HOLY CROSS COLLEGE

Sta. Lucia, Sta. Ana, Pampanga

SCHOOL OF ARTS SCIENCES AND EDUCATION

DETAILED LESSON PLAN IN

GENERAL MATHEMATICS 11

“COMPOUND INTEREST”

I. Objectives
At the end of the 60 minutes teaching and learning experiences, the students should be able to:
 Define compound interest and distinguish it from simple interest
 Calculate the compound amount and compound interest using formulas
 Recognize the practical applications of compound interest in real-life situations;
II. Subject Matter
Topic: Compound Interest
Reference: General Mathematics grade 11 book (pg. 229-242)
https://youtu.be/Ws5kvWW1za8
https://youtu.be/jTW777ENc3c
Materials: Laptop, Power Point Presentation, chalk and board/white board and marker, Instructional
Materials

III. Procedure

Teachers Activity Students Activity

A. Preparatory Activity
 Greetings

Good morning, class!

Good morning, Miss!
How are you today?
Everything is well Miss.
 Classroom conditioning

Before we start, kindly pick up all the pieces of dirt

around your chairs and arrange your chairs properly.
(Students will follow the instruction of the
Alright, may I request everyone to stand for our teacher)
opening Prayer. Prayer leader, kindly come in front.
(Students will pray)
Alright, thank you.
You may take your seats class!
(Students will seat)
 Checking of attendance

Class monitor, are there any absentees today? If

there is any, kindly give me the list of the absent and
their excuse letter.
Great! Thank you! Class monitor: okey, Miss!

 Review of the past Lesson

Okay, class. Before proceeding to our new topic for

today, let’s have a recall to the lesson we had last
meeting.

Any volunteer?
(students are raising their right hand)
Yes Paula, kindly stand up.
Paula: our lesson last meeting is all about
Okey, very good. Before you take your seat, call a
Simple Interest Miss.
name of your classmate.

Okey, where is zachee? Kindly stand up. Paula: Zachee Mam.

Class Monitor, kindly list down the names of your

(The class monitor will do what teacher
classmate for our recitations.
instruct her to do)
Going back, Zachee. What is simple interest in your
own idea?
Zachee: for me Miss, Simple interest are a loan
that are only calculated only once for an entire
time period. Usually Miss these loans are
made for short periods of time such as a few
Alright, very good. Kindly call a name from your
days, weeks, or months.
classmate Zachee.

Cristoph, kindly stand up. What is the formula we Zachee: Cristoph Miss.
use in Simple Interest?
Cristoph: Interest is equal to Principal x Rate x
Okay, very good. Call a name cristoph.
Time. (I=PRT)
Justine, kindly stand and tell me the 2 methods we Cristoph: Justine Miss.
can use in order to calculate the time factor.

How many days do exact interest use as the time

Justine: Exact interest and Ordinary Interest
factor denominator?
Miss.
What about the ordinary interest? 365 days Miss.

Very good Justine, aside from those what does we

talked about in Simple Interest? Anyone? 360 days Miss.

Yes, angela?
(Students raises their right hand)
Alright, very good. What formula we use in
calculating the Maturity value of a loan? Angela: we also talks about Maturity Value of
a Loan Mam.
Very good Class!
Students: Maturity Value is equal to Principal
Before revealing our new topic for today, I want you plus the Interest Miss. (MV=P+I)
to be reminded about these 3 things,

1st listen when someone is talking in front

2nd if you have questions and clarifications about our

topic just raise your hand, do not ask to your
seatmates to avoid unnecessary noise

3rd if you want to answer, do not answer in chorus.

Just raise your right hand.

Are we clear?

Hep Hep?
Students: Yes, Miss
Hooray? Students: Hooray!

B. Motivation
Students: Hep! Hep!
To proceed to our new topic for today, let’s have an
activity first. In this activity I will group you into 6,
each group will be given each illustration board and
a chalk. these will be the materials that each group
will use in our activity today. To avoid unnecessary
noise, your row will be your group number.

Is that clear class?

I have prepared a game called GUESS THE Students: Yes, Miss.

GIBBERISH.

Do you have an idea about this game?

