LEARNING ACTIVITY SHEETS IN

GENERAL MATHEMATICS WEEK 5

Learning Competencies:
1. solve problems involving stock valuation,
2. solve for the face value and redemption value of bonds
3. analyze the different market indices for stocks and bonds.

Different Markets for Stocks and Bonds

INTRODUCTION :

Many of us deal with stocks and bonds (or want to!) but have no idea what are their worth. Maybe you want to try
investing. You may want a better understanding of your investments. Or, if you work for a big corporation, your employer
may sell shares, and you need to determine whether it’s worth the price. Either way, it is good to know the difference
between stocks and bonds and have a basic understanding of how they are valued.

Stocks – share in the ownership of a company

Dividend – share in the company’s profit
Dividend Per Share – ratio of the dividends to the number of shares
Stock Market – a place where stocks can be bought or sold. The stock market in the Philippines is governed by the
Philippine Stock Exchange (PSE).
Market Value – the current price of a stock at which it can be sold
Stock Yield Ratio – ratio of the annual dividend per share and the market value per share. Also called current stock yield.
Par Value – the per share amount as stated on the company certificate. Unlike market value, it is determined by the
company and remains stable over time.

DEVELOPMENT :
WORKING WITH EXAMPLES!

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 Corporation A has a higher stock-
yield-ratio than Corporation B. Thus,
each peso will earn you more if you
invest in corporation A than in
corporation B. If all other things are
equal, then it is wiser to invest in
Corporation A.

Bond – interest-bearing security which promises to pay (1) stated amount of money on the maturity date, and (2) regular
interest payments called coupons.
Coupon – periodic interest payment that the bondholder receives during the time between purchase date and maturity
date; usually receive semi-annually.
Coupon Rate – the rate per coupon payment period; denoted by r.
Price of a bond – the price of the bond at purchase time; denoted by P.
Par Value or Face Value – the amount payable on the maturity date; denoted by F.
If P = F, the bond is purchase at par.
If P < F, the bond is purchased at a discount.
If P > F, the bond is purchased at premium.
Term of a Bond – fixed period of time (in years) at which the bond is redeemable as stated in the bond certificate; number
of years from the time of purchased to maturity date.
Fair Price of a Bond – present value of all cash inflows to the bondholder

Example:
Determine the amount of the semi-annual coupon for a bond with a face value of ₱300,000.00 that pays 10% payable
semi-annual for its coupon.
Given: Face Value F = 300,000
Coupon Rate = 10%
Find: Amount of the semi-annual coupon
Solution:
Annual Coupon amount: 300,000(0.10) = 30,000
1
Semi-Annual Coupon Amount: 30,000 ( ¿=15000
2
Thus, the amount of semi-annual coupon is ₱ 15,000.00

Activity 1. Solve the following problems.

1. A financial institution declared a dividend of ₱ 75,000,000.00 for its common stock. Suppose there are 900,000 shares
of common stock, how much is the dividend per share?
2. The ABC Corporation give out ₱ 38.00 dividend per share for its common stock. The market value of stock is ₱ 10800.
Determine the stock yield ratio.
3. A bank declared a dividend of ₱27.00 per share for the common stock. If the common stock closes at ₱ 93.00, how
large is the stock yield ratio on this investment?
4. Find the amount of the semi-annual coupon for a ₱ 200,000.00 bond which pays 5% convertible semi-annually
coupons.
ENGAGEMENT :
Market Indices for Stocks and Bonds
Learning how to invest your money is such a good thing for your future. One of the primary benefits of investing in the
stock market is the chance to grow money.

Stock on You!
It is necessary to know and how to read the data or information in stocks and it can be presented in the table. (values are
hypothetical)

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To find the highest price for the past 52 weeks, you need to look under the heading 52-WK-HIGH. The price is given as
74.30. Thus, the highest selling price of the stock in the past 52 weeks was 74.30.To find the lowest price for the past 52
weeks , you need to look under the heading 52-WK-LOW. The price is given as 68. Thus, the lowest selling price for a
share of AAA stock for the past 52 weeks was 68.00 . To find the highest and lowest prices for the shares yesterday,
look under the heading HIGH and LOW we have the numbers 70 and 69.50 respectively. Thus, the highest and lowest
prices for AAA shares were 70. and 69.50 . Looking at the heading DIV, we have the number 0.70. Thus, the dividend per
share last year was 0.70.
Going back to the table, to find the closing price in the last trading day look under the heading CLOSE, the number
given is 70.25. Thus when the stock exchange closed in the last trading, the price was 70.25 . The closing price the day
before the last trading day is the difference between CLOSE and NETCHG , thus we have 70.25 - 0.10 = 70.15. To find
the total shares were traded of DDD look under the heading VOLUME, referring to sales volume and the number given
was 1500. In this case stock DDD sold 1,500 shares of 100 which is equal to 150,000 shares.

Buying or Selling Stocks

To sell his stock is another way of a shareholder to earns an income. A broker may be used to buy or sell stocks.
Nowadays, most of the transactions are done by making a phone call to a registered broker or by logging on to a reputable
online platform. Those with accounts in online trading platforms may often encounter a table such as the following.

