i-Link College of Science and Technology, Inc.

General Mathematics

MODULE 2: Basic Business Mathematics

Module Overview:

This module contains the basic concepts of interest. This module will help students to
determine the importance of interest in daily living, how interest affects their lives and how to
solve problems involving interests. It also contains the basic concepts of loans that will help the
students to solve problems involving loans and make them give importance to the ideas of loans
for it is part of their lives.

Module Outline:

Lesson 1: Simple Interest

Lesson 2: Compound Interest

Lesson 3: Compounding More Than Once a Year

Lesson 4: Loans

Target Learning Competencies:

LC 2.1.a. illustrates simple and compound interests.

LC 2.1 b. distinguishes between simple and compound interests.
LC 2.2 a. computes interest, maturity value, future value, and present value in
simple interest and compound interest environment.
LC 1.3 a. solves problems involving simple and compound interests.
LC 1.4 a. illustrates the business and consumer loans.
LC 1.4 b. distinguishes between business and consumer loans.

Performance Standard:

The learner demonstrates an understanding of key concepts of simple and compound

interests, and simple and general annuities.

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i-Link College of Science and Technology, Inc. General Mathematics

BUDGET OF WORK

MOST
WEEK LESSON TITLE LESSON LEARNING
ESSENTIAL
NUMBER ASSESSMENT
TOPICS

Basic Business Assessment

1 Simple Interest 1
Mathematics 2.1

Basic Business Assessment

2 Compound Interest 2
Mathematics 2.2

Basic Business Compounding More Assessment

3 3
Mathematics Than Once a Year 2.3

Basic Business Assessment

4 Loans 4
Mathematics 2.4

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 i-Link College of Science and Technology, Inc. General Mathematics

LESSON 1: Simple Interest

Specific Objectives:

At the end of this lesson, the learners will have been able to:

a. differentiate simple and compound interests; and

b. solve a real-life problem involving simple and compound interest.

Definitions of Terms:

 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 dates
 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 ¿)– amount paid or earned for the use of money
 Simple Interest ¿) – interest that is computed on the principal and then added to it
 Compound Interest ¿)–interest is computed on the principal and also on the
accumulated past interests
 Maturity value or Future value ¿) –amount after t years that the lender receives from the
borrower on the maturity date
Simple Interest

Annual Simple Interest Formula

I s=Prt

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i-Link College of Science and Technology, Inc. General Mathematics

IS
P=
rt
IS
r=
Ps
IS
t=
Ps
where ,
I s−simple interest
P− principal ,∨the amount invested∨borrowed
r −simpole interest rate
t−term∨time ∈ years

 Example 1. A bank offers 0.25% annual simple interest rate for a particular deposit. How
much interest will be earned if 1 million pesos is deposited in this savings account for 1
year?
Given:
P=1,000,000
r =0.25 %∨0.0025
t=1 year
Solution: I s=Prt
I s=(1,000,000)( 0.0025)( 1)
I s=2,500
Answer: The interest earned is ₱2,500.

 Example 2: How much interest is charged when P50,000 is borrowed for 9 months at an
annual interest rate of 10%?
Given:
P=50,000
r =10 %=0.10
t=9 /12 year =0.75 year (Note: When the term is expressed in months (M), it
M
should be converted in years by t = .
12
Solution: I s=Prt
I s=( 50,000 )( 0.10 ) ( 0.75 )
I s=3750

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer: The simple interest charged is ₱ 3,750 .

 Example 3. When invested at an annual interest rate of 7%, the amount earned P11,200
of simple interest in two years. How much money was originally invested?
Given:
r =7 %=0.07
t=2 years
I s=11,200
Solution:
Is
P=
rt
12,000
P=
( 0.07 )( 2 )
P=80,000

Answer: The amount invested is ₱ 80,000.

Maturity (Future) Value

F=P+ I S
Where

F = maturity (future) value

P = principal

s = simple interest

Substituting I S by Prt gives F=P+ Prt ,=P (1+rt)

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 i-Link College of Science and Technology, Inc. General Mathematics

Maturity Value
F=P ( 1+ rt )
Where:
F = maturity (future) value
P = principal
r = interest rate
t = term/ time in years

 Example 4: Find the maturity value if 1 million pesos is deposited in a bank at an annual
simple interest rate of 0.25% after
(a) 1 year?
(b) 5 years?

