4 Geometric Designs

Learning Outcomes

At the end of the lesson, students will

 Apply geometric concepts in describing and creating designs; and

 Contribute to the enrichment of the Filipino culture and arts using concepts in geometry.

Recognizing and Analyzing Geometric Shapes

Mathematicians instinctively search for geometrical and numerical patterns and for symmetry. The
discovery of patterns and symmetries enable us to understand and control the world around us. For
centuries, humans are fascinated in the nature of symmetry. From the time of the Greeks to the present
generation we tend to side with symmetry in everything from planning or house layout to the way we dress.

Nature displays an infinite number of geometrical shapes from a small atom to the greatest of the
spiral across the galaxies. The growth of Romanesco broccoli, the honeycomb of the bee, the spiral growth
structure of a sunflower, pineapple, and pinecones; the spiral of the nautilus shell; the feather of a peacock’s
tail; the spider’s web; snowflakes; crystalline solids; and the regular polygons found in the basic shapes of
the petals many of flowers are just few of nature’s geometric beauty.

Patterns abound a nature, and geometry paves the way for us to understand it more as we
experience it. Perhaps there is no subject has intrigued the human race through centuries as much as
geometry and see the wonder in nature, arts, design, and in other aspects of human experience.

MATHEMATICAL IDEAS THAT CONTRIBUTE TO ART

Patterns, Symmetry , Tiling

Geometry & Islamic Art
Fractals
Filipino culture

Patterns: Tiling

 Occur in many settings

 Have a rich mathematical structure
 Examples
– Using Regular Polygons
– Penrose Tiling
– Escher Tessellations

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 Patterns: Symmetry

A mathematical operation, or transformation,

Occurs in
– the sciences
– the arts
– Architecture
– Nature
– our everyday life.
The term symmetry is used both in the arts and in the sciences.

• In art
– often used as an aesthetic element
– a kind of balance in which the corresponding parts are not necessarily alike but only
similar.
– Generally is a balance between various parts of an object.
– Several examples of symmetry in painting.

Symmetry in Architecture Symmetry in African Culture

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 Symmetry in Manadalas
• Spiritual and ritual symbol in Hinduism and Buddhism
• Represents the Universe.
• The basic form of most mandalas is a square with
four gates containing a circle with a center point.

Geometry in perspective

• originated in the Renaissance

• changed the way we represent the

Geometry: 3D

 The five Platonic solids and polyhedra

- inspired people throughout the ages world.

Tetrahedron Hexahedron Octahedron Dodecahedron Icosahedron

Faces are all Faces are all Faces are all Faces are all Faces are all
Equilateral squares equilateral triangles pentagons equilateral
triangles
Triangles 20 vertices

GEOMETRY IN ISLAMIC ART & ARCHITECTURE

Islamic Art
• Prohibition from making representations of people in holy sites
• Developed an instantly recognizable aesthetic based on
– Calligraphy

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 – Arabesque (vegetal, plants patterns)
– Geometrical shapes (repeated tiling)

Arabesque

Symbolic representation of plants.

• Used in
o Tiles
o Ceramics
o Domes
o Carpets
o Miniature
o Painting

Geometric Shapes
Repeated Tiling
• The mathematical elegance of these designs is that no matter
how elaborate they are, they are always based on grids constructed
using only a ruler and a pair of compasses.

M. C. ESCHER DUTCH GRAPHIC ARTIST (1898 - 1972)

For me it remains an open question whether [this work] pertains to the realm of mathematics or to
that of art.
- M.C. Escher
• Obsessed with the depiction of infinity
• Fascinated with paradox and “impossible” figures
• Used an idea of Roger Penrose’s to develop many intriguing works of art.
• Escher’s work encompasses two broad areas:
–the geometry of space,
–the logic of space.
• Gödel, Escher, Bach (a Pulitzer Prize-winning book) explores the relationships between the
works of
–mathematician Kurt Gödel,
–artist Escher, and composer Johann Sebastian Bach

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 Escher: Tesselations

A tessellation is a covering of the Escher: The shape of space

plane by shapes, called tiles, so that
there are no empty spaces and no Escher’s interest in shaping of space manifested itself in his
overlapped tiles. work throughout his career.
It exemplifies his concern with the dimensionality of space, and
with the mind’s ability to discern three-dimensionality in a two-
dimensional representation .

