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FV Amount of Money Need To Pay I Interest P 500,000 R 10% T 1 Year

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30 views

FV Amount of Money Need To Pay I Interest P 500,000 R 10% T 1 Year

Uploaded by

Jan Jan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Kenly Alboc

In 2018, a businessman borrowed Php500 000.00 at a 10% interest rate, payable


for 1 year for a new business venture. How much will he pay after a year? Present your
answer using Polya's 4-steps in problem-solving. Write your answer (with solution) on a
piece of paper, take a clear picture of your solution, attach the picture in the textbox,
then finish the attempt.

Step 1. See. To understand the problem, we have to identify the given and what is
being asked.
Given: Php500 000.00 at 10% interest rate, payable for 1 year
Find: amount of money need to pay after a year
Step 2. Plan. Devise a plan by representing the given and by forming equations using
the information in step 1.

Represent the given:


Let
FV= amount of money need to pay
I=interest
P = 500,000
r = 10%
t = 1 year
If FV = P (1 + rt) or FV= P + I, then FV = 500,000 (1+(10%)(1)) or FV=
500,000 + I

Step 3. Do. Carry out the plan by solving the equation in step 2.
FV = 500,000 (1+(10%)(1))
FV= 500,000 (1.1)
FV= 550,000
Or
FV= 500,000 + I
First, get the interest. I=Prt
I= 500,000 (10%)(1)
I=50,000
Then, compute the FV
FV= 500,000 + 50,000
FV= 550,000
If FV = 550 000, then the amount of money need to pay will 550,000.

Step 4. Check. Look back and see if the values (answers) obtained are correct. Again,
using the formula FV = P (1 + rt) , we can verify if Php550 000.00 the amount need to
pay after a year but this time we will substitute FV with 550 000. We can also use the
formula FV= P + I and Prt to get the interest first.
FV = P (1 + rt) I=Prt
550,000 = P (1+(10%)(1)) I= 500,000 (10%)(1)
550,000= P (1.1) I= 50,000, then we can get the P in FV= P
P= 550,000/1.1 +I
P= 500,000 550,000= P + 50,000
P= 550,000 - 50,000
P= 500,000

Since Php500, 000.00 earned an interest amounting to Php50,000.00, and the interest
will add to principal to get the future value of 550,000, then we did the problem correctly.

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