it would be very easy to get the interest. We simply deduct the principal
(P) from the maturity value (F), thus:
𝐼 =𝐹−
24 800 − 20 000
𝐼 = hp 4 800.00

The annual interest rate is 2%

Example 4: If Php 10 000.00 is invested at 4.5 % simple interest, how long will it take to grow to Php 11
800.00?
Solution:
Given: P = 10 000
F = 11 800
r = 4.5 % 𝑜r 0.045

Solve for I a. Solve for t

𝐼=𝐹– t
= 11 800 – 10 000 800
𝐼 = Php 1 800.00 0 000 0 045
t =4
It will take 4 years to grow Php 10 000.00 to Php 11 800.00.

Example 5: Find (a) 90 days from September 8, 2014

Solution:
Using the days-in –month, we need to know how many days are there in each month. 90 days from
September 8, 2014.
September 9 – 30 22 (day 1 starts at September 9)
October 1- 31 31
November 1 - 30 30
December 1 - 7 7 (7 days are needed to have a total of 90)
TOTAL 90
If the time is given in number of days, it shall be converted to a fraction of a year, by dividing it by
the number of days in a year.
Exact interest (Ie) is used when the computations require the use of the exact number of days in a
year, 365 days or 366 days (1 day is added after the end of February in a leap year).
Ordinary interest (Io) or banker‟s interest is used when interest is computed on the basis of an
assumed 30-day period per month or 360 days in one year.

3
Example 7: An amount of Php 37 500.00 was borrowed at 8.5% simple interest in 120 days. Compute the
exact and ordinary interests.

Solution:
Given: P = 37 500
r = 8.5% or 0.085
t = 120 days

a. Exact Interest b. Ordinary Interest

Ie = Prt Io = Prt
= 37 500 x 0.085 x = 37 500 x 0.085 x
Ie = Php 1 047.95 Io = Php 1 062.50

Learning Competency with code:

• Illustrate simple and compound interests. (M11GM-lla-1)
• Distinguish between simple and compound interests. (M11GM-lla-2)
• Compute interest, maturity value, future value and present value in simple interest (M11GM-IIa-b-1)
• Solve problems involving simple interest (M11GM-IIb-2)

Activity 1: Answer each of the following. Write the answer with complete solutions on a sheet of paper.
1. Find:
a. 50 days from March 11, 2014
b. 150 days from December 7, 2016

Activity 2: Read and solve the following problems neatly and accurately. Show your complete
solutions on a sheet of paper.

1. On September 16, 2019, Choi Dae-Hyun borrowed Php 10 000.00 from a bank at 8.5% simple
interest to be used in his small sari-sari store.
If the loan was paid on May 6, 2020, how much interest did he pay? Find the time and the exact and
ordinary interest.
2. Miss Torres borrowed Php 65 450.00 from a savings and loan association that
charges 6.73% simple interest for 3 years. Find the:
a. amount of interest per annum;
b. total interest earned after 3 years;
c. final amount.

GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Compound Interest
Name _________________________________ Week 2
Section ________________________________ Date ______________

Background Information
In business, capital is very important. However, not all business owners always have enough capital
to sustain their business. They have to borrow money for the business. In the previous lesson, we
discussed simple interest where interest is charged on the principal alone for the entire length of the loan.
Simple interest loans are usually offered by banks to individuals and businessmen for short-term periods.

4
 When the interest due at the end of a certain period is added to the principal and that sum earns
interestfor the next period, the interest paid is called compound interest.

Example: Arthur borrows Php 40 000.00 at 6% simple interest for a period of 1 year. At the end of one year,
how much must he pay? How much must he pay at the end of the second year? How much must he pay at
the end of the third year?

The example activity can be answered as shown in the following table:(Table 3)

Table 3
Principal at
Amount
start of the Interest
(At the end of the year)
year
First Year Php 40 000.00 40 000 𝑥 0.06 𝑥 1 = 2 400.00 40 000 + 2 400 = 42 400.00
Second Year Php 42 400.00 42 400 𝑥 0.06 𝑥 1 = 2 544.00 42 400 + 2 544 = 44 944.00
Third Year Php 44 944.00 44 944 𝑥 0.06 𝑥 1 = 2 696.64 44 944 + 2 696.64 = 47 640.64

The amount (F) at the end of the year is equal to the sum of the principal (P) and the interest (Pr) for
that year. In symbols,
𝐹 = + I or
In general, when interest is compounded annually for n years, the amount (f) is
𝐹= (1 + r )t
Thus,

First Year: 𝐹 = 40 000 (1 + 0.06)1 = hp 42 400.00

Second Year: 𝐹 = 40 000 (1 + 0.06)2 = hp 44 944.00
Third year: 𝐹 = 40 000 (1 + 0.06)3 = hp 47 640.64
Note: Because interest is paid on the interest, compound interest is always greater than simple interest.
Example 1: Find the compound amount on deposit at the end of 1 year if Php 20 000.00 is deposited at 4%
compounded (a) annually and (b) semi-annually.
Solution:
a. Annually
Given: Solution:
= 20 000 𝐹= (1 + r)t
= 4% or 0.04 = 20 000 (1 + 0.04) (note: 1 can be omitted)
t=1 𝐹 = hp 20 800.00

b. Semi-annually
Principal Interest New Principal
First half year Php 20 000.00 20,000 + 4000 = 20 400.00
20 000 𝑥 0.04 𝑥 = 400.00

Second half Php 20 400.00 20,4000 + 408 = 20 808.00

20 400 𝑥 0.04 𝑥 =408.00
year

At the end of one year, the amount of deposit is Php 20 808.00

In the example 1b, the period (interval for compounding) is 6 months. There are two periods per year:
• the rate is per period,
• the number of periods in n years is 2n.