In the table, the terms mean the following:

Bid Size – the number of individual buy orders and the total number of shares they wish to buy.
Bid Price – the price that buyers are willing to pay for the stock
Ask Price - the price that the sellers of the stock are willing to sell the stock
Ask Size – how many individual sell orders have been placed in the online platform and the total number of shares these
sellers wish to sell.

ASSIMILATION: Activity 2
YOUR TURN!
A.

B.

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10. What is the total number of traders who wishes to buy a total of 537,500 shares at 23.5 0 per share?

LEARNING ACTIVITY SHEETS IN

GENERAL MATHEMATICS WEEK 6

Learning Competencies:
1. illustrate business loan and consumer loan
2. distinguish business loan from consumer loan
3.solve problems involving business loan and consumer loan
Business and Consumer Loans
INTRODUCTION :
The basic concepts of loans are very familiar to all of us. Through loans, any individual can receive assistance in
addressing financial needs from different lending corporations. Loans are not just limited to borrowing money in a bank to
finance business expansion, but also covers the use of credit card, amortizing appliances and many more.

DEVELOPMENT :

Definition of Terms
Business Loan - money lent specifically for a business purpose. It may be used to start a business or to have a business
expansion
Consumer Loan - money lent to an individual for personal or family purpose
Collateral - assets used to secure the loan. It may be real-estate or other investments
Term of the Loan - time to pay the entire loan
Amortization Method - method of paying a loan (principal and interest) on installment basis, usually of equal amounts at
regular intervals
Mortgage - a loan, secured by a collateral, that the borrower is obliged to pay at specified terms.
Chattel Mortgage - a mortgage on a movable property
Collateral - assets used to secure the loan. It may be a real-estate or other investments
Outstanding Balance - any remaining debt at a specified time
Mortgagor - is the one who borrows a mortgage.
Mortgagee - is the one who lends a mortgage.
Fixed-rate mortgage - a type of mortgage where interest remains constant
Obligation - it is what parties may do under a contract or terms of agreement.

ENGAGEMENT :

WORKING WITH EXAMPLES!

1. Mario came from a poor family. His parents have no stable jobs. But due to Mario’s determination, he excelled and was
able to graduate college. After being permanent for 2 years in his work, Mario dreamt of providing a simple and decent
shelter for his family. He went to the bank and applied for ₱1,000,000.00 loan. The bank approved his application with the
following terms: 10% down payment, 12% total interest, and must be paid in full after 5 years.
a. How much is his mortgaged amount?
b. How much should he have paid after 5 years?

Solution:
(a) Down payment = (down payment rate) x (amount of loan applied)
= (0.10) (1,000,000)
= 100,000
Thus,
Mortgaged amount = (amount of loan applied) – (downpayment)
= 1,000,000 – 100,000
= 900,000

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2. Cathy finished Senior High School in her hometown. She took a TVL strand in dressmaking, However, because of
financial incapacity, she was not able to continue in college. She decided to help her mother in their small business of
dressmaking. Their business increased in production due to her hard work. Subsequently, Cathy decided to venture on a
larger scale and wished to export their Filipiniana-style products. But this would need a bigger capital. So, she decides to
go to a financing institution, Phiram Inc., to borrow ₱500,000.00. If her monthly payment is ₱12,000.00 on a 5-year
mortgage, how much is the total amount of interest?

Solution:
Given: P = 500,000, monthly payment = 15,000

Total Amount = (12,000) (12 months) (5 years) = 720,000

Total Amount of Interest = Total Amount – Amount of mortgage

= 720,000 – 500,000
= 220,000
Therefore, the total amount of interest is ₱220,000.00

3. During his STEM high school years, Albert was fond of experimenting on RC motors. In his engineering years in
college, he creatively thought of experimenting about perpetual motion that could provide energy to machines. However,
he was short of finances to start this project which is primarily Filipino-made. AG Resibo Company approached Albert
and offered to lend him a capital of ₱2,000,000.00 to be paid in 5 years with 10% monthly interest. Moreover, there is an
outright deduction of 100,000 from his applied loan.
(a) How much is his monthly payment?

ASSIMILATION: Activity 3
YOUR TURN!

1. A business loan of ₱200,000 is to be repaid in full after 2 years. What is the amount to be paid if the effective rate of
interest is 10%? (hint: F = 𝑃(1+𝑗)𝑛 )
2. Johna purchased a condominium worth ₱3,500,000.00. However, the bank demands a 10% down payment. How much
is the mortgaged amount?
3. A motorcycle seller requires Justo ₱5,000 down payment. How much would be the mortgaged amount if the motorcycle
is sellable at ₱120,000.00?
4. Solenn decided to venture in an online business and decided to go to a financing institution to borrow ₱50,000.00. If her
monthly payment is ₱1,500.00 on a 5-year mortgage, how much is the total amount of interest?
5. PC Yaw Inc. approached Rudy and offered to lend him a capital for his computer business amounting to ₱300,000.00 to
be paid in 3 years with 12% monthly interest. How much would be is his monthly payment?

