On your previous module, you have already illustrated and distinguished the difference between simple and compound interests. A deeper analysis of this topic will be the focus of this module wherein the relationships among the variables in solving the simple and compound interest will be explored.
You will realize the importance of deriving a certain formula to compute the required variable involved in interest. The connection among interest, principal or present value, rate, time and maturity value will be reiterated. This topic will also revolve around money and since it is talking about money you will learn more on how to make decisions that concerns about it.
Are you now ready for the new lesson, if so you may proceed to this module and have fun while learning.
The module is composed of two lessons, namely:
- Lesson 1 – Interest, Maturity, Future, and Present Values in Simple Interest
- Lesson 2 – Interest, Maturity, Future, and Present Values in Compound Interest
After going through this module, you are expected to:
1. compute interest, maturity value, future value, and present value in simple interest environment;
2. compute interest, maturity value, future value, and present value in compound interest environment; and
3. derive the formula of simple and compound interest to compute the maturity, future, and present value.
Please use this module with care. Do not put unnecessary marks on any part of this SLM. Use a separate sheet of paper in answering the exercises and tests. And read the instructions carefully before performing each task.