2nd SUMMATIVE TEST
MMWORLD: Mathematics in the Modern World
1st Semester, A.Y. 2022-2023
Directions: Solve the following problems. Show your solutions neatly and
systematically.
1. On the 7th birthday of her daughter, Shirlee deposited an amount in a bank peso
bond fund that pays 𝟏. 𝟎% interest compounded annually. How much should she
deposit if she wants to have ₱𝟏𝟎𝟎, 𝟎𝟎𝟎 on her daughter’s 18th birthday? (5 Points)
2. Kim has ₱𝟏𝟖, 𝟎𝟎𝟎 to invest for 2 years. She has the following options: (10 Points)
(a) A term deposit at 4.5% compounded annually.
(b) Shares, paying a rate of 4.48% per annum with dividend paid quarterly.
(c) A building society account, paying a return of 4.56% per annum with monthly
rests.
(d) A business venture with guaranteed return of 3.65% per annum and interest
paid daily.
Advise Kim which option to take if all the investments are equally secure.
3. A television (TV) set is for sale at ₱𝟏𝟑, 𝟒𝟗𝟗 in cash or on installment terms, ₱𝟐, 𝟓𝟎𝟎
each month for the next 𝟔 months at 𝟗% compounded monthly. If you were the buyer,
what would you prefer, cash or installment? (5 Points)
4. A ₱𝟓𝟎, 𝟎𝟎𝟎 loan is payable in 𝟑 years. To repay the loan, the debtor must pay an
amount every 𝟔 months with an interest rate of 𝟔% compounded semi-annually. How
much should he pay every 6 months? (5 Points)
5. The frequency distribution below are the minutes spent answering a 60-item
exam by 40 students.
58
76
90
75
55
88
88
70
70
82
76
80
57
80
79
80
87
79
84
84
69
66
85
85
67
77
60
66
Compute the following: (25 Points)
a. Make a frequency distribution table with 5 class intervals
b. Mean
c. Median
d. Mode
e. Sample Variance
f. Sample Standard Deviation
55
77
65
64
89
88
89
60
78
83
77
62
6. How long will an amount of money double at a simple interest rate of 𝟐% per annum?
(2 Points)
7. At what simple interest rate will an amount of money double itself in 𝟏𝟎 years? (3
Points)
8. In which case will an investor receive the most interest? (5 Points)
A. 10%, compounded annually.
B. 10%, compounded monthly.
Prepared by:
ROY I. BRANZUELA
Course Instructor
C. 10%, compounded quarterly.
D. 10%, compounded daily.