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Compound Interest Lesson

Compound Interest Lesson

Assessment

Presentation

•

Mathematics

•

11th Grade

•

Hard

Created by

James Gonzalez

FREE Resource

22 Slides • 27 Questions

1

Simple Interest and Compound Interest

M11GM-IIa-1 to b-1

December 12-13, 2022

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Review

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Express 3% to decimal.



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Express this 5.5% to decimal

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Express 0.75% to decimal.

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Express 200% to decimal

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Express 10 12\frac{1}{2} % to decimal



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Express 1 as percent form.

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Express 0. 20 as percent form.

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Express 0. 20 as percent form.

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Express 0.020 as percent form.

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Express 0.5025 as percent form.

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Express 14\frac{1}{4} to percent



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What is 30 % of 50?

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70 is what percent of 200?

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LECTURE

WHAT'S NEW

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Multiple Choice

__________________person (or institution) who owes the money or avails of the funds from the lender

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Lender or creditor

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Principal (P)

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Borrower or debtor -

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Manager

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Lender or creditor

person (or institution) who invests the money or makes the funds available

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Borrower or debtor

person (or institution) who owes the money or avails of the funds from the lender

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Origin or loan date

date on which money is received by the borrower

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Repayment date or maturity date

a date on which the money borrowed or loan is to be completely repaid

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Time or term (t)

amount of time in years the money is borrowed or invested; length of time between the origin and maturity dates

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Principal (P)

- amount of money borrowed or invested on the origin date

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Rate (r) -

annual rate, usually in percent, charged by the lender, or rate of increase of the investment

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Interest (I) -

amount paid or earned for the use of money

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Simple Interest (Is) (Is = Prt)

- interest that is computed on the principal and then added to it.

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Maturity value or future value (F)

- amount after t years; that the lender receives from the borrower on the maturity date

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Compound Interest (Ic) -

interest is computed on the principal and also on the accumulated past interests. (Ic = F-P )

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Conversion period (m) – the number of times in a year the interest will be compounded, i.e., annually (m=1), semi-annually(m=2), quarterly(m=4) and monthly (m=12)

If an amount P is invested at an interest rate r compounded annually, then the investment will increase to a value A ( future value ), at the end of t years. It is modeled by the equation. ( 𝑨 = 𝑷(𝟏 + 𝒓) 𝒕 ) 

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Draw

Complete the table

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Draw

Complete the Table Solve for Compound Interest

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Fill in the Blanks

Activity 2 SIMPLE INTEREST

Suppose you won P10,000 and you plan to invest it for 5 years. A cooperative group offers 2% simple interest rate per year. How much is your total investment after 5 years?

(input your answer without a comma example 5000)

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Activity 2 COMPOUND INTEREST

Suppose you won P10,000 and you plan to invest it for 5 years. A cooperative group offers 2% compound interest rate per year. How much is your total investment after 5 years?

(input your answer and roundoff to two decimal point example 5500.12)

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  • Name of Author

Evaluation

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a. Fill in the Blank

(Write your answer without a comma)

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b. Fill in the Blank

(Write your answer with percent symbol)

example 2.55%

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C. Fill in the Blank

(Write your in decimal form )

0.75 years

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d. Fill in the Blank

Clarification Principal Amount is 500,000

(Write your answer without a comma )

example 75000

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2. What is the amount of interest of a loan for P35,000 at 10% simple interest for 7 years?

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3. How long will a principal earn an interest equal to half of it at 5% simple interest?

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3. How many years a principal earn an interest equal to half of it at 5% simple interest?

(Write years in your answer example 5 years)

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4. How much interest will you have after 6 years if you deposited P 15,000 in a bank that pays 1.5% simple interest?

(Write pesos in your answer example 15500 pesos)

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5. How long will 5 million pesos earn a simple interest of 100,000 at 2% per annum

(Write years in your answer example 5 years)

pattern-tertiary
Simple Interest and Compound Interest

M11GM-IIa-1 to b-1

December 12-13, 2022

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