WHOLE BRAIN LEARNING SYSTEM

OUTCOME-BASED EDUCATION

SENIOR HIGH SCHOOL GRADE

GENERAL MATHEMATICS 11

2
LEARNING QUARTER
MODULE WEEK 3

1
 MODULE IN
GENERAL MATHEMATICS

QUARTER 2
WEEK 3

SIMPLE & GENERAL

ANNUITIES

Development Team

Writer: Joseph Marc A. Miguel

Editors/ Reviewers: Gerson Jeremy C. Antonio Myla Fei Martinez
Eldefonso B. Natividad, Jr.

Illustrators/ Lay-out Artists: Jeshimon C. Patoc

Management Team:
Vilma D. Eda Arnel S. Bandiola
Lourdes B. Arucan Juanito V. Labao
Marlyn S. Ventura

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 What I Need to Know

This module gives you an opportunity to learn about annuities including its definition,
types, and their applications to real – life.

Most Essential Learning Competencies:

The learner:
1. illustrates simple and general annuities;
2. distinguishes between simple and general annuities; and
3. finds the future value and present value of both simple annuities and general
annuities.

Objectives:
At the end of the modules, the learners should be able to:
1. differentiate simple and general annuities;
2. solve real-life problems on exponential functions, equations and/or inequalities;
3. solves the future value and present value of both simple annuities and general
annuities.

What I Know

Direction: Read each item carefully. Choose the correct answer from among the choices.
Use a separate sheet of paper as your answer sheet.

1. What do you call a sequence of payments made at equal time periods?

A. Annuity B. Downpayment
C. Interest D. Principal

2. What type of annuity has a payment interval the same as the interest period?
A. Annuity Due B. Contingent Annuity
C. General Annuity D. Simple Annuity

3. Jerico pays monthly installment of his car with an interest rate compounded annually.
What type of of annuity is illustrated?
A. Annuity Due B. Contingent Annuity
C. General Annuity D. Simple Annuity

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4. Your mom decided to invest in a bank and agreed to contribute PhP 3 000 per month
beginning in January 2016 which will earn 9% compounded monthly. How much will
be the future value of your mom’s contribution in July of the same year?
A. PhP 18 340.89 B. PhP 14 380.89
C. PhP 13 840.89 D. PhP 10 840.89

5. What is the present value of a loan with quarterly payment of PhP 2 000 for 5 years
with interest rate of 8% compounded quarterly?
A. PhP 32 207.87 B. PhP 32 702.87
C. PhP 37 207.87 D. PhP 37 702.87

6. Mr. Robert Mondragon buys of a lot near his company. He pays PhP 50 000 cash and
the lot’s installment of PhP 10 000 every month for 10 years. If money is 8%
compounded monthly, how much is the cash value of the lot? (Note: The cash value
or cash price is equal to the downpayment, if there’s any, plus the present value of the
installment payments)
A. PhP 748 214.81 B. PhP 784 214.81
C. PhP 847 214.81 D. PhP 874 214.81

7. How much is the future value of a simple ordinary annuity if the periodic payment is
1
P5 600 monthly at 7 % compounded monthly for 10 years and 7 months?
5
A. 1 016 838.61 pesos B. 1 061 838.61 pesos
C. 1 038 618.61 pesos D. 1 083 618.61 pesos

8. Cassie planned to save for her vacation in Thailand, so, she decided to open an
account with an annual payment of 8 000 pesos at the end of each year for 3 years
with an interest rate of 3.5% compounded quarterly. How much is the future value of
Cassie’s vacation plan in nearest thousands?
A. PhP 25 000.00 B. PhP 27 000.00
C. PhP 29 000.00 D. PhP 31 000.00

9. Marga is planning to take her vacation in South Korea, so, she decided to borrow an
amount with an annual payment of 8 000 pesos at the end of each year for 3 years
with interest rate of 3.5% compounded quarterly. How much did Marga borrow in
nearest thousands?
A. PhP 25 000.00 B. PhP 24 000.00
C. PhP 23 000.00 D. PhP 22 000.00

10. To pay her debt at 15% compounded semi – annually, Daniela committed to pay one
hundred thousand monthly within 2 years. How much did she borrow in the nearest
peso?
A. P1 702 215 B. P2 071 512
C. P2 170 215 D. P2 701 512

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 Lesson

1 SIMPLE ANNUITIES

What’s In

Activity 1: Let Us Recall!

