General Mathematics

Week 1: SIMPLE INTEREST Given:

P = 252,000 r = 4% = 0.04 t = 14 years I = ?
Simple interest - is calculated by multiplying the Solution:
interest rate by the principal amount and the time. I = Prt
= (252,000) (0.04) (14)
General formula: = 141 120
Answer:
= 141 120

Example: 2 getting the MV/F ( maturity value )

Find the maturity value of a ₱98,500 debt payable in
3 months at simple interest rate of 7 ½%?
Derived Formula:
Given:
P = 98,500 r = 7 ½ % = 7.5% = 0.075
t = 3 months (check the condition for t) = 3/12
MV/F =?
Solution:
Since I is also unknown, we can use the formula F = P
(1 + rt)
F = P (1 + rt)
= 98,500 (1 + (0.075 x 3/12) )
Maturity value - is the sum of the principal and the = 100 346.88
interest that accumulates over the agreed term. Answer: ₱100 346.88

General Formula: (any of the formulas will do get the Example: 3 getting the r ( rate )
same future/maturity value) At what simple interest rate was ₱42,000 invested if it
earned an interest value of ₱5, 400 just after 2.5
MV = P + I, MV = P + Prt, MV = P (1 + rt) years?

F = P + I, F = P + Prt , F = P (1 + rt) Given:

P = ₱42,000 I = ₱5, 400 t = 2.5 years r = ?
Conditions for t (Term/Time) - The term t is expressed Solution:
in years in the formulas. If the given term is in months, Since r is unknown, the answer should be express in
days, or between two dates, you need to do some percentage form, we can use the formula:
conversions. r = I/PT × 100 =
r = 5,400/42,000(2.5 ) × 100 = 5.14
if t is given in months, then 𝑡 = number of months/12 r = 5.14
If t is given in days, then consider the ff: Answer: 5.14%
ORDINARY TIME/Banker’s Rule (Approximate Time) –
assumes that each of the 12 months in Example: 4 getting the t ( time )
a year has 30 days for a total of 360 days
How long will it take a ₱150,600 debt to earn
EXACT TIME (Actual Time) – exact number of inclusive
days of transaction 365 days, thus: an interest value of ₱12,400 being charged
with 7% simple interest rate?
t = number of days/360 or t = number of days/365 Given:
Unless otherwise specified, 360 days is used. P = ₱150,600 I = ₱12,400 r = 7% = 0.07 t = ?
Solution:
Example: 1 getting the I ( simple interest )
Solve for the interest earned after 14 years if 252,000 Since t is unknown, the said formula for term
pesos is deposited in a savings account which earns will always give us an answer in the form of
4% simple interest. years:
t = I/Pr Week 2: COMPOUND INTEREST
t = 12,400/150,600(0.07) Compound Interest - is the process in which
t = 1.18 the interest is periodically calculated and
to express years into months just simply added to the principal.
multiply by 12 hence,
=1.18 x 12 = 14.16 months In working with problems involving interest,
Answer: 1.18 years/ 14.16 months we use the term payment period as follows:

Example: 5 getting the P ( principal value × Compounding/Conversion Frequency -

exact time ) No. of Conversions Per Year (m)
A 210-day exact time investment had a Annually - 1
maturity value of ₱122,500. If simple interest Semiannually - 2
was applied at a rate of 5.7%, Find the value Quarterly - 4
of the principal. Bimonthly - 6
Monthly - 12
Given: Daily - 365 or 360
F = ₱122,500 r = 5.7% = 0.057
t = 215 (check the condition for t exact time) Formulas:
= 215/365 Future Value
Solution: F = P (𝟏 + 𝒊)𝒏 or F = P (𝟏 +𝒓/𝒎)𝒎𝒕
Since P is unknown, and F is given we can Present Value
P = 𝑭(𝟏+𝒊)𝒏 or P = F (𝟏 + 𝒊)−𝒏
use the formula:
Compound Interest
P = F/1+rt
𝑰𝑪 = F – P
P = 122,500/1+(0.057)(210/365)
i = 𝒓/𝒎 , n = mt
P = = 118,610. 23 Rate
Answer: ₱118,610. 23 r = m ( 𝒏√𝑭/𝑷 - 1) x 100 or r = m 𝒎𝒕√𝑭/𝑷 - 1 x 100
Time
Example: 6 getting P ( principal value × t = 𝒍𝒐𝒈𝑭/𝑷 / 𝒎[𝒍𝒐𝒈(𝟏+𝒊)]
ordinary time )
Compute for the principal from a loan P – Principal
having a simple interest value of ₱12,500 r – Nominal interest rate (should always be
and rate of 7.3% payable after 344 days. expressed in decimal form)
m – Number of conversions per year
j - Rate per conversion period
Given:
n -Total number of conversion periods
I = ₱12,500 r = 7.3% = 0.073
t – Time or term of loan or investment
t = 344 (since there was no indicated 𝑰𝑪 – Compound interest
ordinary or exact time, we will use ordinary F – Maturity or future value
time) = 344/360
Solution: Example: 1 Find the F and 𝑰𝑪 ( future value and
Since I is given we can use the formula: compound interest )
P = I/rt Solve for the compound interest earned at the
P = 12,500/0.073(344/360) end of 6 years if ₱17,500 is invested at 9%
P = 179 197.20 compounded bimonthly.

