LESSON PLAN

I. Objective
At the end of the session, the students must able to:
A. Identify the steps in solving business-related problems.
B. Apply the steps in using compound and simple interest in solving business-related
problems.
C. Show appreciation in working with group activity.

II. Subject Matter

Topic: Solving Simple and Compound Interest
Reference: www.slideshare.net/Mark Anthony C. Montesur
Instructional Materials: Visual Aids, Chalk, Chalkboard

III. Instructional Procedure

Teacher’s Activity Student’s Activity
A. Daily Routine
1. Prayer
Class let us all stand up. Before A student will lead the prayer
we start, Shaina lead the prayer. Dear God…………..Amen.

2. Greetings
Good Morning Class!
Good Morning Sir.
3. Checking of Attendance
Is everyone present for today? Yes, sir everyone is present today.

B. Priming/ Activating Prior

Knowledge
1. Drill
Class, find the answer of the
following problems by
choosing the correct letter that
best suits to the given problem.

1. Find the simple interest for

500 pesos at 6.25 % for 3
years.
a. 93.75
b. 94.75 1. A
c. 95 2. c
d. 93
 2. Find the simple interest on
$300 at 6% p.a for 2 years.
a. $35
b. $35.5
c. $36
d. $40

Very Good!

2. Review
How do we get the compound
and simple interest of the given
problem?

That is correct! We can get the We can get the simple and compound
compound and simple interest interest by following its steps and by using
by the use of the given formula its given formula also.
and by following its steps of
solving it.

How do they differ from each

other?

These two are the same when it comes to

their nature, however they differ from the
way they occur. Simple interest simply
calculates the principal or original amount
of a loan. While compound interest, it
computes the interest of a loan based on
how it is being asked to solved, meaning
the calculation of interest is compounded.
Very Good!

That’s right! Simple interest

simply calculates the principal
or original amount of a loan,
while compound interest, its
way of computing the interest is
not just simple but
compounded.
C. Lesson Proper
1. Motivation/Activity

Class, where do you usually hear

the word interest?

Students will raise their hands.

And how can we get the interest in Sir, we hear interest in business, lending
a lending company? company, etc.

Sir, we can get the interest in a lending

Now class, we will be having an company using the simple and compound
activity called “catch my interest” interest with its given formula.

So now, I want you to group

yourselves into 3. Count 1, 2, 3.

In your group choose a

representative, the representative Students will start counting.
will be the one to portray the given 1, 2,3.
word.
It should only be the gestures. If I
heard a voice from the
representative, the group will
automatically be disqualified. Each
group will be given 2 minutes to
guess the word. The group who can
guess the word faster will be the
winner and shall get an extra point
for today’s class.
For example:
LOVE

Did you get it class?

Are you ready class?

Group 1 you will be the first.

Yes sir.

Yes sir, we are ready.

BUSINESS
The group representative will go in front
Now for the second word. and will start to portray the word.
 Group 2, it’s your turn.
BUSINESS (1:20 MINUTES)
LOAN

Group 3, it’s your time now. Group 2 will start guessing the word.

INTEREST LOAN (1:35 MINUTES)

Group 3 will guess the word.

Very good class! Have you enjoyed
it? INTEREST (2:00 MINUTES)

So, the winner for this activity is

group 1. They answered correctly Yes sir!
the word in just 1:20 minutes.
Very good class!

2. Analysis

What did we do in our activity? Sir, we guess words common in finding

simple and compound interest.

Correct. And did we know that Sir, we searched about that. We studied it
those words are common in getting in advance as per instruction, that is why
simple and compound interest? we determined that those words are
common in getting the simple interest.
Also, it talks about business, so interest
will surely be there.

Very Good.

Let’s do this example.

Problem 1:

Jennifer borrowed Php 5,000.00 for Students will answer

three years at 12% per annum. Find
the simple interest and the amount : P x I x n
 to be paid back after 3 years? = 5,000 x .12 x 3
= 1,800 simple interest after 3 years

= 1,800

Very Good!

Problem 2:

Find the compound interest on RS. 8,500

for 2 years at 8% per annum Step 1:

Principal for the first year

= 8,500
Rate of interest – 8%

Excellent! Can somebody show how the

answer goes? Or can somebody show to
me the processes of getting the answer?

8500 x 8 x 1
Interest for the first year =
100

= 680

Amount at the end of first year

= P+5.1
= 8,500+680
A = 9,180

Step 2:

Principal for the second year = 9,180

Rate of interest = 8%
9180 x 8 x 1
Interest for second year =
100
= 734.40

Amount of the end of 2nd year

VERY GOOD! = 9,180+734.40
= 9,914.40

Compound interest for 2nd year

A – P = 9,914.40 – 8,500
= 1,414.40
 3. Abstraction

So, we have discussed about

interest. Do you know what is interest? Interest can be referred to as the amount of
ownership a stockholder has in a
VERY GOOD! company, usually expressed as a
percentage.

