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_______________ 1. This term refers to the amount paid or earned for the amount of money.
_______________ 2. This refers to the amount of money borrowed or invested on the origin date.
_______________ 3. It is a type of annuity where the payment interval and the compounding
period are not the same.
_______________ 4. This refers to the place where the stocks can be bought or sold.
_______________ 5. This is the term used to define the time between successive payments.
_______________ 8. This refers to the amount of the bond written on the certificate.
______________ 10. It is the term used for the interest of the bond.
______ 1. Angela has a computer shop. She owns 6 computers. She decided to borrow some money
from the bank to buy 10 more computers. This is an example of a bussiness loan.
______ 2. Berting decided to purchase a condominium unit near his workplace. He got a loan wort
P2,000,000. This is an example of a consumer loan.
III. Determine whether each of the following statements is a proportion or not. Write P if it is a
proposition and NP if not. ( 1 point each)
1. Simple Interest
Jerome borrowed 5,000 pesos at 5% annual simple interest rate. If he decided to pay after 2
years, how much interest would he pay by then?
Use the formula Is= Prt
P=________ r=________ t=_________ Is=_________
Solution:
3. Compound Interest
Find the maturity value and interest of 50,000 pesos if invested at 5% compounded annually for
8 years.
𝑟
Use the formula Fc= P(1 + )nt
𝑛
P=________ r=________ t=_________ n=_________ Fc= ___________
Ic= ___________
Solution:
4. Stocks
A certain corporation declared a 4% dividend on a stock with a par value of 600 pesos.
Ms. Reyes owns 250 shares of stock with a par value of 600 pesos. How much is the dividend she
received?
Use the formula: D= (DP)(PV)(S)
DP= ____ PV= _____ S= _____ D=_____
Solution:
5. Loan
Mrs. Garcia borrowed 1,000,000 pesos for the expansion of his business. The effective rate of
interest is 7%. The loan is to be paid in full after 2 years. How much is to be paid after 2 years?
t
Use the formula L F = P(1+r)
P=________ r=________ t=_________ FL = _________
Solution:
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