Answer: ₱179 197.20

Given: r = 18% = 0.18
P = ₱17,500 t = 8 months = 8/12
r = 9% = 0.09 m=6
t = 6 years n = mt = ( 8/12) (6) = 4
m=6 i = 𝒓/𝒎=0.18/6 = 0.03
n = mt = 6(6) = 36 find: F = ?
i = 𝒓/𝒎= 0.09/6 = 0.015 Solution:
find: F = ? F = P(𝟏 + 𝒊)𝒏
find: 𝑰𝑪 = ? =15,200(1 + 0.18)⁴
Solution: Answer: F = ₱ 29,469.42
F = P (1 + i)^n
= 17,500 (1 + 0.015)³⁶ Example: 4 Find the r ( rate )
Answer: F = ₱ 29, 909.94 The Future value of a ten-year, ₱5,722
𝑰𝑪 = F - P compound interest investment certificate was
= ₱ 29, 909.94 - ₱ 17,500 ₱ 100, 587. What quarterly compounded
Answer: 𝑰𝑪 = ₱ 12, 409.94 nominal interest rate did the investment
certificate earn?
Example: 2 Find the P ( present value )
In what amount must be invested right now in a Given:
savings account earnings 10% compounded F = ₱100,587
semi-annually to accumulate a total of ₱ 222, P = ₱5,722
400 after 5 3/12years? t = 10 years
m=4
Given: n = tm = (10) (4) = 40
F = ₱222, 400 find r = ?
r = 10% = 0.10 Solution:
t = 5 3/12years = 5.25 years r = m 𝒏√𝑭/𝑷 – 1
m=2 = 4( ⁴⁰√100,587/5,722 - 1) x 100
n = mt = (5.25) (2) = 10.5 = 0.297 192 820 x 100
i = 𝒓/𝒎 = 0.10/2 = 0.05 = 0.297 192 820 = 0.297 192 820 x 100
find: P = ? Answer: r = 29. 72%
Solution:
a. Example: 5 Find the t ( time )
P = 𝑭/(𝟏+𝒊)𝒏 How long does it take if a future value of
= = 222,400/(1+0.05)10.5 ₱125,625 and a present value of ₱13,652 is
Answer: P = ₱133, 243.84 invested at 6% compounded monthly?
b.
P = 𝑭(𝟏 + 𝒊)−𝒏 Given:
= 222 400(1 + 0.05)−10.5 F = ₱125,625
Answer: P = ₱133, 243.84 P = ₱13, 652
r = 6% = 0.06
Example: 3 Find the F ( future value ir maturity m = 12
value ) i = 𝒓/𝒎 = 0.06/12 = 0.005
What will be the future value of ₱15,200 invested find t = ?
for 8 months at 18% compounded bimonthly? Solution:
t = 𝒍𝒐𝒈 𝑭/𝑷 / 𝒎[𝒍𝒐𝒈(𝟏+𝒊)]
Given: = 𝒍𝒐𝒈125,625/13,625 / 𝟏𝟐[𝒍𝒐𝒈(𝟏+𝟎.𝟎𝟎𝟓)]
P = ₱15,200 = 37. 115 730 154 Answer: t = 37.12 years
Week 3: ANNUITY (SIMPLE ANNUITY) FORMULAS:

