Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

LEARNING ACTIVITY SHEET IN BUSINESS MATHEMATICS

INTEREST
Name of Learner: _____________________________________
Grade Level: 11___________________________________
Strand/Track: ABM-ACADEMIC_______________________
Section: _____________________________________
Date: _____________________________________

A. Background Information for Learners

This lesson is about the computation for interest specifically as applied to mortgage,
amortization, and on services/utilities and on deposits and loans. Interest is the amount
of charge for the privilege of borrowing money.
Example 1: Simple Interest
On October of last year, Carl borrowed an amount of P200,000 from PQR Cooperative
at an interest rate of 2% to finance his house renovation. How much is the interest if
his due date is October of this year? How much is the maturity value?
Given: Principal (P) = P200,000
Rate (r) = 2% = 0.02
Time (t) = 1 year
Solution:
Interest (I) = Prt Maturity Value (M) = P + I
= 200,000*0.02*1 =200,000 + 4,000
=Php4,000 = Php204,000
The amount of money, P200,000, which was borrowed from the cooperative is called
the principal, P, and the interest charged, I = P4,000, is a percent of principal. The
period of time where the lender or creditor will charge the interest starting from the loan
date up to the loan repayment is called loan term or interest period, t, which is 1 year
in the problem, and the quoted percent is the rate 2%, which is r.
The maturity value M that the lender receives from the debtor on the maturity date of
the loan is equal to the sum of the principal P and the simple interest I. that is, we have
M=P+I Since, I = Prt, we get M = P + PRT or M = P(1+rt)

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Example 2: Ordinary and Exact Interest

An amount of P28,100 was invested at 7% simple interest for 100 days, Compute for
the value of a) exact interest, b) ordinary interest
Given: P = 28,100 r = 7% or 0.07 t = 100days
Solution:
A. Ie = Prt B. Io = Prt
= (28,100) * ( 0.07) * ( 100/365) = (28,100) * (0.07) * (100/360)
= P538.90 = P 546.39
Replace the formulas in I =Prt, where t is expressed in days, as follows:
𝑟
For ordinary interest: I = P * 360 * t
𝑟
For exact interest: I = P * *t
365

Example 3: Actual Time and Approximate Time

Determine the actual time and approximate time from April 11 to August 16 of the
same year:
Solution:
a. Actual time of counting the number of days, we have
April (11-30) = 19
May = 31
June = 30
July = 31
August (1-16) = 16
Actual Number of days = 127

b. Approximate time (as if each month has 30 days), we have

April (11-30) = 19
May = 30
June = 30
July = 30
August (1-16) = 16
Actual Number of days = 125

Finding the unknown:

𝐼 𝐼 𝐼
P = 𝑟𝑡 r = 𝑃𝑡 t = 𝑃𝑟

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

B. Learning Competency with code

Compute interest specifically as applied to mortgage, amortization, and on
services/utilities and on deposits and loans. (ABM_BM11BS-lj-10)

C. Directions/ Instructions
After going through with this unit, you are expected to:

1. Read and follow each direction carefully.

2. Accomplish each activity for the mastery of competency.
3. Use the Learning Activity Sheets with care.
4. Record your points for each activity
5. Always aim to get at least 80% of the total number of given items.
6. If you have any questions, contact, or see your teacher through messenger
or text

D. Exercises / Activities

DAY 1
D.1 INTRODUCTION

a. What I need to Know

After going through with this unit, you are expected to:

1. Analyze and compute interest specifically as applied to mortgage,

amortization, and on services/utilities and on deposits and loans.

D.2 DEVELOPMENT MY SCORE:

a. What I Know? ____________

__
Activity 1: “Recall the Process”

Directions: Convert the following Percent to Decimal, vice versa

1. 10% = 6. 0.05 =
2. 0.5% = 7. 0.7 =
3. 250% = 8. 1 =
4. 25% = 9. 0.001 =
5. 37.5% = 10. 0.9152=

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Activity 2: “PART OF YOU” MY SCORE:

Directions: Find the part that corresponds with each percent ____________
1. 1% of 100 __
2. 5% of 300
3. 1/4 % of 100
4. 15% of 420
5. 25.5% of 300

b. What ‘s New?
MY SCORE:

Activity 3: “I CAN DO THIS” ____________

__
Direction. Find the simple interest on each loan?
1. P25,000 at 4% for 3 years
2. P18,000 at 11% for 1 ½ years
3. P8,750 at 6 ½% for 2 years
4. P11,000 at 7 3/4% for 10 months
5. P7,200 at 10% for 6 months

MY SCORE:
____________
Activity 4: “MISSING ME” __
Direction. Determine the missing item in each of the following problems.
PRINCIPAL RATE TIME INTEREST MATURITY
VALUE
1. P3,600 3.5% 9 months ? ?
2. P8,250 6.2% 1 year and 3 months ? ?
3. P5,820 ? 8 years P5,820 ?
4. P10,600 ? 5 years and 4 months P2,500 ?
5. ? 10.5% 5 months P1,360.50 ?
6. ? 4.5% 2 years and 3 months P686.21 ?
7. P5,360 3.8% ? P580.21 ?
8. P12,655 6.25% ? P1,350.60 ?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

DAY 2
MY SCORE:

b. What’s In ____________
__
Activity 5: “I CAN DO THIS!”