Given: P=1,000,000 r =0.25 %=0.0025

Solution: (a) F=P(1+rt )

F=(1,000,000)(1+0.0025( 1))

F=1,002,500

Answer: The future or maturity value after 1 year is ₱ 1,002,500.

Solution: (b) F=P ( 1+ rt )

F=( 1,000,000 ) ( 1+ 0.0025 ( 5 ) )

F=1,012,500

Answer: The future or maturity value after 5 years is ₱ 1,012,500.

Activity Sheet 2.1

Direction: Using the Venn Diagram given below, give at least five words or group of words to
compare and contrast simple interest and compound interest..

SIMPLE INTEREST COMPOUND INTEREST

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 i-Link College of Science and Technology, Inc. General Mathematics

Assessment 2.1

Direction:

A. Complete the table below by finding the unknown principal ( P ) , rate (r ), time (t) and
interest ( I s ¿.

Principal (P) Rate (r ) Time (t) Interest ( I s )

2,000 5% 3 (1)
(2) 12% 5 20,000
88,000 (3) 4 8,000
500,000 9.5 % (4) 285,000
1,000,000 0.5% 12 (5)

B. Solve the following problems. Write your complete solution and answer.

1. Find the simple interest on a loan of P65,000 if the loan is given at a rate of 20% and
is due in 3 years.
2. Amparo invested a certain amount at 10% simple interest per year. After 2 years, the
interest she received amounted to P3,000. How much did she invest?
3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he
pay after 3 years and 6 months?

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 i-Link College of Science and Technology, Inc. General Mathematics

LESSON 2: Compound Interest

Specific Objectives:

At the end of this lesson, the learners will have been able to:

a. determine the interest, maturity value, future value, and present value in compound
interest environment; and
b. solve problems involving compound interests.

Compound Interest

Maturity (Future) Value

F=P ( 1+ r )t

Where

P = principal or present value

F = maturity (future) value at the end of the term

r = interest rate

t = term/ time in years

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 i-Link College of Science and Technology, Inc. General Mathematics

The compound interest I c is given by

I c =F – P

Example 1. Find the maturity value and the compound interest if P10,000 is compounded
annually at an interest rate of 2% in 5 years.

Given: P = 10,000 r = 2% = 0.02 t = 5 years

Find: (a) maturity value F

(b) compound interest I C

Solution: (a) F=P ( 1+ r )t

5
F=( 10,000 ) ( 1+ 0.02 )

F=11,040. 081

Answer: The future value F is ₱11,040.81

(b ¿ I C =F – P

I C =11,040.81 – 10,000

I C =1,040.81

Answer: the compound interest I C =1,040.81.

Example 2. Find the maturity value and interest if P 50,000 is invested at 5% compounded
annually for 8 years.

Given: P = 50,000, r = 5% = 0.05, t = 8 years

Find: (a) maturity value F

(b) compound interest I C

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 i-Link College of Science and Technology, Inc. General Mathematics

Solution: (a) F=P ( 1+ r )t

F=( 50,000 ) ( 1+ 0.05 )8

F=73,872.77

(b) I C =F – P

I C =73,872.77 – 50,000

I C =23,872.77

Answer: The maturity value F is ₱ 73,872.77 and the compound interest is ₱23,872.77.

Present Value P at Compound Interest

F −t
P= t
=F ( 1+r )
( 1+r )

Where

P = principal or present value

F = maturity (future) value at the end of the term

r = interest rate

t = term/ time in years

Example 3. What is the present value of P50,000 due in 7 years if money is worth 10%
compounded annually?

Given: F = 50,000 r = 10% = 0.1 t = 7 years

Find: Present Value P

Solution: The present value P can be obtained by

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 i-Link College of Science and Technology, Inc. General Mathematics
t
P=F / ( 1+r )

50,000
P=
( 1+0.1 )7

P=25,657.91

Answer: The present value is ₱ 25,657.91 .

Example 4. How much money should a student place in a time deposit in a bank that pays
1.1% compounded annually so that he will have P200,000 after 6 years?

Given: F = 200,000 r = 1.1% = 0.011 t = 6 years

Find: P

Solution: The present value P can be obtained by

P=F / ( 1+r )t

200,000
P=
( 1+0.11 )6

P=187,293.65

Answer: The student should deposit ₱187,293.65 in the bank.

