PAMANTASAN NG LUNGSOD NG VALENZUELA

TONGCO STREET, MAYSAN, VALENZUELA CITY

COLLEGE OF EDUCATION (MATHEMATICS DEPARTMENT)

GE 4: MATHEMATICS IN THE MODERN WORLD

GROUP ACTIVITY #2 (MATH OF FINANCE)

INSTRUCTION: Answer the following. Show your complete solution.

1. Jake borrowed PHP 120 000.00 from his uncle. If he agreed to pay an 8% annual interest rate, calculate
the amount of simple interest he must pay if the loan period is 9 months.
2. To buy the school supplies for the coming school year, Amy got a summer job at Alvarez Cafe. Suppose
that she has PHP 4 200.00 of her salary and deposit it into an account that earns simple interest. After 9
months, the balance is PHP 4 263.00. What is the annual interest rate?
3. If PHP 10 000.00 is invested at 4.5% annual simple interest, how long will it take to grow to PHP11
800.00?
4. Mr. Scully, a businessman, invested PHP 1 000 000 in a bank at an interest rate of 12% compounded
quarterly. How much money will he have at the end of 5 years?
5. Gina wants to invest in a high-risk UITF of Bank of the Philippines which will give her 20% per annum in
5 years. She targets to earn a total future value of PHP 2 000 000. How much should she invest now in
high-risk UITF?
6. Rosa’s loan of ₱19 500 was made on June 15 at 3% interest and was repaid on September 8. Find the
interest using exact interest, exact time.
7. Find the interest on a ₱6 400, 90-day, 5% loan that was granted on November 11. Use ordinary time,
ordinary interest.
8. Charles’ unpaid bill of PHP 3,000 had a due date of June 10. He purchased groceries amounting to
PHP 570 on June 14 using the same credit account. On June 17, he paid PHP 2,000 for his account and
another payment of PHP 500 was made on June 20. He purchased a gadget worth PHP 1,500 on June
29 using the same credit card. If the interest on the average daily balance is 2% per month, find the
finance charge on the July 10 bill.

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