Republic of the Philippines
ILOCOS SUR POLYTECHNIC STATE COLLEGE
College of Teacher Education
Tagudin Campus
Tagudin, Ilocos Sur
DEMONSTRATION TEACHING LESSON PLAN IN GENERAL MATHEMATICS 11
(April 22, 2025)
I.
OBJECTIVES
A. Content Standard
The learner demonstrates understanding of key concepts of simple and
compound interest.
B. Performance Standard
The learner is able to investigate, analyze and solve problems involving
simple and compound interests.
C. Most Essential Learning Competency
Illustrates simple and compound interests. (M11GM-IIa-1)
Learning Objectives:
At the end of the lesson, students re expected to:
1. illustrates simple and compound interests.
2. distinguish between simple and compound interests.
II.
SUBJECT MATTER
A. Topic: Illustrates simple and compound interests
B. Reference: Department of Education. (2021). General Mathematics –
Quarter 2, Module 1: Simple and Compound Interests (First Edition).
DepEd
Tambayan.
https://depedtambayan.net/wpcontent/uploads/2021/11/genmath_q2_mod1_simpleandcompoundinter
ests_v2.pdf
C. Material: PowerPoint Presentation, laptop, tv, cutouts, tables
III.
PROCEDURE
TEACHER’S ACTIVITY
LEARNER’S ACTIVITY
Preliminary Activities
1. Prayer
All of you, please stand up, bow
your head, and close your eyes. Let
us pray.
In the name of the father, and of the
son, and of the Holy Spirit. Our
Father, who art in heaven, hallowed
be thy name. Thy kingdom come,
thy will be done on earth as it is in
heaven.
Give us this day our daily bread. And forgive us
our trespasses, as we forgive those who
trespass against us. And lead us not into
temptation, but deliver us from evil. Amen
2. Greetings
Good morning, class!
Good morning, ma’am!
3. Classroom Management
Kindly settle down and sit properly.
4. Checking of Attendance
Do we have any absentees today, None ma’am.
class?
Okay, that’s good to hear.
A. ACTIVITY
Before we start, I have here an
illustration.
What can
illustration?
you
see
in
the The illustration shows plants, water, and money
that has been planted.
Is there a connection between the Yes ma’am, there is a connection.
two images?
What do you
connection?
think
is
their The connection of the two images is, it shows
that money will grow just like a plant if there is a
support (water)
Very good!
When a plant needs water in order
to grow, then money also needs
something in order to grow.
What do you think is this?
It is Interest, ma’am.
Okay, good!
Therefore, when you plant, water
will help it grow. As a connection,
money grows when it is invested
with an Interest.
Now, let’s dive into the ways how
interest can grow our money.
B. ANALYSIS
There are two types of Interest that
can be apply in growing our money.
The simple interest and the
compound interest.
Let’s begin first to the Different
terminologies about the simple
interest and compound interest.
•
Interest (I)
Interest (I) – amount paid or earned for the use
of money
•
Borrower or debtor
Borrower or debtor – person (or institution)
who owes the money or avails of the funds from
the lender
•
Lender or investor
Lender or investor – person (or institution)
who invests the money or makes the funds
available
•
Time or term (t)
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)
Principal (P) – amount of money borrowed or
invested on the origin date
•
Rate(r)
Rate(r) – annual rate, usually in percent,
charged by the lender, or rate of increase of the
investment
•
Maturity value or future value (F)
Maturity value or future value (F) –amount
after t years that the lender receives from the
borrower on the maturity date
Let’s star with the Simple Interest.
What is Simple Interest?
Simple Interest is an interest that is computed
on the principal. The interest remains constant
throughout the term.
Therefore, Simple interest does not
change, or it stays the same.
Understood?
Yes ma’am!
How is Simple interest calculated?
We have here the formula of Simple
interest.
𝑰 = 𝑷𝒓𝒕
Example:
1. If you invest ₱10,000 at 5% annual
interest for 3 years:
The given are?
