GENERAL

MATHEMATICS
SUBJECT: GENERAL MATHEMATICS (Core Subject)

INTRODUCTION
Welcome dear learners to Math 11 (General Mathematics.). This
subject will reinforce your skills in rational, exponential and logarithmic
functions in your junior high school and provide you a better foundation
for college mathematics in your chosen fields. You will also be introduced
to the application of interest rates in problems on amortized loans and in
valuation of annuities. Lets have fun in the application of your knowledge
in General Mathematics.

SUBJECT DESCRIPTION: At the end of the course, the students must

know how to solve problems involving rational, exponential and
logarithmic functions; to solve business-related problems; and to
apply logic to real-life situations.

Lesson 1 - focuses on key concepts of the functions, including

piece-wise functions, evaluating functions, performing operations on
functions and solving problems involving functions

Lesson 2 - focuses on finding the intercepts, zeroes, asymptotes of

rational functions, inverse function and its graph, exponential functions,
exponential equations, exponential inequalities.
Lesson 3 – focuses on solving exponential functions and inequalities
and solving problems involving exponential functions, equations and
inequalities.

Lesson 4 - focuses on logarithmic functions and inequalities

Lesson 5 - focuses on simple and compound interest , maturity value
and solving problems involving real life situation.
Lesson 6 – focuses on simple and general annuities future and
present value of simple and general annuities , calculation of fair market
value of cash flow stream and deferred annuities
Lesson 7- focuses on basic concepts of stocks and bond including
business loans
Lesson 8 - focuses on logic, propositions, types of operations on
propositions, the truth value of propositions , Conditional propositions ,
Tautologies and Fallacies and syllogism
Lesson 5: Simple and Compound Interest

Pre-Assessment Test

Multiple Choice. Circle the letter of your answer.

1. How much is the interest if you loan ₱250,000 for a year at a simple interest
of 10%?
a. ₱30,000
b. ₱50,000
c. ₱25,000
d. ₱12,350
2. Which of the following is also referred to as the Banker’s Rule?
a. Exact interest exact time
b. Exact interest approximate time
c. Ordinary interest exact time
d. Ordinary interest approximate time
3. What do you call the interest which is computed entirely once from the
moment the money borrowed or invested?
a. Simple interest
b. Compound interest
c. Maturity interest
d. General interest
4. What do you call the interest added to the principal of an investment or a
loan so that the added interest also earns interest from then on?
a. Simple interest
b. Compound interest
c. Maturity interest
d. General interest
5. Covert 2.65% into decimal.
a. 0.000265
b. 0.00265
c. 0.0265
d. 0.265
Lesson 5.A: Simple and Compound Interest

Time frame: 1st week (8 hours)

Performance standard:

Investigate and analyze simple and compound interest

Specific Objectives:
At the end of the lesson the learners are expected to:

 define simple interest

 define compound interest

“Thiings like the financial markets, a proper grounding in mathematics

could help the common man. I believe that if people are more familiar
with mathematical concepts… it can help deal with modern life, which is
increasingly complex.”

-Viswanathan Anand-

Activity 1

Georgia graduated from Senior High School with the Highest Honors.
With her achievements, her parents gave her P50,000.00. She went to
Bank A and was offered to invest her money at 7% simple interest for 3
years while Bank B offered 5% interest rate compounded quarterly for
the same period of time. Which of the two offers will give a better value
at the end of three years?
Simple Interest (I ) is the payment for the use of money or the amount
earned on money invested.
Principal ( P ) is the amount invested or the amount of loan.
Rate of Interest ( r) is a fractional part of the principal that is paid on a
loan or investment.
Time (t ) is the number of years which the money is borrowed or invested.
Final amount or Maturity Value ( F ) is the sum of the principal and the
interest earned within the period.
Compound interest is the interest added to the principal of an investment
or loan where the interest earned becomes the new principal, hence it
earns interest. In simple interest the principal is constant all throughout the
duration of the period while in compound interest the principal is increasing.

The following are the formulas to be used in solving simple interest

problems.

