PERFORMANCE TASK IN GENERAL MATHEMATICS

SIMPLE AND COMPOUND INTERESTS REAL LIFE PROBLEM SOLVING

JOHN CAIROS MAGNO, STEM 11- ST. JOSEPH

Direction: Give a unique, valid, and appropriate real-life problem solving of the following
topics:

 SIMPLE INTEREST

1. Cairos always loves to travel with his bike. One day he decided to show his skill, he
entered a local triathlon and won the grand prize of ₱15,000. He decides to put all
₱15,000 in the bank and leave it untouched for two years until he finishes high school.
The bank offered him a 5% simple interest rate. After the two years is up, how much
money will Cairos have in the bank?

Given: P = ₱15,000 Formula: I s=Prt

r = 5% or 0.05 Solution:
t = 2 years I s=( 15,000 ) ( 0. 05 ) ( 2 )
I s=₱ 1,500

Maturity Value:
F=P+ I s After 2 years, Cairos will have an
F=15,000+1,500 amount of ₱ 17,000.00 in his bank.
F=₱ 17,000

2. Nurse Joy put ₱20,000 in the bank 3 years ago so that it would help her in her future
plans. After 3 years, she has now ₱100,000. What was the interest rate that the bank was
paying her?

Is
Given: P = ₱20,000 Formula: r =
Pt
r=? 100 , 000
t = 3 years r=
(20 , 000)(3)
I s = ₱100,000 r =1.6 %∨2 %

The interest rate that the bank was paying her would be 1.6% or 2%.
 3. Jiro had always wanted to have his own car. However, he still needs ₱250,000 to be able
to fully pay for it. He then decided to loan from his trusted bank which will have an
interest of 2% and is due in 3 years. How much will be the final amount to be paid?

Given: P = ₱250,000 Formula: I s=Prt

r = 2% or 0.02 Solution:
t = 3 years I s=( 250,000 )( 0.02 ) ( 3 )
I s=₱ 15,000
Maturity Value:
F=P+ I s In 3 years, Jiro will have to pay an
F=250,000+15,000 amount of ₱265,000.00 to the bank.
F=₱ 265,000

 COMPOUND INTEREST

1. Michael is a handsome teacher who invests ₱400,000 in a retirement account for 2 years.
The interest rate is 6%. The interest is compounded monthly. What will his final balance
be?

nt
r
Given: P = ₱400,000 Formula: F=P 1+ ( ) n
r = 6% or 0.06 Solution:
1(2)
0. 06
t = 2 years F=400,000 1+
1 ( )
n=1 F=₱ 449,440

Compound Interest:
I c =F−P Michael’s final balance would be
I c =449,440−400 , 000 ₱449,440.00
I c =₱ 49,440
 2. Gwen and Jianne are famous sisters who has their own YouTube channel. After many
years, they have saved up a lot of money so that they could use it to help their parents.
They decided to save it in a bank and they are wondering how long it will take for their
money which is ₱200,000 to grow to an amount of ₱400,000 at 10% compounded
quarterly?

F
t=¿( )
Given: P = ₱200,000 Formula: P
n¿ ¿
F = ₱400,000 Solution:
400,000
¿( )
r = 10% or 0.1 200,000
t=
4¿¿
¿( 2)
t=
n=4 0.1
4 ∈(1+ )
4
t=? t=7.017∨7.02

It would take 7.107 or 7.02 years for their money to grow to an amount of ₱400,000.

3. Marshall and Vince are two brothers that decided to invest so that they could secure their
future plans. Each of them has received ₱500,000. They both differ from principal
amount, interest rate, and time investment.

a.) What is the principal value of Marshall’s ₱500,000 due in 10 years if

money is worth 6% compounded quarterly?

Given: P=?
r = 6% or 0.06 F
P=
Formula: r nt
( 1+ )
n
500,000
P=
0.0 6 4 (10)
(1+ )
4
P= ₱ 275,631.16
 t = 10 years
n=4
F = ₱500,000

Compound Interest:
I c =F−P The principal value of Marshall’s
I c =500,000−275,631.16 money would be ₱275,631.16
I c =₱ 224,368.84

b.) What is the principal value of Vince’s ₱500,000 due in 10 years if money
is worth 10% compounded quarterly?

Given: P=?
r = 10% or 0.1 F
P=
t = 10 years Formula: r nt
( 1+ )
n=4 n
500,000
F = ₱500,000 P=
0. 1 4 (10)
Compound Interest: (1+ )
4
I c =F−P P= ₱ 186,215.31
The principal value of Vince’s money
I c =500,000−186,215.31 would be ₱186,215.31
I c =₱ 3 13,784.69

 DOCUMENTATION
  REALIZATION

Upon doing this performance task, I realized that understanding and learning how simple and
compound interest works could help us at some point in our lives in various ways. Learning
these things honed my knowledge and inspired me even more to strive to know more about these
certain things that I have yet to discover. While doing this performance task, my imaginative
skills and logical thinking were also improved. I was surprised that I’ve come up with my own
word problems in just a short time. Hence, I’ve learned various things in this performance task,
mainly about the simple and compound interest. I always keep in mind that it’s not wrong to be
able to discover things that are new to you or unfamiliar with. Instead, you must seize that
opportunity to learn something new and might be amazed by it.