𝑷 = ₱10,000
𝒓 = 5% or 0.05
𝒕 = 3 𝑦𝑟𝑠
Now, we solve for the interest
using the formula.
𝑰 = 𝑷𝒓𝒕
𝑰 = (10,000)(0.05)(3)
𝑰 = 1,500
So, how much interest will you
earn after 3 years?
You will earn a ₱1,500 interest after 3 years,
ma’am.
Then the total amount will
become?
Then the total amount will become ₱11,500.
Very good!
So the interest is ₱1,500 and if you
add it to the principal, the total
amount will become ₱11,500.
To fully understand, I will show you
a tabular data.
Solution
Simple Interest
Answer
5%
(10,000)(0.05)(1)
500
Amount at the end
of year
(Maturity Value)
10,000 + 500
= 10,500
10,000
5%
(10,000)(0.05)(2)
1,000
10,000 + 1,000
= 11,000
10,000
5%
(10,000)(0.05)(3)
1,500
10,000 + 1500
= 11,500
(t)
(P)
(𝑟)
1
10,000
2
3
2. If you invest ₱10,000 at 5% annual
interest for 5 years:
Given:
𝑷 = ₱10,000
𝒓 = 5% or 0.05
𝒕 = 5 𝑦𝑟𝑠
We will apply the formula.
𝑰 = 𝑷𝒓𝒕
𝑰 = (10,000)(0.05)(5)
𝑰 = 2,500
And now we will construct a
tabular data to visualize how the
simple interest works.
Solution
Simple Interest
Answer
5%
(10,000)(0.05)(1)
500
Amount at the end
of year
(Maturity Value)
10,000 + 500
= 10,500
10,000
5%
(10,000)(0.05)(2)
1,000
10,000 + 1,000
= 11,000
3
10,000
5%
(10,000)(0.05)(3)
1,500
10,000 + 1,500
= 11,500
4
10,000
5%
(10,000)(0.05)(4)
2,000
10,000 + 2,000
= 12,000
5
10,000
5%
(10,000)(0.05)(5)
2,500
10,000 + 2,500
= 12,500
(t)
(P)
(𝑟)
1
10,000
2
Now we come up with the interest
amount ₱2,500 and if you will add
this to the original amount
₱10,000, the total amount will
become…
₱12,500 ma’am.
₱12,500 which is higher than the
first example. It is because the
term is longer.
From the example, notice that the
simple interest remains constant
throughout the year and you only
multiply with the term that you are
computing. This shows us that the
Simple interest is always based on
the original amount.
C. ABSTRACTION
Do you have any questions or
clarifications?
None ma’am.
Okay, since you don’t have any
questions, let’s move on.
Now that we already understand
what is Simple interest which we
said that it is always based on the
original amount, right?
Yes ma’am.
Then what if the interest also earns
interest? That is what we called
Compound Interest, ma’am.
the…?
Right! When the interest also
earns interest, that is where
compound interest comes in.
What is Compound Interest?
Compound Interest is the interest computed on
the principal and also on the accumulated past
interest.
So, compound interest is a way to
earn money because you don’t just
earn using your original money, but
also the interest you earned.
In short, it is “Interest on Interest”
How does Compound Interest
calculated?
𝑭 = 𝑷(𝟏 + 𝒓)𝒕
The formula of compound interest
is?
𝑭 = 𝑷(𝟏 + 𝒓)^𝒕
Where:
𝑭 = Future or maturity value
𝑷 = Principal (original amount)
𝒓 = Annual interest rate (in decimal)
𝒕 = Time in years
Example:
From the same example we used
in simple interests;
1. If you invest ₱10,000 at 5% annual
interest for 3 years
Now, we will solve the problem
using compound interest.
We will use the formula
𝑭 = 𝑷(𝟏 + 𝒓)𝒕
What are the given?
The given are;
𝑷 = ₱10,000
𝒓 = 5% or 0.05
𝒕 = 3 𝑦𝑟𝑠
Using the formula, we will
substitute the given and let’s
compute for compound interest.