CLASSIFICATION OF ANNUITIES
A. According to Payment Interval and Interest
Period
1. SIMPLE ANNUITY – an annuity where the
payment interval is the same as the interest
period.
2. GENERAL ANNUITY – an annuity where the
payment interval is not the same as the interest
period.
B. According to Payment Schedule
1. Ordinary Annuity – a type of annuity in which Where:
the payments are made at the end of each j = nominal interest rate
payment interval. m = number of conversions per year
Examples: t = time (term) of the loan or investment
● installment basis of paying a car, appliance, n = number of payments in the annuity
house and lot R = size of each annuity payment (periodic
● tuition fee payment)
● salaries i = interest rate per compounding period
● stock dividends 𝑆𝑛 = Future Value of an n- payment ordinary
2. Annuity Due – a type of annuity in which the simple annuity
payments are made at the beginning of each 𝐴𝑛 = Present Value of an n- payment ordinary
payment interval. simple annuity
Examples:
● Rent Steps in Solving:
● Educational insurance plan 1. Determine the value of the initial deposit or
C. According to Duration (Term) payment (R).
1. Annuity Certain – an annuity in which 2. Determine n, the number of deposits by
payments begin and end at definite times multiplying the time (t) of the loan or investment
(specific by the number of conversions per year (m).
number of time periods). 3. Determine i by dividing the annual interest
Examples: rate (j) by the number of times per year that
● Mortgage payment of house interest is compounded (m).
● Salary 4. Substitute values for R, i, and n into the
● Installment plans formula.
2. Contingent Annuity – an annuity in which the 5. Simplify to find the 𝑆𝑛 and 𝐴𝑛, the value of the
payments extend over an indefinite annuity after n deposits
(indeterminate) length of time.
Examples: Future Value of an Annuity - is the total value of
● Life insurance that ceases when the person a series of recurring payments at a specified
insured dies. date in the future.
● Pension payments
Example 1: Multiply
Raquelle decides to invest Php 105, 000 per year = 17 477.967 225 329
for the next seven years in an annuity, Round Off to Hundredths Place
compounded at 7% annually. ANSWER: 𝑆𝑛 = Php 17, 477.97

Given: Solution:
R = php 105, 000 t = 7 years j = 7% = 0.07 m = 1 𝑆𝑛 = 𝑅 [(1+𝑖)𝑛−1 / 𝑖]
n = tm i = 𝑗/𝑚 Substitute the values for R, i, and n
= (7)(1) = 0.07/1 = 1 450 [(1+0.0008125)¹² −1 / 0.0008125 ]
n=7 i = 0.07 Simplify (1+0.000812)¹²
Solution: = 1 450 [1.009793689−1 / 0.0008125 ]
𝑆𝑛 = 𝑅 [ (1+𝑖)𝑛−1 / 𝑖 ] Subtract (1.009793689 – 1)
Substitute the values for R, i, and n = 1 450 [0.009793689 / 0.0008125 ]
= 105 000 [ (1 + 0.07)⁷ −1 / 0.07 ] Divide (0.009793689 / 0.0008125)
Simplify (1+0.07)⁷ = 1 450 (12.05377108)
= 105 000 [ 1.605781476 −1 / 0.07 ] Multiply
Subtract (1.605781476 – 1) = 17 477.967 225 329
= 105 000 [ 0.605781476 / 0.07 ] Round Off to Hundredths Place
Divide (0.605781476 / 0.07) ANSWER: 𝑆𝑛 = Php 17, 477.97
= 105 000 (8.654021093)
Multiply
Present Value of an Annuity - The current value
= 908, 672.214717645
of Future Payments from an annuity given a
Round Off to Hundredths Place
specified rate of return of discount rate.
ANSWER: 𝑆𝑛 = Php 908, 672.2

Example 1:
Example 2:
Suppose Mr. Jaro can receive an ordinary
In order to save for his tuition fee, Rainner
annuity that pays Php 76, 400 yearly for the next
decided to save Php 1, 450 every three months.
22 years, with a 7% discount annual rate, or take
If the bank pays 0. 325% compounded quarterly,
a Php 783, 450 lump sum payments. Which is the
how much will his money be at the end of
better option?
3 years?

