Control No: _______________

SLK 2 for GENERAL MATHEMATICS GRADE 11

QUARTER 2- WEEK 1

I. PRELIMINARIES
Competency 1. Illustrates simple and compound interests. (M11GM-11a-1)
2. Distinguishes between simple and compound interests. (M11GM-11a-2)
3. Computes interest, maturity value, future value, and present value in
simple interest and compound interest environment. (M11GM-11a-b-1)
4. Solve problems involving simple and compound interests. (M11GM-
11b-2)

Objectives  Illustrate simple and compound interests.

 Distinguish between simple and compound interests.
 Compute interest, maturity value or future value, and present value
in simple interest environment; and solve problems
involving simple interests.

Topic/  Illustrating Simple and Compound Interests

Subject  Simple Interest
Matter
Textbook General Mathematics
Materials Paper, Ballpen,Scientific Calculator
Copyrights DepEd Talisay City
Total Points 95
Date January 4 – 8, 2021

II. CONTENT MAP

Maturity Value or
Future Value
Simple Interest
Interest 𝐴 = 𝑃(1 + 𝑟𝑡)
𝐼 = 𝑃𝑟𝑡
I=r∙P
𝐼
𝑎) 𝑃 =
𝑟𝑡
𝐼
𝑏) 𝑟 = Present Value (P)
𝑃𝑡
𝐼 𝐴
𝑐) 𝑡 = 𝑃=
𝑃𝑟 1 + 𝑟𝑡

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III. CONTENT NOTES
Introduction
We recall that in solving for the interest we multiply a given amount by the rate of
interest. For example, the 3% of Php 10,000.00 can be computed as follows:
0.03(10,000.00) = Php 300.00

The amount where we base the interest is usually referred to as the principal amount or
principal. In this case, the principal amount is Php 10,000.00 , the interest is Php 300.00 ,
and the rate of interest is 3%.

Formula in finding the interest

If r is the rate of interest and P is the principal amount then the interest I is I = r • P.

Definition of Terms

 Principal – amount of money borrowed or invested on the origin date.

 Rate – annual rate usually in percent, or rate of increase of the investment on loan.
 Term or Time – amount of time in years the money is borrowed or invested length
of time between the origin and maturity dates.
 Maturity Date – a date on which the money borrowed or loan is to be completely
repaid.
 Maturity Value or Future Value – amount after a number of years that the lender
receives from the borrower on the maturity date.
 Interest – a paid premium for the use of capital.
 Simple Interest – interest calculated on principal
 Compound interest – interest calculated on the sum of an original principal plus
accrued interest.

Lesson 1 ILLUSTRATING SIMPLE AND COMPOUND

INTEREST

Illustration of simple and compound interest:

Example 1
Suppose you have Php 20,000. Divide the amount equally into two parts and
deposit each part in two different accounts – one account provides 3% annual
simple interest rate, while the other provides 3% annual compound interest rate.
Which of your two accounts earn more interest after 3 years? Why?

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Study the illustration given
Solution: Simple interest versus Compound interest with annual rate

Simple Interest

Time (t) Principal (P) One account (Interests) Amount after t years
(Maturity Value)
1 year 10,000 (10,000)(0.03)(1) = 300 10,000 + 300 = 10,300
2 years 10,000 (10,000)(0.03)(2) = 600 10,000 + 600 = 10,600
3 years 10,000 (10,000)(0.03)(3) = 900 10,000 + 900 = 10,900

Compound Interest

Time (t) Principal (P) Second account (Interests) Amount after t years
(Maturity Value)
1 year 10,000 (10,000)(0.03)(1) = 300 10,000 + 300 = 10,300

2 years 10,000 (10,300)(0.03)(1) = 309 10,300 + 309 = 10,609

3 years 10,000 (10,609)(0.03)(1) = 318.27 10,609 + 318.27 =
10,927.27

Interest gained:

 Simple interest : Php 10,900 – Php 10,000 = Php 900

 Compound interest : Php 10,927.27 – Php 10,000 = Php 927.27

Therefore, second account earned more interest compared to the first account. Because
compound interest is calculated on the principal amount and also on the accumulated
interest of previous periods.