Direction: Solve the following problems on compound interest. Show your complete solutions
in a separate sheet of paper.
1. Jackie borrowed an amount of PhP 40 000 which she paid with an interest of 2 000
pesos at the end of 3 years. At what nominal rate was it invested?

2. How long will it take PhP 15 000 to earn PhP 5 000 if it is invested at 12% monthly?

3. How much time is needed for money to triple itself if invested at 5% compounded
monthly?

What’s New

Activity 2. Getting Ready…

Direction: Arrange the following jumbled words to fit to its corresponding definition. Write
your answers in a separate sheet of paper.

DEFINITION JUMBLED WORD YOUR ANSWER

It is a sequence of payments made at
equal or fixed intervals or periods of time TINYNUA
It is the sequence of payments where
payments are made at the end of each
payment interval
DORNIRAY
It is sequence of payments where the
payment interval is not the same as the
interest period
SIPLEM
It is sequence of payments where the
payment interval is not the same as the
interest period
RALEGEN

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 What Is It

Annuity is a series of equal cash flows occurring each period over a range of periods.
It also refers to any terminating stream of fixed payments over a specified period of time.
These fixed payments are dictated by payment intervals or the time between
successive payments.
Annuities may be classified in different ways, as follows:

Classifications Types of Annuities

Simple Annuity General Annuity

According to payment An annuity where the An annuity where the
interval and interest payment interval is the payment interval is not
period same as the interest the same as the interest
period period
Ordinary Annuity
Annuity Due
(Annuity Immediate)
A type of annuity in which
According to time of A type of annuity in which
the payments are made at
payment the payments are made at
the beginning of each
the end of each payment
payment interval
interval
Contingent Annuity
Annuity Certain An annuity in which the
An annuity in which payments over an
According to duration
payments begin and end indefinite (or
at definite times indeterminate) length of
time

There are other terms which shall be defined before going through the other concepts.

time between the first payment interval and last payment

Term of an annuity, (t)
interval
Regular or Periodic
the amount of each payment
Payment, (R)
Amount (Future Value) sum of future values of all the payments to be made during
of an annuity, (F) the entire term of the annuity
Present Value of an sum of present values of all payments to be made during
Annuity, (P) the entire term of the annuity

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SIMPLE ANNUITY

Simple annuity is an annuity where compounding and payment periods happen at the
same time.

FUTURE VALUE OF AN ORDINARY ANNUITY

The future value F of an ordinary annuity is given by

mt
(1+j) - 1
F=R
j
Where R is the regular payment;
j is the interest rate period;
m is the number of times that the money gains an interest in a year
t is the term of an annuity

Example 1.
In order to save for his senior high school graduation, Vance decided to save 1000
pesos at the end of the month. If the bank pays 0.25% compounded semi - annualy, how
much will his money be at the end of 6 years?
Given R = 1 000
0.0025
j=
2
m = 2 (since money is compounded semi - annually)
t = 6 years

Solution
mt
(1+j) - 1
F=R
j

2(6)
0.0025
(1+ ) -1
F = 1000 2
0.0025
2

F = PhP 12 082.85

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Example 2.
Celestine and Catherine are twins. After their college graduation and being finally able
to get a good job, they plan for retirement as follows.

• Starting at age 24, Celestine deposits P10 000.00 at the end of each year for 36
years.
• Starting at age 42, Catherine deposits P20 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?

Given for Celestine’s plan

R = 10 000
0.12
j= =0.12
1
m = 1 (since money is compounded annually)
t = 36 years
Solution
mt
(1+j) - 1
F=R
j

1(36)
(1+0.12) -1
F = 10 000
0.12

F = P4 844 631.16

Given for Catherine’s plan

R = 20 000
0.12
j= =0.12
1
m = 1 (since money is compounded
annually)
t = 18 years
Solution
mt
(1+j) - 1
F=R
j

1(18)
(1+0.12) -1
F = 20 000
0.12

F = P1 114 994.30
ANSWER: Celestine will earn a greater amount in her retirement than Catherine.

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Example 3.
Cedie is saving for his dream house. He deposits PhP 25 000.00 at the end of each
month into an account that earns 5% per year compounded monthly. Find the amount after 5
years.
Given R = 25 000
0.05
j=
12
m = 12 (since money is compounded monthly)
t = 5 years
Solution
mt
(1+j) - 1
F=R
j
0.05 12(5)
(1+ ) -1
12
F = 25 000 0.05 = 1 700 152.07
12

Cedie will earn PhP 1 700 152.07 after 5 years.