(The teacher share the slide of her presentation (some students answered yes and some do not
about the Game Instruction) have an idea about the game)

In this game, there are given words which make no

sense until you figure it out their true meaning.

(The teacher will discuss the mechanics of the

game and examples then give some reminders)
(The activity is good for 3-5 mins.)

C. Lesson Proper

Our topic for today is all about COMPOUND

INTEREST.
(The teacher will share the PowerPoint
presentation of her topic to the class)
And the learning objectives of this lesson is to.
Altogether, kindly read.

Students: At the end of the teaching and

learning experiences, the students should be
able to:

Define compound interest and distinguish it

from simple interest
Alright, thank you!
Determine the compound amount and
In this lesson we will define how compound interest
compound interest using formulas.
differ to simple interest. And we are going to
determine the formula to be used in order to get the Recognize the practical applications of
value of the compound interest as well to recognize compound interest in real-life situations.
the practical applications of this in real life
situations.

Are you ready to learn Benedict?

Hep hep?

Hooray?
Students: Yes, Miss!
And to start our lesson, let’s take a look at the figure
on the screen. Hooray!

(The teacher will share the next slide of her Hep hep!
presentation)

Ok, class. Bring out your General Mathematics

books and turn to page 229.

take a look at the time value of money on your book.

(the teacher flash the time value on the (The students will follow the instructions of
presentation) the teacher)

Class, what have you observe in the Time Value of

Money in Simple Interest and Compound
Interest?

Before you answer that, I want you to know that

every time you answer during our class session
today, I’ll give a paper money, and you can convert
this paper money into prizes at the end of our
discussion. All you have to do is to collect many as
you can during our class session. Therefore, be
participative and listen carefully.

Is that clear?

Going Back. Again, what have you observe in the

figure?

Yes, kriza?
Students: Yes, Miss.
Exatly, Kriza. Very Good.

As you can see on the chart, compound interest

yields more than four times the value generated by Kriza: compound interest amount is higher
simple interest. than the amount generated by simple Interest
Miss.
If in simple interest, the interest calculated only on
the initial principal amount. In compound interest,
the interest is calculated on both the initial principal
and the accumulated interest from previous periods.

In simplest terms, simple interest is straightforward,

like adding interest on a fixed amount, while
compound interest involves interest on interest,
leading to a compounding effect over time.

Therefore, compound interest is advantageous to the

person who are investing money, and disadvantage
to those people who are borrowing money (loan).

Are you getting my point about the Compound

Interest class?

Alright, let’s proceed. Since our lesson for today is

all about COMPOUND INTEREST, in our previous
lesson we studied Simple interest in which we use
formula of “I=PRT”.
Students: Yes Miss.
This time, we will talk about another way of
calculating interest such as the compound interest.
So, what do we mean by COMPOUND INTEREST?

(Teacher will share the slide about the definition

of the compound interest)

Maxeen: Kindly read the definition.

Alright, thank you.

When we say compound interest, it is the interest

calculated not only on the initial principal amount
but also on the accumulated interest from previous
periods. As I said earlier, compound interest allows
your money to grow faster because you earn interest
not just on the original amount but also on the (The student will read the definition)
interest that has already been added. Unlike in
simple interest, the interest is calculated only on the
initial amount.

Are you getting my point, class?

Hep! Hep?

Hooray?

Are we clear about Compound Interest, Class?

Okey, let’s continue.

In this lesson, we will also talk about how to Students: Yes, Miss!
calculate the compound amount or the future value Hooray!
with the use of formula. where in compound amount Hep! Hep!
is important in order for you to get the value of
compound interest. Later on, we will see how Students: Yes, Miss!
compound amount and prinicipal value is very
important in calculating the compound interest.

but first let’s familiarized the definition of terms of

this lesson.

(Teacher will share the slide about the definition

of terms of the lesson compound interest)

Alicia, kindly read the following definition of terms. .

