CHRIST THE KING COLLEGE

GINGOOG CITY

SENIOR HIGH SCHOOL DEPARTMENT

SCHOOL YEAR 2021-2022

GENERAL MATHEMATICS
MODULE 5
Mr. Jerry Clark Ian C. Cabuntucan
Teacher

NAME: _Andrea Inoc______________________________________ Date Submitted:09-28-21

___________________
Grade & Section: _11-St. Padre Pio___________________________ Mobile Number:
____________________

TABLE OF CONTENTS
UNIT 2: MATH OF INVESTMENTS
Chapter 4: Interests and Annuities

Lesson 10: Simple Interest

Lesson 11: Compound Interest

Self-Assessment
Analysis Questions

Chapter 4. Interests and Annuity Week No.: __5__ Day: 1_

Lesson 10. Simple and Compound Interest.

Objectives: TLO (Topic Learning Outcomes)

I will be able to
 Illustrate simple interest.
 Compute interest, maturity value and present value in simple interest.
 Solve problems involving simple interest.

I.2 LEARNING ACTIVITIES

Discussion of the Concepts

Simple interest is interest charged only on the loan amount

called principal.

Interest is the amount that you will pay as you borrow money or
something to a lender. It is the profit that the lender have once they lent
you money. It is where they are interested in, thus, the term interest.

In finding the interest of you will use the following formula.=

Formulas:

Simple Interest I
I =Prt
1|Page r t
P
where

I =interest
P=Principal – It is the initial amount that we borrowed
r =interest rate – It is the rate of how much interest is added (in %)
t=time∨term ∈ years∨fraction of a year . – The time taken for adding the amount
Of the interest.

We can derive the formula inorder to determine each of the parameters

I I I
(a) P= (b) r = c. t=
rt Pt Pr

Maturity Value or (Amount or Balance)- It is the sum of the principal amount and
the interest. The total money that you will
pay to the lender.

A=P(1+rt)

Where A=Maturity Value , P=Principal , r =interest rate, and t=term

Types of Simple Interest

Ordinary Interest or Banker’s Interest – an interest based on a 360-day year.

Exact Interest – an interest based on a 365-day year.

The difference between the two is the number of days in a year used in
calculating the interest. Ordinary interest is uses 360 days in a year due to the
fact that we are counting a month as 30 days and 30 X 12 = 360 days. On the other
hand, exact interest follows the number of days in a year based on the calendar
which is 365 days.

Example 1: Simple Interest

Teresa borrowed ₱120,000.00 from her uncle. If Teresa agreed to pay an

8% annual interest, calculate the amount of interest she must pay if the loan
period is (a) 1 year, (b) 9 months, (c) 18 months (d) find the maturity value of
the amount paid in the period of 9 months

Solutions:

(a) We are given P= ₱ 120,000, r =8 %∨0.08, and t=1 year . Thus,

I =Prt=( 120,00 ) ( 0.08 )( 1 ) =₱ 9,600

(b) We are given P= ₱ 120,000, r =8 %∨0.08, and t=9 months . In order to solve for
the interest, we need to convert months in to factions of a year. To do
that, we will divide the months to 12 since there are 12 months in a
9
year. t= year
12
Thus,

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I =Prt=( 120,00 ) ( 0.08 ) ( 129 )=₱ 7,200
18
(c) We are given P= ₱ 120,000, r =8 %∨0.08, and t=18 months∨ year . Thus,
12

I =Prt=( 120,00 ) ( 0.08 ) ( 1812 )=₱ 14,400

(d) To find the Maturity Value, we will use the interest we obtained for 9
months term and the formula on finding the Maturity Value

A=P(1+rt)

[
A=( 120,000 ) 1+(0.08) ( 129 )]= ₱ 127,200
Thus, the total amount that Teresa will pay after 9 months is ₱ 127,200 .

--End of Lesson 10--

Chapter 4. Interests and Annuities Week No.: __5__ Day: 1_

Lesson 11. Compound Interest

Objectives: TLO (Topic Learning Outcomes)

I will be able to
 Illustrate compound interest
 Compute interest, maturity value, and present value in compound
interest
 Solve problem involving compound interest

I.1 LEARNING ACTIVITIES

Discussion of the Concepts
COMPOUND INTEREST

Compound interest is interest calculated on the principal and also includes all
of the accumulated interest of previous periods of a deposit or loan.

Compound interest' is a phrase that

is regularly used in the world of savings
and investments and although its meaning
may not be immediately obvious, it’s
actually quite easy to understand and can
have a significant effect on your
finances. This relatively simple concept
is relevant to both your savings and
debts, and as such it is something anyone
planning their financial future should
look into.

Compound interest refers to the

principle that when you save money, as well as earning interest on the savings,
you also earn interest on the interest itself. Therefore, every year that the

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money is in your account you are earning interest on each previous year’s
interest. This means that not only are your savings growing over time, but that
the rate at which they grow gets faster as well.