5
 Thus, if the interest is compounded semi-annually for n years the amount F is
𝐹 = P( )
In the same way, if interest is compounded quarterly, the rate per period is and there are 𝟒n periods
in n years. In symbols, the compound amount is
𝐹 = P( )

In general, the pattern can be extended for compounding K times per year to get
𝐹 = P( ) where is called the periodic rate

Example 2: Identify the interest rate per compounding period and the number of compounding periods for
each of the following investments.

a. 12 % compounded monthly for 4 years.

Given: r = 12% or 0.12, m = 12(months per year), t = 4
Solution:
Periodic rate (j) Number of compounding period (n)
= n = mt = 12(4)

=0.01 = 48
b. 10.2% compounded quarterly for 9 quarters
Given: r = 10.2% or 0.102, m= 4(quarter per year)
Solution:
Periodic rate (j) Number of compounding period (n) is 9
j= =

j = 0.026

where: P = principal or present value

F = Maturity/Future Value at the end of the term
r = interest rate
t = term/ time in years
j = = interest rate per conversion period
𝑛 = 𝑚t = total number of conversion periods

Learning Competency with code:

 Compute interest, maturity value, future value and present value in compound interest environment
(M11GM-IIa-b-1)
 Solve problems involving compound interest (M11GM-IIb-2)
Activity 1: Find the periodic rate if the rate is compounded (a) annually, (b) semi-annually, (c) quarterly, (d)
monthly, and (e) daily. Write your answer on a separate sheet of paper.
semi-
Given rate Annually quarterly monthly daily
annually
1.10%
2. 8%
3.12%
4.11%
5.15%
Note: Use the 30-day period for the daily basis.

6
Activity 2: Answer each of the following. Write the answer with complete solutions on a sheet of paper.
1. How much should Kaye set aside and invest in a fund earning 2% compounded quarterly if she
needs Php 75 000.00 in 15 months?
2. How much must Angel deposit in a bank that pays 0.75% compounded quarterly so that she will
have Php 200 000.00 after 15 years?
3. If Php 45 648.00 becomes Php 67 830.53 in 5 years, how much is the rate of interest
compounded quarterly?

GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Simple and General Annuities

Name _________________________________ Week 3

Section ________________________________ Date ______________

• Definition of Terms
Annuity– a sequence of equal payments made regularly (or periodically). Examples
are monthly rents and annual insurance premiums. The time between successive
payments is a payment interval. The time between the first payment interval and the
last payment is called the term of the annuity. The amount of each payment is
referred as the periodic payment.
Simple Annuity – payment interval is the same as the interest period.
Example: Installment payment for an appliance at the end of each month with interest
compounded monthly.
General Annuity – payment interval is not the same as the interest period.
Example: Installment payment for an appliance at the end of each month with interest
compounded annually.
Ordinary Annuity – (annuity immediate) periodic payment is made at the end of each
payment Interval.
Annuity Due – periodic payment made at the beginning of each payment interval.
Annuity Certain – payable for a definite duration
Example: Installment basis of paying a car, motorcycle, appliance, house and lot
Annuity Uncertain – payable for an indefinite duration Example: life
insurance
Term of an annuity, t – time between the first payment interval and last payment interval
Regular or Periodic payment, R – the amount of each payment
Amount (Future Value) of an annuity, F – sum of future values of all the payments to be
made during the entire of the annuity
Present value of an annuity, P – sum of all the payments to be made during the entire term
of the annuity

Example 1: Determine whether the given situation is simple annuity or general annuity.
1. Payments are made at the end of each month for a loan that charges 1.05% interest compounded
quarterly. Answer: General Annuity
Since the payment of interval at the end of the month is not equal to the compounding interval.

2. A deposit of Php 5 500.00 was made at the end of every three months to an account that
earns 5.6% interest compounded quarterly. Answer: Simple Annuity

7
 Since the payment of interval at the end of every three months (or quarterly) is equal to the
compounding interval.

A Simple Ordinary Annuity is a simple annuity in which the periodic payment is made at the
end of the payment interval. The following are the formulas in getting the future and present value:

Future Value Present Value

[ ] [ ]
𝐹 P

where: R = regular payment

j = interest rate per period
n = the number of payments
Example 2: A man will deposit Php 25 000.00 each year for the next 5 years in an ordinary annuity account
that pays 8% interest compounded annually. Find the amount of the annuity at the end of 5 years?

Given: R = 25 000 m =1
r = 8% or 0.08 n = tm = (5x1) = 5
t=5 j= = 0.08
Solution:
[ ]
𝐹
[ ]

[ ]

𝑭 = Php 146 665.02

General Ordinary Annuity is a general annuity in which the periodic payment is made at the end of the
payment interval. The following are the formulas in getting the future and present value:

Future Value Present Value

F * + P * +

where: 𝑏 =
p = number of months in a payment interval
c = number of months in a compounding period

Example 4: Php 25 000.00 will be invested in an account at the end of each year at 4% compounded semi-
annually. How much is the amount at the end of 15 years?

