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General Mathematics
Activity Sheets
Quarter 2 – MELC 3
Computing Interest, Maturity Value, Future
Value and Present Value in Simple and
Compound Interest Environment
 QUARTER 2 - LEARNING ACTIVITY SHEETS
Subject: General Mathematics Date: November 27, 2021
Name: Date of Submission: December 6, 2021
Grade & Section: Lesson No.: 28 Activity No.: 28

GENERAL MATHEMATICS ACTIVITY SHEET

Computing Interest, Maturity Value, Future Value and Present Value in Simple
and Compound Interest Environment

I. Learning Competency with Code

Day 1: Computes interest, maturity value, future value and present value in
simple interest environment (M11GN-IIa-b-1)

Day 2: Computes interest, maturity value, future value and present value in
compound interest environment (M11GN-IIa-b-1)

II. Background Information for Learners

In the first activity sheet, you have learned the basic concepts on simple
interest and how to compute problems involving simple interest and its practical
applications in life.
When a financial need arises, an immediate decision as to where to get the
money is often sought. Common or ordinary persons may borrow money from
loans and credit institutions to provide their needs at the moment. A sari-sari
store owner, for instance, may seek capital from lending institutions requiring a
longer process or may resort to private individuals offering easy and instant
cash out options. A regular employee, on the other hand, may opt for banks
with lower interest rates or cooperatives with more benefits to their members.
His decision is influenced by different factors such as his convenience to access
and his capacity to pay, amount of loan offered and amount of money needed,
interest and the duration of the loan or time period.
You also have learned that when you borrow money, you pay for additional
charge which is the interest. The same is true when you lend money - you earn
interest for a particular period of time. There are instances when a borrower
cannot meet the due date and fails to pay on time. In these cases, the borrower
pays additional charge on top of the stated interest or ‘interest on interest’ to
the lender. This ‘interest on interest’ is called compound interest.

Important Formulas:

F = P (1 + rt) ls = Prt Simple

𝒓 𝒏𝒕
F = 𝑷 ቀ𝟏 + 𝒏ቁ lc = F – P Compound

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 Where,
P = principal or present value
F = maturity (future) value at the end of the term
ls = simple interest
lc = compound interest
r = interest rate
t = number of time periods elapsed
n = number of time interest applied per time period

A. COMPUTING FOR THE FUTURE VALUE (F)

Example 1: If Randy borrowed ₱200,000 from a commercial bank charging
12% simple interest, how much would he pay at the end of 5 years?
Solution: Given:
Principal (P) = ₱200,000
Rate of Interest (r) = 12% = 0.12
Time (t) = 5 years

F = P (1+rt)
F = ₱200,000 [1+ (0.12) (5yrs)]
F = ₱320,000

Therefore, Randy will be paying a total amount of ₱320,000 at the end of 5

years.

Example 2: Matthew invested his money amounting to ₱20,000 in a local bank

for 3 years at 5% compounded semi-annually. Find the future value after 3
years.
Solution: Given:

P = ₱20,000
t = 3 years
n(semi-annually) = 2
r = 5% or 0.05
𝑟 𝑛𝑡
F = 𝑃 ቀ1 + ቁ
𝑛
0.05 2(3)
F = ₱20,000 ቀ1 + 2 ቁ
F = ₱20,000 (1 + 0.025)6
F = ₱20,000 (1.1597)
F = ₱23,194

Therefore, Matthew will be paying a total amount of ₱23,194 at the end of 3

years.

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B. COMPUTING FOR THE PRESENT VALUE (P)
Example 1: When invested at an annual interest rate of 7%, the amount
invested earned ₱11, 200 simple interest in two years. How much money was
originally invested?
Solution: Given:
I = ₱11,200
t = 2 years
r = 7% or 0.07
I
P=
rt
11,200
P=
(0.07)(2)
P = ₱80,000

Therefore, the amount originally invested was ₱80,000.

Example 2: What amount must Felipe invest in a rural bank earning 4%
compounded monthly to accumulate a total of ₱20,000 after 3 years?
Solution: Given:
F= ₱20,000
t = 3 years
r = 4% or 0.04
n (monthly) = 12
𝐹
P= 𝑟 𝑛𝑡
ቀ1+ ቁ
𝑛
20000
P= 0.04 12(3)
ቀ1+ ቁ
12
20,000
P=
(1 + 0.003) 36

20,000
P=
1.1139
P = ₱17,954.93
Therefore, Felipe must invest ₱17,954.93.

C. COMPUTING FOR THE INTEREST (Is or Ic )

Example 1: Find the interest earned by Ann after she invested her ₱35,000 at
4% simple interest at the end of 5 years.
Solution: Given:
P = ₱35,000
t = 5 years
r = 4% or 0.04

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 Is = Prt
Is = (₱35,000)(0.04)(5)
Is = ₱7,000
Therefore, the interest after 5 years is ₱7,000.
Example 2: Find the interest earned by Dominic after he invested his ₱40,000
at the end of 3 years at 5% compounded bimonthly.
Solution: Given:
P = ₱40,000.00
t = 3 years
r = 5% or 0.05
n(bimonthly) = 6
𝑟 𝑛𝑡
F= 𝑃 ቀ1 + ቁ
𝑛
0.05 6(3)
F= ₱40000 ቀ1 + ቁ
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F = ₱40,000 (1.1611)
F = ₱46,444
Ic = F — P
Ic = ₱46,444 - ₱40,000
Ic = ₱6,444
Therefore, Dominic earned an interest of ₱6,444 after 3 years.

