11

General Mathematics
Activity Sheets
Quarter 2 – MELC 3
Computing Interest, Maturity Value, Future
Value and Present Value in Simple and
Compound Interest Environment

REGION VI – WESTERN VISAYAS

General Mathematics 11
Activity Sheet No. 03
First Edition, 2020

Published in the Philippines

By the Department of Education
Region 6 – Western Visayas

Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other
things, impose as a condition the payment of royalties.

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: Raymond Peñafiel

Illustrator: Raymond Peñafiel

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 2

Learning Activity Sheets (LAS) No. 3

Name of Learner: ___________________ Grade and Section:

_________________
Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Computing Interest, Maturity Value, Future Value and Present Value in Simple
and Compound Interest Environment

I. Learning Competency with Code

Day 1: Computes interest, maturity value, future value and present value in
simple interest environment (M11GN-IIa-b-1)

Day 2: Computes interest, maturity value, future value and present value in
compound interest environment (M11GN-IIa-b-1)

II. Background Information for Learners

In the first activity sheet, you have learned the basic concepts on simple
interest and how to compute problems involving simple interest and its
practical applications in life.
When a financial need arises, an immediate decision as to where to get
the money is often sought. Common or ordinary persons may borrow money
from loans and credit institutions to provide their needs at the moment. A sari-
sari store owner, for instance, may seek capital from lending institutions
requiring a longer process or may resort to private individuals offering easy
and instant cash out options. A regular employee, on the other hand, may opt
for banks with lower interest rates or cooperatives with more benefits to their
members. His decision is influenced by different factors such as his
convenience to access and his capacity to pay, amount of loan offered and
amount of money needed, interest and the duration of the loan or time period.
You also have learned that when you borrow money, you pay for
additional charge which is the interest. The same is true when you lend
money - you earn interest for a particular period of time. There are instances
when a borrower cannot meet the due date and fails to pay on time. In these
cases, the borrower pays additional charge on top of the stated interest or
‘interest on interest’ to the lender. This ‘interest on interest’ is called
compound interest.

Important Formulas:

F = P (1 + rt)ls = PrtSimple
F = lc = F – PCompound

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 Where,
P = principal or present value
F = maturity (future) value at the end of the term
ls = simple interest
lc = compound interest
r = interest rate
t = number of time periods elapsed
n = number of time interest applied per time period

A. COMPUTING FOR THE FUTURE VALUE (F)

Example 1: If Randy borrowed ₱200,000 from a commercial bank charging
12% simple interest, how much would he pay at the end of 5 years?
Solution: Given:
Principal (P) = ₱200,000
Rate of Interest (r) = 12% = 0.12
Time (t) = 5 years

F = P (1+rt)
F = ₱200,000 [1+ (0.12) (5yrs)]
F = ₱320,000

Therefore, Randy will be paying a total amount of ₱320,000 at the end of 5

years.  

Example 2: Matthew invested his money amounting to ₱20,000 in a local

bank for 3 years at 5% compounded semi-annually. Find the future value after
3 years.
Solution: Given:

P = ₱20,000
t = 3 years
n(semi-annually) = 2
r = 5% or 0.05

( )
nt
r
F = P 1+
n
F = ₱ 20,000 1+ (
0.05 2(3)
2 )
F = ₱20,000 (1 + 0.025)6
F = ₱20,000 (1.1597)
F = ₱23,194

Therefore, Matthew will be paying a total amount of ₱23,194 at the end of 3

years.  

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 B. COMPUTING FOR THE PRESENT VALUE (P)
Example 1: When invested at an annual interest rate of 7%, the amount
invested earned ₱11, 200 simple interest in two years. How much money was
originally invested?
Solution: Given:
I = ₱11,200
t = 2 years
r = 7% or 0.07

P=

P=
P = ₱80,000

Therefore, the amount originally invested was ₱80,000.

Example 2: What amount must Felipe invest in a rural bank earning 4%
compounded monthly to accumulate a total of ₱20,000 after 3 years?
Solution: Given:
F= ₱20,000
t = 3 years
r = 4% or 0.04
n (monthly) = 12

F
P=
( ) 1+
r nt
n
20000
P=
( 1+
12 )
0.04 12(3 )

  P=

  P=
  P = ₱17,954.93
Therefore, Felipe must invest ₱17,954.93.

C.  COMPUTING FOR THE INTEREST (Is or Ic )

Example 1: Find the interest earned by Ann after she invested her ₱35,000 at

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4% simple interest at the end of 5 years.
Solution: Given:
P = ₱35,000
t = 5 years
r = 4% or 0.04

Is = Prt
Is = (₱35,000)(0.04)(5)
Is = ₱7,000

Therefore, the interest after 5 years is ₱7,000.

Example 2: Find the interest earned by Dominic after he invested his

₱40,000 at the end of 3 years at 5% compounded bimonthly.
Solution: Given:
P = ₱40,000.00
t = 3 years
r = 5% or 0.05
n(bimonthly) = 6

( )
nt
r
F= P 1+
n

( )
6 (3)
0.05
F= ₱ 40000 1+
6
F = ₱40,000 (1.1611)
F = ₱46,444
Ic = F — P
Ic = ₱46,444 - ₱40,000
Ic = ₱6,444
Therefore, Dominic earned an interest of ₱6,444 after 3 years.

