Compound Interest 1m6h2n

Detailed Lesson Plan in General Mathematics (Problem-Based Learning) • Competency: Solve problems involving simple and compound interests. • Code: M11GM-IIb-2

Objectives: • Define compound interest • Differentiate simple from compound interest • Compute and solve problems involving compound interest • Make the best decision in handling certain problem involving money resources.

Good day everyone!

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Activity 1: Pix Mystery Word

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Activity 2: Together, We Can Solve It! (20 minutes) Instructions: 1. The learners will be divided into four groups. Assign a leader, encoder, time keeper, presenter, and research runner. 2. An activity sheet will be distributed to each group. 3. Each group will work on the items in the worksheet. 4. Guide questions are provided in the worksheet to direct the learners in their learning task. 5. Each group will write their output on manila paper and present for 3 minutes.

Suggested Rubric Category Content

Time management

Teamwork

Exceptional 4 points 90-100% data and evidences gathered and presented

irable 3 points 75-89% data and evidences gathered and presented Finished on time Finished task after 30 minutes of the given time Accepts ideas of Accepts most ideas others; able to without negative compromise; 100% comments; able to of the are compromise; 75% on task of the work on task

Acceptable 2 points 50-74% data and evidences gathered and presented Finished after 1 hour of the allotted time Unwilling to compromise; 50% of the work on task

Attempted 1 point Below 50% data and evidences gathered and presented Did not finish the task

One person does all the work; 25% of the work on task.

Word Problem • Problem No.1 Arthur borrowed P40,000.00 at 6% simple interest for a period of 1 year. At the end of one year, how much must he pay? _______________________.

Word Problem • Problem No.2 If Arthur did not pay back the loan and the interest by the end of the first year and he wanted to continue the loan for another year at the same rate, then he would owe P40, 000.00 plus interest incurred during the first year of loan. How much must he pay at the end of the second year? _____________________

Word Problem • Problem No.3 At the end of the second year, Arthur was not able to pay his loan and the interest again. The lender gave him another year under the same condition, how much must he pay at the end of the third year?__________________.

Word Problem Translated into a Table Principal at the start of the year

Interest

First Year

P 40,000.00

40,000 x 0.06 x 1 = P 2,400.00

Second Year

P 42,400.00

42,400.00 x 0.06 x 1 = P 2544.00

Third Year

P 44,944.00

44,944 x 0.06 x 1 = P 2,696.64

Amount At end of the year P 40,000.00 + P2400.00 = P42,400.00 P 42,400.00 + P2544.00 = P44,944.00 P44,944.00 + P 2696.64 = P47,640.64

Compound Interest (Ic )(or compounding interest) is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

• Maturity Value or Future Value (F) – amount after t years that the lender receives from the borrower on the maturity date.

FORMULA Compound Interest = Total amount of Principal and Interest in future (or Future Value) less Principal amount at present (or Present Value) Ic = F - P

FORMULA • Maturity (Future) Value and Compound Interest (Compounded Annually) F = P(1 + r)t where, P = principal or present value F = maturity (future) value at the end of the term r = interest rate t= term/time in years IC = compound interest

Try this! Find the maturity value and the compound interest if Php10,000 is compounded annually at an interest rate of 2% in 5 years. Given: 10,000 r = 2% 0.02 t= 5 years Find: (a) maturity value F (b) compound interest Ic

Solution Try this! (a) F = P(1 +r)𝑡 F = (10,000) (1 + 0.02)5 F = 11, 040.81 (b) Ic = F – P Ic = 11,040.81 – 10,000 Ic = 1, 040.81 Answer: The future value F is Php11,040.81 and the compound interest is Php1, 040.81.

Activity 4: Performance Output “ MY MOTHER NEEDS ME” Directions: 1. I will divide you into 5 groups. 2. Assign your leader, interviewer, encoder, time keeper, presenter, and research runner. 3. Read the given situation. 4. Make a survey report 5. Present the output to the class (power point presentation) 6. Reports should be ed with pictures 7. Submit your output (soft copy, hard copy and power point presentation) after 3 days.

Activity 4: Performance Output You need a laptop in your educational research. Your mother doesn’t have enough money to purchase the item. She decides to acquire the said item through a loan which is offered in your local cooperatives and banks. Help your mother in making a decision on where to apply for a loan. Conduct a survey of the existing cooperatives, banks and other lending company in your locality.

THANK YOU!

Thank you and God Bless !