Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VII, Central Visayas
DIVISION OF CEBU PROVINCE
District of Dumanjug I
DUMANJUG NATIONAL HIGH SCHOOL
Liong, Dumanjug, Cebu

School: Dumanjug National High School Date: Jan. 18-22 and Jan. 25-29, 2020
Grade/Section: Grade 11 Subject Area/s: General Mathematics
Quarter: Q2-Week 3 and Week 4

I. MELC: • Illustrates simple and general annuities

 Distinguishes between simple and general annuities
 finds the future value and present value of both simple annuities and
general annuities
 calculates the fair market value of a cash flow stream that includes an
annuity
 calculates the present value and period of deferral of a deferred annuity

II. OBJECTIVES:
1. illustrate simple, general annuities and deferred annuity;
2. distinguish between simple and general annuities;
3. computes the future value, present value and periodic payment of simple annuity
and general annuities;
4. calculate the fair market value of a cash flow stream that includes an annuity;
5. find the present value of a deferred annuity; and
6. calculate the period of deferral of a deferred annuity.

SUBJECT MATTER:
Annuities

III. REFERENCES:

1. Teaching Guide for Senior High School – General Mathematics by Commission on Higher
Education (2016)
2. General Mathematics for Senior High School by Aoanan, Grace O.; Plarizan, Ma. Lourdes
P.; Regidor, Beverly T.; Simbulas, Lolly Jean C. C & E Publishing, Inc. (2016) 839 EDSA,
South Triangle, Quezon City
3. General Mathematics for Senior High School by Bagano, Dominic C.; Bansa, Hazam E.;
Cabrera, Milna K.; Ganir, Florence D.; Partible, Fe G,; Zorilla, Roland S. MUTYA
Publishing House, Inc. (2016) 105 Engineering Road, Araneta University Village, Potrero,
Malabon City
4. General Mathematics by Oronce, Orlando A Rex Book Store, Inc. (2016) 856
Nicanor Reyes Sr. St., Sampaloc, Manila pages

IV. PROCEDURE:

A. Readings/ Discussions
Lesson 1: Simple Annuity
Activity 1: Question and Answer
Directions: Answer the questions briefly. Write your answers in a separate sheet of paper.

1. Differentiate Simple Annuity and General Annuity?

2. What is an Ordinary Annuity?
3. What is the formula in finding the future value of an ordinary annuity? Identify each
 variable represents.
4. What is the formula in finding the present value of an ordinary annuity?
Identify each variable represents.
5. What is the periodic payment formula of an annuity?

Activity 2: Answer as indicated. Write your answers in a separate sheet of paper.

Find the present value P and amount F of the following ordinary annuities.
1. Quarterly payments of P2,000 for 5 years with interest rate of 8% compounded quarterly
2. Semi-annual payments of P8,000 for 12 years with interest rate of 12% compounded semi-
annually
3. Daily payments of P50 for 30 days with interest rate of 20% compounded daily

Activity 3: Complete the sentence below. Write your answers on a separate sheet of paper.

1. A sequence of payments made at equal time periods is a/an .

2. A simple annuity in which the payments are made at the end of each period is a/an
3. An annuity where the payment interval is not the same as the interest period is a/an
4. An annuity where the payment interval is the same as the interest period is a/an
5. An annuity in which payments begin and end at definite times is a/an .

Activity 4: Solve for the following problems. Answer as indicated. Write your answers in a separate sheet of
paper.
1. Find the present value and the amount (future value) of an ordinary annuity of P5,000
Payable semi-annually for 10 years if money is worth 6% compounded semi-annually.
2. To pay for his debt at 12% compounded quarterly, Ruben committed for 8 quarterly
Payments of P28,491.28 each. How much did he borrow?
3. A high school student would like to save P50,000 for his graduation. How much should he
deposit in a savings account every month for 5.5 years if interest is at 0.25% compounded
monthly?
4. The buyer of a car pays P169,000 cash and P12,000 every month for 5 years. If money is
10% compounded monthly, how much is the cash price of the car?
5. A television (TV) set is for sale at P13,499 in cash or on installment terms, P2,500 each month
for the next 6 months at 9% compounded monthly. If you were the buyer, what would you
prefer, cash or installment?

Activity 5: Question and Answer

Directions: Answer the questions briefly. Write your answers in a separate sheet of paper.

