General Mathematics. This presentation is about Loans

1. CONSUMER
and
BUSINESS
LOANS
WHAT
I
NEED
TO
KNOW
Th
fami
loan
entre
rece
need
corp
borro
busin
use o
and
OBJECTIVE

2. Learning Task No. 1:
Your family is planning to apply for a loan to
purchase a car. You are offered by the lending
corporation the following information regarding the
amount you will be borrowing:
Option 1: A monthly payment of
₱23,500.00 for three years
Option 2: A monthly payment of
₱14,600.00 for five years
Which of the two options will you take? Why?
How will you connect this activity to our new lesson?

3. PreTest:
In a clean sheet of
paper, write the letter
of your answer in the
following questions.

4. D. Amortization
C. Loan
B. Consumer Loan
A. Business Loan
Question 1:
It is a financial obligation of paying
someone a certain amount for the use
of his/her money.

5. D. Amortization
C. Loan
B. Consumer Loan
A. Business Loan
Question 2:
It is gradual extinction of a debt, principal
amount, and interest, by sequence of equal
periodic payments or installment payments
due at the end of equal intervals of time.

6. D. Amortization
C. Loan
B. Collateral
A. Mortgage
Question 3:
It is a business loan or consumer loan
that is secured with a collateral.

7. D. Amortization
C. Loan
B. Collateral
A. Mortgage
Question 4:
An asset that can secure a loan.

8. D. 3,040,000.00
₱
C. 3,004,000.00
₱
B. 3,000,400.00
₱
A. 3,400,000.00
₱
Question 5:
For a purchase of a house and lot
worth 3,800,000.00, the bank requires
₱
20% down payment, find the
mortgaged amount.

9. ANSWERS:
1. C
2. D
3. A
4. B
5. D

10. Learning Task No. 2:
Identify whether the following is a consumer
loan or a business loan.
1. Mr. Buhain plans to have a
barbershop. He wants to
borrow some money from
the bank in order for him to
buy the equipment and
furniture for the barbershop.
Business Loan

11. Learning Task No. 2:
Identify whether the following is a consumer
loan or a business loan.
2. Mr. and Mrs. Osias wants
to borrow money from the
bank to finance the college
education of their son.
Consumer Loan

12. Learning Task No. 2:
Identify whether the following is a consumer
loan or a business loan.
3. Mr. Halo wants to have
some improvements on their
10-year old house. He wants
to build a new room for their
13-year old daughter. He will
borrow some money from
the bank to finance this plan.
Consumer Loan

13. Learning Task No. 2:
Identify whether the following is a consumer
loan or a business loan.
4. Mr. Dimaranan owns a
siomai food cart business.
He wants to put another
food cart on a new mall in
the other city. He decided to
have a loan to establish the
new business.
Business Loan

14. Learning Task No. 2:
Identify whether the following is a consumer
loan or a business loan.
5. Sunshine has a computer
shop. She owns 6 computers.
She decided to borrow some
money from the bank to buy
10 more computers.
Business Loan

15. Consumer
OR
Business Loan?

16. Definition of Terms:
Amortization. It is gradual extinction of
a debt, principal amount, and interest,
by sequence of equal periodic
payments or installment payments due
at the end of equal intervals of time.

17. Definition of Terms:
Amortization Method . Method of
paying a loan (principal and interest) on
installment basis, usually of equal
amounts at regular intervals.

18. Definition of Terms:
Mortgage. A loan, secured by a
collateral, that the borrower is obliged
to pay at specified terms.

19. Definition of Terms:
Collateral. Assets used to secure the
loan. It may be a real-estate or other
investments.

20. Definition of Terms:
Outstanding Balance . Any remaining
debt at a specified time.

21. Formula:
Cash Value of the Property:
𝐹 =𝑃 (1+𝑟 )𝑛

22. Formula:
Down payment:
𝐷𝑜𝑤𝑛𝑝𝑎𝑦𝑚𝑒𝑛𝑡 𝑅𝑎𝑡𝑒 𝑋 h
𝐶𝑎𝑠 𝑃𝑟𝑖𝑐𝑒

23. Formula:
Amount of the Loan (Mortgaged Amount):
h
𝐶𝑎𝑠 𝑃𝑟𝑖𝑐𝑒 – 𝐷𝑜𝑤𝑛𝑝𝑎𝑦𝑚𝑒𝑛𝑡

24. Formula:
Total Interest Amount:
𝑇𝑜𝑡𝑎𝑙 𝑃𝑎𝑦𝑚𝑒𝑛𝑡𝑠 – 𝑃𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝐴𝑚𝑜𝑢𝑛𝑡

25. Let us have
examples

26. 1. A loan of ₱ 200,000 is to be repaid in
full after 3 years. If the interest rate is
8% per annum. How much should be
paid after 3 years?