We can see this in action by taking some basic figures – for example, if you
deposited ₱1,000 at a rate of 10%, at the end of year one you would have ₱1,100
(using the formula in finding the simple interest), equalling ₱100 of interest
earned. The following year you would earn ₱110 in interest – 10% of the original
capital and 10% of the year one interest. The next year would be ₱210 and so on.

The rate at which compound interest (or ‘compounding’ as it is sometimes

known) accumulates also depends on the frequency of interest payments. If the
interest period is not annual, but is instead bi-annual or quarterly or monthly,
then the total amount of interest paid across the year will be higher. This is
because interest is being paid on interest accumulated in those smaller periods.

The formula for compound interest is

Where

A is the amount or the future value

P is the initial principal balance,
r is the interest rate in decimal (e.g. 5 %=0.05),
n is the number of times interest is compounded per time period
Possible values for n:
Monthly = 12
Quarterly = 4
Semi-annually = 2
Annually = 1

t is the number of time periods.

Example 1:

If ₱320,000.00 is invested for 5 years at 8% compounded quarterly, find (a)

the compound amount or future value, and (b) the compound interest.

Solution:

(a) r =8 % or 0.08 in decimal, and n=4 since it is compounded quarterly, and

t =5 since it is invested for 5 years.

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 nt
r
( )
A=P 1+
n
Use the formula

4 (5)
0.08
A=320,000 1+ ( 4 ) Substitute the values of each parameters

20
A=320,000 ( 1+0.02 ) simplify the equation

A=₱ 475,503.17

The compounded amount is ₱ 475,503.17 that means for 5 years she will earn
that amount given by the interest rate and how it is compounded.

(b) To find the compound interest, we are going to subtract the initial
principal to the compounded amount.

Compound Interest =Compounded Amount−PrincipalCompound Interest =475,503.17−320,000

Compound Interest =₱ 155,503.17

Thus, the compound interest after 5 years will be ₱ 155,503.17

For more examples, visit this website: https://www.mathbootcamps.com/compound-

interest-formula/

--End of Lesson 11--

SELF-ASSESSMENT
Activities/Exercises (READ THE GENERAL DIRECTION CAREFULLY)
General Direction:
 Write the questions, your answer, and complete solution in a clean yellow paper.
 If you have multiple pages make sure to staple or fasten it.
 Keep this module for your own reference.
 Your paper must contain the following: Week Number at the top, Name, Grade and Section,
Your personal mobile number (for oral assessment), and the date you finished the module

Activities and Exercises 1 (Simple Interest)

A. Complete the table by finding the simple interest.

Principal Interest Rate Time Amount of Interest

(P) (r) (t) (I)
₱72,500 8% 3 years 17,400
₱3,000 12% 6 months 180
₱48,200 11% 2.5 years 13,255

B. Solve the following problems. Show your complete solutions.

1. Carmen invested ₱50,000.00 at 10.5% simple interest rate for 36 months. Find
the interest and the amount at the end of the term.

Activities and Exercises 2 (Compound Interest)

A. Find the compounded amount or future value and the compound interest of the
indicated principals.

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 1. ₱30,000.00 at 8% compounded quarterly for 3 years.
38,047.25
2. ₱51,000.00 at 8.5% compounded anually for 10 years.
115,310.16
3. Glynda deposites ₱5,000.00 in a savings account which pays 5% compounded
annually. The money is left for 3 years. Find the account balance at the end
of 3 years.
6,381.41

II. Analysis Questions

1. Why is it important to learn and understand the concept of interest?
2. In what way does the concept of interest help us in dealing real life
situations?

PERFORMANCE TASK
Group of 5 Members, output must be printed and to be submitted during
module submission. Title: Calculating Interest of Lending Services

Find someone (in your family, friends or relatives) who has an experience
on borrowing or lending money. Fill the following information to know your
relationship to that person by answer the following question:

How are you related?

A. Interview that person by following the questions given below and write
them in the space given:
1. Have you ever experience borrowing or lending money?
2. How much have you lent or borrowed?
3. What is the interest rate of the lender?
4. What is the term or the time in which you paid you amount?

B. Based on the data you collected, Find the simple interest and the
maturity value of the person whom you interviewed.
C. Write you insights on the investigation you did.

SUMMARY/ACTION
MATH JOURNAL: Write insights for all the things you learned in the module.
(Minimum of 3 sentences)

References:

 Versoza, D.B. et al.(2016) Teaching Guide for Senior High School General
Mathematics. Quezon City: Commission on Higher Education
 Oronce, O. My Skill Builder: General Mathematics. Manila: Rex Book Store

Websites:
https://www.mathwarehouse.com/sheets/algebra-2/functions-and-relations/inverse-functions-
worksheet.php
https://www.mathwarehouse.com/sheets/algebra-2/functions-and-relations/inverse-functions-
worksheet.php

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