Given: R = 25 000 n = tm = 30
r = 4% or 0.04 p = 12 (yearly)
m=2 c = 6 (semi-annually)
t = 15 b=2
j = = 0.02

Solution: F * +

8
 25 000 * +

25 000 * +
F = Php 502 080.19

Learning Competency with code

 Illustrate simple and general annuities (M11GM-llc- 1)
 Distinguish between simple and general annuities (MG11GM-llc-2)
 Find the future value and present value of simple annuities (MG11GM- llc-d-1)

Activity 1: Solve the following ordinary annuities. Write your complete solutions on a sheet of
paper.
1. Find the present value of an ordinary annuity whose periodic payment of Php 18 500.00
is payable quarterly for 5 years at 6% compounded quarterly.
2. Find the amount of an ordinary annuity with a monthly annuity of Php 4 600.00 payable for
6 years and 6 months at 8% compounded monthly.

Activity 2: Solve the following problems. Write your complete solutions on a sheet of paper.
1. What is the present value of a general annuity if monthly payments of
Php 2 000.00 with interest rate of 12% is compounded quarterly for 5 years?

2. Teacher Kaye is saving Php 2 000.00 every month by depositing it in a bank that gives an
interest of 1% compounded quarterly. How much will she save in 5 years?

3. Ken borrowed an amount of money from Kat. He agrees to pay the principal plus interest by paying Php
38 973.76 each year for 3 years. How much money did he borrow if interest is 8% compounded
quarterly?

.
GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Fair Market Value and Deferred Annuity

Name _________________________________ Week 4

Section ________________________________ Date ______________

Fair Market Value (FMV). The fair market value or economic value of a cash flow (payment stream)
on a particular date refers to a single amount that is equivalent to the value of the payment stream at the
date. The particular date is called the focal date. A cash flow is a term that refers to payments received
(cash inflows) or payments or deposits made (cash outflows). Cash inflows can be represented by positive
numbers and cash outflows can be represented by negative numbers.

To calculate the fair market value of a cash flow stream of the problem stated above, we need to
compute the market value of the television set on installment terms, then compare it to the cash term.

Given: R = 2 500 n=6

r = 9% use j = 0.007207

[ ]
Solution: P
9
 [ ]

P Php 14 628.79

The present value of installment is Php 14 628.79, better to pay Php 13 499 if cash is available, or
wait until you can save enough cash than to pay by installment.

Example 2: Suppose Mr. Gutierrez wants to purchase a cellular phone. He decided to pay monthly
for 1 year starting at the end of the month. How much is the cost of a cellular phone if his monthly payment
is Php 2 500.00 and interest is 9% compounded monthly?

Solution:

Given: R = 2,500 t=1

(12)
i = 0.09 m= 12
Find: P =?
___________2500_____2500______.... ____R____
0 1 2 … n
The interest per period is j = = = 0.0075
The number of payments is n = mt = 12(1) = 12

The present value of the annuity is

( − )
00 5
2 500 ( − )
0 00 5
Php 28 587.28
Thus, the cost of the cellular phone now is Php 28 587.28

Example 3: What if Mr. Gutierrez is considering another cellular phone that has a different payment
scheme? In this scheme, he has to pay Php 2 500.00 for 1 year starting at the end of the fourth month. If
the interest rate is also 9% converted monthly, how much is the cash value of the cellular phone?

To answer this problem, notice that the two payment schemes have the same number of payments
n and the same interest rate per period j. Their main difference is the start of the payments. The first
scheme started at the end of the first interval which make it an ordinary annuity. The second scheme
started on a later date. This annuity is called deferred annuity. A deferred annuity is an annuity that does
not begin until a given time interval has passed. The Period of Deferral is time between the purchase of an
annuity and the start of the payments for the deferred annuity.

Note that for deferred annuities, the start of the payment is for a later date. In this example, Mr.
Gutierrez pay starting at the end of the 4th month to the end of the 15th month. Now, how do we get the
present value of this annuity?

Step 1: We first assume payments are also being made during the period of deferral: in other words, there
are no skipped payments.
From the previous lesson, the present value P ‟of this ordinary annuity is given by:
P‟ = R

= 2 500
P‟ = Php 35 342.49

10
Step 2: We now subtract the present value of the payments made during the period of deferral. Again,
based on the previous lesson, the present value P* of the 3 payments during the period of deferral is :
P* = R

= 2 500
P* = Php 7 388.89 342

Step 3: Since the payments in the period of deferral are artificial payments, we subtract the present
values of this payments. We obtain,
P = P‟ – P* = 35.49 – 7 388.89 = 27 953.60
Thus, the present value of the new cellular phone is Php 27 953.60
Comparing the present values of the two schemes, the present value in the second scheme is lower than
the present value of the first because the payments in the second scheme will be received on a later date.

Below is the formula for the Present Value of a Deferred Annuity:

P = Rk + n – Rk

=R -R

where: R = the regular payment,

j = the interest rate per period,
n = the number of payments, and
k = the number of conversion periods in the period of deferral
(or number of artificial payments)

Learning Competency with code

 Calculate the fair market value of a cash flow streams that includes annuity (M11GMIId-2)
 Calculate the present value and period of deferral of a deferred annuity (M11GM-IId-3)

Activity 1: Find the period of deferral in the following problems.

