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Gen Math

The document provides an overview of simple and compound interest, including definitions, formulas, and various activities to calculate interest and maturity values. It presents examples of investments and loans, demonstrating how to compute interest earned over time. The content is structured to facilitate understanding of financial concepts related to interest calculations.

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ferlynbasay
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23 views19 pages

Gen Math

The document provides an overview of simple and compound interest, including definitions, formulas, and various activities to calculate interest and maturity values. It presents examples of investments and loans, demonstrating how to compute interest earned over time. The content is structured to facilitate understanding of financial concepts related to interest calculations.

Uploaded by

ferlynbasay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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General

Mathematics
SIMPLE,COMPOUND
INTEREST
Let us first introduce
ourselves....
So...
What is
Simple Interest?
...is interest
charged only on
the loan amount
called the
PRINCIPAL
What do I know?
Ria invests 5000 pesos in a bank account that
offers a simple interest rate of 5% per year. How
much interest will she earn in 5 years?
FORMULA used in
calculating Simple
Interest

P r t
ACTIVITY on
Simple Interest

-JV deposited 200,000 pesos in a bank


account that pays 7.7% interest annually.
After 5 years, how much total interest will
she have earned?

-A sum of 1,500 pesos is invested at a rate


of 3.5% per year. How much interest will be
earned after 9 months?
ACTIVITY on
Simple Interest

-Roma earns 360,000 in interest after


investing for 10 years at an annual interest
rate of 6%. What was the initial principal
Alex invested?

-Sarah received $1,500 in interest after 2


years of investing at an annual interest rate
of 5%. What was the principal she invested?
ACTIVITY on
Simple Interest

-A principal of 80,000 pesos is invested for 5


years, and the total interest earned is 20,000
pesos. What is the annual interest rate?

-Ashley made an investment of 15,000


pesos, earns 1,800 pesos in interest over 3
years. What is the annual interest rate?
ACTIVITY on
Simple Interest
-A company took a loan of 500,000 pesos at an
annual interest rate of 6%. They paid 90,000
pesos in interest. How long did it take them to
pay off the interest?

-Maloi deposited 15,000 pesos in a bank account


with an annual interest rate of 4.6%. After
earning $1,575 in interest, how many years has
her money been in the account?
What is
Maturity Value?

It is simply
the computed
amount when
you add your
interest and
principal.
FORMULAs used in
Maturity Value

F= P+I

F= P+Prt

F= P+P(I+rt)
ACTIVITY on
Maturity Value
Khianna borrowed 1,500 pesos
from a friend at an interest rate of
6% per year.

(a),find the interest he owes after


5 years.

(b), find the total amount of money


he owes or the maturity value.
ACTIVITY on
Maturity Value
Maxie invested 5000 pesos in a
savings account at an annual interest
rate of 7% for 5 years.

(a) How much money did she earn in


interest?

(b)What is the total value of his


savings account at this point?
What is
Compound Interest?
...is interest calculated on the
initial principal and also
includes all of the
accumulated interest of
previus periods ofa deposit or
a loan
FORMULAs used in
Compound Interest

t
F=P(1+r)
annually

r nt
F=P(1+ )
n
Base on n
LETS TRY!!

Daeinti puts in 2000 pesos in


an account that pays an
annual interest of 9% What
will be the value of the
account after...
(a)10 years?
(b)20 years?
ACTIVITY on Compound
Interest
Samantha invests 5000 pesos in an
account that pays an annual
interest of 10%. The funds are
invested for 20 years. what will be
the value of the account if interest
is credited to the account on a...
(a) quarterly basis
(b) monthly basis
ACTIVITY on Compound
Interest
Maria invests 20,000
pesos in a bank account
that offers an semi-
annually compound
interest rate of 5%. How
much money will she
have in the account after
7 years?
THA
N K YO
UU U
RAH
HHH

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