Gen Math LAS3

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Name: ___________________________________________Grade & Section: _________________

Subject: General Mathematics Teacher: ________________________ Score: ______________

Lesson : Quarter 2, Week 1, LAS 3


Activity Title : Computes interest, maturity value, and present value of Compound Interest
Learning Target : Computes interest, maturity value, future value, and present value of simple
interest and compound interest environment. (M11GM-IIa-b-1)
Reference(s) : General Mathematics (Oronce, 2016), MELCS
LAS Writer : Grestiffanny Eve R. Quibierne

 Compound Interest – is interest calculated on the initial principal, which also includes all the
accumulated interest from previous periods of the money.
Compound interest formula and calculations:

Compound Interest formula: � = � � + � kt
Periods:
Where: A = amount
P = Principal amount k = 1 (annually, in a year)
r = rate k = 2 (semiannually, every 6 months)
k = period (interval for compunding) k = 4 (quarterly, every 3 months)

= periodic rate k = 12 (monthly)

t = time

Examples:
1. Find the compound amount if 20,000.00 is 2. Find the compound amount if 65,000.00 is
deposited for 3 years at 4% compounded borrowed at 8% compounded quarterly for 5
semiannually. years.
Given: P = ₱20,000 r = 4%, k = 2 Given: P = ₱65,000 r = 8%, k = 4 (quarterly), t
(semiannually), t = 3 years = 5 years
� kt
Solution: � = � � + � Solution: � = � � + �
� kt
0.04 (2)(3)
A = 20,000 1 + 0.08 (4)(5)
2 A = 65,000 1 + 4
0.04 (6)
A = 20,000 1 + 0.08 (20)
2 A = 65,000 1 +
A = 20,000 1.02 (6) 4
A = 20,000 1.126162419 A = 65,000 1.02 (20)
A = 22,523.25 A = 65,000 1.4859474
Compound amount: ₱22,523.25 A = 96,586.58
Compound amount: ₱96,586.58

 Maturity Value or Future Value – it is the compounded or final amount.


 Principal value ot Present Value – it is the initial or principal amount.
Future Value = Compound Amount: Present Value = Principal amount
r kt FV
Formula: FV = PV 1 + Formula: PV = r ��
k 1+
0.04 k
Example: FV = 20,000 1 + (2)(3)
22,523.25
2 Example: PV = 0.04 2(3)
FV = 22,523.25 1+
2
Future Amount: ₱22,523.25 PV = 20,000
Present Value = ₱20,000

Activity: Solve what is asked in each item. Write your solution and answer at the back of the paper.
Given: If ₱100,000.00 is invested for 5 years at 2% compounded monthly, find the:
1. Compounded amount
2. Future Value
3. Present Value Box for
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