DEPARTMENT OF EDUCATION
Division of Bukidnon
District of Talakag I
Dagumbaan, Talakag, Bukidnon
Lesson Plan
General Mathematics
Topic: Simple and Compound Interest – Computing Interest, Maturity Value, Future
Value, and Present Value
I. OBJECTIVES
Content Standards
The learner demonstrates understanding of key concepts of simple and compound
interests, and simple and general annuities.
Performance Standards
The learner is able to apply key concepts of simple and compound interests, and simple
and general annuities in solving real-life problems involving financial decisions.
Learning Competencies/Objectives
At the end of the lesson, the students should be able to:
- Compute interest, maturity value, future value, and present value in both simple and
compound interest environments. (M11GM-Ie-f-1)
Objectives
Cognitive: Students will be able to define, explain, and compute interest,
maturity value, future value, and present value using simple and compound
interest formulas.
Affective: Students will show appreciation of financial literacy by recognizing the
importance of interest in real-life financial decisions.
Psychomotor: Students will accurately solve and present computations of SI
and CI through group activities and individual problem-solving exercises.
II. SUBJECT MATTER
Topic: Simple and Compound Interest
References: DepEd Curriculum Guide (K to 12), SHS Business Math Modules, online
finance references
III. PROCEDURE (7E’s Model)
1. Elicit (Activating Prior Knowledge)
Teacher asks: “Have you or your family experienced depositing money in the bank?
What happens to the money after a year?”
(Annotation: Constructivism – connects new lesson to learners’ prior experiences.)
2. Engage (Motivation)
Teacher presents this problem:
Ana deposited ₱10,000 in a bank at 5% annual simple interest. How much will Ana have
after 3 years?
Students give quick guesses and share reasoning.
3. Explore (Hands-on Activity)
In pairs, students compute:
- Case 1: Using Simple Interest formula
- Case 2: Using Compound Interest formula
Compare results and present findings.
4. Explain (Discussion & Concept Building)
Teacher formally explains formulas:
SI: I = P × r × t ; A = P + I
CI: A = P(1 + r)t ; I = A – P
Illustrates with the ₱10,000 example.
(Annotation: Cognitivism – structured explanation with guided examples.)
5. Elaborate (Deepening Understanding)
Teacher asks:
- Why is CI higher than SI?
- In which situations do banks or lenders apply CI instead of SI?
Students relate concepts to real-life banking, loans, and investments.
(Annotation: Pragmatism – applying learning to practical situations.)
6. Evaluate (Assessment)
Students solve:
1. ₱12,000 at 10% SI for 3 years → Find I and FV.
2. ₱18,000 at 12% compounded annually for 2 years → Find FV.
3. How much should be deposited today to have ₱25,000 after 4 years at 7%
compounded annually?
(Rubric: correct process – 1 pt each, correct final answer – 2 pts; total = 10 pts)
7. Extend (Enrichment / Real-life Application)
Assignment:
1. Research current bank interest rates (BDO, BPI, Landbank).
2. Compute how much ₱50,000 will become in 5 years under SI and CI.
3. Reflection: “Why is it important to understand simple and compound interest in making
financial decisions?”
(Annotation: Progressivism – encourages real-world application and decision-making.)
Prepared by: Checked by:
MARIEL M. ONDAP JASMIN G. SULATAN
Teacher 1 School Principal 1
