A

General Mathematics

LEARNING ACTIVITY
SHEET
 Subject Area and Grade Level: General Mathematics – Grade 11
Activity Sheet No. _______
First Edition, 2020

Published in the Philippines

By the Department of Education
Region 8 – Division of Samar

Republic Act 8293, section 176 states that: No copyright shall

subsist in any work of the Government of the Philippines. However, prior
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may among other things impose as a condition the payment of royalties.

This Learning Activity Sheet is developed by DepEd Region 8 –

Division of Samar.

ALL RIGHTS RESERVED. No part of this learning resource may be

reproduced or transmitted in any form or by any means electronic or
mechanical, without written permission from the DepEd Regional Office 8 –
Division of Samar.

Development Team of General Mathematics Activity Sheet

Writer: Jesrel S. Animo - SHST-II / Tagapul-an National High School

Illustrator: _________________________

Layout Artists: _______________________

Reviewer: Glendo T. Carido, Ed.D. – EPS Mathematics

Editor: _______________________________

Carmela R. Tamayo Ed.D., CESO V – Schools Division Superintendent

Moises D. Labian Jr. Ph.D., CESO VI – Asst. Schools Division Superintendent

Antonio F. Caveiro Ph.D. - Chief Education Supervisor, CID

Glendo T. Carido, Ed.D. – EPS Mathematics

 General Mathematics

Name of Learner: _________________________ Grade Level & Section: ________

School: ____________________________________ Date: ________________________

Illustrates and Distinguishes between Simple and Compound Interests

I. Introduction:

This COVID-19 pandemic creates series of community lockdowns

where people are restricted to go outside and stay at home. Some people loss
their job, and their work is temporarily suspended. So, we now realize how
saving or investing is very important nowadays in this trying time.
This lesson helps you understand thoroughly what is simple interest
and compound interest. It will let you decide correctly on how and where to
save. Nowadays savings is very important, it is like saying “If you do not
have savings you are out” and it will make you analyze whether to save in
simple or compound in favor of you, as a borrower or investor.
Are you ready now? Let’s begin working on this. Open your heart and
mind and have focus. Good Luck!

II. MELC (with code):

The learner illustrates and distinguishes between simple and
compound interests. M11GM-IIa-1 and a-2 (MELC, page. 63)
III. Strategy:

A. Explore:

Let’s Remember
Match Me! Reveal Me!
Match the terminologies in column B to its definition or statement
in column A. Write your answer on the blanks provided below the
trivia question inside the box. Your answer should reveal an
important Filipino value that everyone should possess. Finally,
answer the guided questions that follow.

A B
1. It is the amount paid or earned for S. Creditor
the use of money.
2. It is the date on which the total R. Interest
amount borrowed with interest is to
be completely repaid.
3. It refers to the person or institution C. Compound Interest
that invests the money or makes the
funds available.
4. It is the amount of money borrowed E. Principal
or invested on the origin date.
5. It is the amount after t years that P. Maturity Date
the lender receives from the
borrower on the maturity date.
6. It is the nearest computed on the T. Maturity/Future Value
principal and also on the
accumulated past interest.

What Filipino value is shown when a person giving the greeting

bows down towards another person older that him or taking his
hand or her hand and pressing it on the forehead? This is an
important Filipino value that the younger generations should
never forget and performed with the right hand and saying "Mano
po" to the elders.

_____ _____ _____ _____ _____ _____ _____

1 4 3 2 4 6 5
Let’s Connect!
Before we start our lesson for today, let us answer first the activity.
Directions: Evaluate and answer the following questions or
statements.

1. Express 12% to decimal.

2. Express 0.005 to percent.
3. Who among you try to deposit or lend money on the bank or in
your local lender called “Bagtakay”? Explain how your money
grows investing in a “Bagtakay” or If you lended a money in
“Bagtakay”, Why do you think you paid more than the amount
you have borrowed?

