Simple

Interests
What are some
ways to take care
of hard-earned
money?
 Learning objectives:

Define simple and compound

interests
Compute for the future value,
interest and the principal value

Relates simple and compound

interest into real-life situation
1. 12% 4. 10.5%
2. 3% 5. 200%
3. 8 ½% 6. 0.75%
7.What percent of 24
is 12?
8. What is 25% of
108?
9. 48 is what percent
of 60?
Simple interest- is
calculated by
multiplying the
principal by the rat of
interest by the number
of payment periods in a
a. b.
c.

Where: I- interest
r-rate
t- time
Example:
Teresa borrowed 120,000.00 from her
uncle. If Teresa agreed to pay an 8%
annual interest rate, calculate the
amount of interest she must pay if the
loan period is (a) 1 year, (b) 9 m0nths,
(c) 18 m0nths.
A loan institution charges 12%
simple interest for a 3-year, 60
000.00 loan.
Find the total interest on the loan
Find the total amount that must be
paid to the loan institution at the
end of 3 years