Given:
Given:
R = php 76 400 t = 22 years j = 7% = 0.07 m = 1
R = php 1450 t = 3 years j = 0.325% = 0.00325 m=4
n = tm i = 𝑗/𝑚
n = tm i = 𝑗/𝑚
= (22)(1) = 0.07/1
= (3(4) =0.00325/4
n = 22 i = 0.07
n = 12 i = 8.125𝑥10−04 or 0.0008125
Solution:
𝐴𝑛 = 𝑅 [1−(1+𝑖)−𝑛 / 𝑖]
Solution:
Substitute the values for R, i, and n
𝑆𝑛 = 𝑅 [(1+𝑖)𝑛−1 / 𝑖]
= 76 400 [1−(1+0.07)-²² / 0.07 ]
Substitute the values for R, i, and n
Simplify (1+0.07-²²)
= 1 450 [(1+0.0008125)¹² −1 / 0.0008125 ]
= 76 400 [1−0.225713165 / 0.07 ]
Simplify (1+0.000812)¹²
Subtract (1– 0.225713165)
= 1 450 [1.009793689−1 / 0.0008125 ]
= 76 400 [0.774286835 / 0.07 ]
Subtract (1.009793689 – 1)
Divide (0.774286835 / 0.07)
= 1 450 [0.009793689 / 0.0008125 ]
= 76 400 (11.0612405)
Divide (0.009793689 / 0.0008125)
Multiply
= 1 450 (12.05377108)
= 845 078.774 004 223
Round Off to Hundredths Place Where:
ANSWER: 𝐴𝑛 = Php 845, 078.77 j = nominal interest rate
m = number of conversions per year
Example 2: t = time/period (term) of the loan or investment k
Mr. Leo invested his savings to a small-scale = number of payments per year
business that pays back Php 11, 320 at the end n = number of payments in the annuity
of every two months for 10 years. What is the R = size of each annuity payment (periodic
present value of all the payments if money payment)
can earn 7% compounded bimonthly? i = interest rate per conversion/ compounding
period
Given: f = effective interest rate per payment interval
R = php 11 320 t = 10 years j = 7% = 0.07 m = 6 c = number of conversion periods per payment
n = tm i = 𝑗/𝑚 interval
= (10) (6) = 0.07/6 𝑺𝒏𝒄 = Future Value of an n- payment ordinary
n = 60 i = 0.011666666 general annuity
Solution; 𝑨𝒏𝒄 = Present Value of an n- payment ordinary
𝐴𝑛 = 𝑅 [1−(1+𝑖)−𝑛 / 𝑖] general annuity
Substitute the values for R, i, and n
= 11 320 [1 − (1+0.011666666)−⁶⁰ / 0.011666666 ] Steps in Solving:
Simplify (1 + 0.011666666)-⁶⁰ 1. Determine the value of the initial deposits/
= 11 320 [1 − 0.498601494 / 0.011666666 ] payments (R).
Subtract (1 – 0.498601494) 2. Determine (k), the number of deposits/
= 11 320 [0.501398506 / 0.011666666] payments per year.
Divide (0.501398506 / 0.011666666) 3. Determine (n), the number of payments/
= 11 320 (42.97701726) deposits by multiplying the time/period (t) of the
Multiply loan or investment by the number of payments
= 486 499.826 449 per year (k).
Round Off to Hundredths Place 4. Determine i by dividing the nominal interest
ANSWER: 𝐴𝑛 = Php 486, 499.83 rate (j) by the number of conversion period per
year (m).
Week 4: ANNUITY (GENERAL ANNUITY) 5. Determine (c) by dividing the number of
conversion period (m) by the number of
Annuity - is an investment or payment in which deposits/
the purchaser or investor makes a payments per year (k).
sequence of periodic, equal payments. 6. Determine the value of (f) effective interest
rate per payment interval.
FORMULAS: 7. Substitute values for R, f, and n into the
formula.
8. Simplify to find the Future value of an annuity
(𝑺𝒏𝒄) or the Present Value of an annuity
(𝑨𝒏𝒄) per n deposits.

