Arithmetic of Finance

Grade 12 · Mathematics

Semester 1 | Period 2 | Week 8

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Subject: Mathematics

Semester: 1

Period: 2

Week: 8

WEEK 8

Class: Grade 12
Age: 17 years
Duration: 40 minutes of 5 periods
Subject: Mathematics
Topic: Arithmetic of Finance
Focus: Revision of Simple Interest, Compound Interest, Depreciation, and Annuity

SPECIFIC OBJECTIVES:

By the end of the lesson, students should be able to:

  1. Recall and apply the formula for calculating simple interest.
  2. Derive and use the formula for compound interest, and understand its table of logarithms.
  3. Define depreciation and compute the depreciation value of an item.
  4. Define annuity and determine its value.

INSTRUCTIONAL TECHNIQUES:

  • Question and answer
  • Guided demonstration
  • Discussion
  • Practice exercises
  • Problem-solving

INSTRUCTIONAL MATERIALS:

  • Whiteboard and markers
  • Charts for compound interest and depreciation
  • Solution charts of logarithms on compound interest

 

  1. Calculate the depreciation of a car bought for ₦80000 and worth ₦40000 after 5 years.
  2. How much money is required to receive ₦1000 annually for 10 years at 6% interest?
  3. Define and compute the value of an annuity for ₦2000 paid annually for 5 years.
  4. What is the formula for calculating depreciation?
  5. Solve for the present value of an annuity paying ₦100 per month for 3 years at 12% interest.

ASSIGNMENT (5 tasks):

  1. Calculate the depreciation of a machine bought for ₦15000 with a value of ₦10000 after 5 years.
  2. Find the present value of an annuity paying ₦500 per year for 10 years at 8% interest.
  3. How do you calculate the depreciation of an asset?
  4. A company is receiving ₦3000 annually for 8 years. How much was the initial investment made?
  5. Calculate the depreciation of an item purchased for ₦25000 with a value of ₦15000 after 3 years.

 

PERIOD 5: Recap and Consolidation

PRESENTATION:

  • Recaps the formulae for simple interest, compound interest, depreciation, and annuities.
  • Solves mixed problems covering all topics taught in the week.
  • Emphasizes real-world applications of these concepts, like loans, savings, and asset valuation.

EVALUATION (5 exercises):

  1. Define and calculate simple interest.
  2. Calculate the compound interest for ₦10000 at 8% for 2 years.
  3. Define depreciation and calculate for an item bought for ₦50000 and worth ₦40000 after 3 years.
  4. Solve for the annuity value of ₦1000 paid monthly for 4 years at 7% interest.
  5. Describe a scenario where annuities are commonly used.

CLASSWORK (5 questions):

  1. Calculate the simple interest on ₦2000 at 6% for 3 years.
  2. Find the compound interest on ₦1500 at 5% for 4 years.
  3. Calculate the depreciation for an asset bought for ₦10000 and worth ₦6000 after 2 years.
  4. Determine the annuity value of ₦800 paid annually for 5 years at 9% interest.
  5. Explain the importance of understanding arithmetic of finance in real-life situations.

ASSIGNMENT (5 tasks):

  1. Calculate the simple interest for ₦3000 at 4% for 6 years.
  2. Convert a compound interest amount to its equivalent present value using a logarithm table.
  3. Find the depreciation for an asset worth ₦20000 and depreciating to ₦12000 after 4 years.
  4. Compute the annuity value for ₦200 paid monthly for 3 years at 5% interest.
  5. Write a short essay explaining how arithmetic of finance affects personal savings and investments.