General Mathematics

SHS
SECOND QUARTER
WEEK 1
WORKSHEET NO. 3
Interest, Maturity, Future,
MELC:
computes interest, maturity
value, future value, and
and Present Values in
present value in simple
interest and solves problems
Simple Interest
involving simple interest.
(M11GM-IIA-b-1& 2)

Writer: JERSON R. LUMBRE

Illustrator:
Layout Artist:
Evaluator/s:

Department of Education • Schools Division of Marinduque

 Lesson Interest, Maturity, Future,

1 and Present Values in Simple

What’s New
Interest

For you to begin, considering the previous lesson which is essential in obtaining
success in this module. In the last module, you were able to determine the difference
between simple and compound interest. Simple interest pertains to the interest
computed on the principal while compound interest is computed on the principal and
also on the accumulated past interests.
Different terms related to simple and compound interest were also given
emphasis such as the lender or creditor which refers to the person who invests or
makes funds available and the borrower and debtor which refers to the person who
owes the money.
Many persons or institutions are interested to know the amount that the lender
will give to the borrower on the maturity date. For instance, you may be interested to
know the total amount money savings account after t years at an interest rate r. this
amount is called the maturity value or future value F.

In computing the simple interest and other related components, the formula is,

Is= Prt
Where: Is = simple interest
P = principal, or the amount invested or borrowed
r = simple interest rate
t = term or time in years

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 The formula for finding the principal amount
Is
P=
rt

The formula can be manipulated to obtain the following relationships:

The formula for finding the rate

Is
r=
Pt

The formula for finding the time

Is
t=
Pr

To find the maturity (future) value, you can use either of the following formulas:

F = P(1 + rt) or F = P + Is
Where:F = Maturity (future) value
Is = simple interest
P = Principal or the amount invested or borrowed or present value
r = simple interest rate
t = time or term in years

Let us take the following examples:

Example 1: Given P = ₱18,500, r = 0.03, t = 5. Find simple interest (Is)
Solution:
Step 1: Use the formula of Simple Interest
Is = Prt
Step 2: Substitute the given to the formula
Is = 18,500(0.03)(5)
Step 3: Perform the operation
Is = ₱2,775
Step 4: Finalize your answer
Therefore, the simple interest is ₱2,775.00
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Example 2: Given P = ₱40,000, Is = ₱700, r = 7%. Find time (t)
Solution:
Step 1: Use the formula in finding time

Is
t=
Pr
Step 2: Substitute the given formula

700
t=
( 40000)(0.07)
Step 3: Perform the operation

1
t = 0.25 t= year or 3 months
4
Step 4: Finalize your answer

1
Therefore, the term or time in years is t = year or 3 months
4
Example 3: Given P = Given: 𝑃 = ₱15,000, 𝑡 = 4 months, 𝑟 = 2%. Find maturity
(future) value
(𝐹).
Solution:
Step 1: Use the formula of maturity value
F = P(1 + rt)
Step 2: Substitute the given formula

1
F = 15,000 [1 + (0.02)( )]
3
4 mos . 1
Hint: time must be expressed in years so 4 months will become = year
12mos . 3
Step 3: Perform the operations
F = ₱15,100
Step 4: Finalize your answer

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 Therefore, the maturity value is ₱15,100.00
Example 4: Find the maturity 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:
Step 1: Identify the given and the unknown.
P = 1,000,000
r = 0.25% = 0.0025
(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 the problem.
Method 1: Solve the simple interest Is first and then add it to P, that is, F = P + I s
Method 2: Use the derived formula F = P(1 +rt)

Step 2: Use the formula

F = P(1 + rt)
Step 3: Substitute the given formula

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

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

Method 2: To directly solve the future value F,

F = P(1 + rt)
F = (1,000,000)(1+0.0025)(1)
F = 1,002,500
b. When t = 5

Method 1:
Is = Prt
Is = (1,000,000)(0.0025)(5)
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 Is = 12,500
The maturity value is given by F = P + Is
F = 1,000,000 + 12,500
F = 1,012,500