Future Value of an Annuity - is the total value of

a series of recurring payments at a specified
date in the future.
Example 1: If Php 6, 752 is invested at the end of Solution:
every two months at 14% compounded Note: Values for i and f must not be rounded off.
quarterly, what will be the total value of the 𝑺𝒏𝒄 = 𝑹[(𝟏+𝒇)𝒏−𝟏 / 𝒇]
periodic investments after 13 years? Substitute the values for R, f, and n
= 11 504 [(1+0.014466592)¹⁶⁸−1 / 0.014466592 ]
Given: Simplify (1 + 0.014466592)¹⁶⁸
R = Php6 752 t = 13 years j = 14% = 0.14 m = 4 k=6 = 11 504 [11.16713926−1 / 0.014466592 ]
n = tk i = i/m c = m/k Subtract (11.16713926 – 1)
= (13) (6) = 0.14/4 = 4/6 = 11 504 [10.16713926 / 0.014466592]
n = 78 i = 0.035 c = 0.666666666 Divide [ 10.16713926 / 0.014466592]
𝑓 = (1 +𝑖)𝑐 − 1 = 11 504 [702.8012722]
= (1 + 0.035)⁰.⁶⁶⁶⁶⁶⁶⁶⁶⁶ – 1 Multiply
=1.023199297 – 1 = 8, 085, 025.836
𝑓 = 0.023 331 974 Round off up to 2 decimal places
Solution: 𝑺𝒏𝒄 = 𝑷𝒉𝒑 𝟖, 𝟎𝟖𝟓, 𝟎𝟐𝟓. 𝟖𝟒
Note: Values for i and f must not be rounded off.
𝑺𝒏𝒄 = 𝑹[(𝟏+𝒇)𝒏−𝟏 / 𝒇] Present Value of an Annuity - is the current value
Substitute the values for R, f, and n of future payments from an annuity given a
= 6 752 [(1+ 0.023 331 974)⁷⁸ −1 / 0.023 331 974 ] specified rate of return or discount rate.
Simplify (1 + 0.023199297)⁷⁸
= 6 752 [6.043 526 373−1 / 0.023 331 974 ] Example 1: Find the present value of an annuity
Subtract (6.043 526 373 – 1) which pays Php 2, 521 at the end of every 2
= 6 752 [5.043 526 373 / 0.023 331 974] months for 7years if money is worth 7%
Divide [5.043 526 373 / 0.023199297 ] compounded quarterly.
= 6 752[217.399 965 728]
Multiply Given:
ANSWER: 𝑺𝒏𝒄 = 𝑷𝒉𝒑 𝟏, 𝟒𝟓𝟖, 𝟔𝟕𝟐. 𝟏𝟗 R = Php 2, 521 t = 7 years j = 7% = 0.07 m = 4 k = 6
Round off up to 2 decimal places n = tk i = j/m c = m/k
= (7) (6) = 0.07/4 = 4/6
Example 2: Find the future value of an annuity n = 42 = i = 0.0175 = c = 0.666666666
payable by php 11, 504 at the end of each 𝑓 = (1 + 𝑖)𝑐 − 1
month for 14 years if the rate of interest is 18% = (1 + 0.0175)⁰.⁶⁶⁶⁶⁶⁶⁶⁶⁶ – 1
compounded semiannually. = 1.011632901 – 1
𝑓 = 0.011632901
Given: Solution:
R = Ph11504 t = 14 years j = 18% = 0.18 m = 2 k=12 Note: Values for i and f must not be rounded off.
n = tk i = j/m c = m/k 𝑨𝒏𝒄 = 𝑹[𝟏 − (𝟏+𝒇)−𝒏 / 𝒇]
= (14)(12) = 0.18/2 = 2/12 Substitute the values for R, f, and n
n = 168 i = 0.09 c = 0.166666666 = 2 521 [1− (1+0.0116329)−⁴² / 0.00116329 ]
𝑓 = (1 + 𝑖)𝑐 – 1 Simplify (1 + 0.0116329)−⁴²
= (1+0.09)⁰.¹⁶⁶⁶⁶⁶⁶⁶⁶ - 1 = 2 521 [1 − 0.615228314 / 0.0116329 ]
𝑓 = 0.014466592 Subtract (1 – 0.615228314)
= 2 521 [0.384771686 / 0.0116329 ]
Divide [ 0.384771686 / 0.00116329 ]
= 2 521 [33.07616209]
Multiply Where:
= 83 385. 004512 P - is the part of the stockholder’s ownership of
Round off up to 2 decimal places the company
ANSWER: 𝑨𝒏𝒄 = 𝑷𝒉𝒑 𝟖𝟑, 𝟑𝟖𝟓. 𝟎𝟎 So - is the number of shares which the
stockholder owns.
Example 2: Gary bought a rolling store and 𝑺𝑻 - is the total number of shares issued by
agreed to pay Php 27, 305 every 3 months for 2 company.
1/2years. What is the present value of the rolling
store if the interest rate is 7% compounded per share use the formula:
semiannually? 𝒏 = 𝒕𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅 / 𝒕𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒔𝒉𝒂𝒓𝒆𝒔
total amount of dividend use the formula:
Given: 𝒏 = 𝑷𝒂𝒓 𝑽𝒂𝒍𝒖𝒆 𝒙 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅 𝑹𝒂𝒕𝒆 𝒙 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑺𝒉𝒂𝒓𝒆
R = Php 27, 305 t = 2 1/2 yrs. = 2.5 yrs. j = 7% = 0.07
m=2k=4 Example 1: Mr. Santos owns 450 shares of stocks
n = tk i = j/m c = m/k 𝑓 = (1 + 𝑖)𝑐 − 1 in a company that issued 85 000 shares. What
= (2.5) (4) = 0.07/2 = 2/4 = (1 + 0.035)⁰.⁵ – 1 part of company is owned
n = 10 i = 0.035 c = 0.5 = 1.017349497 – 1 by Mr. Santos?
f = 0.017349497 Given:
Solution: So= 450 and ST = 85 000
Note: Values for i and f must not be rounded off. Solution:
𝑨𝒏𝒄 = 𝑹[𝟏 − (𝟏+𝒇)−𝒏 / 𝒇] The value of P is Computed by using the
Substitute the values for R, f, and n formula:
= 27 305 [1− (1+0.017349497)−¹⁰ / 0.017349497 ] 𝑷 = 𝑺𝒐 / 𝑺𝑻
Simplify (1 + 0.017349497)−¹⁰ 𝑃 = 450 / 85 000
= 27 305 [1 − 0.84197317 / 0.017349497 ] ANSWER: 𝑃 = 9 / 1700
