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PALOMARIA-MODULE 4 - Consumer Math

This document contains 5 activities related to financial mathematics concepts: 1) Simple interest, discount, and compound interest word problems. 2) Calculating average daily balances, finance charges, and balances for credit card statements. 3) Present value calculations for lump sums invested at various interest rates compounded periodically. The activities involve calculating interest earned and owed, maturity values, discount amounts, and present values for various financial scenarios.

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ALMIRA LOUISE PALOMARIA
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290 views16 pages

PALOMARIA-MODULE 4 - Consumer Math

This document contains 5 activities related to financial mathematics concepts: 1) Simple interest, discount, and compound interest word problems. 2) Calculating average daily balances, finance charges, and balances for credit card statements. 3) Present value calculations for lump sums invested at various interest rates compounded periodically. The activities involve calculating interest earned and owed, maturity values, discount amounts, and present values for various financial scenarios.

Uploaded by

ALMIRA LOUISE PALOMARIA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: PALOMARIA, ALMIRA LOUISE G.

Score: Section: I-BMA Date:

Activity 1
Simple Interest

B. Solve the following:

1. What is the maturity value if ₱ 20 000 is invested for 3 years at 12% simple
interest?

2. Find the interest and final amount on ₱ 50 000 at 9 ½% for 90 days.

3. How long will it take for ₱ 8 000 to have a maturity value of ₱15 000, if the
interest rate is 12% simple interest?
4. Mr. Dalisay wishes to have ₱ 1 000 000 in his fund at the end of 15 years. If
he invested ₱ 300 000 at the start of the term, what interest rate is applied?

5. How much should be invested today in a fund that pays 13 ½% in order to


have ₱ 158 000 in 3 ½ years?

6. How long will it take for ₱ 35 200 to earn ₱ 7 400 if invested at 5 ½% simple
interest?

7. What simple interest rate is applied if ₱ 5 000 becomes ₱ 5 500 in 100 days?

8. Mr. de Leon borrowed some money at the rate of 5% per annum for the first 2
years, at the rate of 9% per annum for the next 3 years, and at the rate of
12% per annum for the period beyond 5 years. If he pays a total interest of
₱ 10 625 at the end of 9 years, how much money did he borrow?

9. Find the exact and ordinary interest earned if ₱ 40 000 is invested at 15%
simple interest for 200 days.

10. Determine the interest and maturity value of ₱ 70 000 if it is invested a 15%
simple interest for 145 days using exact and ordinary interest.
Activity 2
Simple Discount

Solve the following. Show your solution.

1. Find the proceeds of ₱ 50 000 due at the end of 8 months if the discount rate
is 10 ½%?

2. Find the discount interest if F = ₱ 14 000, d = 8% and t = 9 months.

3. Discount (or find the present value of) ₱ 20 000 for 150 days at a discount
rate of 7%.

4. Accumulate ₱ 50 000 for 3 years and 9 months at 7 ½% simple discount.

5. How long will it take for ₱ 20 500 to amount to ₱ 30 000, if the discount rate is 5
4/5%?
6. ABC bank charges 10 ¼% for discounting loans. If Aldrin agrees to repay
₱ 55 000 after 7 months, how much does he receive now?

7. If ₱ 25 000 is the present value of ₱ 30 500 due at the end of 16 months, find
the discount rate.

8. Mary needs ₱ 100 000 on June 12, 2018, and will settle the loan on February
12, 2019. What is the size of the loan she should borrow from Mr. Sotto who
charges 5% discount rate?

9. Find the amount due on December 5, 2019, if the present value on


October 5, 2019 is ₱ 50 000 at 4% simple discount.

10. If ₱ 11 200 is the present value of ₱ 13 700 due at the end of 16 months, find
a. discount interest rate
b. simple interest rate
Activity 3
Compound Interest

Solve the following. Show your solution.

1. Find the compound amount and interest if:


a. ₱ 45 000 is invested at 5% compounded quarterly for 4 years

b. ₱ 30 000 is invested at 7% compounded semi-annually for 5 years

c. ₱ 15 000 is invested at 12 ½% compounded annually for 6 years

d. ₱ 5 000 is invested at 15% compounded monthly for 4 years and 9 months.