Method 2: To directly solve the future value F,

F = P(1 + rt)
F = (1,000,000)(1+0.0025)
F = 1,012,500

Step 4: Finalize your answer

(a) Therefore, the future or maturity value after 1 year is ₱1,002,500

(b) Therefore, the future or maturity value after 5 years is ₱1,012,500

What I can do
Activity 1
A. Directions: Complete the table by finding the unkown.
Principal (P) Rate (r) Time (t) Interest (I) Maturity Value
(F)
60,000 4% 15 (a) (b)
(c) 12% 5 15,000 (d)
50,000 (e) 2 (f) 59,500
(g) 10.5 (h) 157,500 457,500
1,000,000 0.25% 6.5 (i) (j)

Activity 2
Directions: Solve the following problems.
1. What are the amounts of interest and maturity value of a loan for
₱150,000 at 6.5% simple interest for 3 years?
2. At what simple interest rate per annum will ₱25,000 accumulate to
₱33,000 in 5 years?
3. How long will ₱40,000 amount to ₱51,200 if the simple interest rate is at
12% per annum?

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 4. In order to have ₱200,000 in 3 years, how much should you invest if the
simple interest is 5.5%?
Assessment
5. Angel deposited ₱20,000 in a bank that pays 0.5% simple interest. How
much will be her money after 6 years?

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.
1. Which of the following is the formula to find the simple interest?
A. 𝐼𝑠 = 𝑃𝑟𝑡 C. 𝐼𝑠 = 𝐹 − 𝑃
B. 𝐼𝑠 = 𝑃(1 + 𝑟) 𝑡 F
D. 𝐼𝑠 = t
(1+r )
2. What formula will be used to find the present value of simple interest?
A. 𝑃 = 𝐼𝑠𝑟𝑡 rt
Is C. 𝑃 =
Is
B. 𝑃 =
rt I r
D. 𝑃 = 𝐼 s
t

3. If the investment amounting to ₱35,000 earned an interest of ₱2,500 how much will
be the maturity value?
A. ₱32,500 C. ₱30,000
B. ₱37,500 D. ₱40,000

4. Given that P = ₱5,250, r = 1.25% and t = 5 years, find the simple interest.
A. ₱32,812.50 C. ₱328.13
B. ₱3,281.25 D. ₱32.82

1
5. Given that P = ₱10,500, r = 4 % and t = 8 months, find the simple interest.
2
A. ₱315 C. ₱3,780
B. ₱3,150 D. ₱31,500

Additional Activity
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Guide Questions
1. How do you find maturity value in simple interest?
2. Formulate own three problems that involve maturity, future and present
value. Write the problems and its complete solutions.
3. In your own words, how can you use the concept of maturity or future
value in real life situation?

Key to Correction

Maturity and Present Values in Simple Interest

Activity 2

Activity 1 1. 1. I = 29,250 F=
Assessment
179,250
a. ₱36,000 f. ₱9,500
1.A
2. 2. 6.4%
b. ₱96,000 g. ₱300,000
2.B
3. 3. 2.33 years or 2 years and 4
c. ₱25,000 h. 5
months 3.B
d. ₱40,000 i. ₱16,250
4. 4. ₱171,673.82 4.C
e. 9.5% j.₱1,016,250
5. 5. ₱20,600 5.A
Additional Activity

1. Using the formula

2. Answer may vary.
3. Answer may vary

References
“Deped Marinduque: Heart of the Philippines
Lead to Excel, Excel to Lead”
 Notes and Bibliography: Sample Citations
ADM General Mathematics SLM Quarter 2: Module 1: Simple and General Annuities,
First Edition, 2020
ADM General Mathematics SLM Quarter 2: Module 3: Future and Present Values of
Simple and General Annuities, First Edition, 2020
Jolo, Ann Michelle M. General Mathematics Quarter 2-Module 1 and 2 for Senior High
School Simple and Compound Interests

Versoza, Debbie Marie B, Ph.D. TEACHING GUIDE FOR SENIOR HIGH SCHOOL General
Mathematics CORE SUBJECT: Commision on Higher Education in Collaboration with the
Philippine Normal University 2016.

Para sa mga katanungan o puna, sumulat o tumawag sa:

Kagawaran ng Edukasyon – Schools Division Marinduque

T. Roque St., Malusak, Boac, Marinduque
Email: deped_marinduque@yahoo.com or
lrmds_marinduque15@yahoo.com;
Tel. No.: (042) 332-1009 / 332-1611

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Lead to Excel, Excel to Lead”