𝐼 = 𝑃𝑟𝑡

𝐼
𝑃=
𝑟𝑡

𝐼
𝑟=
𝑃𝑡

𝐼
𝑡=
𝑃𝑟

𝐹 =𝑃+𝐼

𝑭 = 𝑷 + 𝑷𝒓𝒕

𝑭 = 𝑷(𝑰 + 𝒓𝒕)
Example 1.

Chris wants to deposit her P100,000 to a bank paying 7.5% per annum.
How much will her investment be at the end of 3 years?

Given : P = ₱100,000 r = 7.5% = 0.075 t = 3years

Required : F=?

Solution :
I=Prt
I= 100,000 ( 0.075) (3)
I = ₱22,500

F = P +I
F = 100,000 + 22,500
F = ₱122,500

Or this can be solved using

F=P+Prt
F= 100,000 + 100,000 ( 0.075 ) (3)
F= 100,000 + 22,500
F = ₱122,500

0r

F = P ( 1 + r t)
F = 100,000 ( 1 + 0.075 x 3)
F = 100,000(1 + 0.225)
F = ₱122,500

After 3 years , her money will be ₱122,500.

Example 2.
How much will Nielbert invest to earn ₱2,500 for1 year and 6 months at 4%
simple interest?

Given: I = ₱2,500 t = 1y 6m = 1.5 years r = 4% = 0.04

Reqd: P = ?
Solution:
𝐼
𝑃=
𝑟𝑡
2500
𝑃=
0.04(1.5)
𝑃 = ₱41,666.67

Compute and compare the future values of using simple interest rate and
compound interest rate on an investment of P5,000 at 4% simple interest
and 4% compounded annually for 3 years. Which is the better option for
the investor?
a. For simple interest
Given: P = P5,000 r = 4% t = 3 years
𝐼 = 𝑃𝑟𝑡
𝐼 = 5,000 × 0.04 × 3
𝐼 = ₱600

𝐹 =𝑃+𝐼
𝐹 = 5000 + 600

F = P 5,600 maturity value after 3 years

b. For compound interest

Year 1 P1 = P5,000 r = 4%= 0.04 t = 3 years

I1 = P r t
I1 =5,000 x 0.04 x 1
I1 = 200

F1 = P + I
F1 =P 5,000 + 200

For year 2 P1 = P5,200 r = 4%= 0.04 t = 3 years

I2 = =5,200 x 0.04 x 1
I2 =208
F2=5,200 + 208
F2 = P5,408

For year 3
I3 = =5,408 x 0.04 x 1
I3 = P216.33
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 F3 =P 5,624.33

The final amount after 3 years is ₱5,624.33. This is the better option for
the investor.

Solve Activity 2. Solve the problem

1. How long will it take P40,000 to accumulate to P60,000 at 5% simple

interest rate?

2. Gina deposited P180,000 in a bank paying simple interest. She

earned P10,500 on her savings for 2 and a half years. Find the
interest rate that the bank gave her.

Congratulations, you have made it this far. You can always review your answers
and see where you did wrong.

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Let’s remember these:
 Simple Interest (I ) is the payment for the use of money or the amount earned on
money invested.
 Compound interest is the interest added to the principal of an investment or loan where
the interest earned becomes the new principal, hence it earns interest. In simple
interest the principal is constant all throughout the duration of the period while in
compound interest the principal is increasing.

Let’s see what you have learned (reflection):

I learned in this lesson are_____________________________________________

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Lesson 5.B: Interest, Maturity Value, Simple and Compound Interest

Time frame: 1st week (8 hours)

Performance standard:

Investigate and analyze simple and compound interest

Specific Objectives:
At the end of the lesson the learners are expected to:

 compute simple interest using actual and approximate time

 compute ordinary and exact interest
 compute the maturity value

“There is a big difference between knowing math and understanding why

math models are important to business.”

-Larry Burns-

Activity 1

If you will invest a money in Ruru Bank amounting ₱2,350. How much will
you have after 5 years?

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Ordinary and Exact Interest

In simple interest time is in years. However there are instances where

time is expressed in days. To deal with this, we divide the number of days
by 360 for ordinary interest (assume that a month has 30 days) and by 365
for exact interest.

