Mr. Edmundo DC.

De Jesus
I. Prelim Period
A. Simple Interest and Simple Discount
1. Simple Interest
2. Ordinary and Exact Interest
3. Approximate and Exact Time
4. Simple discount
5. Promissory Notes
II. Midterm Period
B. Compound Interest
1. Finding the compound amount
2. Finding the compound amount when n
is not an integer
3. Finding the compound amount at
changing rates
4. Finding the present value
5. Finding the present value when n not
an integer
 6. Equivalent Rates
7. Continuous compounding
8. Finding the interest rate
9. Finding the time or term of an
investment
10. Valuation of contracts and their
comparison
11. Comparison of values
12. Equation of values
III. Semi-Final Period
C. Simple Annuities and their Applications
1. Basic Concepts and Terminologies
2. Amount and Present Values of an
Ordinary Annuity
3. Ordinary Annuity Formulas
4. Periodic Payment of an Ordinary
Annuity
5. Finding the interest rate of an
ordinary annuity
 6. The term of an ordinary annuity
7. Annuity Due
8. Deferred annuity
IV. Final Period
D. Amortization and Sinking Fund
1. Amortization
2. Sinking Fund
3. Sinking Fund Method of Retiring a
Debt
 Chapter Tests
 Project
 Attendance
 Exams

 Final Grade = the average of four periods

 Simple interest is interest on the amount
invested or borrowed at a given rate and for a
given time.
 It is usually associated with loans or
investments which are short-term in nature.
 It is computed entirely on the original
principal by simply multiplying the principal,
rate, and time.
 This leads to the simple interest formula
I = Prt
 Where I – simple interest
P – principal amount
r – interest rate per period of time,
expressed as a percent or fraction
t – time (in years) between the date the
loan is made and the date it matures or becomes
repayable to the lender.
 The maturity value, F, the total amount the
borrower would need to pay back, is given by the
formula F = P + I
 F = P(1 + rt)
1. Find the interest on a loan of Php10,000 for
one year if the interest rate is12%
2. A credit union has issued a 3-year loan of
Php100,000 at a rate of 10%, what amount
will be repaid at the end of the third year?
3. A Php5,000 savings account earned Php700
interest in 2 years. What was the rate of
interest given?
4. At the end of 2 years, Php36,000 in interest
was paid on an 18% simple interest. How
much was borrowed?
5. Edward needs Php20,000 to buy office
furniture for his new office in Las Pinas. He
wants to limit the interest he will pay when he
borrows the amount in a bank to Php1,100
only. If the bank charges 11% interest, after
how long must Edward pay his obligation?
6. Find the interest on a loan of Php50,000 at
18% simple interest and which was paid after 6
months.
 Ordinary interest – the total number of days
in a year is 360
 Exact interest – the total number of days in a
year is 365
 Unless otherwise specified, ordinary interest
is computed when the term of the loan is
given in days.
1. Find the ordinary and exact interest on
Php15,000 if it is invested at 12% for 60
days.
2. To renovate the portion of his house, Mrs
Lorenzo made a loan of Php48,000 from a
bank that charges 16% interest. How much
did she pay the bank after 120 days using
the ordinary-interest method?
3. Find the maturity value of Php42,500 at 9%
for 90 days using exact-interest method.
4. Find the interest on Php80,000 if it is
invested at 8 ¾ % for 100 days.
5. Find the time if the ordinary simple interest
on Php60,000 at 10% is Php2,000.
6. What is the interest rate at which Php42,600
is invested earning an exact simple interest of
Php940.54 after 90 days?