11

General Mathematics
Activity Sheets
Quarter 2 – MELC 2
Distinguishing Between Simple and
Compound interest

REGION VI – WESTERN VISAYAS

General Mathematics 11
Activity Sheet No. 02
First Edition, 2020

Published in the Philippines

By the Department of Education
Region 6 – Western Visayas

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This Learning Activity Sheet is developed by DepEd Region 6 – Western

Visayas.

ALL RIGHTS RESERVED. No part of this learning resource may be

reproduced or transmitted in any form or by any means electronic or mechanical
without written permission from the DepEd Regional Office 6 – Western Visayas.

Development Team of General Mathematics Activity Sheet

Writer: Rutchel J. Ngipen

Illustrator: Rutchel J. Ngipen

Layout Artist: Rutchel J. Ngipen

Schools Division Quality Assurance Team:

Ligaya H. Montelijao, EPS-Mathematics
Leila G. Valencia, EPS-LR
Jezereel Grace G. Tiron
Bernie P. Alcedo
Division of Iloilo City Management Team:
Ma. Luz M. De los Reyes, SDS
Ernesto F. Servillon Jr., ASDS
Arlo L. Villalva, CID Chief
Dr. Jerry M. Lego, SGOD Chief
Leila G. Valencia, EPS-LR
Ligaya H. Montelijao, EPS-Mathematics
Regional Management Team
Ma. Gemma M. Ledesma,
Dr. Josilyn S. Solana,
Dr. Elena P. Gonzaga,
Mr. Donald T. Genine,
Mr. Adonis Mosquera
Mrs. Rhodalyn Delcano

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Introductory Message
Welcome to General Mathematics 11!

The Learning Activity Sheet is a product of the collaborative efforts of the

Schools Division of Iloilo City and DepEd Regional Office VI - Western Visayas
through the Curriculum and Learning Management Division (CLMD). This is
developed to guide the learning facilitators (teachers, parents and responsible
adults) in helping the learners meet the standards set by the K to 12 Basic
Education Curriculum.

The Learning Activity Sheet is self-directed instructional materials aimed

to guide the learners in accomplishing activities at their own pace and time using
the contextualized resources in the community. This will also assist the learners in
acquiring the lifelong learning skills, knowledge and attitudes for productivity and
employment.

For learning facilitator:

The General Mathematics Activity Sheet will help you facilitate the
teaching-learning activities specified in each Most Essential Learning Competency
(MELC) with minimal or no face-to-face encounter between you and learner. This
will be made available to the learners with the references/links to ease the
independent learning.

For the learner:

The General Mathematics Activity Sheet is developed to help you

continue learning even if you are not in school. This learning material provides you
with meaningful and engaging activities for independent learning. Being an active
learner, carefully read and understand the instructions then perform the activities
and answer the assessments. This will be returned to your facilitator on the agreed
schedule.

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 Quarter 2, Week 1

Learning Activity Sheets (LAS) No. 2

Name of Learner: ___________________ Grade and Section: ______________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Distinguishing Between Simple and Compound Interest

I. Learning Competency with Code

Distinguishes between simple and compound interest. (M11GM-IIa-2)

II. Background Information for Learners

On the previous Learning Activity Sheet (LAS) on illustrating simple
and compound interest, it was mentioned that the two majorly known and
used interest methods are Simple Interest and Compound Interest.
Simple Interest is simply calculated on the basis of the principal
amount. On the other hand, Compound Interest is calculated on the basis
of the principal amount along with interest on the accumulated interest
from the periods.
In today’s world, receiving or paying interest becomes a significant part
of a common man’s life. To be able to determine what is best to either
creditor or debtor, one need to have a knowledge of the different types of
interest that are there and how they are different from each other.
Take a look at the following illustrations in tabular form of simple and
compound interest and study the highlighted data:
Change in Base of calculating Growth Returns
principal P Interest

Time Principal Simple Interest Amount after t years

(t) (P) Solution Answer (Maturity Value)
1 ₱100,000 (₱100,000) (0.03) (1) ₱3,000 ₱100,000 + ₱3,000 = ₱103,000
2 ₱100,000 (₱100,000) (0.03) (2) ₱6,000 ₱100,000 + ₱6,000 = ₱106,000
3 ₱100,000 (₱100,000) (0.03) (3) ₱9,000 ₱100,000 + ₱9,000 = ₱109,000
4 ₱100,000 (₱100,000) (0.03) (4) ₱12,000 ₱100,000 + ₱12,000 = ₱112,000
5 ₱100,000 (₱100,000) (0.03) (5) ₱15,000 ₱100,000 + ₱15,000 = ₱115,000

Change in Base of calculating

Growth Returns
principal P Interest
Principal
(P) Compound Interest
Time Amount at the end of year t
Amount at
(t) (Maturity Value)
the start of Solution Answer
year t
1 ₱100,000 (₱100,000) (0.03) (1) ₱3,000 ₱100,000 + ₱3,000 = ₱103,000