PRESENT VALUE OF AN ORDINARY ANNUITY (ANNUITY IMMEDIATE)

The present value P of an ordinary annuity is given by

-mt
1 - (1+j)
P=R
j
Where R is the regular payment;
j is the interest rate period;
m is the number of times that the money gains an interest in a year
t is the term of an annuity

Definition
The cash value or cash price of a purchase is equal to the downpayment (if there
is any) plus the present value of the installment payments
CV = DP + P

Example 4.
Mr. Ribaya paid P200 000 as downpayment for a car. The remaining amount is to be
settled by paying 16,200 at the end of each month for 5 years. If interest is 10.5%
compounded monthly, what is the cash price of his car?
Given DP = 200 000
R = 16 200
0.105
j= = 0.00875
12
m = 12 (since money is compounded monthly)
t = 5 years
Solution for the Present Value
-mt
1-(1+j)
P=R
j
1 - (1+0.00875)-12(5)
P = 16 200 = 753 702.20
0.00875

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 Solution for the Cash Price
CV = DP + P
CV = 200 000 + 753 702.20
CV = 953 702.20

The cash price of the car is P953 702.20

Example 5.
Mrs. Smith wishes to sell her house and lot. Mr. Galang is offering 1.4 million cash,
while Mr. Valdez is offering a downpayment of PhP 250 000.00 and monthly periodic
payments of PhP 25 000.00 at the end of each month for 5 years. Which of the offers should
Mrs. Smith accept if money can be invested at 9% compounded monthly?
Given for Mr. Valdez’ offer
DP = 250 000
R = 25 000
0.09
j= = 0.0075
12
m = 12 (since money is compounded monthly)
t = 5 years
Solution for the Present Value
-mt
1-(1+j)
P=R
j
1 - (1+0.0075)-12(5)
P = 250 00 = 1 204 334.34
0.0075

Solution for the Cash Price

CV = DP + P
CV = 250 000 + 1 204 334.34
CV = PhP 1 454 334.34

Comparing the offers we say that Mrs. Smith should accept the offer of Mr. Valdez
because the cash equivalent of his offer is PhP 1 454 334.34 than the offer of Mr. Galang
which is only PhP 1 400 000.

Example 6.
Delilah borrowed PhP 100 000.00 She agrees to pay the principal plus interest by
paying an equal amount of money each year for 3 years. What should be her annual
payment if the interest is 8% compounded annually?
Given P = 100 000
0.08
j= = 0.08
1
m = 1 (since money is compounded annually)
t = 3 years
Required Regular payment

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 Solution
-mt
1-(1+j)
P=R
j
P 100 000
R= -mt = -1(3)
= 38 803.35
1-(1+j) 1-(1+0.08)
j 0.08

Delilah should pay 38 803.35 every year for 3 years.

What’s More

Activity 3. Time for Practice

Direction: Solve the following problems on simple ordinary annuities. Show your solutions in
a separate sheet of paper.
1. Find the present value and the future value of P5 000 payable semi – annually for
10 years if money is worth 6% compounded semi annually.

2. How much should be invested in a fund each year paying 2% compounded annually
to accumulate 100 000 pesos in 5 years?

3. Kuya Jepoy bought a jeepney of which he paid in P50 000 downpayment and 10
000 pesos every month for 10 years. If money is 8% compounded monthly, how
much is the cash value of Kuya Jepoy’s jeepney?

What I Have Learned

1. Annuity is a sequence of payments made at equal or fixed intervals or periods of time.

2. Ordinary Annuity is the sequence of payments where payments are made at the end of
each payment interval
3. Simple annuity is sequence of payments where the payment interval is not the same as
the interest period
4. General annuity sequence of payments where the payment interval is not the same as
the interest period
5. To obtain the future value (F) of a simple ordinary annuity, use the formula:
mt
(1+j) - 1
F=R
j
where R is the regular payment;
j is the interest rate period;
m is the number of times that the money gains an interest in a
year
t is the term of an annuity

6. To obtain the present value (P) of a simple ordinary annuity, use the formula:

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 -mt
1 - (1+j)
P=R
j

7. The cash value or cash price of a purchase is equal to the downpayment (if there is
any) plus the present value of the installment payments and can be computed as:
CV = DP + P

What I Can Do

Activity 4. Let’s Do This

Direction: Solve the following problems on simple ordinary annuities. Show your solutions in
a separate sheet of paper.
1. Find the present value and the future value of quarterly payments of P2 000 for 5
years with interest rate of 8% compounded quarterly

2. A loan of 50 000 is payable in 3 years. To repay the loan, the debtor must pay an
amount every six months with an interest rate of 6% compounded semi – annually.
How much should he pay every 6 months?