 Alicia: Definition of Terms
 Frequency of conversion (n) - is the
number of conversion periods in one
year. (annually,semi-annually,
quarterly monthly)
 Conversion or interest period (t) – is
the time between successive
conversion of interest. (years)
 Total number of conversion periods
(nt).
Alright, thank you Alicia. nt = (frequency of conversion) x (time

As you can see, we also encounter those definition in years)

of terms in simple interest, and I am hope that you  Nominal Rate (r) – annual rate interest

still remember those terms. (%)

 Rate (r/n) of interest for each
Let’s have a recall about the conversion period.
conversion period.
What are these conversion periods that we must
r/n = (annual rate interest) / (frequency
always remember?
of conversion)
(The teacher will share the slide about conversion
period)

First, we have the annually, this means that the

interest is compounded once a year. one time only.

Semiannually, refers to the interest that is

compounded twice a year. this means it is
compounded every six months.

when we say Quarterly, the interest is compounded

every 3 months of a year? how many 3 month we
can have in a year?

alright, therefore, the conversion period for

quarterly is 4.

What about Monthly, class? it means that the

compounded interest is every month of the year. and
how many months do we have in a year?
Students: 4 Miss.
Very good! therefore the conversion of period we
have whenever the compounded interest is every
monthly, we have m=12.
Alright, so it is just a recall from our previous topic
in Simple Interest.

Let’s proceed in calculating the compound Amount

(Future value) And the compound interest.

(The teacher presents the slide about the Students: 12 Miss.

Compound value and Compound interest)

How do we calculate the compound amount and the

compound interest?

Andrew, kindly read.

Andrew: Mannually calculating Compound

Amount (Future Value) and Compound
Alright, thank you Andrew.
Interest.
To further understand it, let’s have an example.  Compounding divides the time of a

On your book, turn to page 230 class. And for those loan or an investment into

who do not have their books, kindly look on the compounding periods or simply

screen. periods. To manually, calculate the

compound amount of future value of an
(The teacher will share the slide about the investment, we must compound or
example) calculate the interest as many times as

For example: an investment made for 5 years at 6% there are compounding periods at the

compounded annually (once per year) would have interest rate per period.

five compounding periods (5 years x 1 period per

year), each at 6%. .

Class, how many times do we need to calculate for

the compound interest of the given investment in our
example?

Yes, miko.

Very good, in the example given. We need to

calculate the interest of the given investment for 5
times at the interest rate per period. Since we’re
talking about compound interest. the interest here is
calculated on the original amount and the
accumulated interest from previous periods

Hep! Hep!

Hooray!

Are we clear with that, class?

(Students raises their hand)
The amount of compound interest is calculated by Miko: 5 times Miss.
subtracting the principal from the compound
amount.

Compound Interest= Compound Amount –

Principal. Or we use the formula

But first, how do we get the value of compound

amount? Hooray!
Hep! Hep!
(The teacher will share the slide about the
compound interest formula)
Students: Yes Mam.
We use the formula of compound interest.

( )
nt
r
A=P 1+
n

Where:

A- is the compound amount (future Value)

P – Principal

r – nominal rate

n- periods per year

t- time (number of years)

( nr ) – Periodic Rate
nt- Number of compounding Periods Per year.

When getting the compound interest of an account

or investment. We must know the compound amount
of an account because that will determine the
compound interest of an account by subtracting it to
the Principal Amount.

And what is the formula to get the compound

interest?

(The teacher will share the slide of the formula in

compound interest)

In calculating the compound interest, we use the

Formula…

( I = A−P )

Where in

I = Compound Interest

A= Future Value

P= Principal

Are you getting my point?

Hep Hep?

Hooray?

Are you getting my point?

Can you still follow to our lesson class?

Class, if you have any questions just raise your hand.

Alright, to continue. Let’s have an example.

(The teacher will share a slide showing an

example problem solving of the compound
amount and compound interest) Hooray!

Class, turn to page 231. Hep! Hep!

Marlex, kindly read the first example on the book. Students: Yes, Miss!

Students: Yes, Miss!

Okey, thank you Marlex.

Since, we’re just only here in the Philippines, let’s

convert the currency used on the book in Philippine
Peso. Instead of dollars, we use Philippine peso sign.

Are we clear? Marlex: Katie Trotta Invested $20,000 in a

passbook savings account at 5% interest
Alright, in order to answer this problem, let’s first compounded annually for 2 years. Manually
identify what does the given problem is asking for? calculate the compound amount of the
Since the problem wants us to calculate the investment and the total amount of compound
compound amount and the compound interest of the interest Katie earned.
investment of Katie earned. Let’s first calculate the
compound amount by using the formula for
compound amount or the future value formula.

