Simple Interest
Title: Simple Interest
Grade 6, 2nd Quarter
Goal: The learner should be able to solve percent problems such as percent of increase/decrease (discounts, original price, rate of discount, sale price, marked-up price), commission, sales tax, and simple interest.
Objectives:
At the end of the lesson, the students should be able to:
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analyze the advantages and disadvantages of borrowing money with interest
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solve problems involving simple interest; and
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apply the formula to the given set of problems involving simple interest.
Materials and Resources:
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Picture of cake, dress, whiteboard marker, laptop, and projector
Motivation:
Activity Title: Pricy Party
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The class will be divided into two groups.
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Each group will be given a task to role play a situation.
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Group 1 will role play a situation where a daughter insists on having a birthday party in well-known restaurant in the city. Mother objects because of their tight financial situation of the family. Father gives in and decides to borrow money from a friend. In the end, her daughter receives a grand birthday party ever.
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Group 2 will role play a situation where a daughter will be graduating as a valedictorian. Her mother wants to give her daughter a dress as a reward but due to their tight financial situation, mother thinks of a solution. She will borrow money from Indian lender or common called as “Bumbay” to buy the dress for her daughter. In the end, her daughter stands out wearing her dress and by being the class valedictorian in their school.
Lesson Procedure:
During this lesson, the teacher will use ACES Approach that is based on confluent theory of education which provides interaction of the cognitive and affective components of learning. There are four phases or episodes of learning in the ACES methodology: Activity, Analysis, Abstraction, and Application.
Say: In our previous lesson, you have learned how to rewrite percentage into decimals. We also discussed the interest, annual interest rate, and time in years.
Recall:
Interest is the amount of money that you pay to borrow or the amount of money that you earn on a deposit.
Annual Interest Rate is the percent of interest that you pay for money borrowed or earned for money deposited.
Simple Interest Formula: I=Prt
I: interest earned
P: principal or the amount of money that you start out with
r: annual interest rate
t: time in years
A. Activity
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In the situation given to the group 1, present Father’s computation if he borrowed money from a friend.
P10,000 – amount of money they needed
10% - interest rate
3 months – payable time
Compute the total amount of money to pay with the interest.
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In the situation given to the group 2, present Mother’s computation if she borrowed money from Bumbay.
P5,500 – amount of money needed to buy a dress
40% - interest rate
2 months – payable time
Compute the total amount of money to pay with the interest.
B. Analysis
1. Situation 1
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What is the amount of interest incurred in borrowing P10,000 at 10% for 3 months?
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How much is his monthly obligation to his friend-lender?
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How much will Father have to pay at the end of 3 months?
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Is this an added burden to their monthly expenses? Why?
2. Situation 2
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What is the amount of interest incurred in borrowing P5,500 at 40% for 2 months?
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How much is her monthly obligation to her Bumbay-lender?
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How much will Mother have to pay at the end of 2 months?
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Is this an added burden to their monthly expenses? Why?
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C. Abstraction
Discuss the advantages and disadvantages of borrowing money with interest.
Making Both Ends Meet
Sometimes in our lives, we tend to spend to satisfy our whims and fancies. Examples of these are buying new dress and shoes even if there is no need to buy one or purchase items that attract one’s attention. Worse is giving a party or blow-out in spite of financial difficulties. This is one practice common to Filipinos which many consider as part of Filipino generosity. Being generous is good but it has its own limit especially if it involves money matters. Before spending money for blow-outs and parties to please others, we must think about the consequences of spending.
D. Application
Solve the problem:
Rainy days are here again. Mother finds it difficult to dry the clothes of her 5 children during these days. She decides to buy a washing machine with dryer worth P12000, payable within 5 months with interest rate of 15% per year.
Questions:
1. How much does she have to pay every month?
2. Can the family income of P15,000 accommodate this expense?
3. Is it worth buying? Why?
Assessment
Performance Task