Quarter 2, Week 1

Learning Activity Sheets (LAS) No. 1

Name of Learner: ___________________ Grade and Section:

_________________
Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Illustrating Simple and Compound Interest

I. Learning Competency with Code

Illustrates simple and compound interest. (M11GM-IIa-1)

II. Background Information for Learners

“What are some ways to take care of hard-earned money?” You can buy
things that you only need, save the money, invest it in business, or think of the
future.
When money is deposited in a bank or invested on savings account, it
commonly attracts interest; in similar way, a borrower must normally pay
interest on money borrowed. We received interest when we let other people
use our money and at the same time we pay interest when we use other
people’s money.
There are two basic ways of calculating the amount of interest paid on
money deposited: simple interest and compound interest.
Important Terminologies:
● Lender or creditor – person (or institution) who invests the money or makes
the funds available.
● Borrower or debtor – person (or institution) who owes the money or avails
of the funds from the lender.
● Origin or loan date – date on which the money is received by the borrower.
● Repayment date or maturity date – date on which the money borrowed or
loan is to be completely repaid.
● Time or term (t) – amount of time the money is borrowed or invested; length
of time between the origin and maturity dates.
● Principal (P) – amount of money borrowed or invested on the origin date.
● Rate (r) – annual rate, usually in percent, charged by the lender, or rate of
increase of the investment.
● Interest (I) – amount paid or earned for the use of money.
● Simple Interest (Is) – interest that is computed on the principal and then
added to it.
● Compound Interest (Ic) – interest computed on the principal and also on
the accumulated past interest.
● Maturity value or future value (F) – amount after t years; balance at the
end of t years; amount received by the lender from the borrower on the
maturity date.

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 Illustration of Simple and Compound Interest:
Example 1: Suppose you won ₱100,000 in raffle draw and you plan to invest it
in 5 years. A cooperative group in your community offers you 3% simple interest
rate annually. At the same time, the bank offers 3% compounded annually.
Compare the gain of the two investments and decide what offer you will accept
and why.
Solution:
Investment 1 (cooperative group): simple interest, with annual rate r
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

Investment 2 (bank): compound interest, with annual rate r

Principal Compound Interest
(P)
Time Amount at the end of year t
Amount at
(t) Solution Answer (Maturity Value)
the start of
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

Amount of interest gained in the two investments after 5 years:

Investment 1 (Simple Interest): ₱115,000 - ₱100,000 = ₱15,000
Investment 2 (Compound Interest): ₱115,927.41 - ₱100,000 = ₱15,927.41
Now, which offer will you accept?

Example 2: Using the data in example 1, what is the trend or behavior of the
maturity value of each interest after 5 years (refer to the graph)?

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 Solution:
The figure shows that
the trend of simple interest
is an increasing straight line
and increasing curve line for
the compound interest.

Note: Lines and curves are

graphs that can be
expressed in function
or equation form.

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.

Exercise 1: You deposit ₱50,000 in a savings account that earns 5% interest

per year.
a. Copy and complete the first table that shows the balance after 10 years with
simple interest.
b. Copy and complete the second table that shows the balance after 10 years
with compound interest.
c. Which type of interest gives the greater balance?
Simple Interest Compound Interest
Balance at the Balance at the
t Principal Interest t Principal Interest
End of t Years End of t Years
1 ₱50,000 ₱2,500 ₱52,500 1 ₱50,000 ₱2,500 ₱52,500
2 ₱50,000 ₱5,000 ₱55,000 2 ₱52,500 ₱2,625 ₱55,125
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10

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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?

Exercise 2:
a. Graph the end-year balances for each type of interest in Exercise 1.
b. Which graph is linear? Explain your reasoning.
c. For the linear graph, write a linear function that represents the balance after
t years.

Guide Question:
1. What are the different ways you can illustrate or represent simple and
compound interest?
2. What examples can you give that can represent simple or compound
interest.

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 can you apply or use the lessons learned in your daily life as a
student or in the future?

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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

principal P Growth Returns
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.

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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 = Prt Simple

F= lc = F – P Compound

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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
𝑟 𝑛𝑡
F = 𝑃 (1 + 𝑛)
0.05 2(3)
F = ₱20,000 (1 + 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
I
P = rt
11,200
P = (0.07)(2)
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= 𝑟 𝑛𝑡
(1+ )
𝑛
20000
P= 0.04 12(3)
(1+ )
12
20,000
P = (1 + 0.003)
36

20,000
P = 1.1139
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
4% simple interest at the end of 5 years.
Solution: Given:
P = ₱35,000
t = 5 years
r = 4% or 0.04

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 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
𝑟 𝑛𝑡
F= 𝑃 (1 + 𝑛)
0.05 6(3)
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
I
t = Pr
3600 3600
t = ( 70000)(0.005) = 350
t = 10.3yrs

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

10
 P = ₱ 1,000
r = 8% or 0.08
n (monthly) = 12

𝑟 𝑛𝑡
F = 𝑃 (1 + 𝑛)
0.08 12 t
)
₱20,000 = 1 000(1 + 12
 1  0.08 12 t  1 
  )  
 1000  (₱20,000) = ₱1, 000(1 + 12  1000 
0.08 12 t
)
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
I
r = Pt
157,500
r = (500,000)(3)
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:
F = ₱ 1400
P = ₱ 1100
t=7
n (monthly) = 12

11
 𝑟 𝑛𝑡
F = 𝑃 (1 + 𝑛)

𝑟 12(7)
1400 = 1100 (1 + 12)

𝑟 84
1.27 = (1 + 12)

r
1+
1.0028 = 12

r
0.0028 = 12

r = 0.0336 or 3.36%

Therefore, the annual interest rate is 3.36%.

III. 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?
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

12
 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?

IV. 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?

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