B. Learn:

Let’s Believe

Definition of terms:
 Lender or creditor - person (or institution) who invests the money
or makes the funds available.
 Borrower or debtor - person (or institution) who owes the money
or avails of the funds from the lender.
 Origin or loan date - date on which money is received by the
borrower
 Repayment date or maturity date - date on which the money
borrowed or loan is to be completely repaid.
 Time or term (t) - amount of time in years the money is borrowed
or invested; length of time between the origin and maturity dates.
 Principal (P) - amount of money borrowed or invested on the origin
date.
 Rate (r) - annual rate, usually in percent, charged by the lender, or
rate of increase of the investment.
 Interest (I) - amount paid or earned for the use of money.
 Simple Interest (Is) - interest that is computed on the principal
and then added to it.
 Compound Interest (Ic) - interest is computed on the principal
and also on the accumulated past interests.
 Maturity value or future value (F) - amount after t years; that the
lender receives from the borrower on the maturity date.
Illustration of Simple and Compound Interests

Simple Interest Compound Interest

Definition: Definition:
Simple interest is a type of Compound interest is a
interest in which only the type of interest applied to both the
principal bears interest paid for original principal and accumulated
each period remains the same. interest at the end of each period.
This means that the amount of
interest to be paid increases every
period.

Formula: Formula:

IS = Prt F = P (1 + r)t

Where Where

IS = simple interest P = principal or present value

P = Principal F = maturity (future) value
r = rate r = interest rate
t = term or time, in years t = term / time in years

Note: When the term is expressed Compound Interest formula:

in months (M), it should be
M IC = F – P
converted to years by t =
12
Example 1: A bank offers 0.25% Example 1: Find the maturity
annual simple interest rate for a value and the compound interest if
particular deposit. How much P10,000 is compounded annually
interest will be earned if 1 million at an interest rate of 2% in 5
pesos is deposited in this savings years.
account for 1 year?
Solution:
Solution:
Given: P = 10,000
Given: P = 1,000,000 r = 2% or 0.02
r = 0.25% or 0.0025 t = 5 year
t = 1 year
Find: (a) Maturity Value F
Find: IS (b) Compound interest IC
IS = Prt = (1,000,000)(0.0025)(1)
= 2,500 (a) F = P(1 + r)t = (10,000)(1 +
00.2)5
Answer: The interest earned is = 11,040.081
P2,500.
(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 P1,040.81.
Example 2. Suppose you won P10,000 and you plan to invest it for 5
years. A cooperative group offers 2% simple interest rate per year. A bank
offers 2% compounded annually. Which will you choose and why?

Solution.
Investment 1: Simple interest, with annual rate r.
Time Principa Simple Interest Amount after t years
(t) l (P) Solution Answer (Maturity Value)
1 (10,000)(0.02)(1) 200 10,000 + 200 =
10,200.00
2 (10,000)(0.02)(2) 400 10,000 + 400 =
10,400.00
3 (10,000)(0.02)(3) 600 10,000 + 600 =
10,000
10,600.00
4 (10,000)(0.02)(4) 800 10,000 + 800 =
10,800.00
5 (10,000)(0.02)(5) 1,000 10,000 + 1,000 =
11,00.00

Investment 2: Compound interest, with annual rate r.

Time Amount Compound Interest Amount after t years

(t) at the Solution Answer (Maturity Value)
start of
the year t
1 (10,000)(0.02)(1) 200 10,000 + 200 =
10,000
10,200.00
2 10,200 (10,200)(0.02)(1) 204 10,200 + 204 =
10,404.00
3 10,404 (10,404)(0.02)(1) 208.08 10,404 + 208.08
=10,612.08
4 10,612.0 (10,612.08)(0.02)(1) 212.24 10,612.08 + 212.24 =
8 10,824.32
5 10,824.3 (10,824.32)(0.02)(1) 216.49 10,824.32 + 216.49 =
2 11,040.81

Observe in the given example that interest can either be simple or

compound interest. As you compare the interests gained in the two
investments for the past 5 years.

