GENERAL MATHEMATICS-SIMPLE INTEREST.pptx

Simple interest lesson on grade 11 General Mathematics

1. computes interest, maturity value, future value, and present value in simple interest and compound interest environment LEARNING OBJECTIVE

2. SIMPLE INTEREST Refers to the amount earned for one year calculated by multiplying the principal by the interest rate. Only the principal, no more no less, is considered for the computation of interest. This kind of interest is applied for transactions that usually last only for less than a year. It is also important to note that simple interest is directly proportional to the principal , interest rate , and term . In symbols,  

3. Examples A bank offers 0.25% annual simple interest rate for a particular deposit. How much interest will be earned if 1 million pesos is deposited in this savings account for 1 year?  

4. Examples How much interest is charged when 50,000 is borrowed for 9 months at an annual simple interest rate of 10%?    

5. Examples An amount of 1,000,000 is invested in a financial institution: How long will it take for the amount to reach 1,001,000 at 2% simple interest? At what interest rate will it earn 1,000 in 10 months?      

6. TRY!

7. Quiz #1