Example 2
Suppose you invested Php 15,000 in a Bank for 4 years with 2.5% interest.
Illustrate it in a simple interest versus compound interest and compare the interest
gained.

Simple Interest

Time (t) Principal (P) One account (Interests) Amount after t years
(Maturity Value)
1 year 15,000 (15,000)(0.025)(1) = 375 15,000 + 375 = 15,375
2 years 15,000 (15,000)(0.025)(2) = 750 15,000 + 750 = 10,750
3 years 15,000 (15,000)(0.025)(3) = 1,125 15,000 + 900 = 16,125
4 years 15,000 (15,000)(0.025)(4) = 1,500 15,000 + 1,500 =
16,500

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Compound Interest

Time (t) Principal (P) One account (Interests) Amount after t years
(Maturity Value)
1 year 15,000 (15,000)(0.025)(1) = 375 15,000 + 375 =
15,375
2 years 15,000 (15,375)(0.025)(1) = 384.38 15,375 + 384.38 =
15,759.38
3 years 15,000 (15,759.38)(0.025)(1) = 15,759.38 + 393.98 =
393.98 16,153.36
4 years 15,000 (16,153.36)(0.025)(1) = 16,153.36 + 403.83 =
403.83 16,557.19

Interest gained

 Simple Interest: Php 16,500 – Php 15,000 = Php 1,500

 Compound Interest: Php 16,557.19 – Php 15,000 = Php 1,557.19

Lesson 2 SIMPLE INTEREST

Definition

If r is the rate of interest per period and P is the principal that yields a simple interest I
after t periods then,
𝐼 =𝑃∙𝑟∙𝑡
and that the future value A is computed as
𝐴 = 𝑃(1 + 𝑟𝑡)
Examples:

1. Find the amount of simple interest and the future value for the following:
a) Php 2,500 at 3.5% annual simple interest rate for 2 years
b) Php 5,300 at 2% annual simple interest rate for 3.5 years
c) Php 10,000 at 4% annual simple interest rate for 6 months

Solution: Using the definition,

a) 𝐼 = 𝑃𝑟𝑡 = (2,500)(0.035)(2) = Php 175

A = P(1 + rt) = 2,500(1 + (0.035)(2)) = Php 2,675

Or simply add the principal and the amount of interest, 2,500 + 175 = Php 2,675

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 b) 𝐼 = 𝑃𝑟𝑡 = (5, 300)(0.02)(3.5) = Php 371
A = P(1 + rt) = 5,300(1 + (0.02)(3.5)) = Php 5,671

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c) 𝐼 = 𝑃𝑟𝑡 = (10,000)(0.04)( 12) = Php 200
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A = P(1 + rt) = 10,000(1 + (0.04)( )) = Php 10,200
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2. Find the present value of the following at the given annual simple interest rate:
a) Php 1,000 after 2 years at 3% interest
b) Php 2,500 after 5 years at 1.5% interest
c) Php 10,000 after 10 years at 5% interest

𝐴
Solution: Use the formula 𝑃 = 1+𝑟𝑡
𝐴 1,000
a) 𝑃 = 1+𝑟𝑡 = 1+(0.03)(2) = Php 943.40
𝐴 2,500
b) 𝑃 = 1+𝑟𝑡 = 1+(0.015)(5) = Php 2,325.58
𝐴 10,000
c) 𝑃 = = = Php 6,667.67
1+𝑟𝑡 1+(0.05)(10)
3. Orley invested Php 100,000.00 to an account that pays a simple interest of 3% annually.
Find the (a) interest earned and (b) the future value after 2 years.

Solution:
Given: Principal (P) = 100,000.00, rate of interest (r) = 3% = 0.03 , time (t) = 2 years ,
interest (I) = ?

a) I = Prt = (100,000.00)(0.03)(2)
I = Php 6,000.00 (simple interest)

b) A = P(1+rt) = 100,000.00[1+(0.03)(2)]
A = Php 106,000.00 (future value or maturity value

4. Teresa borrowed Php 120,000.00 from her uncle. If Teresa agreed to pay an 8% annual
interest rate, calculate the amount of interest she must pay if the loan period is (a) 1 year
(b) 9 months (c) 18 months.

