ARIG-TEAM-REPORTING-MATH.pptxnsnsjsjshafYdodn

Cadalsidyararwuronbbhrosq

1. INVESTMENT OPTIONS:
SIMPLE AND COMPOUND INTEREST

2. « To compute simple and compound
interest from different investment options.

option is best after 5 years.
« To give financial advice based on the
findings.

3. 1. Savings Account

IT a O O EN HE | [TT

2. Time Deposit Account

I

3. Variable Universal Life Insurance

a CS E DEN ES A EN ES SS

4. Stock

y y +

5. Mutual Funds

RI = Fc

4. When you finish all rows,

you will see:

+ Savings Account gives the

lowest interest (very safe

but low growth).
+ Time Deposit is slightly

higher (still safe).

e Life Insurance grows more

than Time Deposit.

+ Stocks and Mutual Funds give

the highest return,
especially with compound

interest, but they are also

the riskiest.

5. |||. SIMPLE INTEREST (SI): Compound Interest (Cl):

I=Pxrxt F=P (14: )"
u C=F-P
e P= (Principal)

er or i = interest rate (decimal form)
e t= 5 years

6. In Simple Interest:

f=

Meaning of the Symbols:

+ I = Interest (the extra amount of
money earned or paid)

+ P = Principal (the original amount of
money borrowed or invested)

+ x = Annual interest rate (in decimal
form, e.g., 6% = 0.06)

+ t = Time in years

Pxrxt

How It Works:

1. Identify P, x, and t - The starting amount, the
interest rate, and the time.

2.Multiply them together - PxrxtP \times x \times
tPxrxt.

3.The result is the interest only, not the total
amount.

4.To find the Future Value (F), you just add the
principal and the interest:

7. In Compound Interest: F=P (1# yt C=F-P

Meaning of the Symbols:
Future Value
Principal

Annual interest rate

Nynex of compounding periods pex year

Compound Interest

oran...
nun

How It Works:

1. Identify P, x, m, and t - Know the starting amount,
the interest rate, how often it is compounded, and how
long.

2. Substitute in the formula - Plug in the values into .
3. Solve for F - This gives you the future value (total
amount) .

4. Find C = F - P - Subtract the principal from the
future value to get the compound interest only.

8. Le

Savings Account

Given
+ Principal (P) = P50,000

+ Rate (x) = 25% = 0.25
+ Time (t) = 5 years

SIMPLE INTEREST

Formula: I=Pxrxt
I=50,000x0.25x5

I=P62,500

COMPOUND INTE

Formula: F=P(

REST

d+)"

F=50,000(1+223 )( (5

F=50,000 (1.25

)5

F=50,000(3.051757813)

F=152,587.89

50,000

c
c
Cc

F-P
152, 587.89-
102,587.89

9. Investment Avg. Interest
Option Rate

Simple Compound
Interest Interest

Principal

Savings

25% P50,000 P62,500 P102,587.89
Account

10. SIMPLE INTEREST

Formula: I=Pxrxt
I=50,000x0.03x5
I=P7,500

COMPOUND INTEREST

Formula: F=P(

d+)"

F=50,000(1+2%2 )( (5

F=50,000 (1.03

ys

F=50,000(1.159279074)

F=57 , 963 .7037|

TT

-50,000

C=F-
C=57, 963.7037
C=7, 963.7037

11. Investment Avg. Interest
Option Rate

Simple Compound
Interest Interest

Principal

Time Deposit 3% P50,000 P7,500 P7,963.70

12. SIMPLE INTEREST

Formula: I=Pxrxt

I=50,000x0.04x5
I=P10,000

COMPOUND INTEREST

Formula: F=P(1+3 )"*
F=50, 000(1+%:% ) 005

F=50,000(1.04

)5

F=50,000(1.216652902)

F=60,832.6451

32.6451

-50,000

c=
C=60,8
C=10, 832.6451)

12

13. Investment Avg. Interest
Option Rate

Simple Compound
Interest Interest

Principal

Variable Universal 4% 50,000 P10, 000 P10, 832.65

Life Insurance

14. Stocks (8%)

Given + P=P50,000
+ 1=0.08
+ t=5

SIMPLE INTEREST

Formula: I=Pxrxt
T=50 ,000x0.08x5
I=P20, 000

COMPOUND INTEREST

Formula: F=P(1+4 )"
F=50, 000 (14228 )(2(5)
F=50,000(1.08)*
F=50,000(1.469328077)

F=73,466.40385

P
466.40385-50,000

C=F-
C=73,
C=23 ,466.40385

14

15. Investment Avg. Interest
Option Rate

Simple Compound
Interest Interest

Principal

Stocks 8% P50,000 P20,000 P23,466

16. Mutual Funds (10%)
Given + P=P50,000
+ r=0.10
.t=5

SIMPLE INTEREST

Formula: I=Pxrxt
I=50,000x0.10x5
I=P25,000

COMPOUND INTEREST

Formula: F=P(1+4 )"
F=50,000(1+228 Js)
F=50,000(1.1) *
F=50, 000 (1. 61051)

F=80,525.5

C=F-P
C=80,525.5-50,000

C=30,525.5

17. Investment Avg. Interest
Option Rate

Simple Compound
Interest Interest

Principal

Mutual Funds 10% P50,000 P25,000 P30,526

18. When you finish all rows,

you will see:

+ Savings Account gives the

lowest interest (very safe

but low growth).
+ Time Deposit is slightly

higher (still safe).

e Life Insurance grows more

than Time Deposit.

+ Stocks and Mutual Funds give

the highest return,
especially with compound

interest, but they are also

the riskiest.

19. Investment | Avg. Interest | gsi ay Simple Compound
Option Rate Pi Interest Interest
Savings 25% P50,000 P62,500 P102,587.89
Account

Time Deposit 3% P50,000 P7,500 P7,963.70

vane Universal 4% P50,000 P10,000 P10,832.65

Life Insurance
Stocks 8% P50,000 P20,000 P23,466

Mutual Funds

P50,000

P25,000

P30,526