D. COMPUTING FOR THE TIME (t)

Example 1: Mrs. Gonzales would like to invest her ₱70,000 in a multipurpose
cooperative where she is a member. Her goal is to earn ₱3,600 at 0.5%
interest rate. For how many years will her investment earn such interest?
Solution: Given:
Principal (P) = ₱70,000
Interest (I) = ₱3,600
Rate of Interest (r)= 0.5% = 0.005

t =

t = =
t = 10.3yrs

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Therefore, Mrs. Gonzales’ investment will earn ₱3,600 interest in 10.3 years.
Example 2: How long will it take for ₱1,000 to grow ₱20,000 at 8% interest
compounded monthly?
Solution: Given:
F = ₱ 20,000
P = ₱ 1,000
r = 8% or 0.08
n (monthly) = 12

( )
nt
r
F = P 1+
n
0.08 12t
1 )
₱20,000 = 000(1 + 12

( )1
1
1000 (₱20,000) = ₱ , 000(1 + 12
0.08 12t
)
1
1000 ( )
0.08 12t
)
20 = (1 + 12 Perform the indicated operations inside the ( )
20 = (1.007)12t Express the equation in its logarithmic form

log(1.007) 20 = 12t
t = 35.79 years

Therefore, the investment will grow to ₱20,000 in 35.79 years.

E. COMPUTING FOR THE INTEREST RATE (r)

Example 1: If an entrepreneur applies for a loan amounting to ₱500,000 in a

bank, the simple interest of which is ₱157,500 for 3 years, what interest rate
is being charged?
Solution: Given:
P = ₱500 000
ls = 157,500
t = 3 years

r=

r=
r = 0.105 or 10.5 %

Therefore, the bank charged an annual simple interest rate of 10.5 %.

Example 2: Find the annual interest rate, to the nearest tenth of a percent, for
₱1,100 to grow to ₱1,400 if interest is compounded monthly for 7 years.
Solution: Given:
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 F = ₱ 1400
P = ₱ 1100
t=7
n (monthly) = 12

( )
nt
r
F = P 1+
n

1400 = 1100 ( 1+ )
12(7)
r
12

1.27 = ( 1+ )
84
r
12
r
1+
12
1.0028 =
r
12
0.0028 =

r = 0.0336 or 3.36%

Therefore, the annual interest rate is 3.36%.

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 144-150
General Mathematics Learner’s Module pages 173-175
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/

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.

Day 1 Activities:
Exercise 1: Joebert borrowed ₱3,000 at 9% interest for 4 years to buy a
cellular phone. How much money did he have to pay back in all?
Exercise 2: What interest rate is needed for ₱2,100 to earn ₱122.50 in 14
months?

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 Exercise 3: How long will a principal earn an interest equal to half of it at 5%
simple interest?
Exercise 4: Rutchel invested a certain amount of money and got back an
amount of ₱8,400. If the bank paid an interest of ₱700, find the amount
Rutchel invested.

Day 2 Activities:
Exercise 1: The mother of Kriz Anthony was hospitalized and he needs an
amount of ₱50,000 for the surgery. He decided to borrow money from the
bank with 5% interest rate compounded quarterly payable for 4 years. How
much should Kriz pay at the end of the term?
Exercise 2: Winston has a savings in a bank and was surprised that his
money accumulated to ₱ 65,000 after 3 years. He knew that the bank offered
him 5% interest rate compounded bimonthly. How much was his savings at
the start?
Exercise 3: Mrs. Ledesma bought a property in the province of Guimaras.
She borrowed from the Government Service Insurance System an amount of
₱300,000 at 6% compounded annually payable for 6 years. How much will
she pay for the interest?
Exercise 4: How long will a principal of ₱60,000 reach to an amount of
₱85,000 if it earns 6% compounded semi-annually?
Exercise 5: If ₱40,000 accumulates to ₱100,000 in 10 years, find the interest
rate if it is compounded quarterly.

Guide Questions:
1. What clues are needed to determine the interest, present values and
future values in the problem?
2. How can you formulate the formula F= P(1+r)t to derive or to find the
other formulas needed in solving word problem?
3. How can you formulate the formula I = Prt to derive or to find the other
formulas needed in solving word problem?
4. What are the steps that you need in solving for the unknown variable in
the word problem?

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. What skills are being enhanced by solving for maturity value, interest,
principal, time and rate?
4. In what particular part of your daily life you can apply or use the lessons
learned?

VI. Answer Key

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Day 1
Exercise 1: ₱4,080

Exercise 2 : r=0.05 or
5%
Exercise 3:  10 years
Exercise 4: ₱7,700

Day 2
Exercise 1: ₱60,994.48
Exercise 2: ₱55,980.80
Exercise 3: ₱125,555.73
Exercise 4: 5.93 yrs
Exercise 5: 9.27%