What are the two types of interest

very common in business?
Simple and compound interest.
VERY GOOD!

Can you differentiate these

two? How?

Yes Sir, Simple interest only calculates

the principal or original amount of a loan,
while compound interest is also about
calculating the principal amount of a loan
but is compounded.
EXCELLENT!

4. Application:

Now that you already know how to

get the interest in business, we will
be having a group activity. I will
divide you into two groups. Each
group will choose their leader. The
leader will be the one who can ask
me about the activity and he is also
responsible in dividing the tasks
among the members of the group.

Each group will be given an

activity envelope where you will
find the materials for the activity
and the problem that your group
will going to evaluate.

Now, the group activity will be

scored according to this standard.
 COOPERATIVE LEARNING RUBRIC

EXCELLENT ACCEPTABLE MINIMAL

(5 points) (3 points) (1 points)
Correct answer. Correct answer, but Wrong answer.
Accuracy Following all the missing some of the
steps. steps
First group to pass Following groups to Group/s that passes
Time Frame within the time limit. pass within the time exceeding the time
limit. limit.
All members doing Some members did Few members do the
Cooperation their assigned tasks not cooperate in the activity.
cooperatively. activity.

Group 1:

Inside the envelope there are jumbled

letters. You need to recalibrate the jumbled
letters to form a word. Once you get the
correct word, you can now answer the
problem given

COMPOUNDED
COMPOUNDED
PROBLEM:
Anthony puts 10,000 pesos into a savings
account that pays interest every month at a I = prt
rate of 1.8% per year. How much money P= 10,000
does Anthony have after 1 month? If he 0.018
R= = 0. 0015
leaves his original investment and the first 12
month of interest in the account, how T= 1
much will he have after the second month? I= (10, 000) x (0.0015) (1)
I= 15 + 10, 000 = 10, 015
 P= 10, 015
R= 0. 0015
Group 2 T= 1
I= (10, 015) (0. 0015) (1)
Inside the envelope there are jumbled I= 15. 02 + 10. 015
letters. You need to recalibrate the jumbled = 10, 030. 02
letters to form a word. Once you get the
correct word, you can now answer the
problem given.

QUARTERLY

Problem:
Find the simple interest for 500 pesos
invested at 6.25 % for 3 years.
QUARTERLY

I= prt
I= 500 x 0. 0625 x 3
I= 93.75.00
5. Evaluation:
Class, get a ½ sheet of paper
“crosswise” and answer the
following problems.

1. Mr. Z makes an initial Students will get a piece of paper and will
investment of $ 5,000 for a period start answering.
of 3 years. Find the value of the
investment after the three years
if the investment earns the return
of 10 % compounded monthly. A = P (1 + r / m) mt

 A = $ 5,000 (1 + 0.10 / 1) 1*3

 A = $ 5,000 (1 + 0.10) 3

 A = $ 5,000 (1.10) 3

 A = $ 5,000 * 1.331

 A = $ 6,655

Thus it shows that the value of the initial

investment of $ 5,000 after the period of 3

 years will become $ 6,655 when the return

is 10 % compounded annually.

2. Mr. X makes an initial

investment of $ 10,000 for a mt
period of 5 years. Find the value A = P (1 + r / m) 
of the investment after the five
years if the investment earns the
return of 3 % compounded  A = $ 10,000 (1 + 0.03 / 12) 12*5
monthly.
 A = $ 10,000 (1 + 0.03 / 12) 60

 A = $ 10,000 (1.0025) 60

 A = $ 10,000 * 1.161616782

 A = $ 11,616.17

Thus it shows that the value of the initial

investment of $ 10,000 after the period of

5 years will become $ 11,616.17 when the

3. Jan borrowed $3,000 for 4 Years at return is 3 % compounded monthly.

5% interest rate, how much interest
is that?
I = Prt
I = $3,000 × 5% × 4 years
I = $3000 × 0.05 × 4
4. A 2-year loan of $500 is made with I = $600
4% simple interest. Find the interest I=Prt
earned.

=500(0.04)(2)

=40

5. Find the simple interest on Rs.

3000 at a 7% rate of interest for I= prt
one year.
 = 3000 x .07 x 1 = 210

6. Assignment

Study in advance about annuity.

That’s all for this session. Arrange

now your chairs properly. Bye
class and see you tomorrow. Thank you and goodbye sir!

Prepared by:
Fernando, Cromwil D.
Student
Checked by:
Mr. Chino C. Pijo
Instructor