Solution
Given: a) P = 120,000.00, r = 8% = 0.08, t = 1 year. Thus,
I = Prt = 120,00(0.08)(1) = Php 9,600.00

b) P = 120,000.00, r = 8% = 0.08, t = 9 months or 𝐼 = 𝑃𝑟𝑡 year. Thus,

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I = Prt = 120,000(0.08)( 12) = Php 7,200.00
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c) P = 120,000.00, r = 8% = 0.08, t = 18 months or 12 year. Thus,
18
I = Prt = 120,000,00(0.08)( 12) = Php 14,400.00

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5. If Php 10,000.00 is invested at 4.5% simple interest, how long will it take to grow to Php
11,800.00?

Solution:
Given: P= 10,000.00, r = 4.5% = 0.045, amount at the end of the year (A) = Php
11,800.00, t = ?
We use the formula of A = P(1 + rt)
11,800 = 10,000[1 + (0.045)(t)]
11,800 = 10,000 + 10,00(0.045)(t) Apply the Distributive
Property
11,800 = 10,000 + 450t
11,800 – 10,000 = 450t
1,800 = 450t Divide each side by 450
t=4
Therefore, it will take 4 years to grow to Php 11,800.00.

6. You decided to purchase a Php 50,000.00 LED TV through credit card. After a month,
you discovered from your statement of account that you were charged with Php 1,00.00
interest. How much was the monthly interest rate applied to your credit card purchase?

Solution:
Given: principal (P) = 50,000, time (t )= 1 month, interest (I) = 1,000, rate (r) = ?
𝐼
We use the formula of 𝑟 = 𝑃𝑡
1,000
𝑟 = (50,000)(1) = 0.02 = 2%

7. Complete the table below.

Principal (P) Rate (r) Time (t) Interest (I)

5,000 5% 2 years (a)
50,000 (b) 1 year 4,000
(c) 3% 5 years 10,000
1,000 3% (d) 450

Solutions:

𝐼 𝐼 𝐼
a) I = Prt b) 𝑟 = 𝑃𝑡 c) 𝑃 = 𝑟𝑡 d) 𝑡 = 𝑃𝑟
4,000 10,000
I = (5,000)(0.05)(2) 𝑟 = (50,000)(1) 𝑃 = (0.03)(5) 𝑡=
450
(1,000)(0.03)
10,000 450
I = 500.00 𝑟 = 0.08 = 𝟖% 𝑃= = 𝟔𝟔, 𝟔𝟔𝟔. 𝟔𝟕 𝑡= = 15
0.15 30

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8. Find the maturity value or future value of the following loans:
a) Php 50,000 borrowed at 9% for 2 years.
b) Php 120,000 borrowed at 10% for 8 months.

Solutions:
a) Given: P = 50,000 b) Given: P= 120,000
r = 9% = 0.09 r = 10% = 0.10
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t = 2 years t = 8 months or 12 year
A=? A=?

A = P(1 + rt) A = P(1 + rt)

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A = 50,000[1 + (0.09)(2)] A = 120,000[1+(0.10)( 12)]
A = 50,000(1 + 0.18) A = 120,000(1 + 0.067)
A = 50,000(1.18) A = 120,000(1.067)
𝐀 = 𝐏𝐡𝐩 𝟖𝟎, 𝟔𝟎𝟎. 𝟎𝟎 A = Php 128,040.00

9. Find the present value of Php 86,000.00 at 8% simple interest for 3 years.
Solution:
Given: A = 86,000
r = 8% = 0.08
t = 3 years
P=?
We use the formula A = P(1 + rt) , and
𝐴
𝑃 = 1+𝑟𝑡
86,000 86,000 86,000
𝑃 = 1+(0.08)(3) = 1+0.24 = = Php 69,354.84
1.24

10. Telco A has a tie-up promotion with Bank B in its latest smartphone offering bundled
with their postpaid plan. The smartphone costs Php 30,000. Credit card holders of Bank B
can avail of the promo of reduced installment interest rate from 5% to 3% per month if
they avail of the 24-month installment plan. If you will avail of the promo, how much will
be your equal monthly installment payment payable to Bank B using the simple interest
method? How much interest will you save in availing the promo?

