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Semi-Detailed Lesson Plan in Grade 11
Simple and General Annuity
In partial fulfillment of the requirements for
MAT 165
Technology for Teaching and Learning 2: Instrumentation and Technology in Mathematics
By:
Receno, Ericha V.
BSED - Mathematics
October 2024
Semi-Detailed Lesson Plan
Lesson Plan in Grade 11
I. Objectives
At the end of the 90-minute session, students should be able to:
a. Illustrates simple and general annuities;
b. Finds the future value and present value of both simple annuities and
general annuities; and
c. Finding the present and future values of simple annuities.
II. Subject Matter
a. Topic: Simple and General Annuity
b. Reference: Prince, Orlando. General Mathematics. Quezon City: Rex Bookstore,
Inc., 2016. 40-52
c. Materials: SAS, printed materials, marker, chalk
d. Values Integration: Collaboration
III. Procedure
A. Daily Routine
a. Greetings
b. Prayer
c. Checking Attendance
d. Classroom Management
B. Motivation
The teacher will compile scrambled words related to the topic and allow the
students to determine them. The scrambled words will be supplied to the front
row, where they are going to be structured before being transmitted to the
subsequent students until they reach the last student in the row. The game will
have a one-minute timer. The first group to inscribe their response on the board
will secure victory in the game.
C. Lesson Proper
The teacher will present instructional materials explaining simple annuity, general
annuity, and other definitions of terms related to the topic.
Annuity payment- If the payment for each period is fixed and the compound
interest rate is fixed over a specified time.
Annuity- A sequence of payments made at equal (fixed) intervals or periods of
time.
Simple Annuity- The interest period and the payment interval are the same.
General Annuity- An annuity that differs in the length of the interest
compounding period and the payment interval.
Annuities may be classified in different ways, as follows:
Annuities
According to Simple Annuity- An General Annuity- An
payment interval annuity where the annuity where the
and interest payment intervals are payment intervals are
period the same as the not the same as the
interest period. interest period.
According to the Ordinary Annuity (or Annuity Due- A type
time of payment Annuity Immediate)- of annuity in which the
A type of annuity in payments are made at
which the payments the beginning of each
are made at the end payment interval.
of each payment
interval.
According to Annuity Certain- An Contingent Annuity-
duration annuity in which An annuity in which
payments begin and the payments extend
end at definite times. over an indefinite (or
indeterminate) length
of time.
Definition of terms:
T (term of an annuity)- Time between the first payment and last payment
interval.
R (regular/ periodic payment)- The amount of each payment.
F (amount (future value) of an annuity)- Sum of future values of all the
payments to be made during the entire term of the annuity.
P (present value of an annuity)- Sum of the present value of all the payments
to be made during the entire term of the annuity.
Formula
Future Value of Present Value of Periodic Payment
Simple Ordinary Simple Ordinary R of an Annuity
Annuity (F) Annuity (P)
𝑛 −𝑛 𝐹
(1+𝑖) −1 1−(1+𝑖) 𝑅=
𝐹=𝑅 𝑖
𝑃=𝑅 𝑖
𝑛
(1+𝑖) −1
𝑖
𝑟
𝑖 = 𝑚 𝑅=
𝑃
−𝑛
(1+𝑖)
𝑖
Where:
R is the regular payment
i is the interest rate per period
n is the number of payments
r is the nominal rate
m is the number of conversions per period
Question:
Determine if the given situations represent simple or general annuity.
1. Payments are made at the end of each month for a loan that charges
1.05% interest compounded quarterly.
2. A deposit of ₱5,000.00 was made at the end of every three months to
an account that earns 5.6% interest compounded quarterly.
Example of Simple Annuity (Finding future value)
1. Suppose Mrs. Remoto would like to save ₱3,000.00 every month in a
fund that gives 9% compounded monthly. How much is the amount or the
future value of her savings after 6 months?
2. In order to save for her high school graduation, Marie decided to save
₱200.00 at the end of each month. If the bank pays 0.25% compounded
monthly, how much will her money be at the end of 6 years?