Subtract (1 – 0.84197317) Therefore, Mr. Santos owns 9/1700 𝑜𝑟 0.01 % of
= 27 305 [ 0.15802683 / 0.017349497] the company.
Divide [0.15802683 / 0.017349497]
= 27 305 [9.108438706] Example 2: A certain financial
Multiply institutiondeclared a P10,000,000 dividend for
= 248 705.9189 the common stocks. If there are a total of 70,000
Round off up to 2 decimal places shares of common stock, how much is the
ANSWER:𝑨𝒏𝒄 = 𝑷𝒉𝒑 𝟐𝟒𝟖, 𝟕𝟎𝟓. 𝟗𝟐 dividend per share?
Given:
Week 5: STOCKS AND BONDS Total number of Dividend = P10,000,000
Total number of Shares = 70,00
Stocks - are pieces of a company's ownership. Solution:
Par Value - The value of the stock printed in 𝒏 = 𝒕𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒅𝒊𝒗𝒊𝒅𝒆𝒏𝒅 / 𝒕𝒐𝒕𝒂𝒍 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒔𝒉𝒂𝒓𝒆𝒔
the certificate. 𝑛 = 10 000 000 / 70 000
ANSWER: n = 𝑃ℎ𝑝. 142.86
A stockholder’s ownership of a company can The amount of dividend per share is Php 142.86.
be computed by using the formula:
𝑷 =𝑺𝒐/𝑺𝑻
Example 3:A certain corporation declared a Therefore, the current yield of a bond purchased
2.5% dividend on a stock with a par value of at a par value is equal to the interest rate.
P1000. Mrs. Cruz owns 250 shares of stock with a b. The current yield at Php 30 000 is computed
par value of P1000. How much is the dividend as follows.
she received?
𝑌 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 / 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑑 𝑝𝑟𝑖𝑐𝑒 =
Given: (65 000)(0.07) / 30 000 = 0.1517 = 15.17%
Divident Rate= 2.5% = 0.025 c. The current yield at Php 18 000 is computed as
Par Value= Php 1000 follows.
Number of Shares= 250 𝑌 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 / 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑑 𝑝𝑟𝑖𝑐𝑒 =
Solution: (65 000)(0.07) / 18 000 = 0.2528 = 25%
𝒏 = 𝑷𝒂𝒓 𝑽𝒂𝒍𝒖𝒆 𝒙 𝑫𝒊𝒗𝒊𝒅𝒆𝒏𝒅 𝑹𝒂𝒕𝒆 𝒙 𝑵𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝑺𝒉𝒂𝒓𝒆
𝑛 = 1000 𝑥 0.025 𝑥 250 Week 6: PROPOSITIONAL LOGIC, TAUTOLOGY,
ANSWER: 𝑛 = 6250 FALLACY AND CONTINGENCY
Therefore, Mrs. Cruz will receive the amount of
Php. 6250 as dividend shares. Propositional logic - also known as sentential
logic, is that branch of logic that studies ways of
bond - is a document that certifies or proves the combining or altering statements or propositions
issuer's debt to the investor. to form more complicated statements or
propositions.
Example 1:
Find the periodic interest on a bond with a par Compound proposition - a proposition formed
value of Php 85 000 which pays 2% interest in 3 from simpler proposition using logical connectors
months. or some combination of logical connectors.
Solution:
Let I be the periodic Interest. Some logical connectors involving propositions p
The periodic interest is computed as follows and/or q may be expressed as follows:
𝑰 = 𝑷𝒂𝒓 𝑽𝒂𝒍𝒖𝒆 𝒙 𝑹𝒂𝒕𝒆 𝒙 𝒏𝒖𝒎𝒃𝒆𝒓 𝒐𝒇 𝒎𝒐𝒏𝒕𝒉𝒔 / 𝟏𝟐 𝒎𝒐𝒏𝒕𝒉𝒔 not p
𝐼 = 85 000 𝑥 0.02 𝑥 3 / 12 p and q
ANSWER: I = 425 p or q
Example 2:Compute the current yield of a bond if p, then q
whose par value is Php 65 000, and which pays
an annual interest of 7%, if it is purchased at: Example:
a. Par Value Simple:
b. Php 30 000 1.Mindanao is an island in the Philippines.
c. Php 18 000 2.144 is a perfect square.
3.My seatmate will get a perfect score in the
Solution: 4.ogic exam.
a. Let Y be the current yield. The current yield at 5.3+2 =5
par value of 65 000 is computed as follows.
𝑌 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 / 𝑝𝑢𝑟𝑐ℎ𝑎𝑠𝑒𝑑 𝑝𝑟𝑖𝑐𝑒 =
(65 000)(0.07) / 65 000 = 0.07 = 7%
Compound:
The year 2016 is a leap year and the equation 𝑥
2 + 1 has no real solutions.Either logic is fun and
interesting, or it is boring.If you are more than 60
years old, then you are entitled to a Senior
Citizen’s card, and if you are entitled to a Senior
Citizen’s card, then you are more than 60 years
old.
It is not the case that it is Monday today.
In general, a truth table involving 𝑛 propositions
Logical Connectors has 2𝑛 rows.
•Since a proposition has two possible truth
values, a proposition 𝑝 would have the following pe propositions are usually negated by either
truth table. the insertion or deletion of the word “not.” The
symbol ∼ denotes not. Given a statement p, the
sentence ∼ p is read not p and is defined
through its truth table.