Escher: The logic of space

The work of Escher is rich in

mathematical content.
Much of it is related to hyperbolic
geometry.

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 Escher: Self-reference & Information

A central concept Escher captured is that of self-reference, which many believe lies near
the heart of the enigma of consciousness—and the brain’s ability to process information in a way
that no computer has yet mimicked successfully.

Mathematics in Art, Design & Architecture

• Other beautiful applications of geometry
– mazes and labyrinths
– kaleidoscopes,
– the fourth dimension and optical illusions.

Mandelbrot set

FRACTALS
Self Symmetric

 Infinitely complex patterns

that are self-similar across
different scales.

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 Fractals in Nature

Mathematics in Filipino culture

In a rare opportunity, a mathematician together with a master mat weaver, gave a

presentation demonstrating the mathematics embedded in various mat designs of a Philippine
indigenous community. Sponsored by the Ateneo De Manila University Mathematics Department,
together with the Ateneo Mathematics Society, Professor of Mathematics Dr.Ma.Louise Antonette N.
De Las Peñas and Cultural Master Mat Weaver Janeth Hanapi came together to show the interplay
between mathematics and culture.

Entitled Weaving Mat(h)s, the lecture was held at the Rizal Mini Theatre of the Ateneo de
Manila University on the 26th of February 2014 to a crowd of students, faculty, and other interested
groups. In her presentation, Dr. De Las Peñas described the various geometric elements and
algebraic structures present in the elegant colored repeating patterns of the mats created by the
Jama Mapun.

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 The national costumes of the candidates of Miss Universe 2018 shows the application of
mathematical designs

Our very own Catriona Gray wore all of the Philippines during the national costume
competition last night. Gray’s eye-catching costume called LUZVIMINDA featured the islands,
history, culture, and the spirit of the Philippines literally from head to toe. The design shows the
different artistic geometric designs and shapes that adds beauty to her costume.

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 Simple and Compound Interest
Objectives
After completing this lesson, students will be able to:
 Illustrate simple and compound interests;
 Distinguish simple from compound interest; and
 Solve problems involving simple and compound interest

Simple Interest

Almost everyday money is borrowed and loaned in thousands of transactions amounting, in

total, to hundreds of millions of pesos. Borrowing and lending are two sides of the same transaction
to the lender, loan, represents an investment in a debt of obligation. The interest charge provides
income from the investment. Take for example in a retail purchase using a credit card the
costumers borrows an amount equal to the purchase price from credit card provider. The card
provider makes an investment in a form of loan to the costumer. The rate of return on the
investment is equal to the rate of interest charged to the costumer.
In view if the fact the borrowing and lending are so central to our daily lives and in the
economic system, it is essential that very individual would perform and explain the computation of
interest in borrowing/lending transactions. The type of interest that most commonly calculated on
short term loan is simple interest. Simple interest is calculated only on the original principal
amount and is paid at the end of the loan period. Interest is the fee or rent that lenders charge to
borrowers for the temporary use of the borrowed money. The amount of borrowed is called
principal. The rate of interest is the percentage of the principal that will be charged for specified
period of time (e.g. daily, weekly, monthly, yearly, etc.)

The following variables will be in our mathematical treatment of simple interest:

P= Principal amount of the loan or investment
r= Annual rate of simple interest
t= time period (term) of the loan or investment
I= Amount of interest paid or received
F= Maturity value of the loan or investment

Simple Interest Formula:

I = Prt P= I/rt F= P+I F= P(1 + rt)

Determining the Time Period

To find the due date, we must determine the number of days in each month. Then, we simply
compute month by month, the number of days from one day to another. The loan date is the first day

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 of a loan and due date (maturity date) is the last day of the loan. When these two dates are known,
the number of days of the loan can be calculated by using the days of each month as reflected in
the table 1 and 2.

Table 1 : The Number of Days in Each Month

Month No. of Days Month No. of Days
January 31 July 31
February 28 August 31
March 31 September 30
April 30 October 31
May 31 November 30
June 30 December 31
Note: If it is leap year, February will have 29 days.