1. Differentiate General Annuity and General Ordinary Annuity?

2. What is a General Ordinary Annuity?
3. Express the process in finding the Present and future value of General ordinary annuity.
4. What is the formula in finding the Fair Market Value?
5. Express the process in finding the Fair Market Value.

Activity 6: Answer as indicated. Write your answers in a separate sheet of paper.

Find the present value P and amount F of the following.

1. Semi-annual payments of P500 at the end of each term for 10 years with interest rate of 5%
compounded semi-annually
2. Annual payments of P1,000 at the end of each term for 8 years with interest rate of 6%
Compounded quarterly
3. Quarterly payments of P2,000 at the end of each term for 5 years with interest rate of 8%
compounded annually
4. Semi-annual payments of P8,000 at the end of each term for 12 years with interest rate of
12%compounded quarterly

Activity 7: Solve for the following problems. Answer as indicated. Write your answers in a separate sheet of
paper.

1. On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each
term in a fund that pays 1% compounded monthly. How much will be in the fund on his
daughter’s 17th birthday?
2. The buyer of a lot pays P10,000 every month for 10 years. If money is 8% compounded
annually,how much is the cash value of the lot?
3. In order to save for her high school graduation, Kathrina decided to save P200 at the end
of every other month, starting the end of the second month. If the bank pays 0.250%
compounded monthly, how much will be her money at the end of 5 years?

Activity 8: Solve for the following problems. Answer as indicated. Write your answers in a separate sheet of
paper.

1. Find the present value and amount of an ordinary annuity of P5,000 payable semi-
annually for 10 years if money is worth 9% compounded annually.
2. A television (TV) set is for sale at P13,499 in cash or on installment terms, P2,500 each month
for the next 6 months at 9% compounded annually. If you were the buyer, what would you
prefer, cash or installment?

Activity 9: Question and Answer

Directions: Answer the questions briefly. Write your answers in a separate sheet of paper.
1. Differentiate Deferred Annuity and Period of Deferrral.
2. What is a Deferred Annuity?
3. What is a period of deferral?
4. What is the formula in finding the present value of a deferred annuity? Identify each
variable represents.
5. Draw the time diagram for a deferred annuity.

Activity 10: Answer as indicated. Write your answers in a separate sheet of paper.
Find the period of deferral in each of the following deferred annuity problem (one way
to find the period of deferral is to count the number of artificial payments)
1. Monthly payments of P2,000 for 5 years that will start 7 months from now
2. Annual payments of P8,000 for 12 years that will start 5 years from now
Activity 11
Read the following annuity problem. Fill in the blanks in the statements that follow.
1. A loan of P30,000 is to be repaid monthly for 5 years that will start at the end of 4 years. If
interest rate is 12% converted monthly, how much is the monthly payment?
a. The type of annuity illustrated in the problem is a . Answer: deferred
annuity
b. The total number of payments is . Answer: 60
c. The number of conversion periods in the period of deferral is . Answer: 47
d. The interest rate per period is . Answer: 0.01
e. The present value of the loan is . Answer: P30,000
2. A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest
rate is 6% converted quarterly, how much is the loan if the quarterly payment is P10,000?
3. A car is to be purchased in monthly payments of P17,000 for 4 years starting at the end of
4 months. How much is the cash value of the car if the interest rate used is 12% converted
monthly?