𝑭 = 𝑷 (𝟏 + 𝒓)^𝒕
𝑭 = 10,000 (1 + 0.05)3
𝑭 = 10,000 (1.05)3
𝑭 = 10,000 (1.157625)
𝑭 = 11,576.25
We come up with a total of…?
The total is ₱11,576.25, ma’am.
To get the compound interest, we
just need to get the difference of
the mature value and the principal.
𝑭 − 𝑷
11,576.2 – 10,000 = 𝟏, 𝟓𝟕𝟔. 𝟐𝟓
And we got a compound interest
which is ₱1,576.25.
To better understand how
compound interest works, we can
compute the interest per year in
tabular form.
Solution
Compound Interest
Answer
5%
(10,000)(0.05)(1)
500
Amount at the end
of year
(Maturity Value)
10,000 + 500
= 10,500
10,500
5%
(10,500)(0.05)(1)
525
10,500 + 525
= 11,025
11,025
5%
(11,025)(0.05)(1)
551.25
11,025 + 551.25
= 11,576.25
(t)
(P)
(𝑟)
1
10,000
2
3
Understand?
Another example from the simple
interest example.
Yes ma’am.
2. If you invest ₱10,000 at 5% annual
interest for 5 years
𝑭 = 𝑷 (𝟏 + 𝒓)^𝒕
𝑭 = 10,000 (1 + 0.05)5
𝑭 = 10,000 (1.05)5
𝑭 = 10,000 (1.276281563)
𝑭 = 12,762.81
𝑭 − 𝑷
12,762.81 − 10,000 = 𝟐, 𝟕𝟔𝟐. 𝟖𝟏
Notice that we come up with higher
amount.
Therefore, the higher the term, the
higher the total amount or total
interest will be.
Example #1
Maturity
value
Interest
Example #2
Maturity
value
Interest
Simple
Interest
₱11,500
Compound
Interest
₱11,576.25
₱1,500
₱1,576.25
Simple
Interest
₱12,500
Compound
Interest
₱12,762.81
₱2,500
₱12,762.81
Now, as you observe the results
from the examples, what can you
say about the difference between
simple and compound interest?
The simple interest has lower interest while
compound has higher interest.
Based on their differences, if you
will be investing money in the
future, what type of interest will
you choose? Why?
If I will be investing money in the future, I will
choose compound interest, because with
compound interest, my money will grow faster
than in simple interest.
Very good!
How about if you will borrow
money, what type of interest will
you choose? Why?
If I will borrow money, I will choose Simple
interest. Because the interest is cheaper and it
stays the same throughout the term.
Great! What a wise choice!
Therefore we can conclude that;
-
Simple interest favors the borrower
Compound interest favors the
investor
Is that clear?
Yes ma’am!
Very good class!
Any questions?
None ma’am.
D. APPLICATION
To further check your
understanding, we will have an
activity.
I will group you into two. One
group will be simple interest, and
the other group will be compound
interest.
What you will be doing is to
analyse the given problem, and
complete the table by pasting the
given cutouts or answers into its
corresponding place in the table.
Problem:
Miss Dada decided to borrow from
a bank with a start-up capital of
₱50,000 at 7% annual interest rate
payable within 5 years.
Miss Dada decided to borrow from a bank with
a start-up capital of ₱50,000 at 7% annual
interest rate payable within 5 years.