3. An appliance is for sale at either (a) P15 999 cash or (b) on terms, 1499 each
month for the next 12 months, Money is 9% compounded monthly. Which is lower,
the cash price or the present value of the installment terms? Explain.

12
 Lesson

2 GENERAL ANNUITIES

What’s In

Activity 1. Let’s Recall

Direction: Solve the following problems on simple ordinary annuities. Show your solutions in
a separate sheet of paper.

1. How much is the monthly amortization (regular payment) on an automobile loan of

P900 000 to be amortized over a five – year period at a rate of 9.5% compounded
monthly?

2. Lisa started to deposit P18 000 every six months in a fund that pays 5%
compounded semi annually. How much will be in the fund after 10 years?

3. Leonardo is paying P2 500 every 3 months for the amount he borrowed at an

interest rate of 8% compounded quarterly. How much did he borrow if he agreed
that the loan will be paid in 2 years and 6 months?

What’s New

This lesson will discuss another type of annuity – the GENERAL ANNUITY.

General Annuity is an annuity where the payment interval is not the same as the
interest compounding period.

General Ordinary Annuity is a general annuity in which periodic payment is made at

the end of the payment interval

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 What is It

FUTURE VALUE OF ORDINARY ANNUITY

The future value F of an ordinary annuity is given by
mt
(1+j) - 1
F=R
j
Where R is the regular payment;
j is the interest rate period;
m is the payment intervals
t is the term of an annuity

NOTE:
The formula for the future value is the same as with simple ordinary annuity. The
extra step occurs in finding j: The given interest period must be converted to an
equivalent rate per payment interval.
𝑚1
𝑟 𝑚2
𝑗 = (1 + ) − 1
𝑚1
Where j = the interest rate per payment interval
m1 = the given frequency of compounding
m2 = the indicated payment interval
r = given rate

Example 1.
Jennie started to deposit PhP 1 000 monthly in a fund that pays 6% compounded quarterly.
How much will be in the fund after 15 years?

Solution for j
Jennie’s money is compounded quarterly but she pays monthly. This could be
translated to:

6% compounded quarterly = _______ monthly interest rate

𝑚1
𝑟 𝑚2
𝑗 = (1 + ) − 1
𝑚1
Where m1 = 4 (money is compounded quarterly)
m2 = 12 (payment is done monthly)
r = 6% or 0.06

4
0.06 12
j= (1+ ) -1= 0.0049752
4

6% compounded quarterly = 0.49752% monthly interest rate

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 Solution for F
mt
(1+j) - 1
F=R
j
Where R = regular payment of 1000 pesos
j = computed interest rate (in 7 decimal places)
m = 12 (monthly payment interval)
t = term of 15 years
12(15)
(1+0.0049752) -1
F = 1000
0.0049752

F = PhP 290 082.21

Jennie will have PhP 290 082.21 in her fund after 15 years.
Example 2.
Dad saves PhP 5 000 every 6 months in a bank that pays 0.25% compounded monthly. How
much will be his savings after 10 years?
Solution for j
Dad’s money is compounded monthly but he pays semi-annually. Thus, this could
be translated to:

0.25% compounded monthly = _______ semi-annual interest rate

𝑚1
𝑟 𝑚2
𝑗 = (1 + ) − 1
𝑚1
Where m1 = 12 (money is compounded monthly)
m2 = 2 (payment is done semi-annually)
r = 0.25% or 0.0025

12
0.0025 2
j= (1+ ) -1 = 0.0012507
12

0.25% compounded monthly = 0.12507% monthly interest rate

Solution for F
mt
(1+j) - 1
F=R
j
Where R = regular payment of 5000 pesos
j = computed interest rate (in 7 decimal places)
m = 2 (semi - annual payment interval)
t = term of 10 years
2(10)
(1+0.0012507) -1
F = 5000
0.0012507

F = PhP 101 197.13

Dad will earn PhP 101 197.13 after 10 years.

