I.

OBJECTIVES:

A. CONTENT STANDARD:

The learners demonstrate understanding of key concepts

of simple and compound interests.

B. PERFORMANCE STANDARD:

The learner is able to investigate, analyze and solve problems

involving simple and compound interests using appropriate business and
financial instruments.

C. LEARNING COMPETENCIES:

M11GM-IIa-I and a-2: Illustrate Simple and Compound

Interest
and distinguish between simple
and compound interest.

II. CONTENT:

Illustrating and distinguishing Simple and Compound Interest

III. LEARNING RESOURCES:

A. REFERENCES
1. Teacher’s Guide p. 159-161
2. Learner’s Materials p. 135-136
3. Gen. Math Module Quarter 3 Week 1
4. Additional Materials Projector, Laptop

B. OTHER LEARNING RESOURCES: www.youtube.com

Debts : Good Debt Vs Bad Debt by
Student's Life
Interest Rates | by Wall Street
Survivor

IV. PROCEDURE:

A. PRE-LESSON
1. ROUTINARY ACTIVITES
a. Prayer
b. Checking of Attendance
c. Reminding the learners about their behavior during
class/activities and the health protocols
d. Reviewing the previous lesson of converting percent to
decimal with a memory game

2. MOTIVATION
Is it good to borrow money or not?

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CHERRY R. DINOSO GENERAL MATHEMATICS
 How would you know if it is a good or a bad debt?

3. ESTABLISHING A PURPOSE FOR THE LESSON

Video presentation of the differences of good and bad debt.
https://www.youtube.com/watch?v=uv_P9yJY9jQ&t=7s

B. LESSON PROPER

4. PRESENTATION OF THE LESSON

Using the Picto-art as a clue, can you guess what our lesson
is?
Presenting the lesson objectives.
Video presentation about the interest
https://www.youtube.com/watch?v=GHHesANT6OM

5. DISCUSSING NEW CONCEPTS

(Let the students read the definition of terms)

Definition of Terms
 Lender or creditor- person (or institution) who invests the
money or makes the funds available.
 Borrower or debtor- person (or institution) who owes the
money or avails of the funds from the lender.
 Origin or loan date- date on which money is received by the
borrower.
 Repayment date or maturity date – date on which the month
borrowed or loan is to be completely repaid.
 Time or term(t)-amount of time in years the money borrowed
or invested; length of time between the origin and maturity
dates.
 Principal (P)- amount of money borrowed or invested on the
origin date.
 Rate (r)-annual rate, usually in percent, charged by the
lender, or rate of increase of the investment.
 Interest (I)- amount paid or earned for the use of money.
 Simple Interest (Is)-interest that is computed on the principal
and then added to it.
 Compound Interest (Ic)-interest is computed on the principal
and also on the accumulated past interests.
 Maturity valued or future value (F)- amount after t years; that
the lender receives from the borrower on the maturity date.

6. DEVELOPING MASTERY
Distinguish between Simple and Compound Interests
(Let the student read the definition of simple and compound
interest.)
Video presentation about simple and interest
https://www.youtube.com/watch?v=GHHesANT6OM

Problem:
Suppose you won P10,000 and you plan to invest it 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?

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CHERRY R. DINOSO GENERAL MATHEMATICS
 (Let the learner answer the question.)

Investment 1: Simple Interest

Tim Principa Intere Simple Interest Amount

e (t) l (P) st Solution Answ after t years
Rate er (Maturity
(r) Value)
1 2% (10,000) (0.02) 200 10,000+200=
(1) 10,200.00
2 2% 10,000) (0.02) 400 10,000+400=
(2) 10,400.00
3 2% 10,000) (0.02) 600 10,000+600=
10,000 (3) 10,600.00
4 2% 10,000) (0.02) 800 10,000+800=
(4) 10,800
5 2% 10,000) (0.02) 1,000 10,000+1,000
(5) =
11,000.00

Investment 2: Compound Interest (Annual)

Tim Amount Rate Compound Amount at the

e (t) at the (r) Interest end of year t
start of Solution Answ (Maturity Value)
year (t) er
1 10,000 2% (10,000) 200 10,000+200
(0.02) (1) =10,200
2 10,200 2% (10,200) 204 10,200+204=10,4
(0.02)(1) 04
3 10,404 2% (10,404) 208.0 10,404+208.08
(0.02)(1) 8 =10,612.08
4 10,612.0 2% 10,612.08) 212.2 10,612.08+212.24
8 (0.02)(1) 4 = 10,824.32
5 10,824.3 2% (10,824.32) 216.4 10,824.32+216.49
2 (0.02)(1) 9 =11,040.81

7. MAKING ABSTRACTIONS AND GENERALIZATION

What is the difference between simple and compound
interest?

8. FINDING PRACTICAL APPLICATION TO DAILY LIFE

How can we apply the simple and compound interest in our
daily lives?

C. AFTER THE LESSON

9. EVALUATING LEARNING
Seatwork

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 I. Directions: Write SI if the given statement, expression, formula
or symbol is all about Simple Interest and write CI if it refers to
Compound Interest.
₱50,000 borrowed at 9% for 2 years
2. Borrowed ₱120,000 from her uncle agreed to pay 8% annual
interest for 5 years
3. Compound amount on deposit at the end of 2 years if ₱30,000 is
deposited at 5% compounded quarterly
4. 1st year 5,000 (5,000)(.02)(1) 100 5,000 + 100 =
5,100
2nd year 5,100 (5,100)(.02)(1) 102 5,100 + 102 =
5,202
3rd year 5,202 (5,202)(.02)(1) 104.04 5,202 +
104.04 = 5,306.04
5. ₱30,000 at 8% compounded semi-annually for 5 years

V. REMARKS:
_____________________________________________________________________
_______________________________________________________________
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