I.

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

a. Illustrate simple and compound interest;

b. Computes interest, maturity value, future value and present value in simple
interest and compound interest environment;
c. Value the importance of the topic by opening a savings account in your trusted
financial institution.

II. SUBJECT MATTER

A. Topic: Simple and Compound Interest

B. Materials : Laptop, Visual Materials
C. Reference : Music and Arts 10 LM
pp.308-311

III.PROCEDURE

Teachers Activity Students Activity

A. Preliminary Activities
(Praying, Checking of
Attendance, etc.)

Review

Good Afternoon Class.

Before we proceed to our next lesson, Last meeting, we discussed about

let us have first a short recap on what problems involving logarithmic functions,
we discussed last meeting in Arts. So equations and inequalities.
what was our lesson yesterday?

So what are the difference between the

logarithmic equation and logarithmic
inequalities?
The difference between logarithmic
function and logarithmic inequalities is
that the logarithmic function uses
equality symbol and has only 1 variable
while the logarithmic inequality uses
inequality symbols like <, >, <o=, >o=.

Ok. Very good.

Motivation

I have here a short dialogue.

Observe and analyze what the dialogue The students are listening.
is all about.

( The teacher will show the dialogue. )

Ok, do you know why they have

different maturity value even though No Sir!
they have the same loan plan?

Presentation of the aim

So be with me this morning for we are

about to unlock the mystery behind the
discrepancy of the two accounts. Our
topic for today is all about simple and
compound interest.

Everybody Read! Simple and Compound Interest

During my discussion, you should

listen very carefully because at the end
of the lesson you are expected to:
a. Illustrate simple and compound
interest;
b. Computes interest, maturity value,
future value and present value in
simple interest and compound
interest environment;
c. Value the importance of the topic by
opening a savings account in your
trusted financial institution.

A. Lesson Proper

Warm Up
Answer
1. What is 35 increased by 8%?
1. 37.8
2. What is the percent of decrease from 2. 16 2/3 %
144 to 120? 3. 375
3. What is 1500 decreased by 75%? 4. 100%

4. What is the percent of increase from

0.32 to 0.64?

Interest is the amount of money

charged for borrowing or using money.
When you deposit money into a savings
account, you are paid interest. Simple
interest is one type of fee paid for the
use of money.

I=PRT

I- Simple interest is money paid only

on the principal.

R- Rate of interest is the percent

charged or earned.

P- Principal is the amount of money

borrowed or invested.

T- Time in years that the money is

borrowed or invested

Example 1: Finding Interest and Total

Payment on a Loan

To buy a car, Jessica borrowed

$15,000 for 3 years at an annual
simple interest rate of 9%. How much
interest will she pay if she pays the
entire loan off at the end of the third
year? What is the total amount that
she will repay?

By using the given formula who can

solve this problem?

Yes Febeh?
First, find the interest she will pay.

I=P 
r 
t Use the formula.

I = 15,000  0.09 
3 Substitute. Use
0.09 for 9%.
Very Good!
I = 4050 Solve for I.
Ok! Let’s have another example!

Additional Example. Jessica will pay

$4050 in interest. You can find the
total amount A to be repaid on a loan
by adding the principal P to the
interest I.

P+I=A principal + interest =

amount

15,000 + 4050 = A Substitute.

19,050 = A Solve for A.

Jessica will repay a total of $19,050 on

her loan.

Example 2. To buy a laptop computer,

Elaine borrowed $2,000 for 3 years at
an annual simple interest rate of 5%.
How much interest will she pay if she
pays the entire loan off at the end of
the third year? What is the total
amount that she will repay?

So, who can solve this problem?

Yes Frank! Kindly right your answer on First, find the interest she will pay.
the board.
I=P 
r 
t Use the formula.

I = 2,000 
0.05 
3 Substitute. Use 0.05
for 5%.

I = 300 Solve for I.

Very Good Frank!

Do you have any questions or None Sir!

clarification about simple interest?

Now let’s proceed to compound

interest!

Calculate compound interest using this

formula:

A—Total amount

p —principle

r —interest rate

n —number of compounding periods

t —time in years

Example: $100 is invested at 10%

interest compounded yearly for 6 years.

Jerson solve it on the board.

Very Good!
To have a clearer picture of the
difference between the two I have here
a side by side example of simple and
compound interest. Observe closely!

Consider this example: You begin with

$100 invested at 10% annual interest.

After Simple Compound

Interest Interest

1 year 110 110

2 years 120 121

3 years 130 133

4 years 140 146

5 years 150 161

10 years 200 259

20 years 300 672

50 600 11,739
years

C.ANALYSIS

How did you find the topic?

Who among you here already tried to

compute loans or savings from your
parents, brother, sister, relatives or
Easy sir!
friends? Is the computation the same
with what we discussed?

D.ABSTRACTION Yes Sir

As we mentioned a while ago, is simple
interest different from compound
interest? Why?

Which type of interest we can save

more in a loan plan?

Which type of interest we can save

more in a savings plan?
What is the importance of knowing the
difference between the two?

D.APPLICATION

Directions: You will be divided into a

group of 5 members. Each group will
convey a real-life application of simple
and compound interest.

Rubrics:

Creativity-10

Mastery- 10

Content – 10

E.Values Integration

Class, after all the things that we

discussed and you solved, what life
lesson did you learn?

That’s right! We must save money for

the future use. We must not waste our
money by buying things that we don’t
need but instead we must save or
invest our money in a financial
institution that we trust because the
time that we need money will definitely It teaches us to save money.
come.

IV.EVALUATION

Directions: Solve the following and

show the complete solution in each
problem.

1. A bank is offering 2.5% simple

interest on a savings account. If
you deposit $5000, how much
interest will you earn in one
year?
2. Joshua borrowed $1000 from
his friend and paid him back
$1050 in six months. What
simple annual interest did
The students will present their work.
Joshua pay his friend?
3. $25,000 at 8% for 3 years
compounded annually
4. $680 at 5.5% for 1.5 years
compounded monthly
V.ASSIGNMENT

Have advance research about the

following:

1. Simple Annuities
2. General Annuities
3. Stock and Bonds