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Example 3.
To accumulate a fund of PhP 500 000 in 3 years, how much should Marjorie deposit in her
account every 3 months if it pays an interest of 5.5% compounded annually?
Given: r = 5.5% or 0.055 compounded annually Present Value = 500 000
Payment is quarterly term of payment = 3 years

Required: Amount of quarterly payment

Solution for j
1
0.055 4
j= (1+ ) -1=0.0134752
1
Solution for R
F 500 000
R= mt
= 4(3)
= 38 668.12
(1+j) -1 (1+0.0134752) -1
j 0.0134752

Marjorie should make a quarterly payment of PhP 38 668.12

PRESENT VALUE OF ORDINARY ANNUITY

The future value P of an ordinary annuity is given by

-mt
1-(1+j)
P=R
j
Where R is the regular payment;
j is the interest rate period;
m is the payment intervals
t is the term of an annuity

Example 4.
Frank borrowed an amount from Victor. He agrees to pay the principal plus interest by
paying PhP 38 973.76 each year for 3 years. How much money did Frank borrow from Victor
if the interest is 8% compounded quarterly?
Solution for j
Frank’s borrowed money is compounded quarterly but he pays Victor annually.
Thus we translate this to:
8% compounded quarterly = _______ annual interest rate
𝑚1
𝑟 𝑚2
𝑗 = (1 + ) − 1
𝑚1
Where m1 = 4 (money is compounded quarterly)
m2 = 1 (payment is done annually)
r = 8% or 0.08
4
0.08 1
j= (1+ ) -1 = 0.0824321
4
8% compounded quarterly = 8.24321% annual interest rate

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 Solution for P
-mt
1-(1+j)
P=R
j
Where R = regular payment of 38 973.76 pesos
j = computed interest rate (in 7 decimal places)
m = 1 (annual payment interval)
t = term of 3 years
-(1)(3)
1-(1+0.0824321)
P = 38 973.76 ≈ 100 000.01
0.0824321

Frank borrowed P100 000.01 from Victor.

Definition
A cash flow is a term that refers to payments received (cash inflows) or payments
or deposits made (cash outflows). Cash inflows can be represented by positive
numbers and cash outflows can be represented by negative numbers.

The fair market value or economic value of a cash flow (payment stream) on a
particular date refers to a single amount that is equivalent to the value of the
payment stream at that date. This particular date is called the focal date.

Example 5.
Rose received two offers on a lot that she wanted to sell. Mr. Lance Ocampo offered PhP 50
000.00 and a 1 million lump sum payment 5 years from now. Mr. Alder Cruz offered PhP 50
000.00 plus P40 000 every quarter for 5 years. Compare the market values of the two offers
if money can earn 5% compounded annually. Which offer has a higher market value?

Given

Mr. Lance Ocampo’s offer Mr. Alder Cruz’ offer

P50 000 downpayment P50 000 downpayment

P1 000 000 after 5 years P40 000 every quarter for 5 years

Required: Compare the better offer by determining the fair market value of each offer

Solution:
We illustrate cash flows of the two offers using time diagrams.

Mr. Lance Ocampo’s offer:

P50 000 P1 000 000

0 1 2 3 4 5

17
Mr. Alder Cruz’ offer:
P50 000
P40 000 P40 000 P40 000 … P40 000

0 1 2 3 … 20

Choose a focal date and determine the values of the two different offers at that focal date.
For example, the focal date can be the date at the start of the term.

Since the focal date is at t = 0, compute for the present value of each offer.

Mr. Lance Ocampo’s offer: Since 50, 000 is offered today, then it’s present value is still
50000. The present value of 1 000 000 offered 5 years from now is

P = 1 000 000 (1+0.05)-5

P = P783 526.20
Fair Market Value = Downpayment + Present Value
Fair Market Value = 50 000 + 783 526.20
Fair Market Value = P833 526.20

Mr. Alder Cruz’ offer: We first compute for the present value of a general annuity with
quarterly payments but with annual compounding of 5%.
Solution for j

5% compounded annually = _______ quarterly interest rate

𝑚1
𝑟 𝑚2
𝑗 = (1 + ) − 1
𝑚1
Where m1 = 1 (money is compounded annually)
m2 = 4 (payment is done quarterly)
r = 5% or 0.05

1
0.05 4
j= (1+ ) -1 = 0.0122722
1

5% compounded annually = 1.22722% annual interest rate

Solution for P
-mt
1-(1+j)
P=R
j
Where R = regular payment of P40 000
j = computed interest rate (in 7 decimal places)
m = 4 (quarterly payment interval)
t = term of 5 years
-(4)(5)
1-(1+0.0122722)
P = 40 000 ≈ 705 572.92
0.0122722

18
Fair Market Value = Downpayment + Present Value
Fair Market Value = 50 000 + 705 572.92
Fair Market Value = P755 572.92

Mr. Lance Ocampo gives a better offer due to his higher Fair Market Value offer.

