Republic of the Philippines

Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN

Topic / Title SIMPLE AND COMPOUND INTERESTS

Grade Level Grade 11
Time Allotment 60 minutes
Performance Standards
The learner is able to investigate, analyze and solve problems involving simple and compound interests and simple and
general annuities using appropriate business and financial instruments.

Most Essential Learning Competencies (MELCs) and Objectives

The learner…
1. illustrates simple and compound interests; (M11GM-IIa-1)
2. distinguishes between simple and compound interests (M11GM-IIa-2)
ELICIT ( 5 mins.) MATERIALS
Ask students to give their own answers to the given question below. PowerPoint
Who among you are working student? Presentation
What are some ways to take care of hard-earned money?
ENGAGE ( 5 mins.)
Activity 1: GUESS THE BANK PowerPoint
Directions: Guess which bank has the following taglines. Presentation

A B
1. You’re in Good Hands A. BDO (Banco de Oro)
2. We Find Ways B. Landbank of the Philippines
3. Let’s Make It Easy C. DBP (Development Bank of the
Phil.)
D. Metrobank
E. BPI (Bank of the Phil. Islands)

Say: Today we will talk about money, how can it be lost or how to make it grow
using mathematics.
EXPLORE ( 30 mins)
PowerPoint
Activity 2: ANALYZING SCENARIOS Presentation
Directions: Analyze the scenarios and answer the following questions.
1. Your mother borrowed money from her friend at the amount of ₱10,000. Then, after
2 years, she paid her back with an additional amount of ₱1,000 since it took a long
time before she paid off the debt. What do you call that additional amount of
money? Answer: INTEREST
2. Suppose you won ₱10,000 and you plan to invest is for 5 years. A cooperative
group offers 2% simple interest rate per year. A bank offers 2% compounded
annually. Which will you choose and why? Answer: Solutions will be discussed
while presenting the lesson.

Explain that borrowing money from banks or lending institutions requires

payment of interest. Same thing with depositing money in a bank. It is like
lending money to the bank in return for which the bank pays interest.
Hence, money has present and future values.

EXPLAIN (5 mins.)
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN

Discuss the following terminologies: PowerPoint

Presentation
1. Lender or creditor 5. Time or term (t)
2. Borrower or debtor 6. Principal (P) Chalk and board
3. Origin or loan date 7. Rate (r)
4. Repayment date or maturity date 8. Interest (I)
9. Maturity Value or Future Value (F)

SIMPLE INTEREST
- is the interest earned on the principal investment.

Formula for Simple Interest: I s=Prt

Activity 3: WORD PROBLEM

Directions: Solve the following word problems. Show your complete solutions.
1. A working student at one of the biggest fast-food restaurants in Hagonoy wants to
save money for the upcoming school year. He wants to deposit his money in a bank.
Suppose that his monthly salary is ₱8,000, and it was deposited to an account that
earns a simple interest of 2.75% per annum. Find the simple interest after a year and
18 months.

SOLUTIONS:
A. Given: P=8000 ,r =2.75 %∨0.0275 , t=1
Find: I s
Solutions: I s=Prt
¿ ( 8000 ) ( 0.0275 ) ( 1 )
¿ 220
18
B. Given: P=8000 ,r =2.75 %∨0.0275 , t= ∨1.5
12
Find: I s
Solutions: I s=Prt
¿ ( 8000 ) ( 0.0275 ) ( 1.5 )
¿ 330

2. Activity 2: Suppose you won ₱10,000 and you plan to invest is for 5 years. A
cooperative group offers 2% simple interest rate per year. A bank offers 2%
compounded annually. Which will you choose and why?

SOLUTIONS:
A. Given: P=10000 , r =2 %∨0.02 ,t=5
Find: F s
Simple Interest ( I s ¿
Time Principal Interest
Answe Maturity Value (F)
(t) (P) Rate (r) Solution
r
(10000)(0.02)
1
(1)
200 10000+200=10200
(10000)(0.02)
2
(2)
400 10000+ 400=10400
(10000)(0.02)
3 10000 0.02
(3)
600 10000+600=10600
(10000)(0.02)
4
(4)
800 10000+800=10800
(10000)(0.02)
5
(5)
1000 10000+1000=11000
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN

COMPOUND INTEREST
- is the interest on interest.
- An interest computed on the principal and on the accumulated past interests.

Activity 4: WORD PROBLEM

Directions: Solve the following word problems. Show your complete solutions.
1. Activity 2: Suppose you won ₱10,000 and you plan to invest is for 5 years. A
cooperative group offers 2% simple interest rate per year. A bank offers 2%
compounded annually. Which will you choose and why?

SOLUTIONS:
B. Given: P=10000 , r =2 %∨0.02 ,t=5
Find: F c
Time Principal Interest Compound Interest ( I c ¿ Maturity Value (F)
(t) (P) Rate (r) Solution Answer
1 10000 0.02 (10000)(0.02)(1) 200 10000+200=10200
2 10200 0.02 (10200)(0.02)(1) 204 10200+204=10404
3 10404 0.02 (10404)(0.02)(1) 208.08 10404+ 208.08=10612.08
(10612.08 )(0.02)
4 10612.08 0.02 212.24 10612.08+212.24=10824.32
(1)
(10824.32)(0.02)
5 10824.32 0.02 216.49 10824.32+216.49=11040.81
(1)
ELABORATE (5mins.)
PowerPoint
Ask students to give their own answers to the given question below.
Presentation
What do you prefer, to gain a compound interest from a loan or from an investment?
Why?
Note: Compound Interest is often best when you’re saving money because you will earn
interest on interest. But if you’re taking a loan, a simple interest loan may be better
option since it could lead to less costs overall.

EVALUATE (5mins. )
SEATWORK:
PowerPoint
A. Directions: Write the word TRUE if the statement is correct, otherwise write FALSE. Presentation
1. Simple interest changes throughout the investment term.
2. Simple interest computation will always be based on the original principal.
3. Interest is the amount of money invested or borrowed originally.
4. The longer it takes for you to pay a debt the smaller the interest you pay.
5. If you are planning to invest, compound interest is better than the simple interest.
B. Distinguish compound interest from a simple interest.

EXTEND (5mins.)
PowerPoint
ASSIGNMENT Presentation
A. Answer the following questions:
1. What is the formula used to solve for the principal amount of a simple
interest?
2. What is the formula used to solve for the rate of a simple interest?
3. What is the formula used to solve for the time or term of a simple
interest?
B. Bring your calculator tomorrow.
 Republic of the Philippines
Department of Education
REGION III
SCHOOLS DIVISION OF BULACAN

REFERENCES

 Learner’s Module issued by DepEd (Pages 135 – 136)

 General Mathematics Workbook

Prepared by:

ANNALYN M. CABATINGAN
Teacher II

Checked by:

RODBERT M. SANTOS
Head Teacher III – Mathematics

Noted:

ROBERTO A. CRISTOBAL
Principal III