Solution:
Given:
 Principal (P) = Php 30,000
 Reduced installment interest rate (r) = 3% = 0.03
 Original installment interest rate (r) = 5% = 0.05
Using the formula I = Prt,
I = 30,000(3%)(2)
I = 30,000(0.03)(2)
I = Php 1,800 --------- This represents the interest
Hence, the total amount to be paid in 24-months (2 years) is
Php 30,000 + Php 1,800 = Php 31,800
To compute the equal monthly installment,
Php 31,800 ÷ 24 months = Php 1,325 per month ------- monthly installment
payment for 24 months

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 To compute the interest savings in availing the promo,
Original interest rate – Reduced interest rate = Interest savings
5% - 3% = 2%
Php 30,000(2%)(2 years)
30,000(0.02)(2) = Php 1,200 ------- interest savings for 2 years
Bear in mind:

 The future value at a simple interest rate is a linear function of time.

 The future value is increasing. This implies that through time, the amount borrowed
(or invested) is growing.
 The present value is decreasing. This implies that to accumulate a certain amount,
the longer you are willing to wait, the smaller the principal you need.

IV. ACTIVITIES

Activity 1 (Competency 3)
Date: January 7, 2021
Direction: Complete the table below by finding the unknown principal (P), rate (r), time (t),
interest (I), and the maturity value. HPS: 20

Principal P Rate r Time t Interest I Maturity

Value
(1) 6% 10 9,000 (6)
480,000 (2) 15 180,000 (7)
250,000 5.5% (3) 68,750 (8)
980,000 0.8% 3.5 (4) (9)
5,000,000 5% 2 years (5) (10)

Activity 2 (Competency 4)
Date: January 7, 2021
Title: LOOK FOR ME!
Direction: Solve the following problems. HPS: 30

1. Mama Bebot borrowed Php 50,000 from the Santos Bank at a rate of 20% simple
interest. What was the total interest in 3 years?
___________________________________________________________________

2. You are planning to invest in a low-risk unit investment trust fund (UITF) of Bank E
which will give you 5% per annum in 5 years. You target to earn a total future value of Php
320,000. How much should you invest in UITF now?
___________________________________________________________________

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 3. What is the interest rate per annum of a Php 30,000 for 3 years that accumulate to Php
48,000?
___________________________________________________________________

4. Jun is investing an amount at 15% simple interest for 3 years. If he intends to have Php
48,200 at the end of the term, what must be his principal?
___________________________________________________________________

5. If Tina wants to earn 10% annual simple interest on an investment, how much should
she invest to have Php 30,000 in 9 months?
___________________________________________________________________

6. Ana borrows Php 20,000 from her uncle and agrees to pay him Php 22,000 in 15
months. What interest rate was she paying?
__________________________________________________________________

Activity 3 (Competency 3)
Date: January 7, 2021
Title: MY FUTURE!
Direction: Complete the table below by finding the future value. HPS: 15

Principal (P) Interest Rate (r) Time (t) Future Value or

Maturity Value (A)
35,600 6% 9 months (1)
140,250 10% 15 months (2)
75,800 8.5% 2 years (3)
340,200 11% 6 years (4)
1,400,500 9% 10 years (5)

V. EVALUATION:
Date: January 8, 2021 HPS: 30

Directions: Encircle the letter of the best answer and write it on your answer sheet.

1. An amount paid or earned for the use of money.

A. interest B. lender C. principal D. term

2. An interest calculated on principal.

A. compound interest B. simple interest
C. future interest D. maturity interest

3. An amount of money borrowed or invested on the origin date

A. interest B. lender C. principal D. term

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4. An amount after several years that the lender receives from the borrower on the maturity date.
A. interest B. principal C. principal value D. maturity value

5. What do you call a date on which the money borrowed, or loan is to be completely
repaid?
A. loan date B. maturity date C. future date D. expiry date

6. John deposited Php 40,000 in a bank with 0.4% simple interest. How much will be the
money of John after 7 years?
A. Php 41,120 B. Php 42,120 C. Php 43,120 D. Php 44,120

7. In order to buy a new gadget, Maria decided to borrow Php 5,000 at an annual simple
interest rate of 5%. After two years, how much interest does she need to pay?
A. Php 200 B. Php 300 C. Php 400 D. Php 500

8. Jose deposited Php 1,000 today in a bank providing 3% simple interest per year. He
wants to have savings worth Php 1,450 in the future. If he will not withdraw any amount,
how long must he wait?
A. 5 years B. 10 years C. 15 years D. 20 years

For numbers 9 – 10, use the situation below.