1. Monthly payments of Php 10 000.00 for 8 years that will start 13 months from now.
2. Semi-annual payments of Php 15 000.00 for 10 years that will start 6 years from now.
3. Payments of Php 5 000.00 every 3 months for 10 years that will start five years from now.
4. Quarterly payments of Php 600.00 for 20 years that will start 10 years from now.
5. Payments of Php 3 000.00 every 2 years for 12 years starting at the end of 4 years.

Activity 2: Solve the following problems.

1. Jennylyn converted her loan into light payments which gives her an option to pay Php
1 500.00 every month for 2 years. The first payment is due 3 months from now. How much is the amount
of loan if the interest rate is 9% converted monthly?
2. In order to save for her high school graduation, Lyka decided to save Php 200.00 at the end of every
month, starting the end of the second month. If the bank pays 0.025% compounded monthly, how much
will be her money at the end of 5 years? (use j=0.00002083, n=60).

GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Basic Concepts of Stocks and Bonds
Name _________________________________ Week 5
Section ________________________________ Date ______________

11
Here is the comparison of Stocks and Bonds.

STOCKS
A form of equity financing or raising money
by allowing investors to be part owners of
company.
Stock prices vary every day. These prices
are reported in various media.
Investing in stocks 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 gets bankrupt.
Higher risk but with possibility of higher
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.
BONDS
A form of debt financing, or raising money
by borrowing from investors.
Investors are guaranteed interest payments
and a return of their money at maturity date.
Uncertainty comes from the ability of the
bond issuer to pay the bond holders. 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.
Lower risk but lower yield.
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).

The following are terms that are connected to Stocks:

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.
Market Value- the current price of a stock at which it can be sold
Stock Yield Ratio- ratio of the annual dividend 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.

Formula: Formula:
𝑣 𝑛 𝑝 𝑟𝑠 𝑟 Dividend
𝑜𝑡 𝑣 𝑛
= Dividend percentage x Par value x Number of Shares
𝑜𝑡 𝑟 𝑠

Example 1: A certain financial institution declared a Php 30 000 000.00 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 = 30 000 000.00 Solution: 𝑣 𝑛 𝑝 𝑟𝑠 𝑟

Total Shares= 700 000
Find: Dividend per share 𝑣 𝑛 𝑝 𝑟𝑠 𝑟 Php 42.86

Therefore, the dividend per share is Php 42.86

12
Example : Corporation A, with a current market value of Php 52.00, gave a dividend of Php 8.00 per share
for its common stock. Corporation B, with a current market value of Php 95.00, gave a dividend of
Php 12.00 per share. Use the stock yield ratio to measure how much dividends shareholders are getting in
relation to the amount invested.
Solutions:
Corporation A Corporation B
Given: Dividend per share = Php 8.00 Given: Dividend per share = Php 12.00
Market Value = Php 52.00 Market Value = Php 95.00

Find: Stock Yield Ratio Find: Stock Yield Ratio

Solution: Solution:
𝑣 𝑛 𝑝 𝑟𝑠 𝑟 𝑣 𝑛 𝑝 𝑟𝑠 𝑟
𝑡𝑜 𝑡𝑜 𝑡𝑜 𝑡𝑜
𝑚 𝑟 𝑡𝑣 𝑢 𝑚 𝑟 𝑡𝑣 𝑢

𝑡𝑜 𝑡𝑜 0.1583 or 15.83% 𝑡𝑜 𝑡𝑜 0.1263 or 12.63%

The following are terms that are connected to Bonds:

Bond - interest-bearing security which promises to pay a stated amount of money on the maturity date,
and 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
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

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

Given: Face Value F = Php 300 000.00

Coupon Rate r = 10%
Find: Amount of Semi-annual Coupon
Solution:
Annual Coupon Amount: 300 000 (0.10) = Php 30 000.00
Semi-Annual Coupon Amount: 30 000 ( ) = Php 15 000.00
Thus, the amount of the semi-annual coupon is Php 15 000.00

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.

A stock market index is a measure of a portion of the stock market.

13
 Stock Table

52-WK HI/LO – highest/ lowest selling price of the stock in the past 52 weeks
HI/LO – highest/ lowest selling price of the stock in the last trading day
STOCK – three-letter symbol the company is using for trading
DIV – dividend per share last year
VOL (100s) – number of shares (in hundreds) traded in the last trading day. In this case, stock AAA
sold 2,050 shares of 100 which is equal to 20,500 shares.
CLOSE- closing price on the last trading day.
NETCHG- net change between the two last trading days. In the case of AAA, the net change is
0.10. The closing price the day before the last trading day is Php 57.29 – P0.10 = Php 57.19.

Learning Competency with code:

• Illustrate stocks and bonds. (M11GM-IIe-1)

• Distinguish between stocks and bonds. (M11GM-IIe-2)
• Describe the different markets for stocks and bonds. (M11GM-IIe-3)
• Analyze the different market indices for stocks and bonds. (M11GM-IIe-4)

Activity 1: Tell whether the following is a characteristic of stocks or bonds. Write your answer on a
separate sheet of paper.
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. __________
3. Investors are guaranteed interest payments and a return of their money at the maturity date.
_____________
4. Investors can earn if the security prices increase, but they can lose money if the security prices
decrease or worse, if the company goes bankrupt. ________
5. It can be appropriate for retirees (because of the guaranteed fixed income) or for those who need
the money soon. _______________.

