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Lesson Plan in General Mathematics

This lesson plan outlines how to teach students about amortization schedules, including manually constructing tables and using Microsoft Excel, with examples of calculating monthly loan payments over periods of 5 and 15 years at various interest rates. Students will learn key terms, formulas, and how to program an Excel spreadsheet to automatically calculate an amortization schedule given the loan principal, interest rate, and payment period. Assignments include having students construct amortization schedules for various loans compounded quarterly over 20 years.

Uploaded by

Donald Bose Mandac
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© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
712 views

Lesson Plan in General Mathematics

This lesson plan outlines how to teach students about amortization schedules, including manually constructing tables and using Microsoft Excel, with examples of calculating monthly loan payments over periods of 5 and 15 years at various interest rates. Students will learn key terms, formulas, and how to program an Excel spreadsheet to automatically calculate an amortization schedule given the loan principal, interest rate, and payment period. Assignments include having students construct amortization schedules for various loans compounded quarterly over 20 years.

Uploaded by

Donald Bose Mandac
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Lesson Plan in General Mathematics

Business Math
(Amortization Schedule using MS-Excel)

Prepared by:

Aristotel Balbuena Singayan


Senior High School Teacher
Alfreda Albano National High School

Noted by:

Dennis M. Agbayani
EPS-MAPEH CLMD
Incharge-Math Class
MTOT SHS Grade 11 Teachers

Norma C. Guillermo, Ph. D.


Chief, CLMD
I. OBJECTIVES:

At the end of the lesson, the students are expected to:


a) define amortization;
b) construct amortization table manually and using spreadsheet(MS-Excel/xls);
c) appreciate real life situation involving amortization.

Core Values: Interconnectedness and Unity in Diversity


Value Statement: “Establish a good relationship with others to attain peace and harmony.”

II. SUBJECT MATTER:


Topic: Amortization
Reference:
Materials: Laptop, Projector, Calculator, Microsoft Excel.
Skills: Critical thinking skill and Problem solving skill.

III. PROCEDURE:

A. Apperception

-Motivation/Recall on the past topic.

B. Presentation

-Amortization is the main focus of our lesson for today


that includes:
i) Constructing Amortization Table using pen, paper and calculator.
ii) Constructing Amortization Table using Microsoft Excel.

C. Lesson Proper:

Amortization is an accounting term that refers to the process of allocating the cost of an
intangible asset over a period of time. It also refers to the repayment of loan principal
over time.

Amortization Table/Schedule is a table detailing each periodic payment on an


amortizing loan.

Example #01:
Mr. Singayan aqcuired a loan of Php 100 000 to buy a new property. He decided to
amortize the loan at 3% interest rate payable in 5 years. Prepare the amortization
schedule showing the regular monthly payments of the Mr. Singayan until the last month
of the maturity of the loan.
The Above table shows the computation of the barrowed amount made by Mr. Singayan at an
amortization interest rate o 3% in 60-month payable period.

How then are we going to use the Software Microsoft Excel in dealing with this sample problem above?

So here are the instructions in preparing the spreadsheet of the problem given above:
1.) Open your MS Excel (if not available in your computer, then install it.)
2.) Set your Spreadsheet as shown below.

3.) Insert the desired formula in each of the columns (for two consecutive rows only), based on the
formula of the lesson.

Key Terms to remember:


Amount Borrowed (Principal Amount)
Periodset it in terms of months based on the time frame of the loaned amount.
Payments Use the “=PMT” function of MS-Excel
=PMT(Rate,Period,-Amount Borrowed,0)

Formulas:
Biginning=Amount Borrowed
Regular Payment=Payment
Interest=(Amount Borrowed * Rate)
Reduction=(Regular Payment – Interest)
Ending Balance= (Beginning-reduction)

4.) On the second row, lock all the formulas which are not changing along the way of computation.
5.) Try using now your programmed spreadsheet to check your previous answers when you do the
manual way.

*The teacher will show the blank Spreadsheet as he goes through the discussion, filling in the
different cells with formula.

Example #02:
Taken the same problem stated above, consider that the amount borrowed shall be
compounded quarterly with a 7% interest rate.
What would be the:
a) regular Quarterly payment
b) the ending balance upon depositing the 15th payment .

D. GENERALIZATION
-Based on the concept presented,
a) The interest is decreasing as it approaches the maturity date of the borrowed amount.
b)if we will solve for the sum total of the whole reduction to loan balance the value that
we will be seeing is the exact barrowed amount.
c)the ending balance after the maturity of the barrowed amount is zero.
IV. Evaluation
Instruction: Solve for the following problems involving amortization using MS-Excel.
1. What are the payments on a loan of Php200,000 over 10 years, at 0.5% interest per
month.
Solution:
Function : PMT(rate, nper, pv, fv, type)
=PMT(0.5%,120,200000,0,0)
Answer=Php2,220.41

2. I currently owe $150,000 on a mortgage, and make payments of $1,900 per month. The
current interest rate is 0.45% per month. How long will it take to repay the loan?

Solution:
Function : NPER(rate, pmt, pv, fv, type)
=NPER(0.45%,-1900,150000,0,0)
=97.76

V. Assignment
Instruction: Given the following problems show amortization schedule of the problem below
and show the difference when “m” is change into:
a) m=1 c) m=4
b) m=2 d) m=6

*Beginning= Php 2 000 000 *Compounded quarterly


*Rate: 11.5% *20 year

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