Once again, what is the formula of compound

amount class? Everybody.
Students: Yes Miss!
Alright, since we have the formula. Let’s now
identify the given in the problem. What is the
Principal or the value of P in the given problem?

Yes, Annika?

r
What about the value of ? or the interest rate?
n

Yes, Justine?

how did you get 0.05?]

( )
nt
r
Students: A=P 1+
n
very good!

what about the value of nt? again, what is nt in the

given formula? (Students raises their hand)

Yes, angelo? Annika: 20,000 Miss.

And what is the value of nt?

How did you get 2? Justine: 0.05 Miss.

By dividing the nominal rate which is 5% ( r )
to the number of periods per year (n) which is
Very good! Angelo. Since, we have the given value.
1 because it is stated as compounded annually.
Let’s now substitute them to our formula and get the
(5%/1= 0.05)
compound amount.

Who wants to try it on the board?

Angelo: number of periods Miss
Yes, Kenji?
.
Alright, thank you Kenji. You may take your seat. 2 Miss.
By multiplying the number of years (2years)
Let’s now evaluate the work of your classmate. Is
by the periods per year (compounded annually
the answer of Kenji is correct, Class?
= 1) (nt), thus 2x1= 2
Let’s see, if she got the correct answer.

(The teacher will evaluate the answer of the

(Students raises their hand)
students together with the class, so that the whole
(The student will write the answer on the
class can follow to the process in solving the
board)
problem)

Alright, therefore. The answer of your classmate is

correct. Let’s give her a round of applause.

(the teacher will also reward the student a stub/paper

Student: Yes miss!
money)

If you’ll take a look at the book in page 231, where

in the solution strategy contains the formula of
simple interest. And just like on the book. We can
use the formula of simple interest in order to get the
compound amount, as long as we consider that the
accumulated amount of the original principal plus
the interest of the first period will serves as the next (The students will clap)
principal for the next period.

And how was that?

So, to further understand it.

Let’s apply the formula from our previous lesson

which is Simple interest to the same problem.

Again, what is the formula in Simple Interest? every

body.

Ok, very good. since the given problem has 2

compounding periods, we will apply the simple
interest formula twice.

Again, how did we get the value of compounding

periods? Yes, mitchie?

Exactly! Very good. and what is the given year in

the problem?
Students: I=PRT
What about the period per year?

Alright since the interest in the given problem is

compounded annually, which means once a year. we
have 1 for period per year.

That is why we have 2 compounding periods since 2 Mitchie: by multiplying the number of years to
multiply by 1 will give us answer of 2. the number of periods per year.

Can you still follow class?

Hep! Hep! 2 Miss.

Hooray!
1 Miss.
Again, if you have any questions regarding to our
topic, just raise your hand.

Since we are talking about compound interest,

always remember that the interest from the first
period is added to the original principal to earn
interest in the second period.
Students: Yes, Miss!
If we get 1000 pesos interest on the first period with
a principal of 20000 pesos. On the next period, the Hooray!
value of the principal we use is the accumulated Hep! Hep!
value we get in the first period. If we get 1000 pesos
interest for the first period, therefore in the second
period, the principal we will be using in period 2 is
original principal which is 20000 pesos plus the
interest which 1000 pesos, then it will become
21000 pesos. Using the simple interest formula,
getting the second period interest, we will have
given value for P=21000, R= 0.05 and T= 1 and this
will give us, 1050 pesos interest for the second
period. Since the given problem has 2 compounding
periods therefore the compound amount will become
Php 22,050.00 (Principal for period 1 (21000) +
Interest for period 2 (1050))

Do you get now the process written on the book

class?

Whether the formula of compound interest or the

process on the book you will use in getting the
compound interest, both will give you the same
answer.

Are we clear with that class?

Since our topic is Compound Interest, let's now

compute for the interest that is compounded to the
accumulated amount that we get here. Students: Yes Miss!
since we have now the value of compound amount
or the future value. How are we going to do to get
the value of compound interest now?

Very good! in order to get the compound interest we

Students: Yes Miss.
will just simply use the formula I = A−P . Where in,
we subtract the compound amount to the original
principal.