Activity 2: Solve the following problems completely.

1. A food corporation declared a dividend of Php 25 000 000.00 for its common stock. Suppose there
are 180 000 shares of common stock, how much is the dividend per share?

2. A certain financial institution declared Php 57.00 dividend per share for its common stock. The
market value of the stock is Php198.00. Determine the stock yield ratio.

3. A certain land developer declared a dividend of Php 28.00 per share for the common stock. If the
common stock closes at Php 99.00, how large is the stock yield ratio on this investment?

Activity 3: Consider the table below and answer the following questions for stock CCC:

14
 1. What was the lowest price of the stock for the last 52 weeks?

2. What was the dividend per share last year?

3. What was the annual percentage yield last year?

4. What was the closing price in the last trading day?

5. What was the closing price the day before the last trading day?

GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Business and Consumer Loans
Name _________________________________ Week 6
Section ________________________________ Date ______________

The following are the terminologies that are used in this module:
Business Loan – money lent specifically for a business purpose. It may be used to start a business or to
have a business expansion.

Consumer Loan – money lent to an individual for personal or family purpose.

Collateral – assets used to secure the loan. It may be real-state or other investments.

Term of the Loan – time to pay the entire loan.

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-state or other investment. Outstanding
Balance – any remaining debt at a specified time.
Let‟s consider the following problems (1-5) and identify whether they are consumer or
business loans.

Example 1: Mr. Arcilla 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.
Answer: Business Loan

Example 2: Mr. and Mrs. Viloria wants to borrow money from the bank to finance the college education of
their son. Answer: Consumer Loan

Example 3: Mr. Austria 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.
Answer: Consumer Loan

Example 4: Mr. Diaz owns a siomai food cart business. He wants to put another food cart on a new mall in
the other city. He decided to have a loan to establish the new business.
Answer: Business Loan

Example 5: Irene has a computer shop. She owns 6 computers. She decided to borrow some money from
the bank to buy 10 more computers. Answer: Business Loan

Example 6: Mr. Sula borrowed Php 1 000 000.00 for the expansion of his business. The effective rate of
interest is 7%. The loan is to be repaid in full after one year. How much is
to be paid after one year?
15
 Given: P = 1 000 000 = = 0.07 Find: F r
=0.07 n = mt = (1)(0.07) = 1
m=1

Solution: F = (1 + )n
= 1 000 000(1 + 0.07)
F = Php 1 070 000.00

Therefore, an amount of Php 1 070 000.00 must be paid after one year.

• Outstanding Balance

Recall that the outstanding balance of a loan is the amount of the loan at this time. One method to compute
the outstanding balance is to get the present value of all remaining payments. This method is called the
prospective method. We use the symbol 𝐵 to denote the outstanding balance after k payments.
−
𝐵 [ ]

where: 𝐵 = outstanding balance after k payments

R = Periodic Payment
j = rate of interest per conversion period
n – k = number of unpaid periodic payments
Example 9: Mrs. Villavicencio borrowed some money from a bank that offers an interest rate of 12%
compounded monthly. Her monthly amortization for 5 years is Php 11 122.22. How much is the
outstanding balance after the 12th payment?

Given: = 11 122.22 k = 12 (number of payments paid)

r = 0.12 Remaining Payments = n - k
m = 12 = 60 - 12
= = = 0.01 = 48
n = 𝑚𝑡 = 12(5) = 60
Find: present value of 48 future payments (since there are 48 payments left)

Solution:
−
𝐵 [ ]

− 00
22 22 * +
00
𝐵 Php 422 354.73

The outstanding balance after the 12th payment is Php 422 354.73.

Learning Competency with Code

• Illustrate business and consumer loans (M11GM-11f-1).
• Distinguish between business and consumer loans (M11GM-11f-2).
• Solve problems involving business and consumer loans (amortization, mortgage) (M11GM-11f-3).

Activity 1: Identify the following whether the following illustrates a business loan or a consumer
loan.
1. 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.

16
 2. Mr. Trillas runs a trucking business. He wants to buy three more trucks for expansion of his
business. He decided for a loan in a bank.
3. Mrs. Alonzo decided to take her family for a vacation. To cover the expenses, she decided to apply
for a loan.
4. Glenn decided to purchase a condominium unit near his workplace. He got a loan worth Php 2 000
000.00

5. Mr. Galang renovated his house for Php 80 000.00 This was made possible because of an
approval loan worth Php 75 000.00

Activity 2: Solve the following problems completely.

1. A loan of Php 300 000.00 is to be repaid in full after 2 years. If the interest rate is 9% per annum.
How much should be paid after 2 years?
2. If a car loan of Php 790 000.00 requires a 20% down payment. How much is the mortgage?
3. A person borrowed Php 1 000 000.00 for the purchase of a car. If his monthly payment is Php 25
000.00 on an 8-year mortgage, find the total amount of interest.
4. A consumer loan worth Php 80 000.00 is to be repaid in 12 months at 8% convertible monthly.
How much is the monthly payment?