2 ₱103,000 (₱103,000) (0.03) (1) ₱3,090 ₱103,000 + ₱3,090 = ₱106,090

3 ₱106,090 (₱106,090) (0.03) (1) ₱3,182.70 ₱106,090 + ₱3,182.70 = ₱109,272.70

4 ₱109,272.70 (₱109,272.70) (0.03) (1) ₱3,278.18 ₱109,272.70+ ₱3,278.18 = ₱112,550.88

5 ₱112,550.88 (₱112,550.88) (0.03) (1) ₱3,376.53 ₱112,550.88+ ₱3,376.53 = ₱115,927.41

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 Comparison Table between Simple and Compound Interest
Parameter Simple Interest Compound Interest
Change in The principal P does The principal P undergoes a
Principal P not change. continuous change during the
entire borrowing period.
Base of Interest is strictly Interest is calculated on the initial
calculating calculated on the initial principal P for the first period and
interest principal P. thereafter on a summation of the
initial principal P and
accumulates interest.
Growth The growth remains The growth sees a substantial
uniform and steady increase.
Returns The returns are The returns are dynamic and
constant and comparative higher than simple
comparatively low. interest.

The graph at the right

supports the difference on
the growth and returns of
simple and compound
interest.

III. Accompanying DepEd Textbook and Education Sites

https://www.coursehero.com/file/67466798/compound-interestpdf/
https://www.bigideasmath.com/protected/content/ipe/grade%208/10/
g8_10_01.pdf
https://www.coursehero.com/file/23987306/Chp8-3Editionpdf/
General Mathematics Learner's Materials. Pasig City: Department of
Education - Bureau of Learning Resources, 2016, pp 135-168

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.

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Exercise 1: Multiple Choices. Read each item carefully and write the letter
that corresponds to your answer.
1. Which of the following does not undergo any change in computing for
simple interest?
a. maturity value b. principal c. period d. interest
2. Using the characteristics of both simple and compound interest on
accounts with the same interest rate (r) and time (t) which of the
following statement is correctly stated?
a. Borrowers are benefited by simple interest whereas lender benefited
in compound interest.
b. Lenders are benefited by simple interest whereas borrowers
benefited in compound interest.
c. Computing for compound interest is comparatively easy than its
counterpart.
d. Computing for simple interest requires complicated process
because of its changing principal.
3. Which of the following can described the flow of graph of compound
interest?
a. straight line b. parabolic line c. broken line d. curve line
4. To earn as much interest as possible, you should open a savings
account that earns _____ interest and has the _____ interest rate.
a. compound; lowest c. simple; lowest
b. compound; highest d. simple; highest
5. The younger you are when you invest in an account with compounded
interest, the younger you are likely to retire.
a. sometimes true b. maybe true c. always true d. never true
Exercise 2: Study Table 1 and Table 2 below, distinguish which of the
following table
Given: is simple
Principal: or compound and
₱25,500 fill 4%
Rate: in the blanks with the correct
data.

Table 1

Table 2

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 Guide Questions:
1. How can you find the maturity value after t years or the balance at the
end of year in an account that uses simple interest?
2. How can you find the maturity value after t years or the balance at the
end of year in an account that uses compound interest?
3. What is the difference in terms of computation of simple interest from
compound interest?
Exercise 3: In your own word and understanding, briefly differentiate
simple interest from compound interest. You can give your own example to
elaborate your understanding of the content. A rubric was provided below
as your guide.
Rubrics for scoring:
Criteria Beginning Developing Accomplished Exemplary
(2 pts) (3 pts) (4 pts) (5 pts)
Content & - Major points are - Major points are - Major points are - Major points are
Development not clear. addressed, but not well stated. stated clearly and are
-Specific supported. - Content is clear. well supported.
examples are not -Specific examples do -Specific examples - Content is clear.
used. not support topic. are used. -Specific examples
are used.
Organization & - Organization - Structure of the - Structure is mostly -Structure of the
Structure and structure answer is not easy to clear and easy to answer is clear and
detract from the follow. follow. easy to follow.
answer. - Transitions need - Transitions are - Transitions are
- Writing is improvement. present. logical and maintain
disjointed and the flow of thought
lacks transition of throughout the
thoughts. answer.
Grammar, - Answer - Answer contains few - Rules of grammar, - Rules of grammar,
Punctuation & contains grammatical, usage, and usage, and
Spelling numerous punctuation and punctuation are punctuation are
grammatical, spelling errors. followed with minor followed; spelling is
punctuation, and errors. correct.
spelling errors. Spelling is correct.
Retrieved and modified from https://www.rcampus.com/rubricshowc.cfm?sp=yes&code=N4AA82&

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity
sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way it will benefit you after knowing the distinction between
simple interest and compound interest?

VI. Answer Key

Exercise 1:

1. b ; 2. a ; 3.d ; 4. b ; 5. c

Exercise 2: Description may vary

1. compound 6. simple
2. ₱1,060.80 7. ₱2,040
3. ₱27,580.80 8. ₱25,500
4. ₱28,684.03 9. ₱28,560
5. ₱1,147.36 10. ₱4,080
Exercise 3: Answer may vary
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