6

Module
52

MATH
SOLVING WORD PROBLEMS INVOLVING
SIMPLE INTEREST

A DepEd-BEAM Distance Learning Program supported by the Australian Agency for International Development
 To the Learner

Good morning to you! I am glad that you are still eager

to learn up to this time. You are fortunate because you have
this module with you which serve as your guide as you
continue learning new knowledge and skills in Mathematics.

Let’s Learn This

This module focuses on how to solve word problems

involving simple interest.

Let’s Try This

Let me see if you can recall your previous lesson.

Answer as fast as you can.

1. 25% of 100 = 4. 40% of 30 =

2. 30% of 10 = 5. 100% of 100 =

3. 60% of 20 =

101
 Let’s Study This

When we put money into a savings account at a bank,

we expect to earn interest for letting the bank use our
money. Here is a formula for computing simple interest:

I = PRT,
Where I = stands for the interest,
P = for the principal,
R = for the rate of interest, and
T = for the time.

The formula can be used to solve many types of

problems.
Examples:

1. Franz put 4,500 pesos into a savings account where

the money earn 3 1 % interest per year. How much interest
2
will the money earn in one year? 3 1 % = 3.5% = 0.035
2

Solution: I = PRT= 4,500 x 3 1 % x 1

2
= 4,500 x 0.035 x 1
= 157.50 pesos
Answer: 157.50 pesos interest

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2. Emil puts 2,000 pesos into a saving account in January.
Six months later, he puts 500 pesos more into the account.
The interest rate is 4% per year. How much interest will be
earned at the end of the year?

Solution: I = PRT = 2000 x 4% x 1 The 500 pesos

= 2000 x 0.04 x 1 earns interest
= 80 for 1 year.
2
1
I = PRT = 500 x 4% x 2
= 500 x 0.04 x 1
2
= 10
Answer: 80 pesos + 10 pesos = 90 pesos interest

Let’s Do This

Complete to find the amount of simple interest.

1. 1,000 at 6% per year for 3 years.

I = PRT
= 1,000 x 6% x

= x x3

2. 250 pesos at 0.5% per month

I = PRT
= 250 x 0.5% x

= x x3

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3. 6,000 pesos at 8% per year for 6 months
I = PRT

= x 8% x 6
12
1
= x x 2

4. 800 pesos at 2% per year for 18 months

I = PRT

= 800 x ‘ x 18
12

= x x 2
3

Let’s Do More

Find the amount of interest earned in each investment.

1. 2,400 pesos at 6% per year for 5 years

2. 3,250 pesos at 3% per year for 6 years

3. 4,500 pesos at 2% per year for 3 1 years

2
1
4. 1,800 pesos at 5% per year for 1 2 years

5. 6,500 pesos at 4 1% per year for 8 months

4

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 Let’s Remember This

Simple interest is the amount changed for money invested or

borrowed at a certain rate per year.

Principal is the amount of money invested or borrowed.

Interest rate is the percent of the principal paid or earned.

Time, expressed in years, is the period allotted for the
repayment of the principal.
To solve for the simple interest, use the formulas
I = PRT

Where, I stands for the Interest,

P for the Principal,
R for the rate of interest, and
T for the Time

Let’s Test Ourselves

A. Find the interest at the given annual interest rate.

1. 1,000 pesos at 6% for 6 months

2. 12,000 pesos at 4% for 3 years

1
3. 400,000 pesos at 3 2 % for 2 years

4. 1,750 pesos at 12% for 5 years and 6 months

5. 9,600 pesos at 3% for 8 years

105
B. Solve each problem.

1. At 7% interest for year, what is the amount of interest on

a loan of 8,000 pesos for 6 months?

2. What is the interest on a loan of 35,000 pesos for one

year at 6% annual rate?

3. Find the interest on a loan of 5,000,000 for 10 months at

3% annual interest rate.

4. Ms. dela Paz borrowed 4,500 for 6 months with a yearly

interest of 8%.

a. What was the interest of the loan?

b. How much money did Ms. dela Paz pay back in all?

Let’s Consider This

How did you find the test? Kindly check your answer.

What is your score?

If you got 8-10, you may proceed to the next module.

If your score is 5-7, do the “Let’s Enrich Ourselves.”

If your score is below 5, review the whole module.

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 Let’s Enrich
Ourselves

Find the simple interest earned in each investment.

1. 4,640 pesos at 5% per year for 4 years.

2. 3,600 pesos at 2.5% per year for 2 years.

3. 9,500 pesos at 2% per year for 10 years.

1
4. 5,000 pesos 5 2 % per year for 6 months.

5. 8,100 pesos 7% per year for 9 years.

107
 Answer Key

Let’s Try This

1. 25 4. 12

2. 3 5. 100

3. 12

Let’s Do This

1. I = 1000 x 6% x 3

= 1000 x 0.06 x 3

I = 180 pesos

2. I = 250 x 0.5% x 3

= 250 x 0.005 x 3

I = 3.75 pesos

6
3. I = 6,000 x 8% x 12

0.08 1
= 6,000 x x 2

I= 240 pesos

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4. I = 800 x 2% x 18
12

= x x 3
800 0.02 2

= 24 pesos

Let’s Do More

1. 720 pesos 4. 135 pesos

2. 585 pesos 5. 184.20 pesos

3. 315 pesos

Let’s Test Ourselves

A. B.
1. 30 pesos 1. 280 pesos

2. 1,440 pesos 2. 2,100 pesos

3. 28,000 pesos 3. 125,000 pesos

4. 1,155 pesos 4. A 180 pesos

5. 2,304 pesos 4. B 4,680 pesos

Let’s Enrich Ourselves

1. 928 pesos

2. 180 pesos

3. 1,900 pesos

4. 137.50 pesos

5. 5,103 pesos

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