Chapter 2: Consumer Mathematics Time Deposit Account - or certificate of deposit is a

a. Investing bank product which is almost the same as a savings

i. Savings account. With a time deposit, the money will be kept by
ii. Stocks and Bonds the bank for a fixed period (30 days, 60 days, 90 days, or
b. Borrowing more).
i. Loans
ii. Credit Cards At the expiry of the term, depositors may choose from
the following options, depending on the bank:
Chapter 3: Communication - Withdraw both the principal and the interest
a. Communicating Efficiently earned by the end of the term or the maturity
i. Error Detection and Correction date of the account
b. Communicating Securely - Take the earnings and re-invest the principal
i. Encryption - Re-invest both the original amount and the
additional income, and roll it over for the same
Chapter 6: Math in Nature and Art term
a. Fibonacci & Golden Ratio In general, the longer the period of time for which an
b. Fractals investor is prepared to commit, the better the rate and
c. Patterns and Isometries greater the income.

Chapter 2: Consumer Mathematics

Interest =
days
(Money Invested)(rate)( ¿ )(0.8)
SAVINGS year ¿

Simple Interest - is characterized by a fixed amount The 80% or 0.8 in the formula means you are getting
earned over time. just 80% of the total interest because the 20%
I = Prt withholding tax is deducted.
P = Principal Amount
R = Rate of interest per annum/year Money Market - a money market account, just like a
T = Time in years regular savings account, is a type of account offered by
the banks. The difference is that it usually pays a
Compound Interest higher interest, has higher minimum balance
tm
requirements (sometimes Php 100,000), and may limit
F = P(1+ r )
m withdrawals per month.
P = Principal Amount
R = Rate of interest per annum/year Following are the steps for calculating interest
T = Time in years on a money market account:
M = is the number of times interest is computed per
year Step 1: Calculate the daily interest rate for the current
week. This may be done by getting the annual
percentage rate (APR) for the week from the money
market account provider and then dividing the APR by
365.
For example, if the APR is 3.285%, the daily rate is 3.285
divided by 365, or 0.009 percent.
Step 2: Calculate the interest for the first day of the
week. This involves multiplying the starting balance in
the account by the daily interest rate.
For example, if the balance is Php 572,000 and the daily
interest rate is 0.009, the interest earned is about Php 51.48.
Step 3: Add the interest rate earned to the money
market account balance. Also, add any deposits and
deduct withdrawals made that day, if any. This will
result in the ending balance, which serves as the
starting balance for the next day.
Step 4: Repeat steps 2 and 3 for the remaining 6 days of
the week.
Step 5: Obtain the updated interest rate for calculating
the interest in your money market account for the
upcoming week and repeat steps 1 to 4.
STOCKS AND BONDS
Stocks represent shares of ownership in a
company. A share is a unit of ownership of a
corporation’s profits and assets. Ownership can be
quantified by dividing the number of shares owned by
the number of shares issued.
Terminologies
- Dividends - on a share is a payment made by the
corporation to the shareholder when the former
realizes profit or has surplus. Dividend is based
on par, not on market value.
- Common stock – is a type of stock that
represents a share of a company's asset or
profit. Holders of common stock can vote in the
election of the board of directors (normally one
vote per share).
- Preferred stock - is a type of stock that entitles
holders to a fixed dividend before any payment
is distributed to other shareholders. Holders of
preferred stock, in most cases, cannot vote.
Dividend yield:
annual dividend per share
%
current stock price per share
A Bond is a loan. It is another way for
corporations to raise funds. They issue bonds to
whoever wants to buy them. A buyer of a bond is
lending money to the corporation (or organization) that
issues it. The corporation, in return, promises to pay
interest payments to the buyer for the duration of the
loan. The amount of interest and the schedule of
payment depend on the terms of the bond.
Types of Bonds
- Government bonds are issued by governments to
fund programs, meet payrolls, and pay their
bills.
- Corporate bonds are issued by businesses to help
them pay expenses. They have a higher risk
than government bonds but they can earn a lot
more money.
- Zero-coupon bonds make no coupon payments
but instead are issued at a considerable
discount to par value. For example, a zero-
coupon bond with a Php 1,000 par value and 10
years to maturity is trading at Php 600; a buyer
will pay Php 600 today for a bond that will be
worth Php 1,000 in 10 years.