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Rubric:
Criteria 25 points 20 points 15 points 10 points 5 points
CORRECTNESS 96% TO 100% 75% TO 95% of 50% TO 74% of 25% TO 49% of 0% TO 24% of
of the given the given the given the given the given
solutions are solutions are solutions are solutions are solutions are
correct correct correct correct correct

FIRST LONG TEST IN GENERAL MATHEMATICS

Activity 4.
Choose the best/ correct answer. Write the letter of your choice on a SEPARATE sheet of paper.
1. A person who invests the money or makes the fund available
a. Debtor b. Creditor c. borrower d. co-maker
2. It is the amount of money borrowed or invested on the origin date.
a. Face value b. Principal c. Interest d. Maturity value
3.A type of compounding period that applies two times a year.
a. Annually b. Monthly c. Semi-annually d. Quarterly
4. How much interest is charged when P50,000 is borrowed for 9 months at an annual simple interest rate of 10%?
a. P3,000 b. P9,500 c. P5,050 d. P3,750
5. What is the total amount of money in a savings account after t years at an interest rate r?
a. Principal b. Interest c. Maturity value d. Term
6. At what simple interest rate per annum will P25,000 accumulate to P33,000 in 5 years?
a. 6.4% b. 12% c. 7.2% d. 5.5%
7. How much money should a student place in a time deposit in a bank that pays 1.1% compounded annually so that he
will have P200,000 after 6 years?
a. Around P190,000 b. Around P150,000 c. Around P100,000 d. Around P130,000
8. Accumulate P15,000 for 2 years at 25% on compounded interest per annum.
a. P20,120.50 b. P23,437.50 c. P21,120.50 d. P23,120.50
9. How much time (t) is needed for money to triple if invested at 9% compounded semi-annually?
a. 10.5 years b. 6.5 years c. 15.5 years d. 12.5 years
10. Suppose you won ₱10,000.00 and you plan to invest it for 5 years. A cooperative group (A) offers 2% simple interest
rate per year while a bank (B) offers 2% compounded annually. Which of the two offers is better?
a. A b. B c. equal offers d. unpredictable
11. How much interest is charged when ₱50,000.00 is borrowed for one year at an annual interest rate of 10%?
a. P500 b. P5000 c. P50000 d. P500,000
12. Mary Rose is planning to invest ₱20,000.00. At what rate (i) compounded semi-annually will accumulate her money
to ₱25,000.00 in 3 years?
a. 30.79% b. 70.58% c.3.79% d.7.58%
13. Jeff invested ₱150,000.00 at 10% compounded annually. He plans to get this amount after 6 years for his son’s college
education. How much will he get?
a. 159,228.02 b. 200,432.03 c. 265,734.15 d. 280,321.16
14. Which of the following refers to a sequence of payments made at equal (fixed) intervals or periods of time?
a. Annuity b. Mortgage c. Amortization d. Investment
15. Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount of money each year
for 3 years. What should be his annual payment if interest is 8% compounded annually?
a. P38,803.35 b. P42,367.25 c. P35,327.50 d. P41,990.40
16. Find the present value for the annual payments of P1,000 at the end of each term for 8 years with interest rate of 6%
compounded quarterly.
a. P6,176.42 b. P9,946.04 c. P6,136.40 d. P7,794.58
17. What kind of annuity does not begin until a given time interval has passed?
a. Ordinary b. Annual c. Immediate d. Deferred
18. Emma availed of a cash loan that gave her an option to pay P10,000 monthly for 1 year. The first payment is due
after 6 months. How much is the present value of the loan if the interest rate is 12% converted monthly?
a. P39,441.14 b. P107,088.20 c. P1,089,533.99 d. P57,922.41
For 19-21
Argin paid ₱200,000.00 as down payment for a car. The remaining amount is to be settled by paying
₱16,200.00 at the end of each month for 5 years. If interest is 10.5% compounded monthly,
19. How much is his monthly payment?
a. 16,000 b. 16,200 c. 200,000 d. 216,200
20. How many payments (n) are there in the entire term?
a. 5 b. 12 c. 60 d. 120
21. What is the cash price of the car?

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 a. 210,567.20 b. 953,702.20 c. 1,210,112.20 d. 1,310,113.20
22. A teacher saves ₱5,000.00 every 6 months in a bank that pays 0.25% compounded monthly. How much will be her
savings after 10 years?
a. 100,000.06 b. 101,197.06 c. 151,516.06 d. 171,976.06
23. ABC Bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of
5 years if he deposits ₱3,000.00 every month? (use j2=0.001664)
a. 171,234.67 b. 185,667.76 c. 189,126.96 d. 201,211.69
24. Which of the following is a form of equity financing or raising money by allowing investors to be part owners of the
company?
a. Bond b. Stock c. Savings d. Loan
25. Which is a form of debt financing or raising money by borrowing from investors?
a. Bond b. Stock c. Savings d. Loan

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