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HIGH SCHOOL
I: TITLE: PAYMENT PROPOSAL FOR WIGO 1.0 TRD- V8- 003 (CAR LOAN)
A. SIMPLE INTEREST
Given: Given:
P= Php 681,000 P= Php 681,000
r= 34.94% or 0.3494 r= 34.94% or 0.3494
t= 1yr. t= 2yrs.
Solution: Solution:
I= (681,000)(0.3494)(1) I= (681,000)(0.3494)(2)
B. COMPOUND INTEREST
TERM: TWO (2) YEARS
m= 12 m= 4 m= 2
t= 5yrs. t= 5yrs. t= 5yrs.
“The advantage of simple interest is that it is easier to find short term loans and when you have to borrow
money. While the disadvantage, is that if the interest is high then the borrower will pay more.”
>>Alliah Castro
“Regards to our topic, which is the car loan or acquiring a car, for simple or compound interest, the more
that you are given the time or years to pay then the higher it will be. The advantage of this is that you can
pay it in at least low payment or the original price if ever you have the enough money to pay the price.
Otherwise, the disadvantage of this is that if you don’t have enough money to pay then you have to loan it
in the bank but there’ll be an interest.”
>>Penelope Quinto
“Compound interest makes your money grow faster because interest is calculated on the accumulated
interest over time as well as on your original principal. Compounding can create a snowball effect, as the
original investments plus the income earned from those investments grow together. It is great investments
but when it comes to loans it is bad.”
>>Ivan De Jesus