Example 5: What is the interest of P25,000 if invested at 4.5% compounded annually in 3

years and 2 months?

Given: P = P25,000 r = 4.5% = 0.045 t = 3 years

Find: I C

t
Solution: F=P ( 1+ r )

F=( 25,000 ) ( 1+0.045 )3.1667

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 i-Link College of Science and Technology, Inc. General Mathematics

F=28,739.22

Ic=F−P

Ic=28,739.22 – 25,000

Answer: The interest is ₱3,739.22.

Activity Sheet 2.2

Direction: Find the unknown principal P, rate r, time t, and compound interest Ic by completing
the table.

Compound Interest (
Principal (P) Rate (r) Time (t) Maturity Value (F)
Ic )
6,000 8% 12 years (1) (2)
6 years and 9
12,000 5.5% (3) (4)
mos.
60,000 9.75% 10 mos. (5) (6)
(7) 1% 6 years (8) 25,000
4 years and 6
(9) 7.5% (10) 400,000
mos.

Assessment 2.2

Direction: Solve the following problems on compound interest. Show your solutions.

1. Peter borrowed P100,000 at 8% compounded annually? How much will he be paying after 2
years?

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 i-Link College of Science and Technology, Inc. General Mathematics

2. A time deposit account in a bank yields 5.5% compound interest annually. Jennifer invested
P450,000 for 4 years in this savings account. How much interest will she gain?

3. To have P250,000 in 5 years, how much should you invest if the compound interest is 12%?

4. How much money must be invested to obtain an amount of P150,000 in 2 years if money
earns at 10.5% is compounded annually?

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 i-Link College of Science and Technology, Inc. General Mathematics

LESSON 3: Compounding More Than Once a Year

Specific Objectives:

At the end of this lesson, the learners will have been able to:

a. solve the interest rate and total number of conversion periods; and
b. solve problems involving compound interests.

 Definition of terms:
 Frequency of conversion (m) – number of conversion periods in one year.
 Conversion or interest period– time between successive conversions of interest.
 Total number of conversion periods n

n=mt = ( frequency of conversion )∗(time ∈ years)

 Nominal rate (i m)– annual rate of interest

 Rate (j) of interest for each conversion period
m
i annualrate of interest
j= =
m frequency of coversion

Maturity Value, Compounding m times a year

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i-Link College of Science and Technology, Inc. General Mathematics

F=P ¿

where
F = maturity (future) value
P = principal
m
i = nominal rate of interest (annual rate)
m = frequency of conversion
t = term/ time in years

Example 1. Find the maturity value and interest if P10,000 is deposited in a bank at 2%
compounded quarterly for 5 years.
Given: P=10,000 i 4 =0.02 t=5 years m=4
Find: a. F
b. I C

Solution.
Compute for the interest rate in a conversion period by
4
i 0.02
j= = =0.005
m 4
Compute for the total number of conversion periods given by
n=mt=(4 )(5)=20 conversion periods.

Compute for the maturity value using

n
F=P ( 1+ j )

F=¿

F=11,048.96 .

The compound interest is given by

I C =F – P=11,048.96 – 10,000=₱ 1,048.96 .

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i-Link College of Science and Technology, Inc. General Mathematics

Example 3. Find the maturity value and interest if P10,000 is deposited in a bank at 2%
compounded monthly for 5 years.

Given: P=10,000 i 12 =0.02 t=5 yearsm=12

Find: a. F

b. I C

Solution.

Compute for the interest rate in a conversion period by

i 12 0.02
j= =
m 12

Compute for the total number of conversion periods given by n=mt=(12)(5)=60

conversion periods.

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i-Link College of Science and Technology, Inc. General Mathematics

Compute for the maturity value using

F=P ( 1+ j )n

F=10,000 ¿

F=₱ 11,050.79

The compound interest is given by

I C =F – P=11,050.79 – 10,000=₱ 1,050.79 .

Present Value P at Compound Interest

1
P=
¿¿
where
F = maturity (future) value
P = principal
m
i = nominal rate of interest (annual rate)
m = frequency of conversion
t = term/ time in years

Example 1. Find the present value of P50,000 due in 4 years if money is invested at
12% compounded semi-annually.