•Truth tables can also be used to display various

combinations of the truth values of two
propositions 𝑝 𝑎𝑛𝑑 𝑞. The rows of the table will
Example:
correspond to each truth value combination of
p: “It is snowing”.
𝑝 𝑎𝑛𝑑 𝑞, so there will be 2²= 4 rows.
∼ p: “It is not snowing”
The truth table for propositions 𝑝 𝑎𝑛𝑑 𝑞 are as
follows:
q: 𝑝(𝑥) = (𝑥 − 1)/(𝑥 + 2) is a polynomial function
∼ q: It is not true that 𝑝(𝑥) = (𝑥 − 1)/(𝑥 + 2) is a
polynomial function or
𝑝(𝑥) = (𝑥 − 1)/(𝑥 + 2) is not a polynomial function

b. A conjunction is a compound proposition

which consists of two propositions joined by the
connective “and”. The propositions 𝒑 𝒂𝒏𝒅 𝒒 is
denoted by 𝒑 ∧ 𝒒 and is defined through its truth
•Similarly, suppose 𝑝, 𝑞 𝑎𝑛𝑑 𝑟 are propositions.
table.
Then the truth table involving the given
propositions has 2³ = 8 rows, as shown below.
The conjunction 𝑝 ∧ 𝑞 is true only when both
conjuncts 𝑝 𝑎𝑛𝑑 𝑞 are true, as shown in its truth
table.

Example:
p: Seven is greater than zero. The above truth table shows us that the
q: Twenty is an even number. conditional 𝑝 → 𝑞 is false only when hypothesis 𝑝
𝒑 ∧ 𝒒: Seven is greater than zero and twenty is is true and conclusion 𝑞 is false.
an even number. Example:
p: Timothy’s average is at least 92 and p: I love math
q: Timothy is getting an A for the course. q: I am an engineer
p → q: If I love math, then I am an engineer.
𝒑 ∧ 𝒒: Timothy’s average is at least 92 and he is p: Geebee is in Grade 11
getting an A for the course. q: Geebee is a senior high school student.
c. A disjunction is a compound proposition p → q: If Geebee is in Grade 11, then she is a
which consists of 2 propositions joined by the senior high school student.
connective “or.” The propositions 𝒑 𝒐𝒓 𝒒 is e. A biconditional proposition is a compound
denoted by 𝒑 ∨ 𝒒 and is defined through its truth proposition which consists of 2 propositions
table joined by the connective phrase “if and only if.”
they read "p if and only if q" and are denoted p
↔q or "p iff q" and is defined through its truth
table.