One way of determining due dates and days between two dates is easier to compute if we
have access to a table for the days in a year as shown in table 2. We must know the date of the note
and length of the note, determine the day of the year the note is dated, and add the number of days
in the note. The sum will be the day of the year the note will become due.

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 Steps in solving the Number of Days of a loan
1. Identify the number of days remaining in the first month by subtracting the loan date from
number of days in that month.
2. Write the number of days in each month
3. Write the number of days in the last month.
4. Add the days from the first month to the last month.

The time period t should be determined using a number days involved. There are two ways
of determining the time period. It may be approximate or actual time. Approximate time uses 30
days in every month while the actual time uses the exact number of days in every specific month as
shown in Table 1.

Example 1 : Find the actual time and approximate time from March 3, 2017 to September 10, 2017.
Solution:
Month Actual Time Approximate Time
March 3, 2017 31-8= 28 30-3=27
April 30 30
May 31 30
June 30 30
July 31 30
August 31 30
September 10, 2017 10 10
Total 191 187

Alternative solution in determining the actual time using Table 2:

September 10 = 253rd day
March 3 = - 62nd day
191 days
There are 191 days in actual time, while 187 days in approximate time.

Exact interest is computed in a 365 days in a year as the time factor denominator. On the
other hand, Ordinary interest is a type of interest wherein the number of days is computed based on
360 days in a year. Banks and most other institutions still use ordinary interest because it yields a
somewhat higher interest as compared to exact interest method. If the type of the interest is not
specified in any problem, the problem will be solved using the Banker’s Rule or ordinary interest in
actual time.

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 NOTE: Rate must be converted to a decimal or fraction before substituting to any formula.
NOTE: Time period is computed in terms of years. This means that time period expressed in moths
or days must be converted to a fraction of a year before being substituted into the formula for t
unless stated otherwise.

Example: Find the interest on P28, 700 at 7.3% from March 14, 2017 to August 16, 2017 using the
following
a. Ordinary interest using actual time,
b. Ordinary interest using approximate time,
c. Exact interest using actual time, and
d. Exact interest using approximate time?
Solution:
Given: P= P28, 700 r=7.3% = 0.073
The first step is to determine the approximate time and actual time of the term, then compute for
the ordinary interest and exact interest using the formula I=Prt.
Month Actual Time Approximate Time
March 14, 2017 31-14 = 17 30-14 = 16
April 30 30
May 31 30
June 30 30
July 31 30
August 16, 2017 16 16
Total 155 152

a. Ordinary interest using actual time: t=155 days

I = 28,700(0.073)(155/360) = P902. 06
b. Ordinary interest using approximate time: t=152 days
I = 28,700(0.073)(152/360) = P884. 60
c. Exact interest using actual time, and t=155 days
I = 28,700(0.073)(155/365) = P889. 70
d. Exact interest using approximate time? t= 152 days
I = 28,700(0.073)(152/365) = P872. 48

Thus ordinary interest using actual time or the Banker’s Rule provides the highest interest,
while the lowest generated interest is exact interest using approximate time.

NOTE: Throughout this lesson, assume ordinary interest in actual time or baker’s rule interest (360
days per year) unless stated otherwise.

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 Example: What amount of interest will be charged on P7, 300 borrowed for 3 years at a simple
interest rate of 12% per annum?
Solution:
Given: P=P7,300 r= 12% = 0.12 t= 3 years

The amount of interest payable at the end of the loan period is

I = Prt = 7300(0.12)(30)= P2,628.

The principal will earn an interest of P2,628.

Example: Maria paid P9, 250 on loan made 6 months before at 12% simple interest. Find the interest
generated.

Solution:
Given: F= P9,250 r= 12%=0.12 t=6months=0.50 years

In this particular example we will use the maturity value formula and solve in terms of P, thus

F= P(1+rt) => P=

After obtaining the value of the principal (P), we shall then compute for interest I, using maturity
value formula, then solve for I.

F=P+I => I=F – P = 9,250 – 8,726.42 = P523.58

The interest will amount to P523.58.