Ordinary interest exact Time

𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑜𝑒 = 𝑃𝑟
360

Ordinary Interest Approximate time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑜𝑎 = 𝑃𝑟
360

Exact Interest Exact time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑒𝑒 = 𝑃𝑟
365

Exact interest Approximate time

𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑒𝑎 = 𝑃𝑟
365
,

Steps in solving the number of days of a loan or investment.

1. Identify the number of days remaining in the first month by

subtracting the loan’s date from the number of days of the said
month.
2. Write the number of days of each month.
3. Write the number of days of last month.
4. Add the days from the first month to the last month. (Sirug, 2016)

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 Example 1
A loan of P20,000 at 5% simple interest dated July 18 is to be paid
on December 24 of the current years.

a. How many days will the loan run?

b. How much is the interest due using the 4 methods of computing
interest?
c. What is the maturity value of the loan?

Solutions:

a.1.
Months Actual no. of days Approximate no of
days
July 31-18 =13 30-18 = 12
August 31 30
September 30 30
October 31 30
November 30 30
December 24 24
Total no of days 159 156

a. P = 20,000 r = 5% = 0.05 te = 159 days ta =156 days

I=Prt

Ordinary interest exact Time

𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠

I oe =𝑃 𝑟 360
159
I = 20000(0.05) 360

= P 441.67

Ordinary Interest Approximate time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠 156

Ioa= 𝑃 𝑟 = 𝑃2000(0.05) =P 433.33
360 360
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Exact Interest Exact time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠 156

I ee=𝑃 𝑟 = 2000(0.05) =P427.40
365 365

Exact interest Approximate time

𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜.𝑜𝑓 𝑑𝑎𝑦𝑠 159

I ea=𝑃 𝑟 =𝑃2000(0.05) =P 435.62
365 365

b. Maturity Value F = P + I

c.1 Foe = P20,000 + 441.67

Foe = P 20, 441.67

c.2 Foa = P20,000 +433.33

Feo = P20,433.33

c.3 F ee= P20,000 + 427.40

F ee = P20,427.40

c.4 F ee= p20,000 + 435.62

Fee = P20,435.62

FUTURE VALUE OF COMPOUND INTEREST

F = P ( 1 + i )n
Where F is the future value
P is the principal
i is the interest per conversion period
n is the number of conversions
n=ft
𝒋
i=𝒇
Where j is the nominal rate or the quoted interest
f is the frequency of conversion
f(frequency)

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 1 Annually
2 Semi-annually
4 Quarterly
6 Every 2 months
12 Monthly
360 daily

P = F ( 1 + i )n
𝑭
𝒍𝒐𝒈( )
t =𝒇 [𝒍𝒐𝒈 (𝟏+𝒊)]
𝑷

FORMULA FOR OTHER VARIABLES

Conversion period or interest period is the interval between two successive

computations of interest.

1. Mae Ann invested P120,000 at 6.8% compounded quarterly. How much

will her investment be after 4 years?

Given: P = P120,000 j = 6.8% = 0.068 f=4 t =4 year

Reqd: F = ?

Solution:
n = ft = 4 (4)= 16
𝐣 0,068
i=𝐟 = 4
F = P ( 1 + i )n
0,068
F = 120,000 ( 1 + 4 )16
F= P157, 150.76

Example 2
Find the compound amount of P4,000 invested for 2 years at 5%
compounded monthly.
Given : P = P4,000 j = 5% f = 12 t = 2 years
Reqd F=?

Solution:
n = ft
n = 12 x 2 = 24

F = P ( 1 + i )n

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 .05 24
F= 4,000(1 + )
12
F = P4,419.76

Solve Activity 2. 1

Krizza borrowed from Jason P14,000 at 10% compounded every 2 months

for 2 years and 6 months. How much will Krizza pay to Jason after 2 years
and 6 months?

Congratulations, you have made it this far. You can always review your answers
and see where you did wrong.

