Mathematics of Investment

Institution Name of Institution Date Last Revised

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Department Semester Adopted
Vision Mission

College Goals

Program Outcomes (from CMO No. 75, s. 2017, p. 3 and 5):

6.2.b. Demonstrate mastery of subject matter/discipline

6.3.3.a. Exhibit competence in mathematical concepts and procedures

6.3.3.b. Exhibit proficiency in relating mathematics to other curricular areas

Class Information Instructor's Information

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86

Course Information
Course Name Mathematics of Investment Course Code
Pre-requisite Subject Course Credit 3 units, 3 hrs./wk. (18 weeks, 54 hrs. total)
Course Requirements
Grading System

Course Description BTIs covered

This course offers the students a basic mathematical concepts and skills applicable to economics, business and accounting. It
will enhance the student’s mathematical understanding of investment. Topics covered in this course includes determining the 1.1.1
time value of money using simple and compound interest and discounting, variation of annuities, amortization, stocks and bonds,
and sinking fund. The students are to employ mathematics as the main tool in solving investment-related problems and in making
good investment calculations and decisions.

Course Learning Outcomes BTIs covered

At the end of the course, the pre-service teachers should be able to:

A. Select and apply appropriate formulas, concepts and procedures in solving various problems related to investment and 1.1.1
interpret investment numerical results.

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 Time Intended Learning Outcomes (ILOs) BTIs Content Suggested Teaching Learning Suggested Assessment BTIs
Allotment Activities
Week 1-3 At the end of the session/s, the pre- I. SIMPLE INTEREST AND Interactive Discussion Formative Assessment: 1.1.1
service teachers should be able to: DISCOUNT Individual and Group Activity
c. The students are asked 7. Pen and Paper quiz
• Analyze and distinguish 1.1.1 1. Simple Interest to make a Concept Map. 8. Seatwork
between interest and [A] 2. Approximate & Actual d. The students are asked 9. Class participation
discount formula: Number of days to answer some drills
F = P (1+rt) and 3. Ordinary & Exact Interest individually or by pair.
4. Simple Discount Performance Assessment:
P = F (1-dt); Reflection Activity:
• Distinguish between the use 5. Equivalent rates
Reflection Paper
of interest rate and discount 6. Discounting Promissory The students are asked to write
rate; notes down 3 things they learned about
• Compute for equivalent simple interest and discount (after
interest and discount rates. the discussion of each main
subtopic: Simple Interest,
approximate & actual number of
days, ordinary & exact interest,
simple discount, equivalent rates,
discounting promissory notes),
what they find difficult in the
topics presented, and questions
that they can generate from the
discussion..
Week 4-6 At the end of the session/s, the pre- II. COMPOUND INTEREST Interactive Discussion Formative Assessment: 1.1.1
service teachers should be able to: Individual and Group Activity
1. Compound Interest a. The students are asked 10. Pen and Paper quiz
• Differentiate simple from 1.1.1 2. Effective & Nominal rates to make a Concept Map. 11. Seatwork
compound interest; [A] 3. Equivalent rates b. The students are asked 12. Class participation
• Solve compound interest 4. Equation of values to answer some drills
problems where either F, P, T individually or by pair.
Performance Assessment:
or i is unknown; Reflection Activity:
• Set-up and solve equations Reflection Paper
of value; The students are asked to write down
• Discuss current bank 3 things they learned about compound
practices and be able to solve interest (after the discussion of each
problems on savings account main subtopic: compound interest,
deposit. effective & nominal rates, equivalent
rates and equation of values), what
they find difficult in the topics

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presented, and questions that they can

