SEND Q2 GM Week 1

General Mathematics
nd
2 Quarter
WEEK 1
Prepared by: Mart Amelson O. Diquit

Week 1 Syllabus
● Illustrates simple and compound
interests.
● Distinguishes between simple and
compound Interests.
● Computes interest, maturity value,
future value, and present value in
simple interest and compound interest
environment.
General Mathematics
nd
2 Quarter
• Illustrates simple and compound interests.
• Distinguishes between simple and compound Interests.

PRE-TEST ACTIVITY
PRE - TEST
Match the terminologies in column B to its definition or statement in column A. Write your
answers on your Quiz/Activity Notebook. Finally, Figure out the Secret Password Related
to the lesson for the Week.
_____ _____ _____ _____ _____ _____ _____

PRE - TEST
Match the terminologies in column B to its definition or statement in column A. Write your
answers on your Quiz/Activity Notebook. Finally, Figure out the Secret Password Related
to the lesson for the Week.
F I N A N C E
_____ _____ _____ _____ _____ _____ _____
1 4 3 2 3 6 5
INTRODUCTION
This week’s topics introduces a new chapter in

General Mathematics. Specifically, it introduces
Math of Investment others call it Business
Mathematics but either way it still includes money,
credit, investments, banking policies, and other
topics that are related to FINANCES.
TERMINOLOGIES
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
TERMINOLOGIES
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
TERMINOLOGIES
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
Maturity value or future value (F) –amount after t
years that the lender
receives from the borrower on the maturity date
SIMPLE VS. COMPOUND
Simple Interest – interest that is computed on
the principal. The interest
remains constant throughout the term.
Compound interest – the interest calculated

on the principal and the interest accumulated
over the previous period.
SIMPLE INTEREST
Simple Interest ( Is ) – interest that is computed on the principal. The
interest remains constant throughout the term.
Is = Simple Interest
P = Principal or amount invested or borrowed
r = simple interest rate
t = term of time in years
SIMPLE INTEREST
Example: Given: 𝑃=₱18,500, 𝑟=0.03, 𝑡=5. Find simple
interest (𝐼𝑠)
SIMPLE INTEREST
Problem Solving: Due to COVID-19 pandemic, Miss Dada, a

resident of Brgy. Bucal 1 somewhere in Cavite Province
thinks of a business that can provide for her needs as well as
the need of her neighbors so she can be of help even in this
trying time. Since she doesn’t have money on hand, she
decided to borrow from a bank as the start-up capital of
₱50,000.00 at 7% simple interest rate payable within 5 years.
Compute for the interest yield.
SIMPLE INTEREST
₱50,000.00 at 7% simple interest rate payable within 5 years
COMPOUND INTEREST
Compound interest is the interest calculated on the principal
and the interest accumulated over the previous period.
COMPOUND INTEREST
Problem Solving: Due to COVID-19 pandemic, Miss Dada, a

resident of Brgy. Bucal 1 somewhere in Cavite Province
thinks of a business that can provide for her needs as well as
the need of her neighbors so she can be of help even in this
trying time. Since she doesn’t have money on hand, she
decided to borrow from a bank as the start-up capital of
₱50,000.00 at 7% interest rate compounded annually
payable within 5 years. Compute for the interest yield.
COMPOUND INTEREST
₱50,000.00 at 7% interest rate compounded annually payable within 5 years.
COMPOUND INTEREST
Recheck Answer Based on the Formula
SIMPLE
COMPOUND
SIMPLE VS. COMPOUND
Simple Interest – interest that is computed on the principal.
The interest
remains constant throughout the term.
Compound interest – interest calculated on the principal and

the interest accumulated over the previous period.
SIMPLE INTEREST remains constant throughout the

investment term. In COMPOUND INTEREST, the interest from
the previous year also earns interest. Thus, the interest grows
every year.
ACTIVITY
Suppose your grandparents have given you 15,000 pesos and you plan to invest it for 3 years.
Metrobank offers 2% simple interest rate per year while BDO offers 2% compounded
annually. Illustrate simple and compound interest in the table below for you to be able to
choose which bank has a better offer.
Time Principal Interest rate Simple Interest (Is) Maturity Value (F)
(t) (P) (r) Solution Answer (Amount after t years)
1 2% (2)
2 (1) 2% (3)
3 2% (4)
Time Amount at Interest rate Compound Interest (Ic) Maturity Value (F)
(t) the start (r) Solution Answer (Amount after t years)
of the year
t
1 (5) 2% (6)
2 2% (7) (8)
3 2% (9) (10)
General Mathematics
nd
2 Quarter
Computes interest, maturity value, future value, and
present value in simple interest and compound interest
environment.

SIMPLE INTEREST
Simple Interest ( Is ) – interest that is computed on the principal. The
interest remains constant throughout the term.
Is = Simple Interest
P = Principal or amount invested or borrowed
r = simple interest rate
t = term of time in years
SIMPLE INTEREST
SIMPLE INTEREST
SIMPLE INTEREST
Example 1: Given: 𝑃=₱18,500, 𝑟=0.03, 𝑡=5. Find simple
interest (𝐼𝑠)
SIMPLE INTEREST
Example 2: Given: 𝑃=₱20,000, 𝐼𝑠=₱4,000, 𝑡=4 . Find the
rate (𝑟)
SIMPLE INTEREST
Example 3: Given: 𝑃=₱40,000., 𝐼𝑠= ₱700, 𝑟=7%. Find
time (𝑡).
SIMPLE INTEREST
Example 4: Given: 𝑃=₱15,000, 𝑡= 4 months,𝑟=2%. Find
maturity (future) value (𝐹).
SIMPLE INTEREST
Example 4: Given: 𝑃=₱15,000, 𝑡= 4 months,𝑟=2%. Find
maturity (future) value (𝐹).
COMPOUND INTEREST
COMPOUND INTEREST
COMPOUND INTEREST
COMPOUND INTEREST
Example 1: Given: P= ₱18,500, r = 3% and compounded annually for 3 years,
find the maturity value (F) and the compound interest (Ic ).
COMPOUND INTEREST
Example 2: Given F = ₱15,000, r = 2% compounded
annually for 4 years, find the present value (P).
Thank you for
listening!

SEND Q2 GM Week 1

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General Mathematics

Prepared by: Mart Amelson O. Diquit

Prepared by: Mart Amelson O. Diquit

___ _ _ _ _ _ ___

This week’s topics introduces a new chapter in

Compound interest – the interest calculated

Problem Solving: Due to COVID-19 pandemic, Miss Dada, a

Problem Solving: Due to COVID-19 pandemic, Miss Dada, a

Compound interest – interest calculated on the principal and

SIMPLE INTEREST remains constant throughout the

Prepared by: Mart Amelson O. Diquit

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