Given: F=50,000 t=4 i(2)=0.12

Find: P
Solution.
First, compute for the interest rate per conversion period given by
2
i 0.12
j= = =0.06
m 2
The total number of conversion periods is n=tm=(4 )(2)=8.
The present value can be computed by substituting these values in the formula
F
P=
( 1+ j )n
Thus,

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 i-Link College of Science and Technology, Inc. General Mathematics

5,000 5,000
P= = =₱ 31,370.62
( 1+0.06 ) ( 1.06 )8
8

Example 2. What is the present value of ₱ 25,000 due in 2 years and 6 months if money
is worth 10% compounded quarterly?
Given: F=25,000 t=2½ yearsi 4 =0.10
Find: P
Solution.
The interest rate per conversion period given by
i 4 0.10
j= = =0.025
m 4
and the total number of conversion periods is n=tm=(2 ½)(4)=10.

The present value can be computed by substituting these values in the formula

F
P=
( 1+ j )n

Thus,

25,000 25,000
P= 10
= 10
=₱ 19,529.96
( 1+0.025 ) (1.025)

Activity Sheet 2.3

Direction: Complete the table by computing the interest rate per period and the total number of
conversion periods.

Interest Interest rate for each

Nominal Rate i (m ) Frequency Conversion ( m ¿
Compounded conversion period
10% Semi-annually (1) (2)
(3) Quarterly (4) 0.015
12% Monthly (5)

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 i-Link College of Science and Technology, Inc. General Mathematics

Assessment 2.3

Direction: Complete the table by computing the maturity values, compound interests, and
present values.

1. Cian lends P45,000 for 3 years at 5% compounded semi-annually. Find the future value
and interest of this amount.
2. Ten-ten deposited P10,000 in a bank which gives 1% compounded quarterly and let it
stay there for 5 years. Find the maturity value and interest.

Performance Check:

Direction: Solve the word problem below. Use the given rubric in the problem given.

Rubric:

Criteria 5 3 1

Has written and encircled the Has written the correct answer Has written the wrong
Answer
correct answer without erasures. with erasures in it. answer

Has a neat, complete and correct

Solution Solution was lessened. No solution at all.
solution.

All concepts of solving interest Few concepts of solving No concepts of solving

Application
were applied functions were applied functions.

1. Maryam is planning to invest P150,000. Bank A is offering 7.5% compounded semi-

annually while Bank B is offering 7% compounded monthly. If she plans to invest this
amount for 5 years, in which bank should she invest?

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i-Link College of Science and Technology, Inc. General Mathematics

LESSON 4: Loans

Specific Objectives:

At the end of this lesson, the learners will have been able to:

a. determine the difference between business and consumer loans; and

b. solve problems involving business and consumer loans (amortization, mortgage).

Definition of Terms

 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-estate or other investments.
 Term of the Loan – time to pay the entire loan.

In Examples 1-5, identify whether the following is a consumer or business loan.

Example 1. Mr. Agustin 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.

Solution. Business loan

Example 2. Mr. and Mrs. Craig want to borrow money from the bank to finance the college
education of their son.

Solution. Consumer loan

Example 3. Mr. Alonzo 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.

Solution. Consumer loan

Example 4. Mr. Samson 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.
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 i-Link College of Science and Technology, Inc. General Mathematics

Solution. Business loan

Example 5. Roan has a computer shop. She owns 6 computers. She decided to borrow
some money from the bank to buy 10 more computers.

Solution. Business loan

Solving Problems on Business and Consumer Loans

 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 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-estate or other
investments.
 Outstanding Balance – any remaining debt at a specified time.

Example 1. Mr. Garcia borrowed P1,000,000 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?

Given: P=1,000,000

j=0.07

n=1

Find F .

Solution. F=P ( 1+ j )n

1
F=1,000,000 ( 1+ 0.07 )

F=1,070,000

An amount of ₱1,070,000 must be paid after one year.

Example 2 (Chattel mortgage). A person borrowed P1,200,000 for the purchase of a car. If his
monthly payment is P31,000 on a 5-year mortgage, find the total amount of interest.

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 i-Link College of Science and Technology, Inc. General Mathematics

Given: P=1,200,000

R=31,000

n=mt= (12 months )( 5 years )=60 payments

Solution:

The total amount paid is given by

Total Amount=( 31,000 ) ( 60 payments )

¿ 1,860,000

Thus, the total interest is the difference between the total amount paid and the amount of
the mortgage;

Total Interest =1,860,000 – 1,200,000

Total Interest =660,000

Example 3. If a house is sold for P3,000,000 and the bank requires 20% down payment, find
the amount of the mortgage.

