PERFORMANCE TASK

IN
GENERAL
MATHEMATICS
(BUSINESS MATHEMATICS)

WESTERN LEYTE COLLEGE OF ORMOC CITY, INC.

SENIOR HIGH SCHOOL
GRADE 11
ABM A
HARRIETTE MAE L. LABRADA
JHONALIE R. ARRADAZA
KYLA SHANE CHU

SIMPLE INTERST (IS) Interest that is computed on the Principal Amount and
then added to it.

Formula: Is = Prt
where:

Is = Simple Interest
P = Principal
r = Rate
t = Time
 REAL LIFE SITUATIONS INVOLVING SIMPLE INTEREST:
1. Liza went to the bank and borrowed P150, 000 for the expenses of her 18th birthday at
6% interest for 2 years. How much interest will Liza have to pay?

I= ?
P = P150, 000
R = 6% = 0.06
T = 2 years

I = Prt
= (150,000) ( 0.06) ( 2)
Interest = P18, 000
Liza has to pay P18, 000 for her interest. Therefore, the maturity value of her loan is
P168, 000.

2. Julia, an entrepreneur, is planning to open a branch of Redbucks here in Ormoc City.

For a source of capital, she went to OCCCI Coop. to loan P500,000 with 12% interest
rate at 5 years. How much is the amount of Julias interest?

I= ?
P = P500, 000
R = 12% = 0.12
T = 5 years

I = Prt
= (500,000) ( 0.12)(5)
Interest = P300, 000
The amount of Julias interest is P300, 000. Therefore, the maturity value of her loan is
P800, 000.
COMPOUND INTEREST (IC) Interest that is computed on the Principal
Amount and also on the accumulated past interest.

Formula: Compound Interest = Compound Amount Principal

n
A = P (1 +r)
where:

A = Compound Amount
P = Principal
r = Interest Rate
n = Total compounding periods

REAL LIFE SITUATIONS INVOLVING COMPOUND INTEREST:

1. Kathryn invested P23, 000 at 6% interest compounded semi-annually, for 6 years. Find
the compound amount and compound interest.

Compound Interest = ?
A=?
 P = P23, 000
r = 3%
n = 6 years x 2(semi-annually) = 12

A = P (1 + r)n
= 23,000 (1 + 0.03)12
= 23,000 (1.425760887)
A = P32,792.50

Compound Interest = Compound Amount Principal

= P32,792.50 P23,000
Compound Interest = P9,792.50

Kathryns compound interest on her investment which is compounded semi-annually

for 6 years is P9, 792.50. While the compound amount of her investment is P32,
792.50

2. On January 1, 2016, Janine borrowed P12, 000 at 2.75% interest rate compounded
quarterly for 2 years. How much interest should she pay?

Compound Interest = ?
A=?
P = P12,000
r = 2.75% = 0.0275
n = 2 years x 4(quarterly) = 8

A = P (1 + r)n
= 12,000 (1 + 0.0275)8
= 12,000 (1.242380552)
A = P14, 908.57

Compound Interest = Compound Amount Principal

= P14, 908.57 P12,000
Compound Interest = P2, 908.57

Janines compound interest on her investment which is compounded quarterly for 2

years is P2, 908.57. While her compound amount is P14, 908.57.
ORDINARY ANNUITY (Annuity immediate)
- a type of annuity in which payments are made at the end of each
payment interval.

( 1+ j )n1 where:
Formula: FV =R
ordinary annuity j R = Regular Payment
r
1(1+ j) n j= m
PV ordinary annuity= R j
n = mt
r = Interest Rate
m = Time Conversion
t = Time in years

REAL LIFE SITUATION INVOLVING ORDINARY ANNUITY:

1. Anthony deposited his savings in a bank at the end of each year for 5 years, for he is
saving to buy a new motorcycle. The bank paid 7% interest compounded annually. If he
deposited P30, 000 every year, how much did he have deposited, including the
interest, after his 5th deposit?

FV = ? r = 7% = 0.07
R = P30, 000 0.07
m = 12 months in a year j= 12 = 0.0058
t = 5 years
n= mt = 12 months in a year x 5 years
= 60
 ( 1+ j )n1
FV =
ordinary annuity R j

( 1+0.0058 )601
= P30, 000 0.0058

( 1. 414809206 ) 1
= P30, 000 0.0058

0.414809206
= P30, 000 0.0058

= P30, 000 (71.51882864)

FV ordinary annuity = P2, 145, 564.86
Anthony deposited P2, 145, 565.86 overall including the interest after his 5th deposit.

CASH VALUE OR CASH PRICE

- is equal to the down payment (if there is any) plus the present value
of the instalment payments.
Formula: Cash Value = Down Payment + Present Value

REAL LIFE SITUATION INVOLVING CASH PRICE:

1. Karen planned to buy a car from Ford. If she will pursue on buying the car, she will pay
P398, 000 and the remaining amount will be settled by paying P58, 000 for 4 years. If
the interest is 7.25% compounded monthly, what is the cash price of her car?

CV = ?
PV = ?
R = P58, 000
r = 7.25% = 0.0725
0.0725
j= 12 = 0.0060

m = 12 months in a year
t = 4 years
n= mt = 12 months in a year x 4 years = 48

n
1(1+ j)
PV ordinary annuity= R j
48
1(1+0.0060)
= P58, 000 0.0060

1(0.750407084)
= P58, 000 0.0060
 1(0.750407084)
= P58, 000 0.0060
0.249592916
= P58, 000 0.0060

= P58, 000 (41.59881933)

PV ordinary annuity = P2, 412, 731.52

Cash Value = Down Payment + Present Value

= P398, 000 + P2, 412, 731.52
Cash Value = P2, 810, 731.52
The Cash Price of Karens car is P2, 810, 731.52.

PERFORMANCE TASK
IN
GENERAL
MATHEMATICS
(BUSINESS MATHEMATICS)

WESTERN LEYTE COLLEGE OF ORMOC CITY, INC.

SENIOR HIGH SCHOOL
GRADE 11
ABM A
HARRIETTE MAE L. LABRADA
JHONALIE R. ARRADAZA