Activity 3: Complete the following table and be guided by the question below.
A loan amounting to Php 10 000.00 is to be paid annually for 4 years with an interest rate of 5%
compounded annually. The annual amortization is Php 2 820.11.
Regular Interest Principal
Outstanding
Period Payment R Component of Component of
Balance
Payment Payment
0 A
1 B 500 2 320.11 7 679.56
2 2 820.11 F G 5 243.54
3 2 820.11 262.18 2 557.93 H
4 2 820.11 134.29 2 685.82 I
TOTALS C D E

A. How much is the amount of the loan? (outstanding balance at period 0)

B. How much is the first annual payment?
C. How much is the total amount of payment?
D. How much is the total interest paid?
E. How much is the total payments for the principal?
F. For the second payment, how much goes to pay the interest?
G. For the second payment, How much goes to pay the principal?
H. How much is the outstanding balance after the 3rd payment?
I. How much should be the entry in the outstanding balance after the last payment?

17
 GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Propositions

Name _________________________________ Week 7

Section ________________________________ Date ______________

A proposition is a declarative sentence that is either true or false but cannot be both. If a proposition is
true, then its truth value is true, which is denoted by T; otherwise, its truth value is false, which is denoted
by F. Propositions are usually denoted by small letters.
For example, the proposition p: Everyone should study logic may be read as “p is the
proposition “Everyone should study logic.”
Examples: Determine each sentence as proposition or not. If it is a proposition, give its truth value
p: Mindanao is an island in the Philippines.
Answers:
p. This is a declarative sentence, and Mindanao is an island in the Philippines. Hence p is a
proposition.
Definition: A proposition is said to be simple if it has only one subject and one predicate. It cannot be
broken down any further into other component propositions.
Examples:
1. Charlie is neat.
2. DepEd Division off Angeles City is located in Barangay Pulungbulu.
3. 2 + 2 = 4
A compound proposition is a proposition formed from simpler proposition using logical
connectors or some combination of logical connectors
Type of
Compound Component
Connector Example
Proposition Propositions

It is not the case that

Negation not is a rational number.
is a rational number.

Plato and Aristotle are Plato is a philosopher.

Conjunction and
philosophers Aristotle is a philosopher.

Either I pass Logic or I I pass Logic.

Disjunction either…or
do not. I do not pass Logic.
If one person reuses A person reuses plastic
plastic containers, then containers.
Conditional if…then he or she helps lessen He/she helps lessen
waste. waste.

I will go to the party if I will go to the party.

If and only
Biconditional and only if Juan will go Juan will go to the party
if
to the party.

Definition: The negation of a proposition is denoted by ~p (read as not p). It is formed by the insertion of
the word “not” in the statement. It can also express the negation by prefixing the phrase “it is false” or it is
not the case”

18
 ✔If the proposition is true, then the negation is false

p ~p

T F

F T

Example: j : Jackson is a movie star.

~ j : Jackson is not a movie star.
Definition: The conjunction of propositions p and q is denoted by p ^ q (p and q). The propositions p and
q are called conjuncts
✔If p is true and q is true then p ^ q is true; otherwise p ^ q is false.

The truth value of the conjunction of the statements is determine wholly and entirely by the truth value of
its conjuncts (two statements joined together by “and”)

p q p^q
T T T
T F F
F T F
F F F
Examples:

Let p and q be the propositions, p: Angels exist, q: π > 3

Express the following conjunctions in English or in symbols.
1. p ^ q Answer: Angels exist and π > 3.
2. P ^ (~q) Answer: Angels exist and π ≤ 3.
Definition: The disjunction of propositions p and q is denoted by p v q (p or q). The propositions p
and q are called disjuncts.
✔The truth value of disjunction p V q is false only when both disjuncts are false.

p q Pvq
T T T
T F T
F T T
F F F
Let p, q, and r be the following propositions:
p: Victor has a date with Liza. q: Janree is sleeping r: Eumir is eating
Express the following propositions in English or in symbols, as the case may be.
1. p v q Answer: Victor has a date with Liza or Janree is sleeping.
2. q v ~ r Answer: Either Janree is sleeping or Eumir is not eating.
Definition: The conditional proposition is denoted by p → q (p implies q, if p then q). The proposition p is
called the hypothesis, while the proposition q is called the conclusion.
✔It is asserted by the hypothetical statement, that conditional statement might be true even though
both of its components were true.

19
 p q p→q
T T T

T F F

F T T

F F T

Examples: If you will pass this subject, then you are a good student. If Sydney
is in Australia, then 2 + 2 = 5.
Definition: The biconditional proposition is denoted by p ↔ q (p if and only if q). The propositions p and q
are the components of the biconditional.

✔ If p and q have the same truth value then p ↔ q is true.

p q p↔q
T T T
T F F
F T F
F F T

Example:

1. Art will go if and only if Betsy will go.

2. Suppose that Geebee is a Grade 11 student. Let us now consider the following
biconditionals.
p1: Geebee is in Grade 11 if and only if she is a senior high school student.
p2: Geebee is in Grade 11 if and only if she is working as a lawyer.
Solution.
p1: Again, both simple components of are true. Therefore, the biconditional statement is true.

p2: It is true that Geebee is in Grade 11, but it is not true that Geebee is working as a lawyer. Therefore,
the biconditional is not true, referring to the second row of its truth table.