D. COMPUTING FOR THE TIME (t)

Example 1: Mrs. Gonzales would like to invest her ₱70,000 in a multipurpose
cooperative where she is a member. Her goal is to earn ₱3,600 at 0.5% interest
rate. For how many years will her investment earn such interest?
Solution: Given:
Principal (P) = ₱70,000
Interest (I) = ₱3,600
Rate of Interest (r)= 0.5% = 0.005
I
t =
Pr
3600 3600
t = =
(70000 )(0.005) 350
t = 10.3yrs

Therefore, Mrs. Gonzales’ investment will earn ₱3,600 interest in 10.3 years.
Example 2: How long will it take for ₱1,000 to grow ₱20,000 at 8% interest
compounded monthly?
Solution: Given:
F = ₱ 20,000
P = ₱ 1,000

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 r = 8% or 0.08
n (monthly) = 12

𝑟 𝑛𝑡
F = 𝑃 ቀ1 + 𝑛ቁ
0.08 12t
₱20,000 = 1 000(1 + )
12
 1  0.08 12t  1 
  (₱20,000) = ₱1, 000(1 + )  
 1000  12  1000 
0.08 12t
20 = (1 + ) Perform the indicated operations inside the ( )
12
20 = (1.007)12t Express the equation in its logarithmic form
log(1.007) 20 = 12t
t = 35.79 years

Therefore, the investment will grow to ₱20,000 in 35.79 years.

E. COMPUTING FOR THE INTEREST RATE (r)

Example 1: If an entrepreneur applies for a loan amounting to ₱500,000 in a

bank, the simple interest of which is ₱157,500 for 3 years, what interest rate is
being charged?
Solution: Given:
P = ₱500 000
ls = 157,500
t = 3 years
I
r=
Pt
157 ,500
r=
(500,000 )(3)
r = 0.105 or 10.5 %

Therefore, the bank charged an annual simple interest rate of 10.5 %.

Example 2: Find the annual interest rate, to the nearest tenth of a percent, for
₱1,100 to grow to ₱1,400 if interest is compounded monthly for 7 years.
Solution: Given:
F = ₱ 1400
P = ₱ 1100
t=7
n (monthly) = 12

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 𝑟 𝑛𝑡
F = 𝑃 ቀ1 + 𝑛ቁ

𝑟 12(7)
1400 = 1100 ቀ1 + 12ቁ

𝑟 84
1.27 = ቀ1 + 12ቁ

r
1.0028 = 1 +
12
r
0.0028 =
12
r = 0.0336 or 3.36%

Therefore, the annual interest rate is 3.36%.

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 144-150
General Mathematics Learner’s Module pages 173-175
https://www.coursehero.com/file/67466798/compound-interestpdf/
https://www.bigideasmath.com/protected/content/ipe/grade%208/10/g8_10_01
.pdf
https://www.coursehero.com/file/23987306/Chp8-3Editionpdf/

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity Sheet
(LAS), please be reminded not to write anything here. All answers must be
written in a separate sheet of paper. Read each problem carefully and answer
it systematically. If solution is required, encircle your final answer.

Day 1 Activities:
Exercise 1: Joebert borrowed ₱3,000 at 9% interest for 4 years to buy a
cellular phone. How much money did he have to pay back in all?
Exercise 2: What interest rate is needed for ₱2,100 to earn ₱122.50 in 14
months?
Exercise 3: How long will a principal earn an interest equal to half of it at 5%
simple interest?
Exercise 4: Rutchel invested a certain amount of money and got back an
amount of ₱8,400. If the bank paid an interest of ₱700, find the amount Rutchel
invested.

Day 2 Activities:
Exercise 1: The mother of Kriz Anthony was hospitalized and he needs an
amount of ₱50,000 for the surgery. He decided to borrow money from the bank
with 5% interest rate compounded quarterly payable for 4 years. How much
should Kriz pay at the end of the term?

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 Exercise 2: Winston has a savings in a bank and was surprised that his money
accumulated to ₱ 65,000 after 3 years. He knew that the bank offered him 5%
interest rate compounded bimonthly. How much was his savings at the start?
Exercise 3: Mrs. Ledesma bought a property in the province of Guimaras. She
borrowed from the Government Service Insurance System an amount of
₱300,000 at 6% compounded annually payable for 6 years. How much will she
pay for the interest?
Exercise 4: How long will a principal of ₱60,000 reach to an amount of ₱85,000
if it earns 6% compounded semi-annually?
Exercise 5: If ₱40,000 accumulates to ₱100,000 in 10 years, find the interest
rate if it is compounded quarterly.

Guide Questions:
1. What clues are needed to determine the interest, present values and
future values in the problem?
2. How can you formulate the formula F= P(1+r)t to derive or to find the
other formulas needed in solving word problem?
3. How can you formulate the formula I = Prt to derive or to find the other
formulas needed in solving word problem?
4. What are the steps that you need in solving for the unknown variable in
the word problem?

V. Reflection
Instruction. Reflect on the following questions and write your response on your
journal.
1. What important idea/s have you learned from the learning activity sheet?
2. What important value/s has been embedded to you by the lesson?
3. What skills are being enhanced by solving for maturity value, interest,
principal, time and rate?
4. In what particular part of your daily life you can apply or use the lessons
learned?