Directions: Analyze and solve the problems.

Problem 1. What is the interest on a P300,000 loan for 18months at an interest

rate of 12%?

Problem 2. Mr. Paul Lopez borrowed P200,000 from his company. If he paid
an interest of P37,000 for one and a half year, what is the rate of interest?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Problem 3.If Miss Pat Trillo paid an interest of P3,000 for a loan obtained at
9% per annum for eight months, what is the original loan?

Problem 4.Mrs. Paredes obtained a loan of P50,000 from the SSS. If the total
interest of the loan was P19,500 at 9.75% per year, how long was the loan?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Problem 5. Miss Lani Martin deposited an amount of P32,600.00 in a bank that

gives 4.5% on savings account. a) How much shall be the accumulated value
of the investment after 3 years and 7 months? b) How much shall be the interest
earnings?

Problem 6. An amount of P2,500.00 was doubled after 7 years and 6 months.

Compute for the following:
a. Amount of Interest
b. Rate of Interest
c. Maturity Value

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Problem 7. What amount shall be deposited in a bank today to accumulate

P50,000 interest after 5 years and 10 months? Assume money is worth at 8%?

Problem 8. Ms. Lorela Yap borrowed an amount of P15,600 from a bank that
charges 12.5% How much shall be paid to the bank after:
a. 1 year and 10 months?
b. 8 years and 3 months?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

DAY 3
MY SCORE:
D.3 ENGAGEMENT
____________
Activity 6: “I CAN DO MORE!” __

a. What is more?

Directions: Analyze and solve the problem

Problem 9. An amount of P15,600 was invested at 8% simple interest for 115

days. Compute the amount of interest and accumulated value using: (round off to
nearest hundredths)
a. Exact Interest
b. Ordinary interest

Problem 10. Mr. Rey Marquez deposited an amount of P15,775.00 in a bank that
offers 4.5% rate per year. How much shall be the interest of the investment after
100 days using: (round off to nearest hundredths)
a. Exact Interest
b. Ordinary interest

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Problem 11. Francis wants to know which credit company offers lower interest at
the same interest rate of 9% if he plans to borrow a quick cash of P30,000 for 90
days. Company A uses the ordinary interest method to compute for the interest
while, Company B applies exact interest method. Which company will he choose?
What is the difference between the interests offered by the two companies? (round
off to nearest hundredths)

Problem 12. Determine the number of days from March 28 to November 6 of the
same year using:
a) Actual time
b) Approximate Time

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Problem 13. Miss Helen Sandoval invested an amount of P20,600 on June 28,
2007 at 6% per year. Compute for the amount of interest earned on December
12, 2007, using: (round off to nearest hundredths)
a. Actual time, Ordinary Interest
b. Approximate time, Ordinary Interest
c. Actual Time, Exact Interest
d. Approximate Time, Exact Interest

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

DAY 4
MY SCORE:
D.4 ASSIMILATION
_____________
a. What I have Learned?

Activity 7: “I knew it!”

Directions: Define the following.

1. Principal Amount -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

2. Interest -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

3. Maturity Value -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

4. Actual Time -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

5. Approximate Time -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

6. Ordinary Interest -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

7. Exact Interest -
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

Activity 8: “Now You Know” MY SCORE:

_____________
Directions: Answer the following questions.

1. Interest rates channel the flow of funds from the lenders or savers to borrowers.
Usually, the funds flow through financial intermediaries such as banks, mutual
funds, and insurance companies. How is interest treated by savers or lenders?
How about by borrowers?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

2. How can the level of interest rates affect the purchasing power of the borrower?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
_____________________________________________________________.

E. Rubrics
CRITERIA 3 2 1
Above Expectation Meet Expectation Below Expectation
ANALYSIS Response provide an in- Response provides an Response does not provide
depth analysis of the analysis of the questions an analysis of the questions
questions given. Shows an given. Shows a little given. Shows no
understanding of the lesson understanding of the lesson understanding of the lesson
content. Examples were content. Examples were not content. Examples were not

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

given to explain the concept given to explain the concept given to explain the concept
presented. presented. presented
CLARITY The thoughts were clearly The thoughts were slightly The thoughts were unclear.
expressed. The clear. The organization of There is no organization of
organization of words in the words in a sentence was words in a sentence.
sentence was clearly not exemplified clearly.
exemplified.
WRITING SKILLS Clear writing, complete Clear writing, complete Unclear writing, incomplete
sentence, no errors in sentence, with minimal sentence, ample errors in
grammar and spelling errors in grammar and grammar and spelling
spelling

F. Reflection
Learners will write on their notebooks or journals their insights about the lesson.
I understand that
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.

I realized that
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________.
G. References
Books

Dagal, Keneth Adrian, Martin-Lundag, Leah, Lopez, Bryan Roy, Business Math
Textbook, 2016.

Dagal, Keneth Adrian, Martin-Lundag, Leah, Lopez, Bryan Roy, Business Math
Teacher’s Manual, 2016.

Abao, Zenon R., Guhao,Jr. Eugenio S, Marribay, Jose B. Business Mathematics, 2008

Others

Teaching Guide for Senior High School Business Mathematics, Commission on

Higher Education, 2016

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