GEN MATH 2ND QUARTER

• Interest is a fee paid for the use of another party’s money, to the borrower, it is the cost of renting money; to the lender, it is the income from lending it.
• Principal (P) is the amount of money invested or the loan amount.
• Interest rate (r) is the rate at which interest is calculated.
• Term (t) is the number of days, months or years for which the money is borrowed and the interest is based or calculated.
• Final amount or maturity value (F) is the sum of the principal and the interest accumulated at a certain time.
• Interest = (Principal)(Rate)(Time) is the formula for simple interest.
• Simple interest is calculated as P = r = t.
• Bank loan process involves capital (borrower), principal (P), interest rate (r), term (t), and final amount or maturity value (F).
• Repayment in a bank loan involves interest (I) calculated as I = Prt, and final amount (F).
• Deposit P at Security Bank and compute exact interest at 12 percent after 12 days.
• Interest, approximate time is calculated using approximate time.
• Ordinary Interest is calculated using actual time.
• Deposit P800 at B and compute its ordinary interest at 17.5% after 175 days.
• Interest between dates is calculated using actual time.
• Interest, actual time is calculated using actual time.
• Dine at Hut for P 95 and get a discount worth 8%% percent.
• Exact Interest is calculated using actual time.
• Actual time is the exact or actual number of days in any given month.
• Final amount is the amount after the discount.
• Discount is the difference between the original price and the sale price.
• Approximate time presumes that all the months in the year have 30 days each.
• College Algebra book is worth P5 and can be purchased at a discount of 5%.
• Examples of bank loans include borrowing P500 from a partner for a year at an interest of 6.5% and repaying it after a year, and borrowing P3,000 for 4 years at 5% interest rate.
• Examples of bank loans also include Cyndi borrowing ₱30,000 from a bank and paying ₱3,375 for 2 years at a certain rate, and John wanting to have an interest income of ₱3,000 a year and investing ₱8,000 for one year at 8%.
• Compound interest is the interest that is added to the old principal to make a new principal on which interest is again calculated for the next period, denoted by Ic.
• Compound interest is calculated as Ic = (1 + r/n) ^nt, where n is the number of compounding periods.
• Compound interest can be calculated on a daily, weekly, monthly, quarterly, semi annually, or annually basis.
• Compound interest can also be calculated for a specific time period, such as 1 year, 6 months, or 12 months.
• Compound interest can be calculated for a specific number of compounding periods, such as 1, 2, 4, or 8.
• Compound interest can be calculated for a specific interest rate, such as 0.11 or 0.001.
• Compound interest can be calculated for a specific term, such as 1 year, 2 years, or 3 years.
• Compound interest can be calculated for a specific final amount or maturity value, such as ₱1,000, ₱2,000, or ₱3,000.
• Compound interest can be calculated for a specific interest rate and term, such as 0.11 compounded quarterly.