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Bus math lesson 6 interest
- 1.
- 2. At the endof the lesson, the learner is able to: A. Define simple interest and maturity value. B. Making right decisions in borrowing money. C. Convert interest rate per year to equivalent monthly rate and vice versa, D. Solve for the interest ad its maturity value.
- 3.
- 5. Benchmark of interestrate of the Philippine Central Bank of the Philippines
- 6. •Describe your savings planin this time of new normal
- 8. INTEREST •The amount ofcharge for loans or borrowed money.
- 12. Maturity Value M •M= P + I Since I=PRT, then M = P+PRT = P(1+RT)
- 13.
- 14. Examples a.14% per yearto the equivalent monthly rate. Solution: Divide the annual rate by 12 to obtain the equivalent monthly rate. 14÷12 = 1.17% monthly
- 15. Examples b. 2.5% permonth to equivalent annual rate. a.Solution: Multiply the monthly rate by 12 to get the equivalent annual rate. 2.5×12 = 30% annually
- 16. Examples of Reallife Situations
- 17. Example 1: •Joanna borrowedan amount of Php100,000.00 from Tagum Cooperative at an interest rate of 2% to finance renovation of her house. How much is the interest if her due date is October of this year?
- 18. Solution • Given: P= Php100,000 R = 2% = 0.02 T = 1 year • Solution: I = PRT • = 100,000(0.02)(1) • = Php2,000
- 19. Example 2 •Compute theinterest on a credit purchased of ₱30,000 at 8% for 10 and 15 months.
- 20. Solution: Interest for10 months •I =PRT •= 30,000(0.08/12)(10) •= ₱2,000
- 21. Interest for 15months I =PRT • = 30,000(0.08/12)(15) • = ₱3,000
- 22. Example 3 •Find thematurity value of a loan of Php8,000.00 borrowed at an interest rate of 15% if it has to be repaid for 15 months.
- 24.
- 25. Example 4 •Arnold invested₱10,000 at two years in a bank earning the simple interest of ₱800 per annum. Determine the interest rate.
- 27. Solution •I =PRT =R = I/PT • R = (₱800)2 years • ₱10,000(2) • R = 0.08 = 8%
- 28. Example 5 •What isthe principal amount if the interest earned is ₱54,000, the interest rate is 12% and the time is 3 years?
- 30. Solution •I =PRT =P = I/RT • = ₱54,000/0.12(3) • = ₱150,000
- 31.
- 32. • What haveyou learned today?
- 33. •Why is savingmoney so important?
- 35. Thank you forlistening! God bless!
- 36. Title Lorem Ipsum LOREMIPSUM DOLOR SIT AMET, CONSECTETUER ADIPISCING ELIT. NUNC VIVERRA IMPERDIET ENIM. FUSCE EST. VIVAMUS A TELLUS. PELLENTESQUE HABITANT MORBI TRISTIQUE SENECTUS ET NETUS.
Editor's Notes
- #5 What do you observe about the picture? How does the interest rate affects the amount you borrowed? What will happen to the total value you have paid? 3. How does the interest rate affects your finances? 4. Is it important to know the interest rate and the maturity value of your borrowed money? Why?
- #6 The Philippine central bank unexpectedly lowered its benchmark interest rate by 25 bps to 2.0 percent during its November meeting, defying market expectations of an unchanged rate. The interest rates on the overnight deposit and lending facilities were also reduced to 1.5 percent and 2.5 percent, respectively. Policymakers voiced concerns about the resurgence of COVID-19 cases globally, while muted business and household sentiment in the Philippines and the impact of recent natural calamities could pose strong headwinds to the recovery of the economy in the coming months. Meanwhile, inflation expectations remaining firmly anchored within the target range of 2-4 percent.