ANSWER KEY
Activity 1 (Answers may vary) Activity 8
Activity 2 1. Answer: P65,589.25; P155274.64
(use j= 0.044031, n=20)
1. F = P48,594.74, P = P32,702.87 2. Answer: Present value of installment is P14,628.79
(use j = 0.007207, n=6); better to pay
2. F = P406,524.60, P = P100,402.90 P13,499 if cash is available, or wait until you
can save enough cash than to pay by installment
3. F = P1,511.98, P = P1,487.33 Activity 9 (Answers may vary)
Activity 3 Activity 10
1. Annuity 1. 6 periods or 6 months
2. Ordinary annuity or annuity immediate 2. 4 periods or 4 years
3. General annuity
4. Simple annuity Activity 11
5. Annuity certain 1. a. deferred annuity
Activity 4 b. 60
1. P = P74,387.37, F = P134,351.87 c. 47
2. P200,000 d. 0.01
3. P752.46 e. 30,000
4. Cash price = 169 000 + 564784.43 = P733,784.43 2. 154,694.03
5. If you have cash on hand, it is better to buy the 3. 626,571.56
TV set in cash since the cash price (P13,499) is
lower than the cash value (P14,613.99)
Activity 5 (Answers may vary)
Activity 6
1. Answer: P7,794.58; P12,772.33 (use j = 0.025, n=20)
2. Answer: P6,176.42; P9,946.04 (use j = 0.061364, n=8)
3. Answer: P32,884.42; P48,318.22 (use j = 0.019427, n=20)
4. Answer: P99,573.23; P411,461.66 (use j = 0.0609, n=24)
Activity 7
1. Answer: P144,832.94 (use j = 0.002502, n=28)
2. Answer: P834,325.22 (use j = 0.006434, n=120)
3. Answer: P6,036.42 (use j = 0.000417, n=30)
SUMMATIVE TEST
WEEK 3 &4
Directions: Read each statement carefully. Choose the letter of the correct answer and write it on
your answer sheets.
__________1. It is an annuity where the payment interval is the same as the interest period.
a.) Simple Annuity b.) General Annuity c.) Annuity Certain d.) Contingent annuity
__________2. It is a sequence of payments made at equal (fixed) intervals or periods of time.
a.) Future Value of an annuity c.) Annuity
b.) Present Value of an annuity d.) Periodic Payment
__________3. The sum of future values of all the payments to be made during the entire term of annuity
a.) Annuity c.) Future Value of an annuity
b.) Present Value of an annuity d.) Periodic Payment
__________4. The sum of all present values of all the payments to be made during the entire term of the
annuity.
a.) Periodic Payment c.) Future Value of an annuity
b.) Time of an Annuity d.) Present Value of an annuity
__________5. Find the future value of an ordinary annuity with a regular payment of P1,000 AT 5% interest
rate compounded quarterly for 3 years.
a.) P12,806.63 b.) P12,860.36 c.) P12,860.63 d.) P12,806.36
__________6. Find the present value of an ordinary annuity with regular quarterly payments worth P1,000 at
3% annual interest rate compounded quarterly at the end of 4 years.
a.) P15,024.31 b.) P15,204.31 c.) P15,402.31 d.) P15,420.31
__________7. It is a term that refers to payments received (cash inflow).
a.) General Annuity c.) Cash Flow
b.) General Ordinary Annuity d.) Annuity Certain
__________8. It is refers to a single amount that is equivalent to the value of the payment stream that shall date.
a.) Future Value of a general annuity c.) Fair market value
b.) Present Value of a general annuity d.) Periodic Payment
__________9. What is the other term for fair market value?
a.) Cash flow c.) Future Value of a general annuity
b.) Present Value of a general annuity d.) Economic Value
__________10. A teacher saves P5,000 every 6 months in the bank that pays 0.25% compounded monthly.
How much will be her savings after 10 years?
a.) P101,197.06 b.) P101,179.06 c.) P101,971.06 d.) P101,791.06
__________11. It is an annuity that does not begin until a given time interval has passed.
a.) Period of Deferral c.) Present value of a deferred annuity
b.) Deferred Annuity d.) Contingent annuity
__________12. It is a time between the purchase of an annuity and the start of the payments for the deferred
annuity.
a.) Period of deferral c.) Deferred annuity
b.) General Ordinary Annuity d.) Present value of a deferred annuity
__________13. Melvin availed of a loan from a bank that gave him an option to pay P20,000 monthly for 2
years . The first payment is due after 4 months. How much is the present value of the loan if the interest rate is
10% converted monthly?
a.) P422,795.78 b.) P422,759.78 c.) P422,579.78 d.) P422,597.78
__________14. Annual payments of P2,500 for 24 years that will start 12 years from now. What is the period of
deferral in the deferred annuity?
a.) 12 periods b) 10 periods c.) 11 periods d.) 13 periods
__________15. Semi-annual payments of P6,000 for 13 years that will start 4 years from now. What is the
period of deferral in the deferred annuity?
a.) 8 semi-annual intervals c.) 5 semi-annual intervals
b.) 6 semi-annual intervals d.) 7 semi-annual intervals

Prepared by:
ANALOU E. AVILA
GENERAL MATHEMATICS SUBJECT TEACHER