Learning Competency with code

• Illustrate and symbolize propositions (M11GM-IIg-1)

• Distinguish between simple and compound propositions (M11GM-IIg-3)
• Perform the different types of operations on prepositions (M11GM-IIg-4)
Activity 1: Formulate the following symbolic expressions in words by letting
p : Today is Monday ; q: It is raining ; r : It is hot
1. p v q
2. p ^ r
3. ~q ^ ~ r

4. p → ~ q

5. p ↔ q
20
Activity 2: Identify what is asked.
I. State the negation of the following propositions.
a: Mary received a text message from her friend.
b: Eden teaches high-level mathematics to college students.
c: James was not able to fetch his sister from school today.
d: 𝑥2 + 𝑦2 = 𝑧2 e: The student brings lunch everyday
Activity 3: Express the following propositions in symbols, where p, q, and r are
defined as follows.
p: Neil is a big eater
q: Len has a big voice
r: Jeric likes to travel.
s: Lenny likes violet.
a. Len has a big voice and Neil is not a big eater.
b. Jeric likes to travel or he does not.
c. It is not true that Neil is a big eater and Lenny does not like violet
d. If Neil is a big eater or Len has a big voice, then Lenny likes violet.
e. Either Neil is a big eater or Len has a big voice, and Lenny likes violet.

GENERAL MATHEMATICS
LEARNING ACTIVITY SHEET
Truth Value of a Compound Proposition, Conditional Propositions,
Tautologies, Fallacies and Syllogism

Name _________________________________ Week 8

Section ________________________________ Date ______________

Recall that a simple proposition is a statement with truth values, either that statement is true or false.
Let p: A triangle is a polygon.
q : The sum of 3 and 5 is 2.
A truth table displays the relationship between all possible truth values of the simple proposition and
the compound proposition. Recall that in the previous lesson, there are five truth tables that are result of
five common connectives: negation, disjunction, conjunction, conditional and bic0nditional.
The truth table is constructed to determine the validity and invalidity of the argument. This presents
all possible truth combination combinations of the component propositions within the argument.
Compound statements and their corresponding logical operators:

Logical Connectors Logical operators

not p ~p
p and q p˄q
p or q p˅q
if p then q p →𝑞
p if and only if q p ↔𝑞
Example 1. Given statement. “I ate an egg or a sandwich. p ˅ q,” Determine which is equivalent to the
given statement by constructing a truth table showing all compound propositions.
(a) If I did not an eat egg, then I ate a sandwich. ~ p →𝑞
(b) If I ate an egg, then I ate a sandwich. p →𝑞

21
 (c) If I did not eat an egg, then I did not eat a sandwich. ~ p → ~ q
(d) If I ate an egg, then I did not a sandwich. p → ~ q.
Solution:
Let p and q be the following propositions.
p: I ate an egg
q: I ate a sandwich
As previously discussed, since there are two primitive propositions p and q involve, the truth table should
have four row which consist of all possible truth values combination p and q.

p q
T T
T F
F T
F F

The given proposition is a disjunction of the propositions p and q as disjuncts. In the next column,
we encode the truth values of these disjuncts using the definition of disjunction.

p q p˅q
T T T
T F T
F T T
F F F

Now, we will construct the truth tables of another compound proposition.

(a) The conditional ~ p →𝑞 read as „not p implies q‟. The proposition not p is the hypothesis, while the
preposition q is the conclusion. Its truth table shown below.

p q ~p ~ p →𝒒
T T F T
T F F T
F T T T
F F T F
(b) The conditional p →𝑞 read as „p implies q‟. The proposition p is the hypothesis, while the proposition
q is the conclusion. Its truth table shown below.

p q p →𝒒
T T T
T F F
F T T
F F T

(c) The conditional ~ p → ~ q read as „not p implies not q‟. The proposition not p is the hypothesis,
while the proposition not q is the conclusion. Its truth table shown below.

p q ~p ~q ~p→~q
T T F F T
T F F T T
F T T F F
F F T T T

22
 (d). The conditional p → ~ q read as „p implies not q‟. The proposition p is the hypothesis, while the
proposition not q is the conclusion. Its truth table shown below.

p q ~ p→~q
q
T T F F
T F T T
F T F T
F F T T

Based on the truth tables of the given compound propositions p ˅ q is equivalent to ~ p →𝑞.

p q ~p ~q p˅q ~ p →𝒒 p →𝒒 ~p→~q p→~q

T T F F T T T T F
T F F T T T F T T
F T T F T T T F T
F F T T F F T T T

Therefore, the statement “I ate an egg or a sandwich” is equivalent to the statement “If I did not eat
egg, then I ate a sandwich”.

Definition. Two propositions p and q are logically equivalent, denoted by p ⇔ q, if they have the same
truth values for all possible truth values of their simple components. Logical equivalence can also be
expressed in terms of a biconditional statement. Two propositions p and q are logically equivalent if the
proposition p ↔𝑞𝑞 is always true (or is a tautology).
Theorem (Table of Logical Equivalences). Let p, q, and r be propositions. We have the following logical
equivalences.