Compound Interest

The simple interest method discussed is restricted mostly to loans and interest-earning
investments. The compound interest method is employed in virtually all instances where the
duration exceeds one year, and it is also used for some short-term loans and investment.
The basic concepts of maturity value of money, future value, present value, and equivalent
payments that where developed in a simple-interest context, have similar interpretations and
significance in a compound interest environment. The algebraic formulas used to calculate their
amount, however, are different.

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 The principle of compound interest is applied in long-term loans. Bank and other financial
institution generally pay compound interest on deposits in saving accounts to encourage their
depositors to invest and to accumulate for a long period of time.
Compound interest is the procedure in which interest is periodically calculated and added to
the principal. The time interval between succeeding interest calculation is called the conversion
period (or compounding period or interval period). The interest earned during a period is
“converted” to principal at the end of the period because the principal and the interest are combined
and treated as the new principal for the succeeding period. The effect of converting interest of
principal is that the interest earned in a period will also earn interest in all succeeding periods. The
compound frequency (or conversion frequency), is the number of compounding that take place in a
year. The common compounding or conversion frequencies and the corresponding compounding or
conversion period are encountered are listed in table 3.

Table 3: Compounding Frequencies and Periods

Compounding or conversion No. of compounding or Compounding or conversion
frequency conversions per year periods
Annual 1 1 year
Semiannual 2 6 months
Quarterly 4 3 months
Bimonthly 6 2 months
Monthly 12 1 month

The nominal interest is the state annual interest rate on which the compound interest
calculation is based. The periodic interest rate is the rate of interest earned in one conversion
period. The following variables will be in our mathematical treatment of compound interest:

F=maturity value of the loan or investment

P= principal amount of the loan investment
I= amount of interest paid or received
j=nominal interest rate
m= no. of conversion per year
t= time period (term) of the loan or investment
i=periodic interest rate
n= number of conversions of the loan

The formula of maturity value of a compound interest will be derived. The symbol P and F
are again used to represent the principal amount and maturity, respectively, of the loan or
investment. The general problem is to determine the maturity value of the end of n conversion
periods if periodic interest and the rate i is earned each period. The periodic interest rate i

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 computed by dividing the nominal interest rate by the number of conversion per year (in symbol
i= ). On the other hand, number of conversions of the loan n is the product of Time period and
number of conversion per year (in symbol n=tm).

With the compound interest, interest added to the principal at the end of its conversion
period. Therefore, we will obtain the larger principal at the beginning of every successive period.
Our first approach will be to work through the accumulation of principal and interest one period at
a time. This approach is indicated by series of steps on the time line shown in the Figure below. The
time line maybe labeled with number of elapsed conversion periods. Note the numbers are placed
adjacent to the time line at the end of the respective conversion period.

Successive steps are linked by the fact that the combine principal and interest at the end of
any period becomes the new beginning principal for the next period. We can view the derivation of
the compound interest formula in a tabular presentation as shown in the table.
Period Present worth of the Principal Future worth of the Maturity Value (F)
Amount (P)
1 P P(1 + i)
2 P(1 + i) P(1 + i)(1+i) =P(1+i)2
3 P(1 + i)2 P(1 + i)2(1+i)1 =P(1+i)3
4 P(1 + i)3 P(1 + i)3(1+i)1 =P(1+i)4
. . .
. . .
n–1 P(1 + i) n-2
P(1 + i) (1+i)
n-2
=P(1+i)n-1
n P(1 + i)n-1 P(1 + i)n-1(1+i) =P(1+i)n

And with the use of mathematical manipulation of the formula we will arrived with the other
compound interest formulas:
F = P(1+i)n P= or P=F(1+i)-n I= F- P

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 NOTE: Rounding-off is only permissible in the final result.

A. Computing Compound Interest Problem

In this particular section we will examine the use of compound interest in computing the
maturity value of the principal amount. Now let us examine the examples:

Example 1: What will be the maturity value of P12,000 invested for 4 years at 15% compounded
quarterly?
Solution:
Given: P= P12, 000 t= 4 years j=15% = 0.15
m=4 n= tm=(4)4 = 16 i= j/m = 0.15/4 = 0.0375
The maturity value will be:
F= P(1+i)n
F= 12,000 (1+0.0375)16 = 12,000 (1.0375)16 = 12,000 (1.802227807) = P21, 626.73

The investment will grow to P21, 626.73 after 4 years.