2. Find the compound interest earned at the end of 1 year and 3 months if
₱ 25 000 is invested at 12% compounded monthly.

3. Accumulate ₱ 12 000 for 3 years and 9 months at 5 ½% compounded


quarterly.

4. Maricel borrows ₱ 10 000 with interest at 15% compounded monthly. How


much should she pay at the end of 2 years and 6 months to settle her debt?
5. When her granddaughter was born, Melay invested ₱ 20 000 at 12%
compounded quarterly. How much money will her granddaughter have on her
18th birthday?

6. Find the amount at the end of 15 years if ₱ 55 000 is invested at an interest


rate of 5% compounded semi-annually for the first 10 years and 3%
compounded quarterly for the next 5 years.
7. Manolo deposited ₱ 120 000 in a fund that pays 5% compounded annually for
the first 3 years, 4 ½% compounded semi-annually for the next 2 years and 3%
compounded quarterly thereafter. If money is invested for 10 years, how much
is in the fund after 10 years?
Activity 4
Present Value

Solve the following. Show your solution.

1. Find the present value of ₱ 300 000 due at the end of 5 years if it is invested
at 5% compounded:
a. annually

b. semi-annually

c. quarterly

d. monthly
2. What sum is needed to accumulate to ₱ 50 000 in 3 years and 5 months if the
interest rate is 7% compounded monthly?

3. Jake wants to have ₱ 20 000 in 2 years to buy a new cell phone. How much
money should he invest today in a fund that earns 3% compounded quarterly
to get this amount?
4. How much must be deposited today in a bank to accumulate ₱ 100 000 after
5 years if the money earns 3.5% compounded semi-annually?

5. How much must be invested today at 3% compounded monthly to have


₱ 1 000 000 in 15 years?
6. Find the present value and compound interest of ₱ 30 000 due at the end of 5
years and 6 months if interest is at 15% compounded quarterly.

7. A certain amount was invested in a fund at a rate of 7 ½% simple interest for


the first 5 years, at 18% compounded monthly for the next 5 years, and at
14% compounded semi-annually for the remaining years. If the total amount
in the fund after 13 years is ₱ 95 300, find the initial amount invested in the
fund.
Activity 5
Credit Cards

Solve the following.


1. A credit card had a previous balance of ₱ 7 000 on May 9. A purchase of
₱ 2 300 was made on May 14, and a payment of ₱ 1 050 was made on May
26. Find the average daily balance, finance charge and current balance if the
billing date is June 9 and the interest rate is 3.5% per month.

2. A credit card account had a balance of ₱ 6 200 on December 1. A purchase of


₱ 1 800 was made on December 9 and a payment of ₱ 2 500 was made on
December 20. Find the average daily balance if the billing date is on
January 1.
3. Cardo’s bill of ₱ 6 000 was due on November 5. A purchase of ₱ 3 100 was
made on November 9 and ₱ 5 200 was charged on November 21. A payment
of ₱ 3 000 was made on November 16. The interest on the average daily
balance is 2.5% per month. Find the average daily balance, finance charge
and current balance if the billing date is every 5th of the month.

4. A credit card statement shows an unpaid balance of ₱ 8 150 on April 3.


Purchases made were: April 8 purchase of ₱ 2 000; April 15 purchase of
₱ 9 200; April 18 payment of ₱ 4 000; and April 23 purchase of ₱ 5 520. Find
the average daily balance, finance charge and current balance if the billing
date is on May 3 and the interest rate is 2.75% per month.
5. Christine made the following transactions: purchase of ₱ 5 520 on July 5;
purchase of ₱ 12 080 on July 12; payment of ₱ 5 000 on July 17 using her
credit card which had an unpaid bill of ₱ 7 200 on July 2. The interest on the
average daily balance is 2.5% per month. The next billing date is August 2.
Find the average daily balance, finance charge and current balance.

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