DETAILED LESSON PLAN IN GENERAL MATHEMATICS

GRADE 11 STEM

I. LEARNING COMPETENCY
Illustrate simple and general annuities.

OBJECTIVES:
a. Distinguish between simple and general annuities;
b. Find the future and present values of general annuities;
c. Computes the future value, present values, and periodic payment of simple annuity.
II. SUBJECT MATTER:
Topic: Simple Annuity
Materials: Powerpoint, laptop, blackboard
References: https://www.studocu.com/ph/document/palawan-state-university/education/genmathg-11-
q2-mod7-annuities-version-2/14224422
Values Integration: Problem-solving
III. PROCEDURE

TEACHER’S ACTIVITY STUDENTS’ ACTIVITY

A. PRELIMINARY ACTIVITY
1. PRAYER:
“Please stand to have a short prayer before we start our “Let us all bow our head and feel the presence
lesson for today.” of our Lord.”
“Angel of God my guardian dear to whom
God’s love commits me here. Ever this day be
at my side to light and guard, to rule and
guide. Amen.”
(After the prayer)

2. GREETINGS:
“Good morning teacher, Good morning
“Good morning class!”
classmates”

“How are you today?”

“Good ma’am”

3.CLASSROOM MANAGEMENT:
“Class, before you take your seats, look around and
(Students look around to check if there’s no
kindly check if there’s no trash around you and arrange
trash around and arrange their chairs)
your chair as well.”

“Thank you, class, please be seated.”

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 4.CHECKING OF ATTENDANCE: Nobody is absent, ma’am.
Is there any absent today?

B. MOTIVATION

C. LESSON PROPER:
“Based on the jumbled letters given awhile ago, what do
you think is our topic for today?”
“Very good!”
“Our topic for today is about annuity.”
“An Annuity is a fixed sum of money paid to someone
at regular intervals, subject to a fixed compound interest
rate.”
“There are types of annuities. First, let’s talk about
Simple Annuity and General Annuity.”
“When we say Simple Annuity its interest conversion or
compounding period is equal or the same as the
payment interval. While in General Annuity its interest
conversion or compounding period is unequal or not the
same as the payment interval.”
“Let’s have an example.
a. Payments are made at the end of each month for
a loan that charges 1.05% interest compounded
quarterly.
b. A deposit of ₱5, 500.00 was made at the end of
every three months to an account that earns 5.6%
interest compounded quarterly.
Based on the given situations, is the first situation a
simple annuity or general annuity?
The first situation represents a general annuity because
the payment interval is at the end of the month is not
equal to the compounding interval, quarterly.
How about the second situation, is it simple annuity or
general annuity?
The second situation represents a simple annuity
because the payment interval at the end of every three
months is equal to the compounding interval quarterly.
Do you have any questions?
Let’s move on to the Ordinary Annuity and Annuity
Due.

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 Ordinary Annuity is an annuity in which the periodic
payment is made at the end of each payment interval.
While, Annuity Due is an annuity in which the periodic
payment is made at the beginning of each payment
interval.
Let’s have an example.
a. Jun’s monthly mortgage payment is ₱35, 148.05
at the end of each month.
b. The rent for the apartment is ₱7, 000.00 and due
at the beginning of each month.
Based on the given situations, is the first situation an
ordinary annuity or annuity due?
The first situation represents an ordinary annuity
because the payments are made at the end of each
month.
How about the second situation, is it ordinary annuity or
annuity due?
Since the payments come at the beginning of each
month, the stream of rental payments is an annuity due.
Now, let’s talk about future value and present value.
The future value of an annuity is the total accumulation
of the payments and interest earned. While the present
value of an annuity is the principal that must be invested
today to provide the regular payments of an annuity.
The future value FV of simple ordinary annuity is
FV =P ∙ ¿¿

The present value PV of simple ordinary annuity is

PV =P ¿ ¿

Again, what is the formula for future value of simple

ordinary annuity?
How about the formula for present value of simple
ordinary annuity?
Let’s have an example. If you pay ₱50.00 at the end of
each month for 40 years on account that pays interest at
10% compounded monthly, how much money do you
have after 40 years?
r 10 % 0.1
Given P = ₱50.00, i= = = , and
K 12 12
n=t ∙ K=40∙ 12=480
FV =P ∙ ¿¿
¿ 50 ¿ ¿
¿ ₱ 316 ,203.98

For another example, Alex and Tony are twins. After

graduation and being finally able to get a good job, the

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 plan for retirement as follows.