Solution: Down payment=down payment rate x cash price

¿ 0.20(3,000,000)

¿ 600,000

Amount of the Loan=cash price−down payment

¿ 3,000,000 – 600,000

¿ 2,400,000

The mortgage amount is ₱ 2,400,000 .

Example 4. Ms. Rosal bought a car. After paying the down payment, the amount of the loan is
P400,000 with an interest rate of 9% compounded monthly. The term of the loan is 3 years.
How much is the monthly payment?

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 i-Link College of Science and Technology, Inc. General Mathematics

Given: P=400,000

i (12 )=0.09

i (12 ) 0.09
j= = =0.0075
12 12

n=mt= (12 )( 3 ) =36 payments

Find: the regular payment R

Solution:

P
R= =¿

[ ]
−n
1− (1+ j )
j

400,000
R=

[ 1− (1+0.0075 )−36
0.0075 ]
R=₱ 12,719.89

The regular payment is ₱ 12,719.89 .

Activity 2.4

Direction: Identify the following situations 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.
2. Mr. Trillas runs a trucking business. He wants to buy three more trucks for the expansion
of his business. He applied 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
P2,000,000.
5. Mr. Galang renovated her house forP80,000. This was made possible because of an
approved loan worth P75,000.

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 i-Link College of Science and Technology, Inc. General Mathematics

6. Mr. Auban plans to have a restaurant. He wants to borrow money from the bank for him
to buy the necessary equipment and furniture for the food cart.
7. Mr. and Mrs. Derangal wants to borrow money from the bank to finance the college
education of their son.
8. Mr. Posego wants to have some improvement on their 17-year-old house. He will borrow
some money from the bank to finance his plan.
9. Mr. Samson owns a laundry business. He decided to have a loan to put another branch.
10. Mrs. Tetasa has a computer shop. She owns 6 computers. She decided to borrow some
money from the bank to buy 10 more computers.
11. Mr. Ponolimpo wants to have a cellphone repair shop. He decided to apply for a loan to
pay for the rentals.
12. Mr. Goces runs a trucking business. He wants to buy three more trucks for the
expansion of his business. He applied for a loan in a bank.
13. Mrs. Alonzo decided to take her family for a vacation. To cover the expenses, she
decided to apply for a loan.
14. Glen decided to purchase a condominium unit near his workplace. He got a loan worth
₱200000.
15. Mr. Galang purchased a renovated house worth ₱800000. This was possible because of
a loan that was approved.

Assessment 2.4

Direction: Solve the following problems involving Business and Consumer Loans. Show your
solutions.

1. A loan of P300,000 is to be repaid in full after 2years. If the interest rate is 9% per annum.
How much should be paid after 2 years?

2. If a car loan of P790,000 requires a 20% down payment. How much is the mortgage?

3. A person borrowed P1,000,000 for the purchase of a car. If his monthly payment is P25,000
on an 8-year mortgage, find the total amount of interest.

4. A consumer loan worth P80,000 is to be repaid in 12 months at 8% convertible monthly. How

much is the monthly payment?

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i-Link College of Science and Technology, Inc. General Mathematics

+++++++++++++++++++++++ End of Module 2 ++++++++++++++++++++++++++++++

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Activity Sheet 2.1

Direction: Using the Venn Diagram given below, give at least five words or a group of words to
compare and contrast simple interest and compound interest.

SIMPLE INTEREST COMPOUND INTEREST

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Assessment 2

Principal ( P) Rate (r ) Time (t) Interest ( I s )

2,000 5% 3 (1)

(2) 12% 5 20,000

88,000 (3) 4 8,000

500,000 9.5 % (4) 285,000

1,000,000 0.5% 12 (5)

A. Direction: Complete the table below by finding the unknown principal ( P ) , rate (r ), time
(t) and interest ( I s ¿.

B. Direction: Solve the following problems. Write your complete solution and answer.

1. Find the simple interest on a loan of P65,000 if the loan is given at a rate of 20% and
is due in 3 years.

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i-Link College of Science and Technology, Inc. General Mathematics

2. Amparo invested a certain amount at 10% simple interest per year. After 2 years, the
interest she received amounted to P3,000. How much did she invest?

