ACLC COLLEGE OF MANDAUE

MANDAUE CITY

GENERAL EDUCATION DEPARTMENT

MATHEMATICS IN THE MODERN WORLD
Week 11: Mathematics Finance and Apportionment and Voting
(SIMPLE INTEREST)
OBJECTIVES:
At the end of the discussion, the students will be able to :
1.) Understand the concept of simple interest.
2.) Distinguish between ordinary and exact interest.
3.) Solve problems on finding ordinary and exact interest.

SIMPLE INTEREST
It is an interest computed based on the original principal during the whole life of
investment.

FORMULA FOR FINDING SIMPLE INTEREST

I = PRT where
I = Interest P = Principal r = rate t = time
MATURITY VALUE(F) – total amount the borrower would need to repay a loan.
F = P + I since I=Prt then
F = P(1 + rt)

EX. Find the interest and MATRURITY value on a loan of Php 10,000 for years with an
interest of 10%.
I = Php (10,000)(.10)(3)
I = Php 3000
F=P+I

F = Php 10,000 + 3,000

F = Php 13,000
Ordinary interest – interest computed on the basis of a 360-day year

Exact interest – interest computed on the basis of a 365-day year

Approximate time – calculated Assuming that each month of the year had 30 days

Exact time – as the name suggests it refers to the exact number of days as found in the
calendar
REFERENCES and SUPPLEMNTARY MATERIALS:

Prepared by:
Rodilla L. Lauro