Example of Simple Annuity (Finding present value)
1. Mr. Ribaya paid ₱200,000.00 as a down payment on a car. The remaining
amount is to be settled by paying ₱16,200.00 at the end of each month
for 5 years. If interest is 10.5% compounded monthly, what is the cash
price of his car?
2. Rose works very hard because she wants to have enough money in her
retirement account when she reaches the age of 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?
Example of Simple Annuity (Finding periodic payment)
1. Paulo borrowed ₱100,000.00. He agrees to pay the principal plus interest
by paying an equal amount of money each year for 3 years. What should
be his annual payment if interest is 8% compounded annually?
2. Mr. Ribaya would like to save ₱500,000.00 for his son’s college
education. How much should he deposit in a savings account every 6
months for 12 years if interest is 1% compounded semi-annually?
General Annuity- Refers to an annuity where the length of the payment interval
is not the same as the length of the interest compounding period.
Examples of General Annuity:
1. Monthly installment of a car, lot, or house with an interest rate that is
compounded annually.
2. Paying a debt semi-annually when the interest is compounded monthly.
Formula
Future Value of Present Value of Interest rate for Number of
General Annuity General Annuity interval payment
𝑛 −𝑛
(1+𝑖) −1 1−(1+𝑖) 𝑚
𝑚2 𝑛 = (𝑚1)(𝑡)
𝐹=𝑅 𝑖
𝐹=𝑅 𝑖 𝑖 = (1 +
𝑟 2
) −1
𝑚2 𝑚1
Where:
R is the regular payment
i is the equivalent interest rate per payment interval converted from the interest
rate per period
n is the number of payments
r is the nominal rate
𝑚1 is the payment interval
𝑚2 is the length of the compounding period
t is the term of annuity
Example of General Annuity (Finding the Future Value)
1. Cris started to deposit ₱1,000.00 monthly in a fund that pays 6%
compounded quarterly. How much will be in the fund after 15 years?
2. A teacher saves ₱5,000.00 every 6 months in a bank that pays 0.25%
compounded monthly. How much will her savings be after 10 years?
Example of General Annuity (Finding the Present Value)
1. Ken borrowed a certain amount of money from Kat. He agrees to pay the
principal plus interest by paying ₱38,973.76 each year for 3 years. How
much money did he borrow if interest is 8% compounded quarterly?
2. Mrs. Remoto would like to buy a television set payable for 6 months
starting at the end of the month. How much is the cost of the TV set if her
monthly payment is ₱3,000.00 and interest is 9% compounded
semi-annually?
D. Application
After the discussion, the teacher will implement the activity called “Annuity
Adventures: Unlocking the Power of Payments”
The teacher will divide the class into five groups, each with 10 members. Each
group will assign a leader, and the leaders will go in front to pick a question in the
box. After picking a question, the group will read the scenario, discuss it, and
answer it. After answering the question, one member of the group will read and
write their answer on the board and explain in class why they came up with that
solution and answer.
E. Generalization
In a ¼ piece of paper.
a. What are the three (3) takeaways that you’ve learned?
b. What are the two (2) things that caught your interest?
c. Cite one (1) thing you’re confused about.
IV. Evaluation
1. You plan to take out a car loan of ₱1,000,000.00. The bank charges an interest
rate of 8% compounded quarterly. You will make monthly payments of
₱20,000.00 for 5 years. What is the present value of this annuity?
2. Allan works hard because he wants to have enough money in his retirement
account when he reaches the age of 60. He wants to withdraw ₱50,000.00 every
3 months for 20 years, starting 3 months after he retires. How much must Allan
deposit at retirement at 20% per year compounded quarterly for the annuity?
3. Marites decided to save ₱200.00 at the end of each month to save for her high
school graduation. If the bank pays 12% compounded monthly, how much will
her money be at the end of 6 years?
4. ABC Bank pays interest at the rate of 2% compounded quarterly. How much will
have in the bank at the end of 5 years if he deposits ₱3,000.00 every month?
V. Assignment
Give three (3) examples of real-life problems involving simple and general annuity.
