GenMath 2

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Created by
hana uy

Subdecks (1)

Cards (71)

  • 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 loanis to be completely repaid
  • Time or term (𝑑) – 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 (π‘Ÿ) – annual rate, usually in percent, charged by the lender, or rate ofincrease of the investment
  • Interest (𝐼) – amount paid or earned for the use of money
  • Simple Interest (𝐼𝑠) – interest that is computed on the principal and then addedto it
  • Maturity value or future value (𝐹) – amount after οΏ½οΏ½ years that the lender receivedfrom the borrower on the maturity date
  • PhP53,750.00 - How much interest is charged when PhP50,000 is borrowed for 9 months at an annual simple interest rate of 10%? What is the maturity value?
  • When invested at an annual interest rate of 7%, an amount earned PhP11,200 of simple interest in two years. How much money was originally invested? What will be the future value? Amount originally invested: PhP80,000 Future value: PhP91,200
  • If an entrepreneur applies for a loan amounting to PhP500,000 in a bank, the simple interest of which is PhP157,500 for 3 years, what interest rate is being charged? 10.5%
  • How long will PhP40,000 amount to PhP51,200 if the simple interest rate is 12% per annum?
    Answer: 2.33 years
  • Compound Interest (𝐼𝑐) –interest is computed on the principal and also on the accumulated past interests
  • Find the maturity value and the compound interest if PhP50,000 is invested at 5% compounded annually for 8 years.
    F: PhP73,872.77
    Ic: PhP23,872.77
  • 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 PhP200,000 after 6years?
    Answer: PhP187,293.65
  • Frequency of conversion (π‘š) – number of conversion periods in one year
  • Conversion or interest period (t) – time between successive conversions of interest
  • Total number of conversion periods (𝑛) – frequency of conversion Γ—time in years, n=mt
  • Nominal rate (𝑖(π‘š)) – annual rate of interest
  • Rate (𝑗) of each conversion period:
    𝑗 = 𝑖(π‘š)π‘š = π‘Žπ‘›π‘›π‘’π‘Žπ‘™ π‘Ÿπ‘Žπ‘‘π‘’ π‘œπ‘“ π‘–π‘›π‘‘π‘’π‘Ÿπ‘’π‘ π‘‘/π‘“π‘Ÿπ‘’π‘žπ‘’π‘’π‘›π‘π‘¦ π‘œπ‘“ π‘π‘œπ‘›π‘£π‘’π‘Ÿπ‘ π‘–π‘œπ‘›
  • Find the maturity value and interest if PhP10,000 is deposited in a bank at 2% compounded quarterly for 5 years.
    Answers:
    F: PhP11,048.96
    Ic: PhP1048.96
  • Find the present value of PhP50,000 due in 4 years if money is invested at 12% compounded semi-annually.Answer: PhP31,370.62
  • How long will it take PhP3,000 to accumulate to PhP3,500 in a bank savings account at 0.25% compounded monthly? n=?
    n=740
    t=61.67 years
  • How long will it take PhP1,000 to earn PhP300 if the interest is 12%compounded semi-annually?
    n=5
    t=2.5 years
  • At what nominal rate compounded semi-annually will PhP10,000accumulate to PhP15,000 in 10 years?
    Answer: 4.1%
  • At what interest rate compounded quarterly will money double itself in 10years?
    Answer: 1.7%