Identity Laws (p ˄ 𝜏) ⇔ p (p ˅ ∅) ⇔ p
Domination Law (p ˅ 𝜏) ⇔ 𝜏 (p ˄ ∅) ⇔ ∅
Idempotent Laws (p ˅ 𝑝) ⇔ 𝑝 (p ˄ 𝑝) ⇔ 𝑝
Inverse Laws [p ˅ (~ p)] ⇔ 𝜏 [p ˄ (~ p)] ⇔ ∅
Double Negation ~ (~ p) ⇔ 𝑝
Associative Laws p ˅( q ˅ r ) ⇔( p ˅ 𝑞) ˅ r p ˄ ( q ˄ r ) ⇔( p ˄ 𝑞) ˄ r
Commutative Laws p˅𝑞⇔q˅𝑝 p˄𝑞⇔q˄𝑝
Distributive Laws p ˅( q ˄ r ) ⇔( p ˅ 𝑞) ˄( p ˅ 𝑟) p ˄ ( q ˅ r ) ⇔( p ˄ 𝑞) ˅ ( p ˄ 𝑟)
De Morgan‟s Laws ~ (p ˅ 𝑞) ⇔(~ p) ˄ (~ q) ~ (p ˄ 𝑞) ⇔(~ p) ˅ (~ q)
Absorption Laws p ˅ (p ˄ 𝑞) ⇔ 𝑝 p ˄ (p ˅ 𝑞) ⇔ 𝑝

The logical equivalence of the compound proposition p →q ⇔ (~p) q is called Switcheroo law. In
words, it expresses the equivalence between saying "if p is true, then q must be true" and saying "either p
is not true, or else q must be true."

Tautology and Fallacy

Tautology is a compound proposition whose truth values are all true.

Example 1: Show that (p → q) v (q → p) is a tautology.

Solution:

23
 p q (p → q) (q → p) (p → q) v (q → p)
T T T T T
T F F T T
F T T F T
F F T T T

The last column contains T‟s, therefore the compound proposition (p → q) v (q → p) is a tautology.

Argument
An argument is an assertion that a given set of statements called premise results in another
statement called conclusion. In a compound proposition of the form:

(p1 ∧ p2 ∧……pn) → q
The propositions p1, p2 ……pn are the premises of the argument and q is the conclusion.

Arguments can be written in propositional form (p1 ∧ p2 ∧……pn) → q, or in column or standard

form
p1
p2_ ∴ q

Theorems (Rules of Inference). Let p, q, and r be propositions

Propositional Form Standard Form

Rule of 𝑝˄𝑞
Simplification ( p ∧ q) → p
𝑝
𝑝
Rule of Addition p→(p vq)
𝑝 𝑞
𝑝
Rule of
( p ∧ q) → ( p ∧ q) 𝑞
Conjunction
𝑝˄𝑞

𝑝→ 𝑞
Modus Ponens [( p → q ) ∧ p ] → q 𝑞
𝑝

𝑝→ 𝑞
Modus Tollens [( p → q ) ∧ (∼q) ] → (∼p) 𝑝
𝑞
→
Law of Syllogism [( p → q ) ∧ ( q → r)] → ( p → r ) → 𝑟 𝑝→ 𝑟
𝑝 𝑞
Rule of Disjunctive
[( p v q ) ∧ (∼p) ] → q 𝑝
Syllogism
𝑞
Rule of 𝑝
[(∼p) → ∅ ] → p →∅ 𝑝
Contradiction
→
Rule of Proof by → 𝑟
[( p → r ) ∧ ( q → r)] →[ ( p v q ) → r]
Cases 𝑝 𝑞 →𝑟

Fallacy is an incorrect argument which is a result of invalid reasoning. In a fallacy, it is possible for the
premises p1, p2 ……pn to be true while the conclusion is false.

24
 Categorical Syllogisms is a deductive argument consisting of three categorical propositions (two
premises and a conclusion); collectively, these three propositions feature exactly three classes; each of the
three classes occurs in exactly two of the propositions. It is presented in standard form begins with the
major premise, followed by the minor premise, and finally the conclusion. The logical form of a categorical
syllogism is determined by two features of the argument: its mood and its figure. The mood of a syllogism
is determined by the types of categorical propositions contained in the argument, and the order in which
they occur. To determine the mood, put the argument into standard form, and then simply list the types of
categorical:
Learning Competency with Code
 Determine the truth values of prepositions. (M11GM-IIh-1)
 Illustrate different forms of conditional prepositions. (M11GM-IIh-2)
 Illustrate different types of tautologies and fallacies. (M11GM-IIi-1)
 Determine the validity of categorical syllogisms. (M11GM-IIi-2)
 Establish the validity and falsity of real-life arguments using logical propositions, syllogisms, and
fallacies. (M11GM-IIi-3)

Activity 1: Construct the truth tables for the following compound propositions. Assume all variables
denote prepositions.
1. (~ p) ˄ ( q ˄(~ r))
2. p ˄ [( q ˅(~ p) ) ˄ (~ q)]
3. (p →𝑞) ↔ ((~ q) → (~ p) )

Activity 2: Determine the converse, contrapositive and the inverse of the following conditional
propositions.
1. “If it is consumed in large volumes, then chocolate can be harmful to one‟s health.”

2. “Whenever she will be given the chance to perform on stage, Whitney will sing all her classic songs.”

Activity 3: Show that the following are logically equivalent.

1. p →𝑞 and p q 2. (~ p) → (𝑞→ 𝑟 ⇔ 𝑞 → 𝑝 𝑟 )

25