“A loan institution charges 12% simple interest for a 3-year, Php 60,000 loan.”

9. Find the total interest on the loan.

A. Php 21,600 B. Php 22,600 C. Php 23,600 D. Php 24,600

10. Find the total amount that must be paid to the loan institution at the end of 3 years.
A. Php 81,300 B. Php 81,400 C. Php 81,500 D. Php 81,600

11. If Php 10,000 is invested at 4.5% simple interest, how long will it take to grow to Php
11,800?
A. 2 years B. 3 years C. 4 years D. 5 years

12. Find the rate of simple interest per annum if the principal is Php 1,000,000, time is 5
years and after 5 years is Php 75,000.
A. 1.5% B. 2.5% C. 3.5% D. 4.5%

13. Irene invested Php 25,000 at 16% simple interest for 6 years. What is the future value
of the investment at the end of 6 years?
A. Php 48,000 B. Php 49,000 C. Php 50,000 D. Php 51,000

14. Jason borrowed Php 250,000 from a bank at a simple interest rate of 2% per year. How
much interest must he pay after 5 years?
A. Php 22,000 B. Php 23,000 C. Php 24,000 D. Php 25,000

15. As preparation for John’s college studies, his parents want to save an amount of Php
200,000 after 3 years. If they decide to deposit in a bank offering an annual simple interest
rate of 2.5%, how much do they need to deposit now?
A. Php 186, 046.51 B. Php 187,046.51 C. Php 188,046.51 D. Php 189,046.51

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VI. ANSWER KEY
Activity 1
10)Php 5,500,000 Php 500,000 5)
9) Php 1,007,440 Php 27,440 4)
8) Php 318.750 5years 3)
7)Php 660,000 2.5years 2)
6)Php 24,000 Php 15,000 1) Activity 2

6) interest rate = 8% 3) interest rate = 20%

5) Php 27, 906. 98 2) Php 256,000
4) Php 33, 241. 38 1) Php 30,000
Activity 3

5) Php 2,660,950 4) Php 564,732

3) Php 88,686 2) Php 157,781.25 1) I = Php 37,202

VII. REFERENCES

Oronce, O. General Mathematics. 1st ed. Manila, Philippines: Rex Publishing House (2016),
pp.226 - 335.
Dimasuay, L., Alcala, J., Palacio, J. General Mathematics. Quezon City, Philippines: C & E
Publishing, Inc.(2016), pp. 84 – 85.
Albay, E., Batisan, R., Caraan, A., DIWA SHS Series: General Mathematics. Makati City,
Philippines: DIWA Learning Syatems Inc.(2016), pp. 120 – 125.

VIII. ADDITIONAL READINGS

1) You are ready to invest in a security deposit account with your funds amounting to Php
500,000 in 5 years. You target to earn a total future value of Php 800,000. What should be
the annual interest rate so you can achieve your investment goal?

2) Suppose you invested Php 100,000 in a Bank for 3 years with 2% interest. Illustrate it
in a simple interest versus compound interest and compare the interest gained.

3) If your friend wants to lend a money and ask your advise between the two lending
institutions who offered a simple interest and one who offered a compound interest.What
advise will you give and why?
Subject Teacher: ____________________________
Contact Number: ____________________________
Prepared by:
Name: _________________________
School: ________________________
Contact No: ____________________

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IX. FEEDBACK NOTES Math 11 Gen. Math Week 1

LEARNER’S FEEDBACK
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PARENTS’/GUARDIANS’ FEEDBACK
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X. ANSWER SHEET Math 11 Gen. Math Week 1

Control No: _______________

Name: __________________________________ Grade & Sec.: ______________

Contact No:______________
School: _________________________ Subject Teacher: ____________________

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