3. Miko borrowed P25,000 at 10% annual simple interest rate. How much should he
pay after 3 years and 6 months?

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Activity Sheet 2.2

Direction: Find the unknown principal P, rate r, time t, and compound interest Ic by completing
the table.

Compound Interest (
Principal (P) Rate (r) Time (t) Maturity Value (F)
Ic )

6,000 8% 12 years (1) (2)

6 years and 9
12,000 5.5% (3) (4)
mos.

60,000 9.75% 10 mos. (5) (6)

(7) 1% 6 years (8) 25,000

4 years and 6
(9) 7.5% (10) 400,000
mos.

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Assessment 2.2

Direction: Solve the following problems on compound interest. Show your solutions.

1. Did Peter borrow P100,000 at 8% compounded annually? How much will he be paying
after 2 years?

2. A time deposit account in a bank yields 5.5% compound interest annually. Jennifer
invested P450,000 for 4 years in this savings account. How much interest will she gain?

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i-Link College of Science and Technology, Inc. General Mathematics

3. To have P250,000 in 5 years, how much should you invest if the compound interest is
12%?

4. How much money must be invested to obtain an amount of P150,000 in 2 years if

money earns at 10.5% is compounded annually?

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Activity Sheet 2.3

Direction: Complete the table by computing the interest rate per period and the total number of
conversion periods.

Interest Frequency Conversion ( Interest rate for each

Nominal Rate i (m )
Compounded m¿ conversion period

10% Semi-annually (1) (2)

(3) Quarterly (4) 0.015

12% Monthly (5)

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 i-Link College of Science and Technology, Inc. General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Assessment 2.3

Direction: Complete the table by computing the maturity values, compound interests, and
present values.

1. Cian lends P45,000 for 3 years at 5% compounded semi-annually. Find the future value
and interest of this amount.

2. Josh deposited P10,000 in a bank which gives 1% compounded quarterly and let it stay
there for 5 years. Find the maturity value and inter

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i-Link College of Science and Technology, Inc General Mathematics

Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Activity 2.4

Direction: Identify the following whether the following illustrates a business loan or a consumer
loan. Write your answer in the space provided.

_______________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.
_______________2. Mr. Trillas runs a trucking business. He wants to buy three more trucks for
expansion of his business. He applied 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 P2,000,000.
_______________5. Mr. Galang renovated her house forP80,000. This was made possible
because of an approved loan worth P75,000.
_______________6. Mr. Auban plans to have a restaurant. He wants to borrow money from the
bank for him to buy the necessary equipment and furniture for the food cart.
_______________7. Mr. and Mrs. Derangal wants to borrow money from the bank to finance the
college education of their son.
_______________8. Mr. Posego wants to have some improvement on their 17-year-old house. He
will borrow some money from the bank to finance his plan.
_______________9. Mr. Samson owns a laundry business. He decided to have a loan to put
another branch.
_______________10. Mrs. Tetasa has a computer shop. She owns 6 computers. She decided to
borrow some money from the bank to buy 10 more computers.
_______________11. Mr. Ponolimpo wants to have a cellphone repair shop. He decided to apply
for a loan to pay for the rentals.
_______________12. Mr. Goces runs a trucking business. He wants to buy three more trucks for
the expansion of his business. He applied for a loan in a bank.
_______________13. Mrs. Alonzo decided to take her family for a vacation. To cover the
expenses, she decided to apply for a loan.
_______________14. Glen decided to purchase a condominium unit near his workplace. He got a
loan worth ₱200000.
_______________15. Mr. Galang purchased a renovated house worth ₱800000. This was possible
because of a loan that was approved.

34
i-Link College of Science and Technology, Inc General Mathematics
Answer Sheet

Name: __________________________ Grade & Section: __________________

Subject Teacher: ________________________ Date Submitted: ___________________

Assessment 2.4

Direction: Solve the following problems involving Business and Consumer Loans. Show your solutions.

1. A loan of P300,000 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 P790,000 requires a 20% down payment. How much is the mortgage?

3. A person borrowed P1,000,000 for the purchase of a car. If his monthly payment is P25,000 on
an 8-year mortgage, find the total amount of interest.

4. A consumer loan worth P80,000 is to be repaid in 12 months at 8% convertible monthly. How

much is the monthly payment?

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