Example 2: Esther deposit P25,000 in savings bank on January 13, 2014 at the time the bank was
paying 4% interest compounded quarterly. On July 13, 2016, the bank announced that it would start
paying 4.5% interest, compounded quarterly. How much did Esther have to her credit on July 13,
2018?

Solution: We have to compute for two separate compound amounts. We need to deal first with the
first condition that the interest is at 4% compounded quarterly that will run from January 13, 2014 to
July 13, 2016.
Given: P= P25,000 j1= 4% = 0.04 t1 = 1 ½ years = 1.5 years
m1 = 4 n1 = t1m1 = 1.5(4)= 6 i1 =j1/m1=0.04/4 = 0.01
F1= P(1+i) n

F1= 25,000 (1+0.01)6 = 25,000 (1.01)6 = 25,000 (1.061520150) = P26, 538.00

After we have established the compound amount for the first condition we now compute the
compound amount at 4.5% interest compounded quarterly from July 13, 2016 to July 13, 2018. But
this time the principal value is the computed maturity value of the first condition. Thus,

F1= P26, 538 j2= 4.5% = 0.045 t1 = 2 years

m1 = 4 n2 = t2m2 = 2(4)= 8 i2 =j2/m2=0.045/4 = 0.01125
F2= F1(1+i)n
F2= 26,538 (1+0.01125)8 = 26,538 (1.01125)8 = 26,538 (1.0936246157) = P29, 022.61

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 The maturity value will amount to P29, 022.61

Example 3: Bathsheba wants to provide a P200,000 graduation gifts for her daughter Magdelene
who is now 16 years old. She would like the fund to be available by the time her daughter is 20. She
decides on an investment that pays 10% compounded quarterly. How large must deposit be?
Solution:
Given: P= P200, 000 t= 4 years j=10% = 0.10
m=4 n= tm=(4)4 = 16 i= j/m = 0.10/4 = 0.025

In this example we will apply the alternative computation to obtain the value of P.
F= P(1+i)-n
F= 200,000 (1+0.025)-16 = 12,000 (1.025)-16 = 200,000 (0.6736249335) = P134, 724.99

Bathsheba should deposit P134, 724.99 in order to grow as much as P200, 000 after 4 years.

Nominal and Effective Rates

In this section, we shall explore the comparison between the nominal rate and effective
rate. As already mentioned, nominal interest rate is the stated annual interest on which the
compound interest calculation is based. The world “nominal” meaning “in the name only” is
appropriate because the nominal annual rate of interest is not numerically equal to the actual rate
of interest realized over a full year. On the other hand, effective interest rate is the equivalent
annually compounded rate.

The standard practice for comparing nominal interest rate is to convert each rate to its
effective interest rate. Since the effective interest rate is the equivalent annually compounded rate,
the formula for the effective interest rate and nominal interest rate as shown in the formulas
below.

Effective Rate Formula: r= -

Nominal Rate Formula: j= ( √ -

Example 1: Find the effective rate of interest equivalent to 17% compounded bimonthly.
Solution:
Given : j= 17% = 0.17 m=6
r= -
r= - = (1 +0.0283333333)6 – 1 =(1.0283333333)6 – 1 = 0.182506315 = 0.1825

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 17% effective rate is equivalent to 18.25% compounded bimonthly.

Example 2: What rate converted bimonthly is equivalent to an effective rate of 11%?

Solution:
Given: r= 11% = 0.11 m=6
j= ( √ -
j= ( √ - =6 √ - = 6(1.017545481 – 1)= 0.1052728847 = 0.1053 = 10.53%

Nominal rate of 10.53% converted bimonthly is equivalent to 11% effective rate.

