LESSON PLAN

TOPIC: Business Mathematics 11

I.OBJECTIVES

At the end of the lesson learners will;

 Solve problems involving simple interest and maturity value.

II.LEARNING TASKS

 Subject Matter- Simple Interest and Maturity Value

 References-Business Math Eighth Edition, wps.prenhall.com
 Materials/equipment -(laptop, projector, chalk, pen)
 Value focus-Cooperation, patience.

III. TEACHING STRATEGIES

A. Learning Activities
 Greetings
 Prayer
 Checking of Attendance

B. Activity

INSTRUCTION: Divide students into two groups. Each group must have representative. This activity is in the form of
game. The group with the higher score will be declared as winner. (3 mins.)

Arrange the jumbled letters to form a word.

1. RESTINTE
2. PLESIM RESTINTE
3. CIPALPRIN
4. ETAR
5. EMIT
6. LUEVA RITYMATU

C. Presentation of Lesson

Key Terms

 Interest: an amount paid or earned for the use of money.

 Simple interest: interest earned when a loan or investment is repaid in a lump sum.

 Principal: the amount of money borrowed or invested.

 Rate: the percent of the principal paid as interest per time period.

 Time: the number of days, months or years that the money is borrowed or invested.

Find the Principal, Rate or Time Using the Simple Interest Formula
Try these examples

1. Find the interest on a 2-year loan of P4, 000 at a 6% rate.

I =PRT, I = 4000 x .06 x 2, I = 480

2. Judy paid P108 in interest on a loan that she had for 6 months. The interest rate was 12%. How much was the principal?
P = I/RT, P = 108/ .12 x .5 , P = 1, 800

3. Sam wants to borrow P1, 500 for 15 months and will have to pay P225 in interest. What is the rate he is being
charged?

R = I/ PT, R = 225/1500 x 1.25, R = .12 or 12%

4. Shelby borrowed P10, 000 at 8% and paid P1, 600 in interest. What was the length of the loan?

T = I/PR, T = 1600/10000 x .08, T = 2 years

 Maturity value: the total amount of money due by the end of a loan period; the amount of the loan and interest.

If the principal and the interest are known, add them.

MV = principal + PRT

MV = P (1+RT)

Look at this example

1. Marcus Logan can purchase furniture on a 2-year simple interest loan at 9% interest per year.

What is the maturity value for a $2,500 loan?

MV = P (1 + RT) Substitute known values.

MV = P2,500 ( 1 + 0.09 x 2)

MV = P2,500 (1 + 0.18)

MV = P2,500 (1.18)

MV = P2,950

IV. Evaluation

1. Akiko is saving a little extra money to pay for her car insurance next year. If she invests P4, 000 for 18 months at
4%, how much interest can she earn?
2. Terry Williams is going to borrow P4, 000 at 7.5% interest. What is the maturity value of the loan after three years?

V. Assignment

1. Habib is going to borrow P2, 000 for 42 months at 7%. What will the amount of interest owed be?
2. Jim Sherman will invest P3, 000 at 8% for 5 years. What is the maturity value of the investment?

Prepared by:

ANNA MAE E. BORRES