LECTURE SUMMARY FOR THE FINAL TERM

(GEC MATH)

Interest – the amount paid by the borrower.

Principal or Future Value – the amount of money that is loaned or invested.

Two(2) Types of Simple Interest

1. Ordinary simple interest – type of simple interest that uses 360 as time factor denominator.
2. Exact simple interest - type of simple interest that uses 365 as time factor denominator or 366 for a leap year.

Compound interest – is computed based on the principal amount and the total accumulated interest earned.

Types of Compounding Periods

1. Annual
2. Semi-annual
3. Quarterly
4. Bimonthly
5. Monthly

Finance charge – is the amount of interest paid by a customer who acquires products or services using a credit card. It is
computed using the simple interest formula and the average daily balance method.
Stocks and bonds – to financial investments that have different intrinsic values. Company can borrow money by selling
bonds to the public, thereby increasing their debt capital in exchange for the interest paid periodically. Selling of
company’s shares in the form of stocks is another way of increasing the equity capital.
Shares of stocks – indicate the fractional ownership of a corporation that is proportional to the total number of shares
from all investors.
Stockholders – investors of stocks,
Dividends – the profits shared by the stockholders/shareholders.
Dividend yield – is computed as the annual dividend divided by the stock price using the interest formula.
Bonds – corporations sell bonds to borrow money from investors called bondholders. Usually, government agencies issue
bonds in the form of treasury bills. The amount paid to the bond is called the face value or the principal value. The
corporation has to pay the said amount on a particular agreed-upon date called the maturity date.
Mutual Fund – is an investment trust company whose assets are based purely on stocks and bonds.
Proceeds – it is the amount of money that an investor receives after selling a stock.
Stockbroker – It is a professional in stock market trading and investment who acts as an agent in the selling and buying of
stocks or other securities.
Stockbroker’s Commission – it is the fee that is charge for assisting in the purchase or sale of shares of stock.
Gain/Loss – it is the difference between the cost of purchasing the stock and the proceeds received when selling the stock.
Round lot – multiple of 100 shares
Odd lot – less than 100 shares
Graph Theory – it is used to analyze, model, and solve various real-life situations.
Graph – is a set of point and line segments or curves that connect vertices.
EXAMPLE:
Order of the graph – determine by the number of vertices of the graph.
Example:
Order = 4 (since the graph has 4 vertices)

Order = 5 (since the graph has 5 vertices)

Size of the graph – can be determine by the counting the number of edges of the graph.

Size = 4 (since the graph has 4 edges)

Size = 5 (since the graph has 5 edges)

Degree of a vertex – it is the number of edges that connect to the particular vertex. When edge connects a vertex to
itself called loop, it is counted twice.

Example:

Deg (A) = 1 (since only one edge is connected to vertex A)

Deg (B) = 1 (since only one edge is connected to vertex B)
Deg (C) = 3 (since three edges are connected to vertex C)
Deg (D) = 1 (since only one edge is connected to vertex D)

Types of Graphs

1. Trivial Graph – graph with only one vertex; the graph has an isolated vertex; the degree of the vertex is zero.
2. Empty Graph – graph with no edges
3. Null Graph – graph with no vertices, hence, no edges
4. Regular Graph – graph with all vertices having the same degree.
5. Simple Graph – graph with no loops and parallel edges.
6. Multigraph – graph having multiple edges or parallel edges, that is, the edges have the same end vertices.
7. Connected Graph – graph where every pair of vertices has a path between them.
8. Disconnected Graph – graph with any two vertices that have no path between them.
9. Complete Graph – graph where every vertex is connected to all other vertices.
10. Cycle Graph – graph with a single cycle, every vertex is connected to two other vertices only.
11. Directed Graph – consists of a set of vertices and edges that are directed from one vertex to another vertex and
indicated by arrowheads.
12. Undirected Graph – a graph that is not directed, that is, the edges do not have direction.
13. Weighted Graph – a graph with a value or number assigned to every edge.
14. Equivalent Graphs – two graphs that have the same edge structure.

Path – it is the movement from one vertex to another by traversing the edges.

Closed Path or Circuit – it is a path that starts and ends at the same vertex.

Euler Circuits – is a circuit that begins and ends at the same vertex and uses every edge, but never use the same edge
twice.

A–D–F–G–H–E–C–B–E–G–D–B–A
Euler Path - it is a path that uses every edge once and only once. The difference of Euler path to Euler circuit is it does
not require to start and end at the same vertex.