CREDIT CARDS AND CONSUMER LOANS

Learning Outcomes

At the end of the lesson, students will

 calculate credit card transactions

 apply the annual percentage rate on loans
 discuss stock, bonds and mutual funds

A. Credit Card
The credit card transaction is one of the
most widely used by individuals to pay purchase
without bringing cash on hand. The government
requires credit card companies to fully disclose to
the customer in writing, the cost of the credit. The
finance charge is the peso amount that is paid for
the credit, while the annual percentage rate (APR)
is the amount effective interest rate being
charged.

Granting credit by the lender to the borrower involves a trust relationship wherein
the borrower promises to repay the loan, with interest, in a predetermined payment
arrangement. The borrower/ consumer has a prearranged credit limit with two payment
options: (1) the balance is paid off at the end of the month with no finance charge, and (2) a
minimum payment or portion of the payment but less than the full balance and carryover

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 balance, which accrues finance charges by using the simple interest formula. The credit
card company applies an open-end credit particularly revolving credit. The revolving credit
is a loan made on continuous basis and billed periodically. The borrower makes minimum
monthly payments or more and pays interest on the outstanding balance.

Credit card companies use the average daily balance

method to calculate finance charge on a credit card account.
Average daily balance tracks the daily transactions in a credit
account. Most credit card companies issue monthly bills and the
due date is usually one month after the billing date. This section
provides some insights on how to compute finance charges
whenever we used our credit card and its monthly balance
computation. Credit card providers first compute the advanced
daily balance of a credit card transaction which is equal to the
quotient between the sum of the amounts owned each day of the
given month and the number of days in the billing period. Then, finance charge is being
computed based from the average daily balance times the interest rate per month. Lastly,
the current balance will be computed. Computation for cash advances is also included in
this section. We will apply the following formula to compute for the credit card transaction:

Average daily balance = (some of the amounts owed each day of the month) /(number of
days in the billing period)

Finance charge = ADB x Periodic Rate

Cash advance fee = Amount of Cash Advance x Rate

Current Balance = (Previous Balance) – (payments) + (new charges) + (finance charge)

Example:

Sofia made a ₱3,500 purchase on March 7, a ₱10,700 purchase on March 19, and
cash advance of ₱10,000 on March 21 using her credit card, which previously had zero
balance. Her monthly statements are billed on the 31 st of each month. The interest on the
average daily balance is 2.5% per month and for cash advances is 2%. Find the finance
charge and the balance owed on March 31 bill.

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 Solution:

To determine the finance charge, we need to prepare a table indicating the unpaid balance
for each purchase, the number of days the balance is owed, and the product of these
amounts.

o Step 1: Calculate the daily balances.

Dates Payments/Purchase Unpaid Balance No. of Days Daily Balance

March 7-18 3,500.00 3,500.00 12 42,000.00
March 19-20 10,700.00 14,200.00 2 28,400.00
March 21-31 10,000.00 24,200.00 11 242,000.00
Total 312,400.00

The amount owned on March 31 is the beginning unpaid balance less any returns or payments plus
new charges and the finance charged.

The sum of the total amounts owed by Sofia each day of the month is ₱312,400.00 and the total
number of days from March 1 to March 31 is 31 days.

o Step 2: Compute for the average daily balances.

Average daily balance = (some of the amounts owed each day of the month) /(number of
days in the billing period)

Average daily balance (ADB) = 312,400 / 31 = 10,077.42

o Step 3: Find the total finance charge.

We first compute for the finance charge and cash advance fee, then solve for the total
finance charge.

Finance charge = ADB x Periodic rate

Finance charge = 10,077.42 x 0.025 = 251.94

Cash Advance fee = Amount of cash advance x rate

Cash Advance fee = 10,000 x 0.02 = 200

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 Total finance charge = Regular Finance charge+ Cash advances fee
Total finance charge = 251.94+200.00 = 451.94

o Step 4: Determine the current balance.

Current Balance = (Previous Balance) – (payments) + (new charges) + (finance charge)

Current Balance = 0 – 0 + 24,200 +451.94 = ₱ 24,651.94

B. Consumer Loans

Most consumer loans apply the annual percentage

rate interest rate, such as a car loan, housing loan, furniture
loan, appliance loan, and other types of loan with regular
payment schedule. The payment amount for these loans is
given by the following formula.

