DETAILED LESSON PLAN

I. Objectives

a. Generalization

At the end of the discussion the students must be able to compute

the Simple Interest and Maturity Value for business transaction.

b. Specific Objectives

At the end of the lesson the learners must be able to:

1. Understand the Profit associated with principal, interest rate,
and maturity value.
2. Derive the formula of Simple Interest into Exact and
Ordinary Interest and Exact and Approximate time
3. Solve the Principal, Interest, Rate and Time

II. Subject Matter:

Topic : Simple Interest
References : Mathematics of Investment
Authors : Chin Uy , Mercurio Elenzano
Materials : Chalkboard, chalk, Worksheet

III. Development Activities

1.1 A. Daily Routine

1. Prayer
A student will lead the prayer
Class let’s all stand up
Before we start, let me call on Dear God….. Amen…
to lead us in prayer
2. Greetings
Good morning mam
Good morning class

Before you take your sits, kindly arrange your

chairs and pick up those pieces of papers on the
floor

3. Checking of Attendance

Ms. Secretary let me know how many

absences for today?

1.2 Preliminary Routine

a. Drill

Alright class we will have a short activity named it

“ Do the Monkey Dance”
When I say, Do the monkey….

Say and act it…whoaaahh…whooaaaahhh..

Do the tiger…

Say and act it …groarrrrrrr…groarrrrrrr

Do the elephant….
Say and act it
Whiiiieeeeyyyyy….Whiiiieeeeeyyyy

So class did you get it? Yes, mam

Are you ready?

Do the monkey…. whoaaahh…whooaaaahhh..

Do the tiger… groarrrrrrr…groarrrrrrr
Do the elephant…. Whiiiieeeeyyyyy….Whiiiieeeeeyyyy
“Do it 2 times”
b. Review of the Past Lesson

Class, what have you learned from your previous Mam, we learned about the
topics? Spearman and Pearsons’

Alright very good.

2. Analysis

a. Motivation / Activity

Ok class, as part of your motivation, I will show

you images, and then tell me how it will grow.

What is all about the image? A student will answer

Alright very good Mam, it’s all about a seed

How it will grow? Mam, we have to plant seed.

What else? Water the seed
Very good!

In order to grow the seed, we need to add soil,

water and sunlight, then in the long run, the seed
becomes plant.
Very good!!!!

c. Lesson Proper

What do think will be our topic for today base on Mam, about interest
our demonstration?

Now, aside from our figure, where do you think Mam, we can use it in business
we can use the word grow? transaction.

Very good class!!!!

So in business activities involve transaction

between and among two parties.

Can you give an example of business that will Mam, selling and buying of
profit or gain? products,

Very good!!!

What else? Renting or leasing of structure,

equipment and facilities.
So the transactions may come in different forms as
selling and buying of properties and or services.

Now in business transaction always have the

primary objective of making a profit or gain from
that different activities.

So when we say profit, what will comes in your

mind?
A student will raise their hands and
 someone will answer.
What else? Mam, profit is earnings

Mam, profit referring to money.

Very good!!!

So in most cases, profits are described in terms of

sum of money.

So here in our topic we will discuss about the

profit that are associated with interest.

Of course we have principal, which is the profit

that you have, so in order to gain your profit you
need to associate it with interest.

And what is all about the interest?

Not interest with your classmates ok…
Mam, interest is addition to the
The interest is the profit made by a sum of money profit
(Principal) that is invested at an agreed interest
rate for a given period of time.

So we write the formula of Interest in this form:

I=Prt
The product of the principal, rate and time is
equals to Interest.

Where I is the symbol used to denote the Simple

Interest.
P is the symbol used to denote the principal
r - is the annual interest rate used in the
transaction and is expressed in decimal form
t – is the time in years representing the
period when the transaction is in effect.

So we can use this form in deriving the formula

in Simple Interest.
Using this simple diagram we can easily memorize
the formula.

When we need to find the Interest simply use the

formula
I = Prt

When we look for Principal , we use the formula

I
P = rt

When we look for rate , we can use this formula

I
r =Pt

When we look for time, we can use this formula

I
t = Pr

When we add the principal and the interest we

called it Maturity Values and we write it in form
of S=P+ I

We use the symbol S to denote the Maturity value.

Using the formula

S=P+I (where I = Prt)
S=P+Prt (then by factoring)
S=P(1+rt)

So we have here example 1.

Find the simple interest and the maturity value of a
loan of P5000, for 9 months at 12%.

We are going to identify first the given:

P = 5000
r = 12% or 0.12
take note the rate should always be converted into
decimal form

t = 9 months ( since 12 months is the equivalent

for 1 year then we simply divide the 9 months to
12 to get the decimal form.

Using the formula, we are going to substitute the

numerical value to the formula.

I = Prt
9
I = 50000 x 0.12 x or 0.75
12
I = 450

Then for us to get the maturity value, we simply

add the principal amount to the interest.

S= P + I
S= 5000+450
S= 5450

Therefore the Interest is equals to 450 and the

maturity value is equals to 5450.

Did you get it class?

For our 2nd example , try this in front,

Anyone can answer….
Yes mam.
And those who are in their sits you can try it also.
The Students will raise their hands
Here is the question. And Somebody will call.

P35,000 is invested in a financing institution for

18 months at 9%. Find the amount.
 The Student will show answer in
fron with complete solution.

Given:
P = 35000
r = 0.09
t = 18 months (or simply divide 18
by 12 months to get the exact time)

I = Prt
I = 35000 x 0.09 x 1.5
I = 4725
Alright class, who get the same answer?
And for maturity amount,
S=P+I
S = 35000 + 4725
Now what if we are looking for rate? S = 39725
The students who got the same
answer will raise their hands.
What rate must P 24,500 be invested for 1 2
1

Years to earn P3750.

Ok kindly try it in front…

Somebody will call to answer and

show the solution in front.

Given:
P = 24,500
t = 1.5
I = 3750

Equation:
 I
r =Pt

3750
Very good class, r= x 1.5
24500

3750
r= =0.10204 or
36750
10.20%

3. Abstraction

a. Generalization
Mam, we learn to get the simple
Class, what have you learned from the topic? interest, rate and time.

Very good….

4. Application

a. Group Activity
Now we will have a group activity.

Kindly divide the class into 2 groups.

So we have here our Rubrics.

Acceptable (3
Excellent (5 points) Minimal (1 point)
points)
Correct answer Correct answer but Wrong answer
Accuracy
following the steps missing some steps missing the steps
Time Frame Within the limit time Within the limit time Exceed time limit
All members doing Some members did Few member do the
Cooperation
their assigned task not cooperate activity

For group no. 1

Answer and show your solution: Group 1 and Group 2Answer:
1. Find the ordinary interest and 1.)
amount. I = Prt
Given: P = 25,000 I = 25,000 x 0.08 x 90/360
t = 90 days I = 500
r = 8%
S=P+I
S = 25,000 + 500
S = 25500

2.)
I=Prt
2. A loan for 23,200 was repaid with I = 25,080 – 23,200
P 25,080 after 6 months, what rate was I = 1880
used? r=
1880
1880 23200 x
=
0.5 11600
r = 0.16206 or 16.21%

5. Evaluation

Alright your answers are all correct,

kindly prepare 1 whole sheet of yellow
paper and solve the following
problems.

1. How long will P30,000 earn an

interest of P4590 at 12%

2. How long will it take for P 5000 to

earn P250 if it is invested at 10%

6. Assignment

Prepared by: Audie T. Mata