Since we have the compound amount of 22,050

pesos, we will subtract it to the original principal
which is 20000 and that will give us an answer of Students: By using the compound interest
formula which is compound interest Miss!
Very good! therefore, the compound interest of the
I = A−P
given problem is, 2,050 pesos.

Do you get it now, class?

Alright then, you try to solve this another example.

Write your answer on your notebooks so that you’ll
have a lecture about our topic today.

After you finish answering the problem, I’ll call 2

volunteers to show their answer on the board. 1 for
computing compound amount and 1 for compound
interest. Students: 2,050 pesos Miss.

Are we clear?

Alright, then start solving for the given problem.

Students: Yes Miss!

(The teacher will write an example problem on the
board and give allotted time for students in
answering the given problem, after that the teacher
will ask for 2 volunteer to solve the problem on the
board and present their works).

Did you get now how to solve for compound interest

class? Given the present value or the principal?

Do you want another example?

Students: Yes Miss!
(The teacher will give 2 more example for
calculating compound amount and compound
interest using the formulas that had been discussed)
Do you have any question or clarifications about our
lesson, class?

If none, let’s have a recall.

D. Generalization.

Once again, what is compound interest?

Yes, Pauline.
Students: Yes, Miss.
Very good Pauline.

What formula do we use in getting the compound

amount?

Yes, Angelina.

Very good, how do we get the value of nt or the Students: None, Miss.
number period per year?
(Students raises their hand)
Yes Nicole?

What about the interest rate per period or r/t?

Yes, juara.
Very good. what about the compound interest? what
is the formula we use to get the value of compound
interest?
Pauline: compound interest means earning
interest on both the original investment and the
interest that accumulates.

Lexi.
Angelina: A= P(1+ i)^n
Very good lexi,

Alright, good job everyone. It seems like you really

understand our lesson for today.
Nicole: multiplying the number of years to the
But I have a question, do we really need to study period per year.
compound interest class? And why?

Yes Daniel?
Juara: By dividing the nominal rate to the
Very good, daniel!
period per year Miss.

Studying compound interest is essential for several

Lexi: subtracting the compound amount to the
practical reason such us in investment planning,
principal amount Miss.
retirement planning and other personal and
economic well-being. Studying compound interest is
fundamental for making informed financial
decisions, achieving long-term financial goals, and
navigating the complexities of the financial world.

E. Application
Students: Yes Miss
And now, let’s have a group activity. I will group .
you into 6. Since you have six rows, your row will Daniel: it is important that we study compound
be your group number. interest because it helps us in financial
decision making. Just for example in investing
I have a Manila Paper here and a Pentel Pen. Each
money or even making a loan.
group will be given each one of this. And all you
have to do is to think of a scenario such as our given
problem where you have to calculate for the
compound amount and interest applying the formula
and process that we discuss a while ago. This time,
you will be the one who will formulate your own
problem and you will also the one who will answer
it. After you finish the task. Assign1-2 person to be
the representative of your group to discuss your
work. 1 person who will discuss the problem, 1
person who will discuss the process on how you get
the answer. Each group will be graded according to
a rubric. This activity is good for 5 minutes. After 5
minutes, we will start each group presentation.

Are we clear class?

Alright, if you don’t have any questions let’s start

the activity.

(The group activity will is good for 10 mins)

Alright, very good all of you class. I guess you

really understand our lesson for today. And with
that, kindly bring a 1 whole sheet of paper and solve
the following problems in your book on page 239
numbers 9, 10, 11 with complete solutions.

Students: Yes Miss.

 (The students will work together with their
group mates)

IV. Evaluation

Direction: Manually calculate the compound amount and compound interest for the following
investment and show the complete solutions.

Principal Time period Nominal Interest Compound Compound

Rate compounded Amount Interest

Ex. ₱4,000 2 10 Annually ₱4,840 ₱840

9. ₱10,000 1 4 Quarterly

10. ₱8,000 3 8 Semi-annually

11. ₱2,000 4 6 Annually

V. Assignment.

Solve the exercises on your general mathematics book, on pages 239 (items 1-7).

Prepared by:

ANDREA M. SARMIENTO

BSED MATHEMATICS 4-A