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Simple Interest - Word

This document is a Grade 10 math handout focused on understanding simple interest, including its formula and practical applications. It provides learning objectives, definitions, and step-by-step examples to illustrate how to calculate simple interest and total amounts. Additionally, it includes practice problems for students to apply their knowledge.

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mariesuan57
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34 views2 pages

Simple Interest - Word

This document is a Grade 10 math handout focused on understanding simple interest, including its formula and practical applications. It provides learning objectives, definitions, and step-by-step examples to illustrate how to calculate simple interest and total amounts. Additionally, it includes practice problems for students to apply their knowledge.

Uploaded by

mariesuan57
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Understanding Simple Interest

Grade 10 – Math Handout

Learning Objectives:
1. Students will be able to explain and apply the simply interest formula to solve real
financial problems.
2. Students will accurately compute simple interest and total amount.
3. Students will reflect on the importance of understanding simple interest by sharing
personal insights on how it can influence smart financial decisions in real life.

What is Simple Interest?


Simple Interest is the amount of money earned or paid only on the original principal over a
certain period of time.

Simple Interest Formula:


I =P × R ×T

Where:
 I = Interest
 P = Principal (original amount of money)
 R = Rate of interest per year (in decimal or percentage form)
 T = Time (in years)

Step-by-Step Example
Example 1:
Problem:
You deposit ₱5,000 in a bank that offers 5% simple interest per year. How much interest will you
earn in 2 years?
Step 1: Identify the values
 Principal (P) = ₱5,000
 Rate (R) = 5% = 0.05
 Time (T) = 2 years

Ruffa Ella Marie S. Rempillo


BSED 3C
April 24, 2025
Understanding Simple Interest
Grade 10 – Math Handout
Step 2: Use the formula
I =P × R ×T

I =5,000 ×0.05 × 2

I =₱ 500

Answer: You will earn ₱500 in interest after 2 years.

Example 2:
Problem:
How much total money will you have after 3 years if you invest ₱8,000 at an interest rate of 6%
per year?
Step 1: Find the interest.
I =8,000 × 0.06× 3=₱ 1,440

Step 2: Add the interest to the principal.


Total = P+ I =8,000+1,440=₱ 9,440
Answer: You will have ₱9,440 after 3 years
Practice Problems
Solve the following using the simple interest formula. Show your solution.
1. Part A: Find the Interest (I)
 P = ₱2,000, R = 4%, T = 5 years
 P = ₱10,000, R = 3.5%, T = 3 years
2. Part B: Find the Total Amount (A = P + I)
 P = ₱7,500, R = 6%, T = 2 years
 P = ₱12,000, R = 4.25%, T = 4 years
3. Problem:
 If you want to earn ₱600 in 3 years at a rate of 5%, how much should you invest?
4. Banking Scenario:
 Ana deposit ₱10,000 in a savings account that earns 3% simple interest per year.
How much interest will she earn after 2 years?
5. Loan Payment:
 Carlos borrowed ₱5,000 from a friend who charges 4% simple interest annually.
How much will Carlos pay back in total after 3 year?

Ruffa Ella Marie S. Rempillo


BSED 3C
April 24, 2025

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