 Starting at age 24, Alex deposits ₱ 10, 000.00 at

the end of each year for 36 years.
 Starting at age 24, Tony deposits ₱ 20 ,000.00 at
the end of each year for 18 years.
Who will have the greater amount at retirement if both
annuities earn 12% per year compounded annually?
Any volunteer to solve this on the board?
Very good!
Let’s have another example. Aaron’s mother saved
₱ 5 , 000.00 at the end of every 6 months in an education
plan that earns 6% per year compounded semi-annually.
What is the amount at the end of 18 years? How much
interest is earned?
Another volunteer to solve this on the board?
Very good!
Do you have any questions?
Now let’s proceed to the example for present value of
simple ordinary annuity.
Rose works very hard because she wants to have enough
money in her retirement account when she reaches the
age 60. She wants to withdraw ₱ 36 ,000.00 every 3
months for 20 years starting 3 months after she retires.
How much must Rose deposit at retirement at 12% per
year compounded quarterly for the annuity?
r 12 %
Given P = ₱ 36 ,000.00 , i= = ∨0.03, and
K 4
n=t ∙ K=20 ( 4 )=80

PV =P ¿ ¿
¿ 36,000 ¿ ¿
¿ ₱ 1 , 087 , 277.48

For another example, Fernan borrows money buy a

motorcycle. He will repay the loan by making monthly
payments of ₱ 1 , 500.00 per month for the next 24
months at an interest rate of 9% per year compounded
monthly. How much did Fernan borrow? How much
interest does Fernan pay?
Any volunteer to solve this on the board?
Correct!
Let’s proceed to the future value and present value of
simple annuity due.
The formula for the future value of simple annuity due
FV =P ¿ ¿

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 The formula for the present value of simple annuity due
PV =P ¿ ¿

Let’s have an example for future value of simple

annuity due. Suppose Mr. and Mrs. Mariano deposited
₱ 20 ,000.00 at the beginning of each year for 5 years in
an investment that earns 10% per year compounded
annually, what is the amount or future value of an
annuity?
r 10 %
Given that P=₱ 20 , 000.00, i= = =0.1, and
K 1
n=t ∙ K=5 ( 1 )=5

FV =P ¿ ¿
¿ 20 , 000 ¿ ¿
¿ ₱ 34 ,312.20

Let’s have another example. Romano’s parents saved

for his college education by investing ₱ 12 , 000.00 at
the beginning of each year in an education plan that
earns 6% per year compounded annually. What is the
total amount of investment at the end of 16 years?
Anyone who can solve this on the board?
Very good!
Another example, consider the given annuities:
Annuity A: ₱ 1 , 000.00deposited at the beginning of
each month for 3 years at 12% compounded monthly.
Annuity B: ₱ 3 , 000.00 deposited at the beginning of
each month for 3 years at 12% compounded monthly.
Any volunteer to solve this on the board?
Correct!
Do you have any questions?
Now let’s have an example for the present value of
simple annuity due.
Hope borrows money for the renovation of her house
and repays by making yearly payments of ₱ 50 , 000.00
at the beginning of each year for a period of 10 years at
an interest rate of 8% compounded annually. How much
dd Hope borrow?
r 8%
Given P=₱ 50 , 000.00, i= = =0.08 , and
K 1
n=t ∙ K=10 ( 1 )=10

PV =P ¿ ¿
¿ 50 000 ¿ ¿
¿ ₱ 362 , 344.40

What is the formula for future value of simple ordinary

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 annuity?
Very good!
How about the formula for the present value of simple
ordinary annuity?
That’s correct!
Can you tell me about the formula for the future value
of simple annuity due?
Correct!
How about the formula for the present value of simple
annuity due?
Very good!
Do you have any questions?
If you don’t have any questions, let’s proceed to the
regular payment of an annuity. Did you know that
manipulating the formulas you said a while ago, we can
solve for the regular payment or periodic payment P.
The formula for the regular payment of simple ordinary
annuity
( FV ) i
P=
¿¿
( P V )i
P=
1−¿ ¿

The formula for the regular payment of simple annuity

due
( FV ) i
P=
¿¿
( P V )i
P=
¿¿
Let’s have an example for the regular payment of a
simple annuity.
Mary borrows ₱ 500 , 000.00 to buy a car. She has two
options to repay her loan. The interest is compounded
monthly.
Option 1: 24 monthly payments every beginning of the
month at 12% per year.
Option 2: 60 monthly payments every end of the month
at 15% per year.
Find:
a. Mary’s monthly payments under each option.
b. The interest Mary pays under each option.

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 Another example for regular payment of simple
ordinary annuity. Eva obtained a loan of ₱ 50 , 000.00
for the tuition fee of her son. She has to repay the loan
by equal payments at the end of every six months for 3
years at 10% interest compounded semi-annually. Find
the periodic payment.
Any volunteer to solve this on the board?
D. APPLICATION:
Direction:
E. GENERALIZATION:

IV. EVALUATION:

V. ASSIGNMENT

INSTRUCTION:

Prepared by:

Student-teacher

Jenny G. Bautista,LPT
Samantha May G. Macaraeg, LPT
Barbie Ann G. Aceron, LPT
Cooperating Teachers

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