Documente Academic
Documente Profesional
Documente Cultură
Department of Education
Region VI – Western Visayas
Division of Capiz
MAAYON NATIONAL HIGH SCHOOL
Maayon, Capiz
I. OBJECTIVE
A. Content Standard The learner demonstrates understanding of key concepts of simple and
compound interests, and simple and general annuities.
B. Performance Standard The learner is able to investigate, analyze and solve problems
involving simple and compound interests and simple and general annuities using
appropriate business and financial instruments.
C. Learning Competencies/Objectives
II. CONTENT
Compound Interest
A. Reference
IV. PROCEDURE
Show a video from Youtube entitlled: Investopedia Video: Compound Interest explained
http://m.youtube.com/watch?v=wf91rEGw88Q
Questions:
1. What is a Simple Interest?
2. Describe Compound Interest?
3. Is there a difference between the two interest?
Explain that Compound Interest is way more different than Simple Interest
1. Example 1: Find the future value and the compound interest if Romina borrowed P20,000
at a bank compounded annually at an interest rate of 4% in 5 years.
Given: P=P20,000 r = 4% = 0.04 t = 5 years
Find: (a) future value
(b) compound interest
2. Example 2: Find the future value interest if Mr. Dalisay invested P150,000 in Maayon
Development Cooperative at 9% compounded annually for 6 years and 6
months.
Given: P=P150,000 r = 9% = 0.9 t = 6.5 years
Find: (a) future value
(b) compound interest
1. Derive the formula of Compound Interest in Future value to find its Present Value
3. Example 4: How much money should a student place in a time deposit in a bank that pays
2.2% compounded annually so that he will have P250,000 after 12 years?
Given: F = P250,000 r = 2.2%= 0.022 t = 12 years
Find: (a) Present Value
(b) Compound Interest
F. Application
Group Activity: 4 Groups group has to solve problems related to compound interest,
each should present their report in front.
Find the unknown principal P, Compound Interest Ic, and Future Value by completing
the table.
Principal P Rate r Time t Compound Future Value
Interest Ic F
6,000 8% 12 (1) (2)
12,000 5.5% 6 years and 9 (3) (4)
months
60,000 9.75% 10 months (5) (6)
(7) 1% 6 (8) 25,000
(9) 7.5% 4 years and 6 (10) 400,000
months
2. In order to have P250,000 in 5 years, how much should you invest if compound
interest is 12%
Prepared by:
SALEM S. QUIACHON III
SHS – TEACHER I