R= -
-

Where: R = Regular payment m = number of payments per year

A = Loan amount n = tm
r = Annual interest rate i = r/m
t = number of years

example: RFS Electronics is offering customers who purchase the latest model of
smartphones an annual interest rate of 9% for 3 years. If Marisol purchases an iPhone 8 for
₱ 46,700 from RFS Electronics, determine her quarterly payment.

Solution:

Given: A = 46,700 m = 4 (quarterly payment) i= r/m =0.09/4 = 0.0225

r = 9% = 0.09 t = 3 years n = tm (3)(4) = 12

R= -
-

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 R= -
= 4,484.01
-

The quarterly payment for the smartphone is ₱4,484.01

STOCKS, BONDS AND MUTUAL BONDS

A. Stocks and Bonds

Companies can raise money either by

borrowing or selling shares of stocks to
finance operations, plan expansion, and
others. If the company raises the money by
means of selling shares of ownership,
these ownership shares are called stocks.
The buyers of the stocks are called
stockholders, they receive stock
certificates verifying the number of shares
of stock they own. Sometimes companies
raise money by selling bonds instead of
stocks. A bond is a promise from the company to pay the face value to the bond owner
at a future date along with the interest payment at a stated rate.

The par value (or face value) of a bond is the original amount of money borrowed by
a company. Most companies issue a par value of ₱1,00. Dividends are distribution.
Dividends are distribution of a company’s profits to its shareholders.

Shareholders are persons who own shares of

stocks in a corporation. There are two types of
stocks, preferred and common stocks. Preferred
stock is a class of corporate stock in which the
investor has preferential rights over the common
shareholders to dividends and a company’s asset.
On the other hand, common stock is a class of
corporate in which the investor has voting rights

22 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 and shares directly in the success or failure of the business.

A par value is an arbitrary monetary figure specified in the corporate charter for
each share of stock and printed on each stock certificate. The dividend for par value
preferred stock is quoted as a percent of the par value. Alternatively, no-par value
stock is a stock that does not have a par value and dividend is quoted as a peso amount
per share. Cumulative preferred stock is a type of preferred stock that receives a
dividend each year. The dividend in arrears is the amount of dividends that accumulate
and are owed to cumulative preferred shareholders before for past years in which no
dividends are paid. Common Preferred stocks are categorized as nonparticipating and
participating. Nonparticipating stock means that shareholders.

receive only fixed dividend, while participating stock means that the shareholder
may receive additional dividends if the company performs well. Convertible preferred

means the stock may be exchanged for a specified number of shares in the future. The
following are the formulas used in stocks:

Dividend per share (common) =

Total preferred dividend = number of shares x dividend per share

Total common dividend = total dividend – total preferred dividend
Dividend per share (preferred) = par value x dividend rate

Example

The AUS Enterprises has 1,500,000 shares of common stock outstanding. If a dividend of
₱30,000,000 was declared by the company directors last year, what are the dividends
per share of common stock.

Solution:

Because the company has no preferred stock, the common shareholders will receive
the entire dividends.

Given: Total common dividend = ₱30,000,000

23 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 Number of shares (common) = 1,500,000

Dividend per share (common) =

Dividend per share (common) = = ₱20 per share

HOME OWNERSHIP

If an individual purchases a home, he

generally makes a down payment and
finances the remaining balance with a loan
obtained through a bank or a financial
institution. The amount that is borrowed to
purchase a home and other real estate
property are called mortgage. It is the
difference between the selling price and
down payment. The borrower is usually the
owner of the property and is referred to as
the mortgator and the lender is mortgagee.

Mortgage maybe for as long as 30 years which maybe acquired thru private
financial institutions
Or thru Pag -Ibig Housing Loans. In the mortgage contract, the property owner grants
the lender the legal right to take over the said property should the borrower default on
the repayment of the loan. When the last payment is made on the loan, does the lender
turns over the title, or proof of ownership to the borrower.

Example: the purchase price of a home in a subdivision in Antipolo City is ₱4,200,000. A

down payment of 20% is made and secures a loan on the remaining balance of 25 years
at an annual interest rate of 5.4%. Find (a) the monthly mortgage payment, (b) the total
payment over the life of the loan, and (c) the amount of interest paid on the loan over
the 25 years.