These are the answers to be
pasted on the table:
50,000
50,000
50,000
50,000 (0.07)(1)
50,000 (0.07)(5)
7,000
Simple Interest
(t)
(P)
(𝑟)
1
50,000
2
3
Solution
Answer
7%
(50,000)(0.07)(1)
3,500
50,000
7%
(50,000)(0.07)(2)
7,000
50,000
7%
(50,000)(0.07)(3)
10,500
50,000
7%
(50,000)(0.07)(4)
14,000
50,000
7%
(50,000)(0.07)(5)
17,500
50,000 (0.07)(4)
50,000
50,000 (0.07)(2)
50,000 (0.07)(3)
10,500
Simple Interest
3,500
14,000
17,500
4
50,000 + 3,500 = 53,500
50,000 + 7,000 = 57,000
5
50,000 + 10,500 = 60,500
Amount
at the end
of year
(Maturity
Value)
50,000
+ 3,500
= 53,500
50,000
+ 7,000
= 57,000
50,000
+ 10,500
= 60,500
50,000
+ 14,000
= 64,000
50,000
+ 17,500
= 67,500
50,000 + 14,000 = 64,000
50,000 + 17,500 = 67,500
Compound Interest
Compound Interest
57,245
65,539.80
(61,252)(0.07)(1)
53,500
(50,000)(0.07)(1)
3,500
4,287.65
65,539.80 + 4,587.79 = 70, 127.59
3,745
53,500 + 3,745 = 57,245
(𝑟)
1
50,000
2
Solution
Answer
7%
(50,000)(0.07)(1)
3,500
53,500
7%
(53,500)(0.07)(1)
3,745
3
57,245
7%
(57,245)(0.07)(1)
4,007.15
4
61,252.15
7%
(61,252.15)(0.07)(1)
4,287.65
5
65,539.80
7%
(65,539.80)(0.07)(1)
4,587.79
4,587.79
(57,245)(0.07)(1)
(53,500)(0.07)(1)
61,252.15
(P)
57,245 + 4,007.15 = 61,252.15
(66,079.80)(0.07)(1)
50,000 + 3,500 = 53,500
(t)
4,007.15
61,252.15 + 4,287.65 = 65,539.80
Amount
at the end
of year
(Maturity
Value)
50,000 +
3,500 =
53,500
53,500 +
3,745 =
57,245
57,245 +
4,007.15
=
61,252.15
61,252.15
+
4,287.65
=
65,539.80
65,539.80
+
4,587.79
=
70,127.59
Good job, everyone!
As you observe the tables, what
type of interest do you think is
better for Miss Dada as the
borrower?
Miss Dada should choose Simple interest.
Why?
Because it offers lower total amount to be paid
which is ₱67,500, compare to compound
interest which is ₱70,127.59
Very we said. Because Simple
interest offers lower maturity value
than the compound interest,
therefore, Miss Dada should
choose Simple interest for the
money she will borrow.
E. ASSESSMENTS
Now, I can say that you already
understand the lesson. Kindly
bring out one fourth sheet of paper
and answer the following.
I. Identify what is being asked.
1. What interest is computed only on
the original amount?
1. Simple Interest
2. In the formula I = Prt, what does r
represent?
2. Rate of interest
3. What is the formula of Compound
Interest?
3. 𝑭 = 𝑷(𝟏 + 𝒓)𝒕
4. What kind of interest benefits the
investor more over time?
4. Compound Interest
5. What kind of interest favourable to
the borrower?
5. Simple Interest
II. Find the Simple and compound
interest using their formula. (5 points)
An amount of ₱22,000.00 is
invested in a bank that offers a
simple interest of 10% annually for
3 years.
𝑰 = 𝑷𝒓𝒕
𝐼 = (22,000)(0.10)(3)
𝐼 = 6,600
The simple interest is ₱6,600.
𝑭 = 𝑷(𝟏 + 𝒓)𝒕
𝐹 = 22,000 (1 + 0.10)³
𝐹 = 22,000 (1.10)³
𝐹 = 22,000 (1.331)
𝐹 = 29,282
𝑭 − 𝑷
29,282 – 22,000 = 7,282
The compound interest is ₱7,282.
Finish or not finish, pass your
paper.
F. ASSIGNMENT
In 3-5 sentences, how can understanding simple and compound interest help
you make a better financial decisions in the future?
Prepared by:
APRIL JOY A. CONSTANTINO
Checked by:
DR. MARK JAYBEE R. GALAY