GENERAL MATHEMATICS

PERFORMANCE TASK
PROBLEM SET (PART 2)

FIRST
TRIMESTER AY
2016-2017

11.
Find the Future Value in 5 years, and the Effective Interest Rate of an
Php1,000 investment under the following interest schemes:
(a)
(b)
(c)
(d)
(e)

7% compounded annually
6.9% compounded semiannually
6.75% compounded quarterly
6.7% compounded monthly
6.5% compounded continuously

Which among the schemes is best?

12.
How long will it take an investment that earns 7% interest compounded
continuously to
(a) double? (b) triple? (c) quadruple?
Under this scheme, what is the value of an Php10,000 investment after (a) 5
years? (b) 7 years, 5 months & 20days?
13.
(a) Suppose that at your present age of 15, you invested Php25,000 in
an account that earns 6.05% interest compounded monthly and decided to
leave it there until the age of 65, how much will you have in the account at
age 65?
(b) If you decide to start investing only at the age of 30, how much money
should you invest under the same interest scheme in (a) so that you will
have the same investment value at the age of 65?
14.
The current market value of a real estate lot in Quezon City is about
Php40,000 per square meter. Moreover, market prices are expected to
increase by 6% every year. Meanwhile, a special deposit account is offering
to pay an interest rate of 7% compounded quarterly. How much should you
invest now in order to be able to buy a 400 square meter lot 10 years from
now? (Source: General Mathematics by Chan, Miro, and Quiming. Vibal
Publishing)
15.
How much money should you deposit every month in an account that
earns 7.5% interest compounded monthly in order to have Php1 million in (a)
5 years? (b) 7 years and 9 months?

End of Problem Set Part 2

Good luck and God bless!

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