Reviewer

1. REVIEWER for GENMATH 2ND
GRADING PERIODICAL EXAMINATION
I. DEFINITION OF TERMS
 INTEREST - It is a fraction or percentage being imputed or charged to a sum of money.
 PRINCIPAL - It is the sum of money that someone borrows or lends.
 RATE - It is the percentage of increase of the investment charged by the lender.
 TIME - It is the period or how long the money is borrowed or invested, usually in years.
 FUTURE VALUE - It is the sum of principal and its interest.
It is the sum of all the payments to be made during the entire term of an annuity.
 SIMPLE INTEREST - It is essentially the interest charged to a borrower or earned by a lender for
the full term of the loan.
 COMPOUNDINTEREST – It is a type of interest where the interest charged or earned is being
rolled-over and reinvested with the principal amount.
 ANNUITY – It is a sequence of payments made at fixed intervals or periods of time
 SIMPLE ANNUITY - A type of annuity where the compounding of interest and payment periods
happen at the same time.
 BORROWER - It is the person or institution who owes the money or avails of the funds of the
lender.
 COLLATERAL – It is a valuable asset of a borrower that is pledged as a security for a loan.
 STOCKS - It is defined as shares of ownership in a corporation.
 STOCKHOLDER - They are defined as buyers of stock issued by corporations, also known as
shareholder.
 COMMON STOCKHOLDER – It is a type of stockholder wherein he or she has voting rights in
choosing the company’s board of directors.
 PHILIPPINE STOCK EXCHANGE – It is the largest stock market in the Philippines.
 DIVIDEND – It is defined as the portion of the company’s earnings that are distributed among its
stockholders.
a. SCRIP – It is a type of dividend issues a promissory note to pay its stockholders at a specific
date.
b. STOCK – It is a type of dividend issues more shares of stocks to stockholders instead of paying
in cash.
c. CASH – It is a type of dividend issues portion of earnings paid out to stockholders; most
common.
d. BONUS – It is a type of dividend made in the form of additional shares rather than a cash
payout.
e. OPTIONAL – It is a type of dividend that a stockholder can choose to take as either cash or
stock.
f. PROPERTY – It is a type of dividend wherein a company issues a nonmonetary dividend or
property to its stockholders, aside from paying cash or more shares of stock.
 BONDS - A bond is a debt investment in which an investor loans money to an entity (typically
corporate or governmental) which borrows the funds for a defined period of time at a variable
or fixed interest rate.
a. CORPORATE – It is a type of bond issued by corporations such as banking sector and real
estates.
b. TREASURY – It is issued by the government to finance its budget deficits.
c. CALLABLE - It is also known as "redeemable bonds," can be redeemed by the issuer prior
to maturity. Usually a premium is paid to the bond owner when the bond is called.
d. SECURED – It is a type of bond that is secured by the issuer's pledge of a specific asset,
which is a form of collateral on the loan.
e. UNSECURED – It is a type of bond with no collateral.
 ISSUER – He is the one who borrows money from investors by issuing bonds
 BUREAU OF TREASURY – It is a government office known as largest issuer of bonds in the
Philippines.

2. II. FORMULAS
1. SIMPLE INTEREST

𝑰 = 𝑷 × 𝑹 × 𝑻
WHERE:
I – Simple Interest
P – Principal Amount/Present Value
R – Rate
T – Time

𝑭 = 𝑷 (𝟏 + 𝑹𝑻)
WHERE:
F – Future Value/Final Amount
P – Present Value/Principal Amount
R – Rate
T – Time

𝑷 =
𝑭
𝟏 + 𝑹𝑻
WHERE:
P – Present Value
F – Future Value
R – Rate
T – Time
2. COMPOUNDINTEREST

𝑭 = 𝑷 (𝟏 +
𝑹
𝑵
)
𝑵𝑻
WHERE:
F – Future value
P – Present value
N – No. of times the interest is compounded per year
T – Time
3. SIMPLE ANNUITY
𝑭 = 𝑪 (
( 𝟏 + 𝒓) 𝑵𝑻 − 𝟏
𝒓
)
WHERE:
F – Future value
C – Contribution/saving
R – Rate
N – No. Of times the interest is compounded per year
T – Time
r –
𝑅
𝑁