In previous lessons, you learned how to solve simple and compound interests. In the most recent lesson, you studied the basic concepts of business and consumer loans. You understand definitions such as annuities, interests, loans and collaterals.
In this lesson, you will study the application of business and consumer loans in real life situations. To better appreciate this module let us first consider the following situations:
(a) Mario came from a poor family. His parents have no stable jobs. But due to Mario’s determination, he excelled and was able to graduate college. After being permanent for 2 years in his work, Mario dreamt of providing a simple and decent shelter for his family. What do you think Mario should do?
(b) Cathy finished Senior High School in her hometown. She took a TVL strand in dressmaking, However, because of financial problems she was not able to continue in college. She decided to help her mother in their small business of dressmaking. Their business increased in production due to her hardwork. Subsequently, Cathy decided to venture in a larger scale and wished to export their Filipiniana-style products. But this would need a bigger capital. What do you think Cathy should do?
(c) During his STEM high school years, Albert was fond of experimenting on RC motors. In his engineering years in college, he creatively thought of experimenting about perpetual motion that could provide energy to machines. However, he was short of finances to start this project which is primarily Filipino-made. What do you think Albert should do?
Well, you should probably answer all three situations by finding money. Generally, it is correct. But what are the options to do that? One of the options can be found in this module. So, study diligently this module because these are all situations in which you might find yourself in the future. So, by studying this module you may be given an idea of different decisions you can make to fulfill your dream.
After going through this module, you are expected to solve problems on business and consumer loans (amortization and mortgage).
This Self-Learning Module (SLM) is prepared so that you, our dear learners, can continue your studies and learn while at home. Activities, questions, directions, exercises, and discussions are carefully stated for you to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you step-by-step as you discover and understand the lesson prepared for you.
Please use this module with care. Do not put unnecessary marks on any part of this SLM. Use a separate sheet of paper in answering the exercises and tests. And read the instructions carefully before performing each task.