generate from the discussion..
Week 7-8 At the end of the session/s, the pre- III. SIMPLE ANNUITIES Interactive Discussion Formative Assessment: 1.1.1
service teachers should be able to: Ordinary Annuities Individual and Group Activity
1. Finding the present value and a. The students are asked 13. Pen and Paper quiz
• Define ordinary annuity, its 1.1.1 amount at the end of the term to make a Concept Map. 14. Seatwork
present value and compound [A] 2. Finding the term of the ordinary b. The students are asked 15. Class participation
amount; annuity to answer some drills
• Derive formulas for the individually or by pair.
Performance Assessment:
present value and compound Reflection Activity:
amount of an ordinary Reflection Paper
annuity; The students are asked to write down
• Solve annuity problems 3 things they learned about simple
where either Present value, annuities (finding the present value
Amount/future value, term or and amount at the end of the term),
interest is unknown. what they find difficult in the topics
presented, and questions that they can
generate from the discussion..
Week 9-10 At the end of the session/s, the pre- IV. SPECIAL ANNUITIES Interactive Discussion Formative Assessment: 1.1.1
service teachers should be able to: Individual and Group Activity
1. Annuity Due a. The students are asked 16. Pen and Paper quiz
• Differentiate ordinary from 1.1.1 2. Deferred Annuity to make a Concept Map. 17. Seatwork
special annuities; [A] b. The students are asked 18. Class participation
• Define the different special to answer some drills
annuities individually or by pair.
Performance Assessment:
• Derive the formula for each Reflection Activity:
type of special annuity; Reflection Paper
• Compute special annuity The students are asked to write down
problems. 3 things they learned about special
annuities (after the discussion of each
main subtopic: annuity due, deferred
annuity), what they find difficult in the
topics presented, and questions that
they can generate from the discussion..
Week 11- At the end of the session/s, the pre- V. AMORTIZATION AND Interactive Discussion Formative Assessment: 1.1.1
12 service teachers should be able to: SINKING FUND Individual and Group Activity
a. The students are asked 19. Pen and Paper quiz
• Construct an amortization 1.1.1 1. Extinction of Debt to make a Concept Map. 20. Seatwork
schedule; [A] 2. Computation of the 21. Class participation
outstanding balance
3. Amortization method

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 • Solve the problems on 4. Sinking fund method b. The students are asked Performance Assessment:
amortization where Present to answer some drills
Value, Amount/Future value, individually or by pair. Reflection Paper
rate, terms, or time is Reflection Activity:
unknown;
• Compute the outstanding The students are asked to write down
liability for any desired time 3 things they learned about
• Determine the periodic amortization and sinking fund (after
expense and book value of a the discussion of each main subtopic:
sinking fund. extinction of debt, computation of the
outstanding balance, amortization
method, sinking fund method), what
they find difficult in the topics
presented, and questions that they can
generate from the discussion..
Week 13- At the end of the session/s, the pre- VI. GENERAL ANNUITIES Interactive Discussion Formative Assessment: 1.1.1
14 service teachers should be able to: AND PERPETUITIES Individual and Group Activity
1. General annuities a. The students are asked 22. Pen and Paper quiz
• Define a general annuity and 1.1.1 2. Perpetuities to make a Concept Map. 23. Seatwork
a perpetuity; [A] b. The students are asked 24. Class participation
• Relate a general annuity and to answer some drills
ordinary annuity; individually or by pair.
Performance Assessment:
• Derive the formulas for the Reflection Activity:
present value and compound Reflection Paper
amount of a general annuity; The students are asked to write down
• Compute for the present 3 things they learned about general
value and compound amount annuities (after the discussion of each
of a general annuity. main subtopic: general annuities,
perpetuities), what they find difficult in
the topics presented, and questions
that they can generate from the
discussion..
Week 15- At the end of the session/s, the pre- VII. Bond and securities Interactive Discussion Formative Assessment: 1.1.1
18 service teachers should be able to: Individual and Group Activity
1. Basic financial a. The students are asked 25. Pen and Paper quiz
• Define bonds and stocks 1.1.1 securities to make a Concept Map. 26. Seatwork
• Compute the price of [A] 2. Bonds and stocks b. The students are asked 27. Class participation
different types of bonds 3. Price of a bond to answer some drills
and stocks 4. Other formulas for individually or by pair.
Performance Assessment:
the bond Reflection Activity:

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5. Premium and Reflection Paper

discount The students are asked to write down
6. Valuation between 3 things they learned about bond and
coupon payment securities (after the discussion of each
dates main subtopic: basic financial
7. Yield rates and the securities, bonds and stocks, other
Bond Salesman’s formulas for the bond, premium and
Formula discount, valuation between coupon
8. Callable bonds payment dates, yield rates and the
9. Serial bonds and Bond Salesman’s formula, callable
stocks bonds and serial bonds and stocks),
what they find difficult in the topics
presented, and questions that they can
generate from the discussion.
Suggested References

Hart, W. (1924). . D.C. Heath & Co.

Kellison, S. (2008). . McGraw-Hill.
Shao, P & Shao, S. (1997). CENGAGE Learning.

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