LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES

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1 LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES MATH118: Mathematical Investigation and Modeling Name: Date: Course: Instructor: Year and Section: Score:

2 LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES FIRST SEMESTER, AY MATH118: Mathematical Investigation and Modeling Problem Set # 3 Part I: The Concept of Compound Interest Direction: Using the long method in computing the compound interest, solve the following problem. Kindly indicate your answer on the space provided for. Please avoid any form of erasures Find the compound amount and interest if P25, is invested for 1 year at the rate of 11.5% compounded: (a) annually (for 5 points) (b) semi-annually (8 points)

3 (c) quarterly (for 10points) (d) monthly (for 17 points)

4

5 Part II: Finding the Compound Amount and Interest Using the Formula Direction: Using the formula in computing the compound interest, solve the following problem. Kindly indicate your answer on the space provided for. Please avoid any form of erasures Derive the formula for finding the Compound Amount. In each step, indicate your reason. Please show your derivation on the space provided for. Derivation of the Formula for S: Formula: How much will P1, amount to in 4 years and 6 months at 7% compounded semiannually?

6 Mr. Pinagpala owes Mr. Matulungin P30, due now. Mr. Pinagpala offers to pay the principal a simple interest at the rate of 5% after 5 years. Mr. Matulungin insists on charging 5% compounded quarterly. Who benefits from the offer? By how much?

7 Part III: Finding the Present Value at Compound Interest Direction: Using the formula in computing the present value, solve the following problem. Kindly indicate your answer on the space provided for. Please avoid any form of erasures Derive the formula for finding the Present Value. In each step, indicate your reason. Please show your derivation on the space provided for. Derivation of the Formula for P: Formula: Find the present value of P1, due in 3 years and 9 months if money is worth 10%, compounded quarterly?

8 Mrs. Mapagmahal wants to provide a P200, graduation gift for her son Angelito. He is now 16 years old, and she would like the fund be available by the time he is 20. She decides on an investment that pays 10% compounded quarterly. How large must the deposit be?

9 Part VI: Finding the Nominal Rate Direction: Using the formula for finding the nominal rate, solve the following problem. Kindly indicate your answer on the space provided for. Please avoid any form of erasures Derive the formula for finding the Nominal rate. In each step, indicate your reason. Please show your derivation on the space provided for. Derivation of the Formula for j: Formula: The maturity value of a five year, P7, compound-interest investment certificate was P9, What quarterly compounded nominal interest rate did the investment certificate earn?

10 Mrs. Miracle Miragling paid P16, for a P24, face value having 6 years remaining until maturity. What semiannually compounded rate of return will she earn on her investment?

11 Part VII: Finding the Time Direction: Using the formula for finding the time, solve the following problem. Kindly indicate your answer on the space provided for. Please avoid any form of erasures Derive the formula for finding the Time. In each step, indicate your reason. Please show your derivation on the space provided for. Derivation of the Formula for t: Formula: When is P47, due if its present value of P38, is invested at 9% compounded bimonthly?

12 How long will it take to P4, to accumulate to P5, at 9%, compounded semiannually?

LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES

LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES LA SALLE COLLEGE ANTIPOLO 1985 LA SALLE AVENUE, TOWN & COUNTRY HEIGHTS SAN LUIS, ANTIPOLO CITY, 1870 RIZAL, PHILIPPINES BMATH2: Mathematics of Investment Problem Set 2 Name: Date: February 22, 2016 Course:

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