3rd L2 -Problems Involving Best Buy &
Installment
* solve financial problems involving
buying amounts of products that rpresent
the best value
* solve financial problems involving
buying on terms ( installment plan)
Go Beyond Answer Key
• 1. 6250.50
• 2. Annual Salary - PhP 200 200 monthly salary - 16 683.33
• 3. PhP 170
• 4. PhP 840
• 5. PhP 18 750
• 6. 45 rags
• 7. PhP 9375.00
• 8. PhP 1248.00
Complete the table
9. 200
10. 40 %
11. 6500
12. 23.08%
13. 10 000 16. 1800
14 21.95% 17. 4000
15. 4200 18. 1000
Which between the two deals offers the BEST
VALUE for your money?
• DEAL 1 DEAL 2
Bond Paper Bond Paper
100 sheets 250 sheets
PhP 140.00 PhP 275.00
Solution:
Deal 1 Deal 2
Which gives the best value for your money?
X raisins Y raisins Z raisins
50 grams 120 grams 300 grams
PhP29 PhP48 PhP 90
INSTALLMENT-BUYING ON TERMS
SIMPLE INTEREST I=Pxrxt
I =simple interest earned at the end of time (t)
P=principal amount borrowed or invested
r =interest rate imposed over a period of time
t=amount of time that the money is borrowed or invested
time
1 year= 12 months
1 year = 52 weeks
1 year = 365 days
WP 1
•Determine the simple interest earned on
an investment of PhP 4000.00 at 3.5%
per annum for 5 years.
WP 2
•How much simple interest will be earned
within 9 months when PhP 50 000 is invested
at a rate of 6 % per year?
WP 3
Find the simple interest that you need to pay
if you borrow PhP 10 000 at 5 % per year for
2 years.
WP4
How much simple interest can be earned in
30 weeks if PhP 35 000.00 is invested at 5.5
% per year?
PAYMENT ON TERMS
A television set is sold for PhP 35 000.00 in
cash or on terms at a monthly payment of
PhP 3 200.00 for one -and -a -half years
without deposit. How much more will it cost
if the television set is to be paid on terms?
PAYMENT ON TERMS
• Gino was offered two options for a car he wants to
buy. He can buy it in cash for 1.5 million pesos or
on the following terms: 20 % deposit and monthly
payment of PhP 27 500 for 5 years. Gino opts to
buy on terms. How much will Gino need to pay in
all with the terms provided?
PAYMENT ON TERMS
•A drone set is on sale for PhP 27 000 in cash
or on terms at PhP 3 200 per month for 2
years with no deposit. How much in total is
the cost of buying the drone set on terms?
Angel plans to buy a necklace via installment
with the following payment conditions : 30 %
deposit plus the balance and plus simple interest
on the balance to be paid monthly at 15% per
year in 2 years. The price of the necklace in
cash is PhP 25 000. Find her:
DEPOSIT,BALANCE,INTEREST ON
BALANCE,TOTAL PURCHASE
A gaming laptop can be bought in cash for PhP
120 000 or on the following terms: 18% deposit
plus the balance and plus simple interest on the
balance to be paid weekly at 10% per year in 1
year. Determine the deposit,balance,interest on
balance and the total purchase price of the gaming
laptop if it is bought on terms.
FORMULAE
• DEPOSIT = PRICE X RATE OF DEPOSIT
• BALANCE = PRICE - DEPOSIT
• INTEREST ON BALANCE = BALANCE X RATE X TIME
( YR)
• TOTAL PURCHASE= PRICE + INTEREST
• MONTHLY PAYMENT = BALANCE + INTEREST divided
by the number of months
EC # 2
A used car is advertised at PhP 250 000 in
cash or via installment with the following
terms: 25 % deposit and monthly payment
of PhP 18 000 payable for 2 years. How
much is the total installment price of the used
car?
