General
Math
PRAYER
General
Math
4 PICS 1 WORD
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4 Pics 1 Word
M O N E Y
N E O B I
P M E A Y
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4 Pics 1 Word
G R O W
R E R O Z
J W G A E
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4 Pics 1 Word
P A Y
Y A A B I
B R S P Y
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4 Pics 1 Word
T I M E
K E I R E
T Q U M E
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4 Pics 1 Word
B A N K
B K N A Y
O O M B J
What do we usually do in a bank?
Take loan or borrow money
Save or invest money
Simple Interest
Objectives
At the end of the 60-minute discussion, the Grade
11 students should be able to:
a. Define simple interest;
b. Compute the simple interest and maturity value;
and
c. Analyze and choose the best choice when
presented with options regarding simple interest
when borrowing or investing money.
Interest
Interest is the price you pay to borrow money or the
cost you charge to lend money.
Simple Interest
Simple interest is the price you pay to borrow money
based on the original money and a same rate of
interest for every time cycle.
Is = Prt
Is simple interest
r simple interest
rate (%)
P t
principal, or the term or time
amount invested or
in years
borrowed
A bank offers 0.25% annual simple interest rate for a
particular deposit. How much interest will be earned if 1
million pesos is deposited in this savings for 1 year?
Is = ___ P = 1,000,000 r = 0.25% or 0.0025 t=1
Is = Prt
Is = (1,000,000)(0.0025)(1)
Is = 2,500
How much interest is charged when P50,000 is
borrowed for 9 months at an annual interest rate of 10%?
Is = ___ P = 50,000 r = 10% or 0.10 t = 9/12 or 0.75
Is = Prt
Is = (50,000)(0.10)(0.75)
Is = 3,750
Note: When the term or time is
expressed in months (M), it should
be converted into years by t =M/12
When invested at an annual interest rate of 7%, the
amount earned P11,200 of simple interest in two years.
How much money was originally invested?
P = ___ Is = 11,200 r = 7% or 0.07 t=2
Is = Prt
(11,200) = (P)(0.07)(2)
(11,200) = (P)(0.14)
(11,200) = (P)(0.14)
(0.14) (0.14)
80,000 = P
If an entrepreneur applies for a loan amounting to
P500,000 in a bank, the simple interest of which is
P157,500 for 3 years. What interest rate is being charged?
r = ___ Is = 157,500 P = 500,000 t = 3
Is = Prt
(157,500) = (500,000)(r)(3)
(157,500) = (1,500,000)(r)
(157,500) = (1,500,000)(r)
(1,500,000) (1,500,000)
0.105 = 10.5% = r
P1,000 is deposited in a bank that offers 5% simple
interest rate. How many years will it take if the desired
interest is P500?
t = ___ Is = 500 P = 1,000 r = 5% or 0.05
Is = Prt
(500) = (1,000)(0.05)(t)
(500) = (50)(t)
(500) = (50)(t)
(50) (50)
10 = t
SEATWORK
SEATWORK
1. A bank offers 3% annual simple interest rate for a particular deposit. How
much interest will be earned if P250,000 is deposited in this savings for 7
months? Is = P4,375
2. Money borrowed at 5% simple interest rate per annum has an interest of
P1,200 in 36 months. How much money was originally borrowed? P = P8,000
3. If an entrepreneur applies for a loan amounting to P5,000,000 in a bank, the
simple interest of which is P262,500 for 1.5 years. What interest rate is
being charged? r = 3.5%
4. P100,000 is deposited in a bank that offers 1% simple interest rate. How
many years will it take if the desired interest is P12,500? t = 12.5 years
5. In how many months will P12,000 invested at 10% annual simple interest
rate earn P12,000? t = 120 months
Maturity (Future)
Value
P7,000 is borrowed from a bank at 8% annual simple
interest rate. How much money should be returned if it
is to paid in 6 months?
The total amount we would need to pay back when
we take a loan is called the future value of the loan.
F = P + Is F = P (1 + rt)
P7,000 is borrowed from a bank at 8% annual simple
interest rate. How much money should be returned if it
is to paid in 6 months?
Is = Prt F = P (1 + rt)
Is = (7,000)(0.08)(0.5) F = (7,000) [1 + (0.08)(0.5)]
Is = 280 F = (7,000) [1 + 0.04]
F = (7,000) [1.04]
F = P + Is
F = P7,280
F = (7,000) + (280)
F = P7,280
GROUP ACTIVITY
ASSIGNMENT
