Simple interest maturity valuejsjdjjd.pptx

Jajsuhwus

1. SIMPLE INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!

2. IMPLE INTEREST DEFINITION Interest paid on the principal only and NOT on any accumulated interest

3. Annual interest rate IMPLE INTEREST FORMULA Interest paid Principal (Amount of money invested or borrowed) Time (in years) I = PRT

4. If you invested $200.00 in an account that paid simple interest of 4%, find the interest earned after 1 years.   I = (200)(0.04)(1.5) I = $12 enter in formula as a decimal I = PRT

5. If you invested $300.00 in an account that paid simple interest, find how long you’d need to leave it in at 2% interest to make $15.00. 15 = (300)(0.04) T 1.25 yrs = T Solving for Time enter in formula as a decimal I = PRT

6. The Value of an asset at a specific date Maturity Value

7. MV FV A S Variables for Maturity Value Future Value Amount

8. S = Principal + Interest S= P + I Calculating Maturity Value

9. If you invested $200.00 in an account that paid simple interest of 4%, find the maturity value after 1 years.   S = Principal + Interest S = P + I S = P + PRT S = 200 + (200)(.04)(1.5) S = 200 + 12 S = $212 Example

10. S = P (1+rt) Calculating Maturity Value

11. If you invested $200.00 in an account that paid simple interest of 4%, find the maturity value after 1 years.   S = P(1+rt) S = 200(1+.04 • 1.5) S = 200(1.06) S = $212 Example

12. Example 1 Carla borrowed ₱20,000 from a cooperative at 6% simple interest per year. She promised to pay it back after 3 years. What is the maturity value of her loan?

13. Example 2 James deposited ₱15,000 in a rural bank that pays 8% simple interest per year. If he keeps the money for 2 years, what is the maturity value of his deposit?

14. Example 3 A businessman invested ₱100,000 in a time deposit for 9 months (0.75 years) at 12% simple interest. Find the maturity value of his investment.

15. Activity 2 Solve the following. Show your complete solution. 1.A principal amount of ₱8,000 is borrowed at 6% simple interest per year for 3 years.
Find the interest and the maturity value. 2. Julia borrowed ₱50,000 from a bank at 12% simple interest per year. If she will pay it back in 10 months, how much is the interest and the total amount due? 3. Jessa lent her friend ₱15,000 at 10% simple interest for 18 months . How much interest will she earn?

16. Activity 2 ChatGPT You said: Provide example about maturity value ChatGPT said: Here’s a clear example about  Maturity Value (MV)  in  Simple Interest : Example 1: Carla borrowed  ₱20,000  from a cooperative at  6% simple interest per year . She promised to pay it back after  3 years . What is the  maturity value  of her loan? Solution: We use the formula: where:  = Maturity Value  = Principal (original amount borrowed)  = Interest The interest in simple interest is: Now, ✅  Answer:  The maturity value of Carla’s loan is  ₱23,600 . Would you like me to also give you an example for  Maturity Value in Compound Interest  so you can compare? You said: More example ChatGPT said: Got it 😊 Here are more worked-out examples of  Maturity Value  in  Simple Interest : Example 2: James deposited  ₱15,000  in a rural bank that pays  8% simple interest per year . If he keeps the money for  2 years , what is the  maturity value  of his deposit? Solution: ✅  Maturity Value = ₱17,400 Example 3: Maria borrowed  ₱50,000  from a bank at  10% simple interest annually . She plans to pay it back in  18 months (1.5 years) . What will be the  maturity value ? Solution: ✅  Maturity Value = ₱57,500 Example 4: A businessman invested  ₱100,000  in a time deposit for  9 months (0.75 years)  at  12% simple interest . Find the  maturity value  of his investment. Solution: ✅  Maturity Value = ₱109,000 👉 Do you also want me to prepare  real-life word problems about maturity value  (like loans, savings, investments) that you can give directly to students as practice exercises? You said: Provide a example of simple interest ChatGPT said: Sure! Here’s a clear  example of Simple Interest (SI): Example 1: Anna borrowed  ₱12,000  from a friend at  5% simple interest per year . She promised to pay it back after  4 years . How much interest will she pay? Solution: The formula for  Simple Interest  is: where:  = interest  = principal (amount borrowed)  = rate (in decimal form)  = time (in years) ✅  Answer:  Anna will pay  ₱2,400  as interest. Would you like me to also show the  Maturity Value (Principal + Interest)  for this example so students can see the full picture? You said: Provide a seatwork ChatGPT said: Perfect 👍 Here’s a  ready-to-use seatwork  on  Simple Interest  that you can give directly to students. 📘 Seatwork: Simple Interest Name:  _______________________ Date:  ________________________ Score:  ____________ A. Solve the following. Show your complete solution. A principal amount of  ₱8,000  is borrowed at  6% simple interest per year  for  3 years . Find the  interest  and the  maturity value . Mark deposited  ₱25,000  in a bank at  5% simple interest . How much will his deposit be worth after  4 years ? Julia borrowed  ₱50,000  from a bank at  12% simple interest per year . If she will pay it back in  10 months , how much is the  interest  and the  total amount due ? A businessman invested  ₱100,000  for  2.5 years  at  9% simple interest . What is the  maturity value  of his investment? Jessa lent her friend  ₱15,000  at  10% simple interest  for  18 months . How much  interest  will she earn?