GENERAL

MATHEMATIC
S
SIMPLE INTEREST
QUARTER II
Prepared by:
MARY GRACE M. TAGADIAD
T-II
I’m Teacher
Grace!
REVIEW
SEED
INTEREST
Give an examples
of business that
will profit or
gain?
Selling, and Buying of
products
Renting, and Leasing of
structure, equipment and
facilities
Profit is earning
Profit is
referring to
money
 OBJECTIVES
1. Define simple interest;
2. Compute simple
interest, maturity value
and present value; and
3. Solve problems involving
simple interest.
SIMPLE INTEREST
 Simple Interest ( is the interest charged on the
principal alone for the entire duration or
period of the loan or investment, at a
particular rate After the term of the loan or
investment, the maturity value of future value
is computed by getting the sum of the principal
and the interest due.
FORMULAS
𝑰 𝒔 =𝑷𝒓𝒕
Where
Simple Interest
Principal
rate of interest or simply rate

time (in year)

Future value or maturity value
FORMULAS (Future Value)

or
or

𝑭 = 𝑷 ( 𝟏+𝒓𝒕 )
FORMULAS (Principal)
𝑰𝒔
𝑷=
𝒓𝒕

or

𝑷 =𝑭 − 𝑰𝒔
FORMULAS (Time)
FORMULAS (Rate)

𝑰𝒔
𝒓=
𝑷𝒕
EXAMPLE
Example 1: Complete the table below by
finding the unknown
Principal (P) Rate (r) Time (t) Interest
(a) 2.5% 4 1,500
36,000 (b) 1.5 4,860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

a) P=?

Given: ¿ 0.025
𝑡 =4
𝐼 =1,500
𝐼𝑠
𝑃=
𝑟𝑡 𝑃=𝟏𝟓 ,𝟎𝟎𝟎
Example 1: Complete the table below by
finding the unknown
Principal (P) Rate (r) Time (t) Interest
15,000 2.5% 4 1,500
36,000 (b) 1.5 4,860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

b) r=?
Given:
𝑡 =1.5 4,860
𝐼 =4,860 𝑟=
36,000 (1.5)

𝒓 =𝟎 .𝟎𝟗=𝟗 %
Example 1: Complete the table below by
finding the unknown
Principal (P) Rate (r) Time (t) Interest
15,000 2.5% 4 1,500
36,000 9% 1.5 4,860
250,000 0.5% (c) 275
500,000 12.5% 10 (d)

c) t=?
Given:
𝑟 =0.5¿%
0.005 275
𝑡=
𝐼 =275 250,000 (0.005)
𝐼𝑠
𝑡= 𝑡 =.22 𝑦𝑒𝑎𝑟𝑠
𝑃𝑟
Example 1: Complete the table below by
finding the unknown
Principal (P) Rate (r) Time (t) Interest
15,000 2.5% 4 1,500
36,000 9% 1.5 4,860
250,000 0.5% .22 275
500,000 12.5% 10 (d)

d) I=?
Given:
𝑟 =12.5 % =0.125
𝑡 =10
𝐼 𝑠= 𝑃𝑟𝑡 𝐼 𝑠= 𝟔𝟐𝟓 , 𝟎𝟎𝟎
 Example 1: Complete the table below by finding
the unknown
Principal (P) Rate (r) Time (t) Interest Future Value (
15,000 2.5% 4 1,500

36,000 9% 1.5 4,860

250,000 0.5% 0.22 275

500,000 12.5% 10 625,000

Example 2: 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 account for
1 year?
Given:

Find
Example 3: How much interest is charged when 50,000 is
borrowed for 9 months at an annual simple interest rate of
10%?

Given:

Find
Example 4: 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?

Given:
Example 5: Find the present value of
P86,000 at 8% simple interest for 3
years?

Given:

Find P
Example 6: 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?

Given:

Find r

%
 Example 7: How long will a principal earn an
interest equal to half of it at 5% simple interest?

Given:
=?

Find t
Example 8: Find the maturity value if 1
million pesos is deposited in a bank at
annual simple interest rate of 0.25% after 5
years?
Given:

Method 2

𝐹 = 𝑃 ( 1+𝑟𝑡 )
Find F
Method 1
What have learn
from the topic?
APPLICATION
1. What is the formula in computing the simple
interest on a given financial transaction?

A. B.

D.
C.
1. What is the formula in computing the simple
interest on a given financial transaction?

A. B.

D.
C.
2. Angel deposited P20,000 in a bank that pays 0.5%
simple interest. How much will be her money after 6
years?

A. B.

D.
C.
2. Angel deposited P20,000 in a bank that pays 0.5%
simple interest. How much will be her money after 6
years?

A. B.

D.
C.
3. At what simple interest rate will an amount
of money double itself in 10 years?

A. B.

D.
C.
3. At what simple interest rate will an amount
of money double itself in 10 years?

A. B.

D.
C.
4. How much was the interest if Sophia borrowed P45,000
and paid a total of P55,500 at the end of the term?

A. B.

D.
C.
4. How much was the interest if Sophia borrowed P45,000
and paid a total of P55,500 at the end of the term?

A. B.

D.
C.
5. Justine borrowed P5,000 at 5% annual simple
interest rate. If he decided to pay after 1 year and 3
months, how much should he pay by then?

A. B.

D.
C.
5. Justine borrowed P5,000 at 5% annual simple
interest rate. If he decided to pay after 1 year and 3
months, how much should he pay by then?

A. B.

D.
C.
EVALUATION
RUBRIC
Kindly prepare a sheet of paper and solve the following
problems.
Answer and submit the solution through group
chat messenger.
1. Find the ordinary interest and amount.
Given:

2. A loan for was repaid with after 6

months, what rate was use?
ASSIGNMENT

Answer the following problems involving simple interest. Write your

complete solutions and answers on a 1 whole sheet of paper. Send
your answer in our group chat messenger.

1. Find the simple interest on a loan of ₱65,000.00 if the loan is given

at a rate of 2% and is due in 5 years and 3 months?

2. How much money will you have after 4 years if you deposited
₱10,000.00 in a bank that pays 6% simple interest?
REFERENCE

 General Mathematics Module; Simple Interest Module 6

 [Link]
 [Link]
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 [Link]
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