Lesson Plan in MATH 115

Midterm

I. Objectives:
At the end of the discussion the students must be able to:
1. Understand the Problem
2. Appreciate the importance of interst in bussiness
3. Demonstrate how to solve the simple and compound interest

II. Subject Matter:

A. Topic: BUSSINESS AND INVESTMENT PROBLEMS
B. Reference: MODULE IN MATH 110 (MATHEMATICS OF INVESTMENT)
C. Materials: Microsoft PowerPoint Presentation, laptop, whiteboard and marker
D. Value: Accuracy, creativity, objectivity, perseverance, cooperation, teamwork and attentiveness
E. Integration: English, Research, Values and Physical Education

III. Procedure Teacher’s Activity Student’s Activity

A. Preparatory 1. Prayer The studentswill

Activities: 2. Greetings participate and cooperate
3. Checking of Attendance in the activities.
4. Class and Regulations
5. Energizer

B. Review: The teacher will give a recap of the lesson that was tackled last The student’s response
discussion may vary.

Questions to think about:

• What is the lesson we have tackled yesterday?

• What is/are your takeaway/s about the lesson we have
discussed?

C. Motivation
Girls versus Boys. The class will be divided into two groups. One
group is male group and the other is female. The teams will The students will
choose the two best representatives, a pair to be exact to play the participate and motivate
game. their team’s participants.

The teacher will explain the game.

To play the game,each group must have a pair representative and

be given aquestion, and they must know the answer and who can
answer first will be the one to get a point.The two players will
place back-to-back and they will face together when the teacher
says go. The team that has more points after thrice of try will
declared as winner.

1. Refers to the date when the note was drawn.

2. The interest that is deducted is called what?
3. In financial transactions an interest is the amount paid by
a borrower to a lender for the use of money over a period
4. It is the present value of the note.
5. It is the accumulated value of the note.
 D.Activity
In your home your mother have a debt in your neighbor, how will
you help your mother in her debt? The student’s answers
may vary according to
their own knowledge
and understanding.

E. Analysis 1. What is simple interest? The student’s answers

2. What is the stand of rate? may vary according to
3. What comes in your mind when you hear interest word? their own knowledge
and understanding.

F. Abstraction Lesson Proper

What is interest?

Interest is a fee on borrowed money or on a loan. The term is

used to describe the borrowed money or the loan is called the
principal amount.

What is simple interest?

In financial transactions an interest is the amount paid by a

borrower to a lender for the use of money over a period. Interest
that is paid as a percent of amount borrowed or invested is called
simple interest. The formula for simple interest is given by the
following:
Simple Interest
𝐼 = 𝑃𝑟𝑡
Where,
𝐼𝑠 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 (𝑜𝑤𝑒𝑑)
𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑 (𝑜𝑟 𝑏𝑜𝑟𝑟𝑜𝑤𝑒𝑑)
𝑟 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝑡 = 𝑡𝑒𝑟𝑚 𝑜𝑟 𝑡𝑖𝑚𝑒 𝑓𝑟𝑎𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎r

Example 1.
Suppose Kiko wanted to invest an amount 𝑃ℎ𝑝 50,000.00 for 2
years at a financial institution that gives a simple interest of 3%
per year. The interest rate was given to Kiko by the financial
institution on the assumption that he cannot withdraw the
investment within the 2-year period. How much is Kiko’s earning
on the investment after the 2-year period?
Solution:
The following can be obtained from the problem:
P  50,000 ,
r  0.003, t =2

I = Prt = (50,000)(0.03)(2)= 3,000

From this we conclude that, the investment earned 𝑷𝒉𝒑𝟑, 𝟎𝟎𝟎.

𝟎𝟎.
Interest can be viewed as a lender or a borrower. Sometimes if we
are the investor, we consider the value of our investment after a
given period. In this case we introduce the concept of future
values or accumulated values or maturity value.

Future Value 𝐹 = 𝑃 + 𝐼𝑠 𝐹 = (1 + 𝑟𝑡)

Where,
𝐼𝑠 = 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑒𝑑 (𝑜𝑤𝑒𝑑)
𝑃 = 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙 𝑎𝑚𝑜𝑢𝑛𝑡 𝑖𝑛𝑣𝑒𝑠𝑡𝑒𝑑 (𝑜𝑟 𝑏𝑜𝑟𝑟𝑜𝑤𝑒𝑑)
𝑟 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
𝑡 = 𝑡𝑒𝑟𝑚 𝑜𝑟 𝑡𝑖𝑚𝑒 𝑓𝑟𝑎𝑚𝑒 𝑖𝑛 𝑦𝑒𝑎r

What is compound interest?