The above truth table shows us that the

disjunction 𝑝 ∨ 𝑞 is false only when both disjuncts
𝑝 𝑎𝑛𝑑 𝑞 are false.
Example:
p: Ann is on the softball team.
q: Paul is on the football team.
𝒑 ∨ 𝒒: Ann is on the softball team or Paul is on The above truth table shows us that the
the football team conditional 𝑝 ↔ 𝑞 is true only if the truth values
p: Victor has a date with Liza. are the same.
q: Janree is sleeping.
r: Eumir is eating. Example:
(𝒑 ∧ 𝒒) ∨ (𝒑 ∧ 𝒓): “Either Victor has a date with p: Classes are suspended
Liza and Janree is sleeping, or Victor has a date q: It’s raining cats and dogs
with p ↔q: Classes are suspended if and only if it’s
Liza and Eumir is eating.” raining cats and dogs.
d. A conditional proposition is a compound p: Geebee is in Grade 11
proposition which consists of 2 propositions q: Geebee is a senior high school student.
joined by the connective “If …then …”. p ↔ q: Geebee is in Grade 11 if and only if she is
- p → q is read “If p then q” or “p implies q”, and a senior high school student.
is defined through its truth table
Conditional statements are those statements ● Rate – percentage charged by the lender, or
where a hypothesis is followed by a conclusion. rate increase of the investment.
● Interest – amount paid or earned for the use of
Suppose 𝑝 and 𝑞 are propositions. From the money.
conditional proposition, we derive three other ● Maturity Value or Future Value – is the sum of
conditional statements, namely its the principal and the interest that accumulates
over the
a. Converse: 𝑞 → 𝑝 agreed term.
b. Contrapositive: ~𝑞 → ~𝑝 ● Time or Term – in the form of years, days, or
c. Inverse: ~𝑝 → ~𝑞 months which the money is borrowed or
invested, length of
A tautology in math and in logic is a compound time between the origin and maturity dates.
statement (premise and conclusion) that always • Compound interest – interest is computed on
produce truth. the principal and on the accumulated past
interest.
A tautology is always true and • Principal – value of money borrowed or
cannot be false. invested on the origin date.
• Rate – rate percentage increase of the
The opposite of tautology is a contradiction or investment.
sometimes it is called fallacy which is the • Interest – amount paid or earned for the use of
statement is always false and cannot be true. money.
● ANNUITY – a sequence of payments made at
A contingency is a compound proposition which equal (fixed) intervals or periods of time.
has both some true and some false values for ● PAYMENT INTERVAL – the length of time
every value of its propositional variables. between successive payments.
● TERM OF AN ANNUITY – the total time between
Definition: A compound statement that is always the first payment interval and last payment
true regardless of the truth value of the interval.
individual statements is defined to be ● REGULAR OR PERIODIC PAYMENT (R) – the
TAUTOLOGY. amount of each payment.
● AMOUNT OF AN ANNUITY/ FUTURE VALUE (F) –
Definition: A compound statement that is always sum of the Future Values (compound amounts)
false regardless of the truth value of the of all the payments to be made during the
individual statements is defined to be entire term of the annuity.
FALLACY/CONTRADICTION. ● PRESENT VALUE OF AN ANNUITY (P) – sum of the
Present Values of all the payments (lump sum) to
Definition: A compound statement that has both be made during the entire term of the Annuity.
true and false values in the truth table is defined • Stocks - share in the ownership of a company
to be CONTINGENCY. • Stockholder- someone who has shares in a
company.
STUDY THESE TERMS ( WEEK 1 - 6 ) • Dividend- the amount of stockholders’ share of
the company’s earning or profit.
● Simple interest - is calculated by multiplying • Bonds- are loans provided to an organization
the interest rate by the principal amount and like government.
the time. • Bondholder- a holder of bonds issued by a
● Principal – amount of money borrowed or government or corporation.
invested on the origin date. • Par Value or Face Value – is the principal
borrowed as shown in the bond.
• Par Value or Face Value – is the principal
borrowed as shown in the bond.
• Proposition – is a declarative sentence that is
either true or false; it must be one or the other,
and it cannot be both.
• Compound proposition - is a proposition
formed from simpler proposition using logical
connectors or
some combination of logical connectors.
• Conditional statements - are those statements
where a hypothesis is followed by a conclusion.
• Tautology- – is a compound statement which is
true for every value of individual statements. A
statement which is true and cannot be false.
• Fallacy- the opposite of tautology is
contradiction or fallacy. A compound statement
which is false and
cannot be true. It is the use of invalid or
otherwise faulty reasoning.
• Contingency- a compound proposition which
has both some true and some false values for
every value
of its propositional variables..

Good luck, fellow Dolphins! High scores cutie!

- Central Student Council 2023 - 2024
 BIBLIOGRAPHY

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 1: SIMPLE INTEREST. Dasmariñas
City: Philippine Christian University-Dasmariñas SHS.

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 2: COMPOUND INTEREST.
Dasmariñas City: Philippine Christian University-Dasmariñas SHS.

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 3: ANNUITY (SIMPLE ANNUITY).
Dasmariñas City: Philippine Christian University-Dasmariñas SHS.

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 4: ANNUITY (GENERAL
ANNUITY). Dasmariñas City: Philippine Christian University-Dasmariñas SHS.

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 5: STOCKS AND BONDS.
Dasmariñas City: Philippine Christian University-Dasmariñas SHS.

Relles, A., Alagar, A. K., Fernandez, Jr. C., Baas, E , Molina, E. W. J. , Delgado, E. , Puna, G. ,
Basilan, I., Mojica, J. M., Rojales, K. K. , Bartican, L. (2023 2024). LESSON 6: PROPOSITIONAL LOGIC,
TAUTOLOGY, FALLACY AND CONTINGENCY. Dasmariñas City: Philippine Christian
University-Dasmariñas SHS.