Simple interest (in pesos): 11,000 – 10,000 = 1,000

Compound interest (in pesos):11,040.81 – 10,000 = 1,040.81

You can distinguish between simple and compound interest based

on their illustrations. As you can see, Simple Interest remains constant
throughout the investment term. In compound interest, the interest from
the previous year also earns interest. Thus, the interest grows.
 C. Engage:

Let’s Do This
Get ready to take on more challenging activities about illustrating and
symbolizing proportions.

Directions: Analyze the following situation. Identify whether it shows Simple

Interest or Compound Interest.
1. Jason is investing P4,000 for 2 years. The interest rate is 5.5% How
much interest will Jason earn after 2 years?
2. Haide is a member in “Bagtakay”. She wants to invest there until 3
years. The interest rate was 4.5%. After 3 years, she earned P675.00
in interest. How much was her original investment?
3. Paulo borrowed a money worth P3,000 for 6 months. She P33.00 in
interest. What was the interest rate?
4. Matt is saving for a new mobile phone for his online class next school
year. He invests his P7,000 into a rural bank that offers 5% interest
and compounded annually. How much is the maturity value and
interest of his investment after 1 year.

Let’s Do More
Here are the additional items that will help you practice more
about the topic.
Directions: Refer to Activity above in ‘Let’s Do this’. In each given situation,
identify the Principal(P), Rate(r), Interest(I S or IC) and term(t). Copy the table
below on your answer sheet and put your answer there.

Principal Rate Simple Interest Compound Interest Term

(P) (r) (IS) (Ic) (t)
1.)
2.)
3.)
4.)
 D. Apply:

Let’s Summarize
This time, let us summarize your learning today by answering the
following questions below.

1. How is compound interest different from simple interest?

__________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
______________________________________________________________________

2. Suppose you won P10,000 and you plan to invest it for 5 years. A
cooperative group offers 2% simple interest rate per year. A bank offers 2%
compounded annually. Which will you choose and why?
__________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
______________________________________________________________________

Let’s Find Out

Fill in the blanks with the correct word(s) to show how much you
have learned. Write your answers on your answer sheet.

In this lesson, I have learned that there are two types of interest
(1)_______________ and (2) ______________. The amount of money to be
invested or borrowed is called the (3) ______________, while the percentage
of interest is the (4) ______________, the amount of time in years the money
is borrowed or invested is the time or (5) ______________ and the amount
paid or earned for the use of money is the (6) ______________.
IV. Guide Questions (if needed):

V. Rubrics (if needed):

VI. References:

Crisologo, L.A. et al. (2016) General Mathematics Teacher’s

Guide (1st ed.). Pasig City, PC: Department of Education.

Mayapyap National High School. (2021, January 8). General

Mathematics Quarter 2 Week 1[Video]. Youtube.
https://www.youtube.com/watch?v=y72vFnrkuB8
VII. Key to Correct Answers:

A. Explore C. Engage
A.
A. 1. Simple Interest
1. R 2. Simple Interest
2. P 3. Simple Interest
3. S 4. Compound Interest
4. E
5. T B.
6. C P r IS Ic t
1.) 4,000 0.055 440 2
RESPECT
1 4 3 2 4 6 5 2.) 5,000 0.045 675 3

B. 3.) 3,000 0.022 33 0.5

1. 0.12
2. 0.05% 4.) 7,000 0.05 350 1
3. Answer may
vary

D. Apply
A.
1. Simple interest is a type of interest in which only the principal
bears interest paid for each period remains the same while
Compound interest is a type of interest applied to both the original
principal and accumulated interest at the end of each period. This
means that the amount of interest to be paid increases every
period.
2. Possible Answer: In bank, because cooperative offers in a
simple interest rate which means simple interest remains constant
throughout the investment term while in bank, they offer in form
of compounded interest, the interest from the previous year also
earns interest and not constant. Thus, the interest grows every
year.

B.