Lesson Plan in Grade 11 General Mathematics

Content: Basic Business Mathematics

Content Standards: The learner demonstrates understanding of key concepts of

simple and compound interests, and simple and general annuities.

Performance Standards: The learner is able to investigate, analyze and solve

problems involving simple and compound interests and simple and general annuities
using appropriate business and financial instruments.

Learning Competencies:

1. The learner illustrates simple and compound interests. (Code: M11GM-IIa-1)

2. The learner distinguishes between simple and compound interests. (Code:
M11GM-IIa-2)

Objectives: At the end of the lesson, the students are expected to:

 illustrates simple and compound interests.

 distinguish between simple and compound interests.
 suggest ways on how to take care of hard-earned money.

Reference: pages: General Mathematics: Learner’s Material 135-136

Materials: Visual Aids (Laptop, Projector-if possible)

TEACHING METHODOLOGY

a. Priming
Introduce the Definition of Terms.

Maturity Date – date on which the money borrowed or invested is to be

completely paid

Time or Term (t) – amount of time (length) in years the money is borrowed or
Invested

Principal (P) – amount of money invested or borrowed

Rate (r) – annual rate, usually in percent, charged by the lender or rate of
increase of an investment

Interest (I) – amount paid or earned for the use of money

Maturity Value or Future Value (F) – amount after t years that the lender or
investor receives on the maturity date

b. Activity
Imagine that every one of you are participants to a raffle draw wherein the prize
is Php10,000. Your seat number determines your ticket number. The teacher
draws the winner and a student wins. He was given the option to invest in either
Prepared by: Mrs. Jennylyn R. Khe,LPT - Teacher II
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 of the two banks. First is “LAMBANK” which offers 2% simple interest rate per
year. On the other hand, “METERBANK” offers 2% compounded annually. Which
will you choose and why?”

To find out the best option, divide the class into two groups and let them
complete the table by solving the equations given for simple and compound
interest.

Time/ Principal Interest Simple Interest (I) Amount after t

Years (P) Rate (r) Solution Answer years (Maturity
(t) (t)(P)(r) Value)
P+I
1 2% (1)(10,000)(0.02) 200 10,000+200=10,200
2 2% (1)(10,000)(0.02)
3 10,000 2%
4 2%
5 2%
Total amount of money after 5 years Php ____________

Time/ Principal Interest Compound Interest (I) Amount after t

Years (P) Rate (r) Solution Answer years (Maturity
(t) (t)(P)(r) Value)
P+I
1 10,000 2% (1)(10,000)(0.02) 200 10,000+200=10,200
2 10,200 2% (1)(10,200)(0.02)
3 2%
4 2%
5 2%
Total amount of money after 5 years Php ____________

Let each group present their work.

c. Analysis
1. What is the total amount of money for each bank after 5 years?
2. Which bank provided a bigger maturity value?
3. What made the results different when both banks have 2% interest rate?
4. If you are going to invest your money, which bank will you choose?
Prepared by: Mrs. Jennylyn R. Khe,LPT - Teacher II
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d. Abstraction
Simple Interest (Is) – interest that is computed on the principal and then added
to it
Compound Interest (Ic)–interest I s computed on the principal and also on the
accumulated past interests

Simple interest remains constant throughout the investment term. In

compound interest, the interest from the previous year also earns interest. Thus,
the interest grows every year.

e. Application
1. Based on the table done during the activity make separate line graphs
showing the growth of the money throughout the span of five years for both
banks.
2. What is the difference between simple interest and compound interest?

Prepared by: Mrs. Jennylyn R. Khe,LPT - Teacher II

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