Solution:

Given: Selling price = ₱4,200,000

24 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 T = 25 years m = 12 i = r/m = 0.06 /12 = 0.005
R = 6% = 0.06 n = tm = (25)(12) = 300

o Step 1. Compute for the down payment.

Down payment = selling price x rate of down payment

Down payment = 4, 200,000 x o.20 = ₱840,000

o Step 2. Compute for the mortgage.

Mortgage = selling price – down payment

Mortgage = 4,200,00 – 840,000 = ₱3,360,000

o Step 3. Compute for the monthly mortgage payment

R= -
-

R= -
= 21,648.53
-

The monthly mortgage is ₱21,648.53

o Step 4. Compute for the total mortgage payments.

Total Mortgage Payments = Monthly payments x No. of Monthly Payments

Total Mortgage Payments = 21,648.53 x 300 = ₱6,494,559

o Step 5. Compute for the amount of interest paid.

Interest = Total Mortgage Payments – Amount of mortgage

Interest = 6,494,559 – 3,360,000 = ₱3,134,559

The amount of interest paid over the life of the loans is ₱3,134,559.

25 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 Exercise 4.1. (Geometric Designs)

Directions:

Create your own geometric design/s.

Use any tool or materials in creating your art.
You can integrate the use of technology in doing this activity.

Note: This will serve as your project.

Rubrics for geometric design making

Criteria 25 20 15
Shows unique or Some designs are Solely copied from
Uniqueness original design, not taken from the other the other source
taken from other sources
sources
Shows creativity Minimum utilization The design is plain
and maximum of art material, tool and not creative
Creativity and Quality utilization of and or technology in
different art material making the design
, tool and/or
technology in making
the design
Relevance of the Shows maximum Shows minimum Shows no application
design application of application of of geometric design
geometric design geometric design
Effort Exerts maximum Exerts minimum Exerts no effort in
effort in making the effort in making the making the design.
design design
Total 100 80 60

Exercise 4.2: Answer the following:

1. If a nine-month term deposit at a bank earns a simple interest rate of 9% per annum, how
much will have to be deposited to earn P225 of interest?
2. What is the present value of P5, 275 due in 6 months if 11% interest is paid?
3. Aaron makes an investment by lending P24, 000 to Bartholome for 2 years at an interest
rate of 11% per annum. What is the maturity value of the investment?

26 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 4. A person can buy a piece of property for P6, 500,000 cash or P4, 000,000 down payment and
P4, 200,000 in years. If the person has money earning 8% converted quarterly, which is a
better purchased plan and by how much?

A. CREDIT CARD
1. Suppose Riana had an unpaid credit card bill for ₱2,000 with a due date of June 28.
A purchase ₱1,300 was made on July 7, and ₱2,400 was charged on July 15. A
payment of ₱3,000 was made on July 20. The next billing date is July 28. The interest
on the average daily balance is 2.75% per month. Find the finance charge and the
current balance of the bill for the cutoff period.

B. HOME OWNERSHIP
1. Ms. Molina has a monthly payment of ₱12,700 on a 20-year loan at annual interest
rate of 5.7%. after making payments for 15 years, she decides to sell the house. What
is the payoff for the mortgage?

27 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M
 References:

Sheikh, N. (2015, May 5). slide share. Retrieved November 24, 2020, from
https://www.slideshare.net/numansheikh/mathematics-and-art

Verzosa, D. M. (2014, February 28). Retrieved November 24, 2020, from Google:
http://ateneo.edu/sose/news/ls-research-updates/ateneo-profs-discuss-interplay-math-
culture

ALEJO, A. (2018, December 11). Retrieved November 24, 2020, from Google:
https://mega.onemega.com/catriona-gray-wears-the-islands-culture-and-spirit-of-the-
philippines-as-her-national-costume-for-miss-universe/

Sirug, Winston S. 2018. Mathematics in the Modern World. Mindshapers Co., Inc.

28 I Page Mathematics in the Modern World AZARCON, C., JURALBAR M., & ORCEJOLA, M