Interest may be compounded annually or twice a

year, quarterly or 4 times a year, monthly or 12 times a year
or daily. At the end of the term, the final amount is called
the compound amount, while the compound interest is the
difference between the compound amount and the original
principal.
EXAMPLES
1. If P2,000.00 is invested at an interest rate of 8%
compounded annually for 3 years, find the
compound amount and interest.

Solution

Original Principal
= P 2,000.00

Interest in the first year

= (2,000)(0.08)(1) = P160.00

New Principal at the end of one year is

= 2,000 + 160 = P2,160.00

Interest in the second year

= (2,160)(0.08)(1) = P172.80

Principal at the end of 2 years

= 2,160 + 172.80 = P2,332.80

Interest in the third year

= (2,332.80)(0.08)(1) = P186.62

Principal at the end of three years

= P 186.62 + P2,332.80 = P2,519.42

Therefore the compound amount in 3 years is P 2,

519.42 and the compound interest is

P 2, 519.42 – P 2,000.00 = P 519.42

2. Find the compound interest if P 5,000.00 is invested at

10% compounded semi-annually for 2 years.

Solution

Compounded semi-annually means the interest earned in 6

months is added to the principal to earn additional interest
for the next 6 months.

Since the interest is compounded semi-annually, the

interest rate per 6 months is 10% ÷ 2 = 5%.

Original Principal
P 5,000.00

Interest in the 1st 6 months (P 5,000.00)(0.05)

P 250.00

New Principal at the end of ½ year is

P 5,250.00
P 5,000 + P 250.00

Interest in the second half of the year is

P 262.50
P 5, 250.00 (0.05)

Principal at end of one year is P 5,250.00 + P 262.50

P 5,512.50
 Interest in the 3rd 6-month period is
P 275.62
P 5, 512.50 (0.05)

1
Principal at the end of 1 years is P 5,512.50 + P
2
275.62 P 5,788.12

Interest in the last 6 months is (P 5, 788.12) (0.05)

P 289.41

Compound amount in 2 years is P 5,788.12 + P

289.41 P 6,077.53

Compound interest rate is P 6,077.53 – P 5,000.00

P 1, 077.53

What is promissory note?

Generally in borrowing and lending money transactions, the

lender usually requires the debtors to sign a written
agreement that specifies the following features:
1. Origin date – refers to the date when the note was drawn.
2. Maturity date – refers to the date when the note is to be
paid.
3. Face value – the present value of the note.
4. Maturity value – the accumulated value of the note.

Such agreement is usually called a promissory note.

Promissory notes are of two kinds.

a. Non- interest bearing notes

b. Simple interest bearing notes
For non-interest bearing notes, the value is equal to
the maturity value. In the case of the interest bearing notes,
however, maturity value is equal to the face value plus the
amount of interest earned. Usually, ordinary simple interest
is used in computing the maturity value.
Example:
1.Let us consider the promissory notes below.
P10,000.00Intramuros, Manila November 6, 2007
Ninety days after the date, I promised to pay ten thousand
pesos to the order of Gerry Sandoval payable at the Bank
of Philippine Islands.
Signed: Arturo Alcazar

G. Application Solving Relay

Group yourselves into 5. The teacher would write a letter in the The students will have
board which the students will answer. their group and
performthe act in 5-7
The teacher will explain the game. minutes.

The teacher would signal to start the game and themembers of

each group would take time to answer the problem. The teacher
would yell CORRECT then the next member would continue to
where the last player finishes, so on and so fourth until the turn of
 the last member.

Members should not change the answer of the member before

them. Teacher will then check the answer of every team and the
team with a correct answer and process will win the game.

IV. EVALUATION: Solve the following problem. Answers:

1. Mr. Johnny Santos owns a P 12,500.00 note at 6% a.To compute for the
simple interest dated September 6, 2002, the term maturity value, we
note is 150 days.Fifty days after September 6, 2002, have
he sold the note to the Philippine National Bank at
8% discount. Compute the S = P (1 +
following: rt)
= 25,000
a. the maturity value of the note
b. proceeds [
1+ .06(
150
360
)
]
= P 12,
812. 50

b.The term of the

discount is 150 - 50 =
100 days. Hence, the
proceeds shall be

Pr = S(1-dt)
=
12,812.50

[1+ .08(
100
360
)
]
=P
12,527.78

V. ASSIGNMENT: In one whole sheet of paper, solve the problem

1. A new car, valued at P28,000, depreciates at 9% per year.

What is the value of the car one year after purchase?
=_____________

2. 5,200 at 4% for 3 years. = ________

3. 1,300 at 5% for 6 years. = ________

4. 5,400 at 3.5% for 6 months. = ________

5. 600 at 4% for 9 months. = _______

Prepared by:
WYNE JHON BULAHAN
AALIYAH BERNARES
KIMBERLY ALDOVER
CYRA KAYE ICHON
JANRIE FORMACION

BSED-MATH 3A