Example 6.
How much is the monthly installment of an appliance with a cash price of P20 000 for 6
months with an interest rate of 6% compounded semi-annually?
Given: r = 6% or 0.06 compounded semi-annually Present Value = 20 000
Payment is monthly
term of payment = 6 months or ½ year.

Required: Amount of monthly payment

Solution for j
2
0.06 12
j= (1+ ) -1= 0.0049386
2
Solution for R
P 20 000
R= -mt = 1 = 3 391.19
1-(1+j) -12(2)
1-(1+0.0049386)
j 0.0049386

The monthly installment for the appliance amounts to PhP 3 391.19

What’s More

Activity 2. Time for Practice

Direction: Solve the following problems on general ordinary annuities. Show your solutions in
a separate sheet of paper.

1. ABC Bank pays interest rate of 2% compounded quarterly. How much will Iris have in
the bank at the end of 5 years if she deposits P3 000 monthly?

2. What is the present value of a quarterly payment of 15 000 pesos for 10 years with
interest rate of 8% compounded annually?

3. Find the monthly payment of the future value of P50 000 for 1 year with an interest
rate of 10% compounded quarterly.

4. Determine the annual payment for the present value of P100 000 for 2 years with an
interest rate of 12% compounded semi-annually.

19
 What I Have Learned

1. General Annuity is an annuity where the payment interval does not coincide with the
interest conversion period.
2. To determine the present and future values of general annuities, an extra step occurs in
finding j: The given interest period musy be converted to an equivalent rate per payment
interval.
m1
r m2
j= (1+ ) -1
m1
3. The future value F of an ordinary annuity is given by
mt
(1+j) - 1
F=R
j
4. The future value P of an ordinary annuity is given by
-mt
1-(1+j)
P=R
j
Where R is the regular payment;
j is the interest rate period;
m is the payment intervals
t is the term of an annuity

5. A cash flow is a term that refers to payments received (cash inflows) or payments or
deposits made (cash outflows). Cash inflows can be represented by positive numbers
and cash outflows can be represented by negative numbers.

6. The fair market value or economic value of a cash flow (payment stream) on a
particular date refers to a single amount that is equivalent to the value of the payment
stream at that date. This particular date is called the focal date.

What I Can Do
Direction: Solve the following problems on general ordinary annuities. Show your solutions in
a separate sheet of paper.
1. Teacher Karol is saving P2 000 every month by depositing it in a bank that gives an
interest of 1% compounded quarterly. How much will she save in 5 years?

2. Grimsley purchased a new car for P99 000 downpayment and P15 000 every month
for 5 years. If the payments are based on 7% compounded quarterly what is the total
cash price of his car?

3. Which investment is preferable? Assume money is worth 8% compounded annually

(Hint: Compute for the market values)

20
 • Company A offers P150 000 at the end of 3 years and P300 000 at the end of
5 years
• Company B offers P25 000 at the end of each quarter for the next 5 years.

Assessment

Direction: Read each item carefully. Choose the best answer among the choices given and
write the letter of the correct answer on a separate sheet of paper.

1. What do you call a sequence of payments made at equal time periods?

A. Annuity B. Downpayment
C. Interest D. Principal

2. What type of annuity involves payment interval to be different with the interest period?
A. Annuity Due B. Contingent Annuity
C. General Annuity D. Simple Annuity

3. Victoria pays a monthly installment payment of her furniture set with an interest rate
compounded monthly. What type of of annuity is illustrated?
A. Annuity Due B. Contingent Annuity
C. General Annuity D. Simple Annuity

4. A philanthropist donated PhP 320 000 to his Alma Mater by creating a professional
chair in honor of his family. The said money was deposited by the school in a fund
earning 15% compounded monthly for 5 years, with an agreement that the recipient of
the chair gets a monthly honorarium. How much is the monthly honorarium?
A. PhP 7 126.78 B. PhP 7 261.87 C. PhP 7 612.78 D. PhP 7 826.78

