DAILY LESSON PLAN – GENERAL MATHEMATICS G-11 ( DAY 1 )
MELCS
- computes interest, maturity value, future value, and present value in simple interest and
compound interest environment.
- solves problems involving simple and compound interests.
I- Objectives
At the end of the lesson, the students can:
a. Find the maturity value
b. Find the present value.
II- Subject Matter
Reference/s : General Mathematics 11 – General Mathematics book
Materials: Laptop, Visual aid, cartolina, marker
Topic: Illustrating Simple and Compound Interest
III- Procedure
A. Introduction
Pose the following situation to the students:
Ella and Thelma each invest P10,000 for two years, but under different schemes.
Ella's earns 2% of P10,000 the first year, which is P200, then another P200 the
second year. Thelma earns 2% of P10,000 the first year, which is P200, same as
Ella's. But during the second year, she earns 2% of the P10,000 and 2% of the P200
also.
a. Preparatory Activity
Ask the students the amount in Ella's and Thelma's respective accounts after two
years. [P10,400 and P10,404]. Ask them why there is a difference [Ella just earns 2%
of P10,000 but Thelma earns 2% of both the P10,000 and the previous interest.
B. Lesson Proper
Many bank savings accounts pay compound interest. In this case, the interest is
added to the account at regular intervals, and the sum becomes the new basis for
computing interest.
The following table shows the amount at the end of each year if principal P is
invested at an annual interest rate r compounded annually. Computations for the
particular example P = P100,000 and r = 5% are also included.
The amount at the end of each year is just the amount from the previous year
multiplied by (1 + r). In other words, 1 + r is multiplied each time the year ends. This
results in the following formula for the amount after t years, given an annual interest
rate of r:
a. Illustrations
EXAMPLE
1. Find the maturity value and the compound interest if P10,000 is compounded
annually at an interest rate of 2% in 5 years.
Solution:
Given: P = 10, 000 r = 2% = 0.02 t = 5 years
Find: (a) maturity value F
(b) compound interestIc
(a) F = P(1 + r) t = (10, 000)(1 + 0.02)5 = 11, 040.081
(b) Ic = F − P = 11, 040.81 − 10, 000 = 1, 040.81
Answer: The future value F is P11,040.81 and the compound interest is 1,040.81
2. Find the maturity value and interest if P50,000 is invested at 5% compounded
annually for 8 years.
Solution:
Given: P = 50, 000 r = 5% = 0.05 t = 8 years
Find: (a) maturity value F
(b) compound interestIc
(a) F = P(1 + r) t = (50, 000)(1 + 0.05)8 = 73, 872.77
(b) Ic = F − P = 73, 872.77 − 50, 000 = 23, 872.77
Answer: The maturity value F is P73,872.77 and the compound interest is P23,872.77
3. Suppose your father deposited in your bank account P10,000 at an annual
interest rate of 0.5% compounded yearly when you graduate from kindergarten
and did not get the amount until you finish Grade 12. How much will you have in
your bank account after 12 years?
Solution: Given: P = 10, 000 r = 0.5% = 0.005 t = 12 years
Find: F The future value F is calculated by
F = P(1 + r) t = (10, 000)(1 + 0.005)12 = 10, 616.78
Answer: The amount will become P10,616.77 after 12 years