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Understanding Simple Interest Concepts

This document is a lesson plan on Simple Interest for Senior High School students, covering key concepts such as principal, rate, time, and interest. It includes learning objectives, formulas, examples, activities, and assessments to help students understand and apply the concept of simple interest in real-life scenarios. The lesson aims to equip students with the skills to compute simple interest and analyze financial decisions.

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9 views14 pages

Understanding Simple Interest Concepts

This document is a lesson plan on Simple Interest for Senior High School students, covering key concepts such as principal, rate, time, and interest. It includes learning objectives, formulas, examples, activities, and assessments to help students understand and apply the concept of simple interest in real-life scenarios. The lesson aims to equip students with the skills to compute simple interest and analyze financial decisions.

Uploaded by

dosdosdesiree97
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Simple Interest

• General Mathematics
• Senior High School

• Instructor: ____________________
• School: ____________________
• Semester: ____________________
Lesson Overview
• This lesson introduces the concept of Simple
Interest, explaining how money grows over
time when interest is applied. It helps students
understand loans, savings, and investments.
Learning Objectives
• After this lesson, students should be able to:
• 1. Define principal, rate, time, and simple
interest.
• 2. Derive and apply the formula for simple
interest.
• 3. Compute for I, P, R, or T given the others.
• 4. Solve real-life problems involving simple
interest.
Key Concepts
• Principal (P): The original amount of money
invested or borrowed.
• Rate (R): The percent charged or earned per
year.
• Time (T): The length of time the money is
borrowed or invested.
• Interest (I): The amount paid for the use of
money.
Formula for Simple Interest
• I=P×R×T

• Where:
• I = Interest
• P = Principal
• R = Rate (in decimal form)
• T = Time (in years)
Total Amount (Future Value)
• A=P+I

• Where:
• A = Total amount or maturity value
Example 1
• Find the simple interest on ₱5,000 invested for
3 years at 6% per annum.

• I = PRT = 5,000 × 0.06 × 3 = ₱900

• Interest = ₱900
• Total Amount = ₱5,900
Example 2
• How long will it take for ₱10,000 to earn
₱1,500 at 5% simple interest per year?

• T = I / (P × R)
• T = 1,500 / (10,000 × 0.05) = 3 years
Activity 1: Identify Me!
• Match the term with its definition:
• 1. Original money invested or borrowed.
• 2. Percentage rate per year.
• 3. Amount earned or paid for using money.
• 4. Length of time the money is used.

• Answers: 1–Principal, 2–Rate, 3–Interest, 4–


Time
Activity 2: Compute It!
• Compute the simple interest for each case:

• 1. ₱8,000 at 5% for 2 years


• 2. ₱12,000 at 7% for 3 years
• 3. ₱6,500 at 4.5% for 1.5 years
Activity 3: Real-Life Application
• A bank offers 4% simple interest annually. If
you deposit ₱15,000 for 4 years, how much
interest will you earn? What is the total
amount after 4 years?
Assessment
• 1. ₱25,000 for 2 years at 8%
• 2. ₱10,000 for 5 years at 6%
• 3. ₱8,000 to earn ₱1,600 at 10%
• 4. ₱12,000 → ₱13,800 at 6%, find time
• 5. ₱2,400 earned in 3 years at 8%, find
principal
Answer Key
• 1. ₱4,000
• 2. ₱3,000 (Total ₱13,000)
• 3. 2 years
• 4. 2.5 years
• 5. ₱10,000
Reflection
• • What did I learn about simple interest
today?
• • How can this help in real-life financial
decisions?
• • Which part was most useful or challenging?

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