27. 1. A loan of ₱ 200,000 is to be repaid in full after 3 years. If
the interest rate is 8% per annum. How much should be
paid after 3 years?

28. 2. For a purchase of a house and lot
worth P3,800,000, the bank requires
20% down payment, find the
mortgaged amount.

29. 2. For a purchase of a house and lot worth P3,800,000,
the bank requires 20% down payment, find the
mortgaged amount.

30. 3. A family obtained a ₱ 1,000,000
mortgage. If the monthly payment is ₱
38,000 for four years, how much is the
total interest paid?

31. 3. A family obtained a ₱ 1,000,000 mortgage. If the
monthly payment is ₱ 38,000 for four years, how much is
the total interest paid?

32. Choose 1 problem to solve.
Click the link on the chat box
to direct you to the problem
you want to solve. Solve
collaboratively using the
Jamboard and your FB
messenger.
Learning Task No. 3:

33. 1. A car dealer offers a 15% down payment for the purchase a
car. How much is the mortgaged amount if
the cash value of the car is ₱1,500,000?
2. Mr. Crespo obtained a 10-year mortgage for
₱4,200,000. If his monthly payment is ₱39,500 , how much
is the total interest?
3. A business loan of 800,000 is to be repaid in full after 2
years. What is the amount to be paid if the effective rate
of interest is 8%?

34. What are you going to do?
Will you take the loan?
Why or why not?
Learning Task No. 4:
Analyze the given situations and answer the questions
that follow:
Situation 1: You received a
text message that says:

35. What will you do? Will you laugh at him?
Will you take advantage of him?
Learning Task No. 4:
Analyze the given situations and answer the questions
that follow:
Situation 2: Mr. Reyes is very interested
to apply for a car loan but he does not
understand the basic concepts of loans
and computation of amortization and
mortgages.

36. What are your insights about Barter System/Trade?
Who among you or your relatives in your provinces
who are still using this kind of method of exchange?
Learning Task No. 4:
Analyze the given situations and answer the questions
that follow:
Situation 3: Barter system has been
used for centuries and long before
money was invented. In the
Philippines, there are some local
communities who are still using it.

37. Learning Task No. 5:
Identify the word described in each sentence.
1. It is gradual extinction
of a debt, principal amount, and interest, by
sequence of equal periodic payments or
installment payments due at the end of equal
intervals of time.
Amortization

38. Learning Task No. 5:
Identify the word described in each sentence.
3. It is a financial obligation of
paying someone a certain amount for the use of
his/her money.
2. A loan, secured by a collateral, that the
borrower is obliged to pay at specified terms.
Mortgage
Loan

39. Learning Task No. 5:
Identify the word described in each sentence.
4. An asset that can secure a loan.
Collateral

40. Fill in the correct formula in solving problems
involving loans.
What Have You Learned?
1. Cash Value of the property ________________
2. Down payment ______________________
3. Mortgaged Amount ___________________
4. Total Interest Amount ____________________

41. Solve.
Assessment:
1. You avail the loan amounting to ₱10,000. If
the monthly payment is ₱960 for a year, what
is the total interest amount? (1 point for total
payment and 1 point for total interest)
2. If a condominium is purchased for
P1,700,000 and the bank requires 25% down
payment, how much is the mortgaged
amount? (1 point for down payment and 1
point for mortgaged amount)

42. 1. ₱ 11,520 – total payment
₱ 1,520 – total interest
Answers:
2. ₱ 425,000 – down payment
₱ 1,275,000 – mortgaged amount

43. I understand that…
___________________________
I realize that…
___________________________
Reflection: