SIMPLE and COMPOUND INTEREST

for General Mathematics

Senior High School (CORE)
Quarter 2 / Week 1

1
 FOREWORD

This Self Learning Kit for General Mathematics is

designed specifically for Grade 11 students in the Senior
High School. Thus, a modest background in grade school
mathematics is important, written in a precise, readable,
and conventional manner to facilitate students’
understanding of the subject.
It is aligned with the BEC of the Department of
Education following the prescribed MELCs (Most Essential
Learning Competencies.
It has the following features proven to be valuable
aids to learning Mathematics even at home.
I. What happened
This section contains pre-activities like review of the
prior knowledge on the simple and compound interest.

II. What You Need To Know (Discussion)

This section contains definition of simple and
compound interest, and real-life example problems and
the corresponding solutions that clearly illustrate the
applicability of a mathematical concept.

III. What Have I Learned (Evaluation/Post Test)

The exercises contained in this section are guaranteed
to build mathematical comprehension, skills, and
competence. These serves as a diagnostic tool to identify
the learner`s prior knowledge, and the areas of strength
and weaknesses.

2
 LESSON
SIMPLE and COMPOUND INTEREST
1

OBJECTIVES:
K. Define simple and compound interest.
S. Illustrate and distinguish between simple and
compound interest.
A. Show patience and diligent when solving the
problem.

LEARNING COMPETENCIES:

Illustrates simple and compound interest ( M11GMIIa-1)

Distinguishes between simple and compound interest
( M11GMIIa-2)

I. WHAT HAPPENED
PRE-TEST: Complete the table below:
Principal Rate Time Interest Final Amount

34,100 (1) 3 YEARS (2) 38,192

(3) 9% 6 MONTHS 225 (4)

29,500 10% (5) 737.50 (6)

(7) (8) 2 YEARS 5,000 45,000

6,000 (9) 9 MONTHS 540 (10)

3
II. WHAT YOU NEED TO KNOW
In this lesson, we will discuss on how to calculate the principal, rate, time
and interest using the three quantities are known and applied for solving the
real problem.

DISCUSSION:

Definition of Terms:
Principal ( P)– the amount that is lent or the amount that you have.
Interest( I) – the amount that is earned or the amount that is needed to be
paid for the use of one`s money.
Rate (r) - annual rate, usually in percent, charge by the lender.
Time or term (t)- amount of time in years the money is borrowed or invested,
length of time between the origin and maturity dates.
Maturity value or accumulated amount – the final amount that you will pay
or the amount after t years, that the lender receives from the borrower on
the maturity date.
Simple Interest – interest that is computed on the principal and then added
to it.

SIMPLE INTEREST
Interest is given by the formula, I = Prt where P is the principal or the
original amount, r is the rate of the annual interest and t is the time or terms of
years. If the interest is due at the end of time, then it is simple interest. Since
interest are made annually, it is logical that other measure of time such as
months or days must be converted into fraction of the years. This can be done
using the following formulas:

X years X years
X months x/12
X days x/360
Note: for getting the exact interest we could also
use (x/365)

➢ 270 days = 270/ 360 = ¾ year

➢ 3 months = 3/12 = ¼ year

4
 The final amount or the maturity value, however, can be computed by
adding the Principal amount plus the total interest or F = P + I.

DERIVED FORMULAS:
a. P= I/rt e. P = F/1+rt
b. r = I/Pt f. P = F - 1
c. t = I/Pt g. I = F - P
d. F = P(1+rt)

Example 1:
Suppose you invest P1,000 at 8% simple interest. How much money will
you have after 6 years?
Solutions:
Given: P =P1,000
r = 8%
t = 6 years

a. I = Prt b. F = P + I
I = P1,000(.08)(6) F = P1,000 + 480
I = P480 F = P1,480 the amount of money after 6 years

Example 2:
How much was borrowed if the interest at 2% after 6 months is P400?
Solutions:
Given: I = P400
r = 2%
t = 6 months

a. 6 months = 6/12 = ½ year

b. P = I / rt
P = P400/.02X ½
P = P400/.01
P = P40,000 amount borrowed

5
EXAMPLE 3:
At what rate should P7,500 be invested to have a final amount of P9,300
in 8 months?
Solutions:
Given: P = P7,500
F = P9,300
t = 8 months

a. 8 months = 8/12 = 2/3 year c. r = I / Pt

b. I = F – P r = P1,800/ P7,500 X 2/3
I = P9,300 – P7,500 r = P1,800/ P5,000
I = P1,800 r = 0.36
r = 36% the rate that the money
should be invested.

Example 4:
How many years would it take for P6,000 to grow until P7,900 if it is
invested at a 9% simple interest?
Solutions:
Given: P = P6,000
F = P7,900
r = 9%

a. I = F – P b. t = I / Pr
I = P7,900 – P6,000 t = P1,900/ P6,000 X .09
I = P1,900 t = P1,900 / 540
t = 3.52 years rounded off to the nearest whole
number
t = 4 years
MATURITY VALUE
Suppose the bank granted you a loan worth P5,000,000 for 2 years at 7%
rate of interest. The final amount that you must pay, including the interest and
the principal amount after two years is called maturity value. Meanwhile, the
current worth of cash to be received in the future with one or more payment
is called the present value . The maturity date of the loan is the deadline
agreed by both parties where in the debtor must pay the maturity value of the
money he lend from the bank.

6
 To get the maturity value, we add the total sum of interest to the present
value of the money or: M = P+I

Example 1
Neil Zafe`s Bank granted him a P250,000 loan payable for 2 years at 5%
interest. How much money does Neil owe on the maturity date?
Solutions:
Given: P = P250,000
r = 5%
t = 2 years

We need to compute first the interest, I = Prt

I = P250,000 (.05) (2)
I = P25,000

To get the amount that Neil will pay on the maturity date use, M = P + I
M = P250,000 + P25,000
M = P275,000

Example 2:
Find the term of a P75,000 loan whose interest is 24,000 at 11% rate of
interest.
Solutions:
Given: P = P75,000
r = 11%
I = P24,000

t = I/Pr
t = P24,000/ P75,000 X .11
t = P24,000 / P8,250
t = 2.91 years rounded off to the nearest whole number
t = 3 years

7
Example 3:
Gina needs P6,000 for her son`s tuition fee after 5 months. One day, her
friend asked her if she could lend her some money. She decided to lend her
friend who needs it so that she can save her money today and also make it
sufficient for her son`s tuition fee. On what rate of increase should she offer her
friend given that her money now is P4,000?
Solutions:
Given: P = P4,000
M = P6,000
t = 5 months

a. 5 months = 5/ 12 r = I / Pt
I=M–P r = P2,000/ P4,000 X 5/12
I = P6,000 – P4,000 r = P2,000/ P1,666.67
I = 2,000 r = 120%

COMPOUND INTEREST
Simple interest computes for the interest which is rooted only from the
principal amount—the compound interest on the other hand, is an interest
from the initial amount and also on the final amount of previous periods of
deposits. Compound interest is a way to earn money because you don`t just
earn using your original money, but also on the interest you earned---but it can
also be against you whenever it is for the use of loans and debts.
Example:
Find the compounded amount on P2,000 for 3 years at 7%.
Solutions:
Given: P = P2,000
t = 3 years
r = 7%

Original amount P2,000

Interest after 1 year on P2,000 at 7% P2,000 x .07 =P2,140
Amount at the end of first year P2,000 + P140 =P2,140
Interest on the new principal P2,140 x .07 = P149.80
Amount at the end of the second year P 2,140 + 149.80 = P2, 289.90
Interest on the new principal P2,289.90 X .07 = P160.286
Amount at the end of the third year P2, 289.90 + P160.286 = P2,450.086

8
 To easily compute for the compounded amount, let us use the formula
𝒓
F = P(𝑷 ( 𝟏𝒕 𝒏)nt, where F is the final compounded amount, P is the Principal, r is
the rate of interest, n is the number of times of year the interest is compounded
and t is the time which is converted must be in years or a fraction of a year.
Let us try to answer example number 1 using the formula above.

Example 1:
Find the compounded amount on P2,000 for 3 years at 7%.
Solutions:
Given: P = P2,000
t = 3 years
r = 7%
n=1

F = P2,000(1+. 07/1) 3X1

F = P2,000(1.07)3
F = P2,000 X 1.225043
F = P2,450.086

Example 2:
Accumulate P2,000 for 3 years at 7% compounded monthly.
Solutions:
Given: P = P2,000
t = 3 years
r = 7%
n = 12

F = P2,000( 1 + .07/12)3X12
F = P2,000( 1+ 0.005833)36
F = P2,456.82

9
III. WHAT HAVE I LEARNED
EVALUATION/POST TEST:
Solve the following problem. Write it in your activity notebook. Show your
solution.
1. Suppose you invest P5,000 at 10% simple interest. How much money will
you have after 5 years?
2. How much was borrowed if the interest at 4% after 9 months is P800?
3. At what rate should P10,000 be invested in order to have a final amount
of 12,500 in 9 months.
4. How many years would it take for P8,000 to grow until P10,000 if it is
invested at 12% simple interest?
5. ABC bank granted JUAN to loan an amount of P350,000 payable for 4
years at 5% interest. How much does he pay on the due date?

10
 REFERENCE

Tan, F. B.,et.al. 2018. General Mathematics for Senior High School.

Manila. Vicarish Publications and Trading: Inc.

11
 SYNOPSIS AND ABOUT THE AUTHOR
The Self Learning Kit (SLK) is ANSWER KEYS
5. 300,000
developed to prepare students 4. 2.08 years
explore mathematical problems 3. 33%

involving simple and compound

2. 26,666.67
1. 5,250
interest. Post Test
Students are provided with
practice activities, examples
10.6,540
9. 12%
and assessment to test their 8. .0625
critical skills and lead them to
7. 40,000
6.30,237.50
develop in making wise decision. 5. .25year or 3 months
Let`s have fun solving 4. 5,225

problems in General
3. 5,000
2. 4,092
Mathematics that is applicable 1. 0.04 or 4%
in our real-life. Pre-Test

AUTHOR
JAMES B. DE GRACIA is a graduate of Bachelor of
Science in Business Administration major in
Management Accounting at Saint Paul University,
Dumaguete City. He earned his education units at
Foundation University. He is teaching mathematics
at Amlan National High School –Senior High. He is
also a Teacher In-charge in the same school.

12
 COMPUTES INTEREST, MATURITY VALUE, FUTURE
LESSON VALUE, AND PRESENT VALUE IN SIMPLE INTEREST
2 AND COMPOUND INTEREST ENVIRONMENT FOR
GENERAL MATHEMATICS
OBJECTIVES:
K. Illustrate simple and compound interest, maturity
value, present value;
S. Compute interest, maturity value, present value in
simple and compound interest environment.
A. Realize the importance of computing simple and
compound interest, maturity value and present
value in daily activities.

LEARNING COMPETENCY:

Computes interest, maturity value, future value, and

present value in simple interest and compound
interest environment (M11GM-IIa-b-1)

I. WHAT HAPPENED

RECALL
Before you proceed with this lesson, you should be able to recall the
following:

1. Conversion of percent to decimal

➢ Option 1: Convert from percent to decimal, divide the percent by
100, and remove the "%" sign
13
Example: 13% = 100 =0.13

➢ Option 2: Move twice to the left from the decimal point

Example: 13% since 13 is a whole number, the point is located at the
right side of the number, then move twice to the left, the result is 0.13.

13
 2. Conversion of months to years
➢ There are twelve months in one year. To convert months to years:
1year
Year = number of months x
12 months
Example: Convert 36 months to years.
1 year
36 months x = 3 years
12months

PRE-TEST:

Complete the table below by finding the unknown

Principal (P) Rate (r) Time(t) Interest (I)
(a) 2.5% 4 1500
36,000 (b) 1.5 4860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

A. Find the compound interest on ₱800 for 3 years at 6% compounded

semiannually.

II. WHAT YOU NEED TO KNOW

DISCUSSION:

The Annual Simple Interest is The following are the variables of

given by simple interest:

Formula P = principal amount (present value)

Is = Prt r = annual rate
Maturity (Future) Value t = time period (term)
F = P + Is I = amount of interest paid or received
or F = P (1 + rt) F = maturity value (future value)

Now, let us know the answer of your pre-test as an example

Example 1: Complete the table below by finding the unknown

Principal(𝑷) Rate(𝒓) Time(𝒕) Interest(𝑰)
(𝒂) 2.5% 4 1500
36,000 ( 𝒃) 1.5 4860
250,000 0.5% ( 𝑐 ) 275
500,000 12.5% 10 (𝒅 )

14
Solution:

a. The unknown is the Principal(P)

In this case, you need to derive
Is =Prt
Is Prt Divide both side by rt,
= {
then apply cancellation of similar variable rt
}
rt rt
Is I
=P or P= rts
rt
IsIs 1,500
Therefore: P= P= =
rt rt (0.025)(4)
b. The unknown is rate (r)P = 15,000
In this case apply the derivation
Is =Prt
Is Prt
=
Pt Pt
{Divide both side by Pt, then apply cancellation of similar variable Pt}
Is I
=r or r= Pts ;
Pt
Is
Therefore, r= is the formula
Pt
Is 4,860
r= =
Pt (36,000)(1.5)
Note:To convert decimal to percent,
r = 0.09 or 9% { }
simply move twice to the right from decimal point

c. The unknown is time (𝑡)

Derive Is =Prt
Is Prt Divide both side by Pr,
= { }
Pr Pr then apply cancellation of similar variable Pr
Is
=t or
Pr
Is 275
t= =
Pr (250,000)(0.005)
t = 0.22 years

d. The unknown simple interest is given by

Is = Prt
Is = (500,000)(0.125)(10)
Is = 0.22 years

15
Example 2:
Find the maturity value or future value if 1 million pesos is deposited in a
bank at an annual simple interest rate of 0.25% after (𝒂) 1 year and (𝒃) 5 years?

Solution:
Given: P = ₱1,000,000; r = 0.25% or 0.0025
Find: (a) maturity or future value F after 1 year; (b) maturity or future value F
after 5 years

Note: There are two ways to solve problem.

Method 1: Solve the simple interest 𝐼𝑠 first and then add it to 𝑃, that
is, F = P + Is
Method 2: Use the derived formula F = P(1 + rt)

a. When 𝑡 = 1, the simple interest is given by

Method 1:
Is = Prt
Is = (1,000,000)(0.0025)(1)
Is = 2500
The maturity or future value is given by F = P + Is
F = 1,000,000+2,500
F = 1,002,500

Method 2:
F = P(rt)
F = (1,000,000)(1+0.0025(1))
F = 1,002,500 The future or maturity value after 1 year

b. When 𝑡 =5
Method 1:
Is = Prt
Is = (1,000,000)(0.0025)(5)
Is = 12,500
F = P+Is
F = 1,000,000 +12,500
F = 1,012,500

Method 2:
F = P(1+rt)
F = (1,000,000)(1+0.0025(5))
F = 1,012,500

16
 Compound Interest The following are the variables of
The compound interest is compound interest:
given by
P = original principal or the present value
Formula: Ic = F - P F = maturity value/ Future value of the loan
or investment (compound amount)
Maturity (Future) Value
t = period/term or the loan or investment
F = P (1 + r)t m =number of conversions per year
n = total number of conversion periods in
or the entire transaction time(t x m)
j =nominal rate or the yearly interest
F = P (1 + i)n j
i= interest rate per conversion(m)
P = F (1 + i)-n

Compounding Frequencies and Periods

Compounding or Number of compounding Compounding or
conversion frequency or conversion per year(m) conversion periods
Annual 1 1year
Semi annually 2 6
Quarterly 4 3 months
Bimonthly 6 2months
Monthly 12 1month

Example 1. Find the compound interest on ₱800 for 3 years at 6% compounded

semiannually.

Solution:

Original Principal ₱800.00

Interest for the 1st months (800 𝑥0.03) +24.00
Principal at the end of the 1st 6months 824.00
Interest for the 2nd 6 months(824𝑥. 03) + 24.72
Principal at the end of the 2nd 6 months 848.72
Interest for the 3rd 6 months (848.72 𝑥0.03) +25.46
Principal at the end of the 3rd 6 months 874.18
Interest for the 4th 6months (874.18𝑥0.03) +26.23
Principal at the end of 4th 6mohts 900.41
Interest for 5th 6 months (900.41𝑥0.03) +27.01
Principal at the end of 5th 6 months 927.42
Interest for the last 6months (927.42𝑥0.03) +27.82
Principal for the last 6 moths 955.24
Less original principal - 800.00
Total compound interest for 3 years ₱155.24

17
Example 2: It shows that the amount at the end of each year if principal(𝑃) is
invested at an annual interest rate r compounded annually.
Computations for the example
P = ₱100,000 and r = 5% are also included.

Solution:

Principal= 𝑃 Principal = ₱100,000

Year Interest rate=𝑟, compounded Interest rate = 5%, compounded
(𝑡 ) annually annually
Amount at the end of the year Amount at the end of the year
1 P(1+r) = P(1+r) 100,000(1.05)=105,000
2 P(1+r)(1+r) = P(1+r)2 105,000(1.05)=110,250
3 P(1+r)2 (1+r) = P(1+r)3 110,250(1.05)=121,550.63
4 P(1+r)3 (1+r) = P(1+r)4 121,550.63(1.05)=127,628.16

III. WHAT HAVE I LEARNED

EVALUATION/POST TEST:
A. Instruction: Complete the table below by finding the unknown
Principal (P) Rate (r) Time (t) Interest (I)
10,000 8% 15 (1)
(2) 2% 5 10,000
360,000 (3) 2 3,600
500,000 10.5% (4) 175,500
880,000 9.25% 2.5 (5)

B. Instruction. Find the unknown principal P, rate r, time t, and compound

interest Ic by completing the table.
Compound Maturity
Principal (P) Rate (r) Time (t)
Interest (Ic ) Value (F)
10,000 8% 15 (1) (2)
3,000 5% 6 (3) (4)
50,000 10.5% 10 (5) (6)
(7) 2% 5 (8) 50,000
(9) 9.25% 2.5 (10) 100,000

18
 REFERENCE

Crisologo, Leo Andrei A., Lester A. Hao, Eden Delight P. Miro Ph.D., Shirlee R.
Ocampo, Ph.D., Emellie G. Palomo, Ph.D., and Regina M. Tresvalles,
Ph.D. “General Mathematics Senior High School Teaching Guide.”
teacherph.com. https://www.teacherph.com/general-mathematics-
senior-high-school-shs-teaching-guide/ (accessed July 19,200)

19
 SYNOPSIS AND ABOUT THE AUTHOR
This Self Learning Kit ANSWER KEYS
(SLK)discusses on computing
10. 19 842.09
9. 80 157.91
maturity value, future value, 8. 4 713.46
present value in simple and 7. 45 286.54

compound interest in the

6. 135 704.04
5. 203 500
5. 85 704.04
learning competency. The
4. 3.34
4. 4 020.29
3. 0.5 %
learners are expected to assess 3. 1 020.29
2. 100 000
and improve their skills and use
2. 31 721.69
1. 12 000
1. 21 721.69
what they have learned in their
A.
B.
Evaluation
everyday life.
for 3 years
Let’s go and learn together B. Total compound interest
in this journey and find out how d. Is = 625 000

simple and compound interest

c. t = 0.22 years
b. r = 0.09 or 9%
are computed a. P = 15 000
A.
Pre-Test

AUTHOR
DOMINADOR APARILLA JUMAO-AS graduated from
University of Bohol, Tagbilaran City with the course
Bachelor of Secondary Education major in Mathematics
last 2006. He graduated as Master of Arts in Education
major is SPED last 2011 at CTU main campus. In the year
2019, he graduated Master of Arts in Education major in
mathematics at CTU Moalboal branch. He is currently
teaching at Ajong National High School, grade 11 adviser
and School DRRM coordinator.

20
LESSON PROBLEM SOLVING INVOLVING SIMPLE and
3 COMPOUND INTEREST

OBJECTIVES:
K. Identify the steps in solving problems involving
simple and compound interest;
S. Solve problems involving simple and compound
interest;
A. Show interest in solving problems in simple and
compound interest.

LEARNING COMPETENCY:

Solves problems involving simple and compound

interest (M11GM-IIb-2)

I. WHAT HAPPENED
RECALL
Before we to proceed the application of solving problems in simple
and compound interest, lets tackle the formulas, characteristics of variables
Simple Interest The following are the
variables of simple interest:
The Annual Simple Interest is
given by P = principal amount
(present value)
Formula
r = annual rate
Is = Prt
t = time period (term)
Maturity (Future) Value
I = amount of interest paid or
F = P + Is
received
or F = P (1 + rt)
F = maturity value (future
value)

21
PRE-TEST:
Solve the following problem. Write it in your activity notebook. Show your
solution.
1. A bank offers 0.25% annual simple interest rate for a particular deposit. How
much interest will be earned if 1 million pesos is deposited in this savings
account for 1 year?

2. When invested at an annual interest rate of 7%, an amount earned ₱11,200

of simple interest in two years. How much money was originally invested?

3. Find the maturity value and the compound interest if ₱10,000 is

compounded annually at an interest rate of 2% in 5 years.

4. What is the present value of ₱50,000 due in 7 years if money is worth 10%
compounded annually?

II. WHAT YOU NEED TO KNOW

DISCUSSION:

Example 1. A bank offers 0.25% annual simple interest rate for a particular
deposit. How much interest will be earned if 1 million pesos is deposited in this
savings account for 1 year?

Solution:
Given: P = 1,000,000
Convert percent to decimal by
r = 0.25% = 0.0025 { }
moving the decimal point twice to the left
t = 1 year
Find Is ?

Is = Prt {Replace the value of P,r,t }

Is = (1,000,000)(0.0025)(1) {Get the product/multiply}
Is = 2500

Note: A savings account in the Philippines is subject to 20% withholding tax. If

20% withholding tax will be applied, then the actual interest earned is (2500)
(0.8) = 2000 or (2500) (.2) = 500 so, (2500- 500) = 2000.

22
Example 2: When invested at an annual interest rate of 7%, an amount earned
₱11,200 of simple interest in two years. How much money was originally
invested?
Solution:
Convert percent to decimal by
r =7% = 0.07 { moving twice to the left from the decimal point }
since 7 is an integer, the point is located at the right side
t =2 years
Is =11,200
Find 𝑃?
I
P= rts {Replaced the value of I, r,t}

P= (0.07)(2) {Get first the product of denominator }

11,200
then divide it from numerator
P = 80,000

Compound Interest
The following are the variables of
The compound interest is
compound interest:
given by
P = original principal or the present value
Formula: Ic = F - P
F = maturity value/ Future value of the loan
III.Maturity
WHAT(Future)
HAVEValue
I LEARNED
or investment (compound amount)
t = period/term or the loan or investment
EVALUATION/POST
F = P (1 + r)t TEST: m =number of conversions per year
or n = total number of conversion periods in
the entire transaction time(t x m)
n
F = P (1 + i) j =nominal rate or the yearly interest
j
P = F (1 + i)-n i= interest rate per conversion(m)

23
Example 3. Find the maturity value and the compound interest if ₱10,000 is
compounded annually at an interest rate of 2% in 5 years.

Solution:

Given: P =10,000
Convert percent to decimal,
r = 2%=0.02 { }
move twice to the left from decimal point
t = 5 years

Find: a. maturity value F

b. compound interest
Solution:

a. F = P(1+r)t {Replace the value P,r and t}

Simplify the exponent first by
F = (10,000)(1 + 0.02 )5 { by getting the sum inside the parentheses }
then multiply by itself in 5 times
F = (10,000)(1.104080803) {Simplify by getting the product}
F = 11,040.081
b. Ic = F-P {𝑅𝑒𝑝𝑙𝑎𝑐𝑒 𝑡ℎ𝑒 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝐹 𝑎𝑛𝑑 𝑃}
Ic = 11 040.81 – 10 000 {𝑆𝑢𝑏𝑡𝑟𝑎𝑐𝑡}
Ic = 1 040.81

The future value F is ₱ 11 040.81 and the compound interest is ₱ 1 040.81.

Example 4. What is the present value of ₱50,000 due in 7 years if money is worth
10% compounded annually?

Solution:
Given: F = 50,000
Convert percent to decimal,
r = 10% = 0.1 { }
move twice to the left from decimal point
t = 7 years
Find P?

The present value 𝑃 can be obtained by

F
P= (1+r)t
{replace the value of F, t, r}
Simplify the denominator
50,000
P= (1+0.1)7
{(add first the value inside the parentheses then }
repeat multiplying the sum by itself in 7 times
50,000
P= {Divide numerator and denominator}
1.9487171

P = 25,657.91

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III. WHAT HAVE I LEARNED
A. Instruction: Solve the following problems on simple interest.
1. At what simple interest rate per annum will ₱25,000 accumulate to
₱33,000 in 5 years?
2. How long will ₱40,000 amount to ₱51,200 if the simple interest rate is at
12% per annum?
3. In order to have ₱200,000 in 3 years, how much should you invest if the
simple interest is 5.5%?

B. Instruction: Solve the following problems on compound interest.

1. What are the amounts of interest and maturity value of a loan for ₱20,000
at 6% compound interest for 3 years?
2. To have ₱50,000 in 5 years, how much should you invest if the compound
interest is 5%?
3. A savings account in a bank yields 0.25% compound interest annually.
Accumulate (find the future value) of ₱25,000 for 4 years in this savings
account. How much interest will be gained?

25
 REFERENCE

Crisologo, Leo Andrei A., Lester A. Hao, Eden Delight P. Miro Ph.D., Shirlee R.
Ocampo, Ph.D., Emellie G. Palomo, Ph.D., and Regina M. Tresvalles,
Ph.D. “General Mathematics Senior High School Teaching Guide.”
teacherph.com. https://www.teacherph.com/general-mathematics-
senior-high-school-shs-teaching-guide/ (accessed July 19,200)

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 SYNOPSIS AND ABOUT THE AUTHOR
This Self Learning Kit ANSWER KEYS
demonstrates solve problems
involving simple and compound
interest in the learning
3. Fc = ₱ 25 250.94; Ic = ₱ 250.94
2. P = ₱ 39 176.31
competency. B. 1. Fc = ₱ 23 820.32
The students are expected 3. 171 673.82

to carry out trials or enhance

months
2. 2.33 years or 2 years and 4
their skills and utilize what they A. 1. 6.4%
have
Evaluation

learned in their day to day living. 4. P = 25 657.91

b. Ic = 23 872.77

Bring it on and let us

3. a. F = 11 040.081
2. P = 80 000
discover jointly in this wonderful 1. Is = 2500
experience Pre-Test

AUTHOR
DOMINADOR APARILLA JUMAO-AS graduated from
University of Bohol, Tagbilaran City with the course
Bachelor of Secondary Education major in Mathematics
last 2006. He graduated as Master of Arts in Education
major is SPED last 2011 at CTU main campus. In the year
2019, he graduated Master of Arts in Education major in
mathematics at CTU Moalboal branch. He is currently
teaching at Ajong National High School, grade 11 adviser
and School DRRM coordinator.

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

FAY C. LUAREZ, TM, Ed.D., Ph.D.

OIC - Assistant Schools Division Superintendent
Acting CID Chief

NILITA L. RAGAY, Ed.D.

OIC - Assistant Schools Division Superintendent

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

JAMES B. DE GRACIA
DOMINADOR APARILLA JUMAO-AS
Writers

RADHIYA A. ABABON
Lay-out Artist
_________________________________

ALPHA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO

BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
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JEE LIZA T. INGUITO
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible
learning modality to the teachers and learners of the Division of Negros Oriental. The contents of this module are
carefully researched, chosen, and evaluated to comply with the set learning competencies. The writers and
evaluator were clearly instructed to give credits to information and illustrations used to substantiate this material.
All content is subject to copyright and may not be reproduced in any form without expressed written consent from
the division.

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