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Let’s remember these:
f(frequency)
1 Annually
2 Semi-annually
4 Quarterly
6 Every 2 months
12 Monthly
360 daily

 Conversion period or interest period is the interval between two successive

computations of interest.
 Ordinary interest exact Time

𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑜𝑒 = 𝑃𝑟
360

 Ordinary Interest Approximate time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑜𝑎 = 𝑃𝑟
360

 Exact Interest Exact time

𝑎𝑝𝑝𝑟𝑜𝑥𝑖𝑚𝑎𝑡𝑒 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠

𝐼𝑒𝑒 = 𝑃𝑟
365
 Exact interest Approximate time
𝑎𝑐𝑡𝑢𝑎𝑙 𝑛𝑜. 𝑜𝑓 𝑑𝑎𝑦𝑠
𝐼𝑒𝑎 = 𝑃𝑟
365

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Let’s see what you have learned (reflection):

I learned in this lesson are_____________________________________________

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Lesson 5.C: Solving Problems Involving Real Situation

Time frame: 1st week (8 hours)

Performance standard:

Solves problems involving simple and compound interest.

Specific Objectives:
At the end of the lesson the learners are expected to:
 Analyze and solve word problems involving simple and
compound interest in real life scenarios.

“Your most unhappy customers

are your greatest source of learning”

-Bill Gates-

Activity 1
Mr. Reyes issued a promissory note on May 10,2016 to BDO amounting
₱246,330 with interest at 5%. The due date is November 25,2016. Determine
the maturity value to be paid.

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In this section we will learn to determine and how to solve the word
problems involving simple and compound interest.

Example 1.

Compute for the compound interest on ₱5,000.00 principal for 2

years at 4.6% compounded quarterly.

Solution:
Given: Principal=₱5,000
Nominal rate 4.6%=0.046
0.046
Interest rate per conversion period is 4.6%; 4 quarters: = 0.0115
4
Number of conversion periods is 2 years × 4 quarters=8 periods

𝐹 = 𝑃(1 + 𝑖)𝑛
= 5,000(1 + 0.0115)8
= 5,000(1.0115)8
= 5,000(1.095789404632954)
= ₱5,478.95

𝐼 =𝐹−𝑃
= 5,478.95 − 5,000
= ₱478.95
Therefore the interest rate is ₱478.95.

Example 2
Jenny needs ₱10,000.00 to buy cooking equipment for her
new house. She is willing to pay the interest of ₱3,534.75 if she
borrow the said amount from lending company. If she intend to
pay her obligation within 12 months, what must be the interest rate
of her loan?

Solution:
Given: P=₱10,000.00; I=₱3,534.75; t=12months or 1 year

𝐼
𝑟=
𝑃𝑡

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 3,534.75
=
10,000(1)
= 0.353475 𝑜𝑟 35.3475% ≈ 35.35%

Therefore, the interest rate of Jenny’s loan is 35.35%.

Example 3
Jana made a loan of ₱19,450 from a bank that charges 5%
simple interest. How much must she pay the bank after 4 years?

Solution:
Given: P=₱19,450; rate=5%; t=4 years

𝐼 = 𝑃𝑟𝑡
𝐼 = 19,450(0.05)(4)
= ₱3,890.00

𝐹 =𝑃+𝐼
= 19,450 + 3,890
= ₱23,340
Therefore, Jana will pay ₱23,340 at the bank after 4 years.

Example 4
Paul received an amount of ₱40,000 from his investment after
3
36 months. If money is invested at 5 4 % compounded quarterly, how
much was invested?

Solution:
Given: F=₱40,000; r=0.0575; t=36 months or 3 years; f=quarterly or 4
0.0575
𝑗= = 0.014375; n=4(3)=12
4

𝑃 = 𝐹(1 + 𝑗)−𝑛
𝑃 = 40,000(1 + 0.014375)−12
= 40,000(1.014375)−12
= 40,000(0.8426422725)
= ₱33,705.70
Therefore, Paul invested ₱33,705.70.

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 Solve Activity 2

1. A self-employed photographer deposits ₱50,000 in an account paying

10% compounded semi-annually. How much will the photographer have
in this account after 25 years?

2. Cherry invested ₱12,500 at 8.75% interest rate. How long will it take her
investment to earn an interest of ₱2,500?

Congratulations, you have made it this far. You can always review your answers
and see where you did wrong.

Let’s see what you have learned (reflection):

I learned in this lesson are_____________________________________________

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