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A Semi-Detailed Lesson Plan In

Statistics and Probability


April 1-5, 2024

I. Objectives At the end of the lesson, we will be able to:


a. Computes the interest, compound amount, future value, and
principal value of compound interest.
b. Solve real-life situational problems by using compound interest
formula.
II. Subject Matter Topic: Compound Interest
III. Instructional Materials a.
b.
c.
IV. Methods a. 4 A’s
b.
V. Procedures A. Preparatory Activities
1. Prayer and greetings.
2. Checking of attendance
3. House rules/ reminders
VI. Procedures B. Preparatory Activities
4. Prayer and greetings.
5. Checking of attendance
House rules/ reminders
Compound Interest - is interest calculated on the initial principal,
which also includes all the accumulated interest from previous
periods of the money.

Compound Interest formula and calculations:


Compound Interest formula: I = A − P
Where: I = Compound interest
A = Compound amount
P = Principal amount
kt
r
Compound Amount formula: A=P(1+ )
k
Where: A = Compound amount
P = Principal amount
r = rate (percent in decimal form)
t = time (in year/s)
r / k = periodic rate
k = period (interval for compounding)

Periods:
k=1 (annually, in a year)
k=2 (semi-annually, every 6 months)
k=4 (quarterly, every 3 months)
k = 12 (monthly, every month)

Maturity Value/ Future Value (F) - it is the compound amount or final


amount.
kt
r
Future Value formula: F=P(1+ )
k

Therefore:
Compound Amount (A) = Future Value (F)
A=F
kt
r
A=F=P (1+ )
k

Present Value/ Principal Value (P) - it is the initial amount or


principal amount.
F
Principal Value formula: P=¿
¿¿

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