5. What is the future amount of the simple ordinary annuity whose payment of 16 000
pesos is payable at the end of each quarter for 10 years and 6 months and money is
worth 5.8% compounded quarterly?
A. PhP 906 491.18 B. PhP 916 490.18
C. PhP 946 610.18 D. PhP 964 904.18

6. A store advertises a motorcycle for P3 000 downpayment and P3 000 monthly

payment for 15 months. If the interest is 15% compounded monthly, what is the actual
value of the motorcycle?
A. PhP 52 159 B. PhP 55 129
C. PhP 58 921 D. PhP 59 125

21
7. Which of the following prices of television sets will give you the best offer?
A. PhP 30 000 cash
B. PhP 2 399 monthly installment at 3% compounded monthly for 1 year
C. PhP 5 199 monthly installment at 3% compounded monthly for 6 months
D. PhP 1 999 monthly installment at 3% compounded monthly for 15 months

8. A sala set is for sale on monthly installment of PhP 2950 for 6 months at 12%
compounded semi – annually. How much is the value of the sala set?
A. PhP 11 710.84 B. PhP 17 011.84
C. PhP 17 110.84 D. PhP 18 710.84

9. How much should be the semi – annual payment of a loan worth PhP 800 000 for 5
years with an interest rate of 9% compounded annually?
A. PhP 116 210.79 B. PhP 106 210.79
C. PhP 102 160.79 D. PhP 100 621.79

10. On a girl’s 10th birthday, her father started to deposit PhP 5 000 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 (Use j = 0.002502)
A. PhP 112 483.94 B. PhP 113 284.94
C. PhP 114 832.94 D. PhP 118 342.94

22
23
LESSON 1
What’s In:
Activity 1: Let us 1.1.63%
Recall (p.4)
2. 2.4 years
3. 22 years Pretest pp. 2 - 3
1. A
What’s New 2. D
Activity 2: Getting Annuity 3. C
Ready (p.4) Ordinary 4. A
Simple 5. B
General 6. D
7. B
8. A
What’s More 9. D
Activity 3: 1. P = 74 387.37 F = 134 351.87 10. B
Time for 2. P19 215.84
Practice
p.10 3. P = P824 214.81
CV = P874 214.81
What I Can Do
Activity 4: Let’s 1. P = 32 702.87 F = 48 594.74
Do This
p.11 2.P9 229.88
3. Cash Price < value in installment
15 999 < 17 140.93
LESSON 2
What’s In:
Activity 1: Let’s 1. P18 901.68
Recall (p.12)
2. P459 803.84
3. P18 313.70
What’s More
Activity 2: 1. 171
Posttest
171.25 pp. 21 - 22
Let’s
Practice 2. P414
1. A489.74
(p.19) 2. C
3. P3980.
3. D 64
4. C
= 59
4. R 5. B 449.85
6. A
What I Can Do 7. B
Activity 3: Let’s 1.P122
8. C 995.42
Do This (p.20) 9. D
P857
210. C 261.04
3.
Company A = 323 249.80
Company B = 410 056.86
Company B gives the better offer.
Answer Key
References

Albay, Eduard M., Ronaldo S. Batisan, and Aleli M. Caraan. 2016. DIWA Senior High School
Series: General Mathematics. Edited by Katrina Grace Q Sumagit. Makati City: DIWA
Learning Systems Inc.

Barcelona, Alvin B., Rene R. Belecina, and John Lllenord C. Villanueva. 2016. Conceptual
Math and Beyond: General Mathematics. Edited by Rene R. Belecina. Quezon City:
Brillliant Creations Publishing, Inc.

Department of Education. 2016. General Mathematics Learner's Material. 1st. Pasig City:
Lexicon Press Inc.

Magcuyao, Dan Andrew H. 2016. General Mathematics. Manila: JFS Publishing Services.

Oronce, Orlando A. 2016. GENERAL MATHEMATICS. Sampaloc, Manila: Rex Book Store,
Inc.

Zorilla, Roland S., Fe G. Partible, Dominic C. Bagano, Hazam E. Bansa, Milna K. Cabrera,
and Florence D. Ganir. 2016. General Mathematics for Senior High School. Malabon
City: Mutya Publishing House, Inc.

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