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# Department of Education

Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 03, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple Interest and Compound Interest

Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.

Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.

Materials:
A. Reference: Next Century Mathematics, General Mathematics
B. http://www.mathsisfun.com/money/interest.html

Procedures:
A. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review

## B. Development of the Lesson

1. Motivation: Watch a video of simple interest vs compound
interest.
2. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!

## But they usually charge this way:

As a percent (per year) of the amount borrowed
It is called Interest

## Example: Borrow \$1,000 from the Bank

Alex wants to borrow \$1,000. The local bank says "10%
Interest". So to borrow the \$1,000 for 1 year will cost:
\$1,000 10% = \$100
In this case the "Interest" is \$100, and the "Interest Rate" is
10% (but people often say "10% Interest" without saying
"Rate")

## Of course, Alex will have to pay back the original \$1,000

after one year, so this is what happens:
Alex Borrows \$1,000, but has to pay back \$1,100
This is the idea of Interest ... paying for the use of the
money.

## Note: I am showing a full year loan, but banks often want

you to pay back the loan in small monthly amounts, and they
also charge extra fees too!
Words
There are special words used when borrowing money, as
shown here:

## The important part of the word "Interest" is Inter- meaning

between (we see inter- in words like interior and interval),
because the interest happens between the start and end of
the loan.
More Than One Year ...
What if Alex wanted to borrow the money for 2 Years?

Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of (\$1,000 10%) x 2 Years = \$200
That is how simple interest works ... pay the same amount of
interest every year.
Example: Alex borrows \$1,000 for 5 Years, at 10% simple
interest:
Interest = \$1,000 10% x 5 Years = \$500
Plus the Principal of \$1,000 means Alex needs to pay
\$1,500 after 5 Years
There is a formula for
simple interest Example: Jan borrowed
I = Prt \$3,000 for 4 Years at
where 5% interest rate, how
I = interest much interest is that?
P = amount borrowed I = Prt
(called "Principal") I = \$3,000 5% 4
r = interest rate years
t = time I = 3000 0.05 4
Like this: I = \$6
Compound Interest

But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you \$1,100 for the second year!"
And Alex pays \$110 interest in the second year, not just
\$100.

## Because Alex is paying 10% on \$1,100 not just \$1,000

This may seem unfair ... but imagine YOU lend the money to
Alex. After a year you think "Alex owes me \$1,100 now, and
is still using my money, I should get more interest!"
And so this is the normal way of calculating interest. It is
called compounding.

## With compounding we work out the interest for the first

period, add it the total, and then calculate the interest for
the next period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed
\$100 interest, the Bank thinks of that as another loan and
charges interest on it, too.

3. Activities:
1. Jerry borrowed \$4,000 for 5 years at 6% simple interest
rate. How much interest is that?
2. Julie borrowed \$3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
3. Sam borrowed \$4,500 for 2 years and had to pay \$630
simple interest at the end of that time. What rate of
interest did he pay?

4. Application:
1. Sanjay borrowed \$7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid \$840 in interest
altogether.
How many years was that?
2. Alice borrowed \$4,000 for 3 years at 10% compound
interest rate. How much interest is that?

C. Evaluation:
1. Simon borrowed \$1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
2. Sam borrowed \$4,500 for 2 years and had to pay \$630 simple
interest at the end of that time. What rate of interest did he
pay?

D. Assignment:
1. Alex borrowed \$2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed \$2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 04, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple Interest and Compound Interest

Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.

Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.

Materials:
D. Reference: Next Century Mathematics, General Mathematics
E. http://www.mathsisfun.com/money/interest.html

Procedures:
D. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
E. Development of the Lesson
5. Motivation: Watch a video of simple interest vs compound
interest.

6. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!

## But they usually charge this way:

As a percent (per year) of the amount borrowed
It is called Interest

## Example: Borrow \$1,000 from the Bank

Alex wants to borrow \$1,000. The local bank says "10%
Interest". So to borrow the \$1,000 for 1 year will cost:
\$1,000 10% = \$100
In this case the "Interest" is \$100, and the "Interest Rate" is
10% (but people often say "10% Interest" without saying
"Rate")

## Of course, Alex will have to pay back the original \$1,000

after one year, so this is what happens:
Alex Borrows \$1,000, but has to pay back \$1,100
This is the idea of Interest ... paying for the use of the
money.

## Note: I am showing a full year loan, but banks often want

you to pay back the loan in small monthly amounts, and they
also charge extra fees too!
Words
There are special words used when borrowing money, as
shown here:

## The important part of the word "Interest" is Inter- meaning

between (we see inter- in words like interior and interval),
because the interest happens between the start and end of
the loan.
More Than One Year ...
What if Alex wanted to borrow the money for 2 Years?

Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of (\$1,000 10%) x 2 Years = \$200
That is how simple interest works ... pay the same amount of
interest every year.

## Example: Alex borrows \$1,000 for 5 Years, at 10% simple

interest:
Interest = \$1,000 10% x 5 Years = \$500
Plus the Principal of \$1,000 means Alex needs to pay
\$1,500 after 5 Years
There is a formula for
simple interest Example: Jan borrowed
I = Prt \$3,000 for 4 Years at
where 5% interest rate, how
I = interest much interest is that?
P = amount borrowed I = Prt
(called "Principal") I = \$3,000 5% 4
r = interest rate years
t = time I = 3000 0.05 4
Like this: I = \$6
Compound Interest

But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you \$1,100 for the second year!"
And Alex pays \$110 interest in the second year, not just
\$100.

## Because Alex is paying 10% on \$1,100 not just \$1,000

This may seem unfair ... but imagine YOU lend the money to
Alex. After a year you think "Alex owes me \$1,100 now, and
is still using my money, I should get more interest!"
And so this is the normal way of calculating interest. It is
called compounding.

## With compounding we work out the interest for the first

period, add it the total, and then calculate the interest for
the next period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed
\$100 interest, the Bank thinks of that as another loan and
charges interest on it, too.

7. Activities:
4. Jerry borrowed \$4,000 for 5 years at 6% simple interest
rate. How much interest is that?
5. Julie borrowed \$3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
6. Sam borrowed \$4,500 for 2 years and had to pay \$630
simple interest at the end of that time. What rate of
interest did he pay?

8. Application:
3. Sanjay borrowed \$7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid \$840 in interest
altogether.
How many years was that?
4. Alice borrowed \$4,000 for 3 years at 10% compound
interest rate. How much interest is that?

F. Evaluation:
3. Simon borrowed \$1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
4. Sam borrowed \$4,500 for 2 years and had to pay \$630 simple
interest at the end of that time. What rate of interest did he
pay?

D. Assignment:
1. Alex borrowed \$2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed \$2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 05, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple Interest and Compound Interest

Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.

Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.

Materials:
G. Reference: Next Century Mathematics, General Mathematics
H. http://www.mathsisfun.com/money/interest.html

Procedures:
G. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review

## H. Development of the Lesson

9. Motivation: Watch a video of simple interest vs compound
interest.

10. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!

## But they usually charge this way:

As a percent (per year) of the amount borrowed
It is called Interest

## Example: Borrow \$1,000 from the Bank

Alex wants to borrow \$1,000. The local bank says "10%
Interest". So to borrow the \$1,000 for 1 year will cost:
\$1,000 10% = \$100
In this case the "Interest" is \$100, and the "Interest Rate" is
10% (but people often say "10% Interest" without saying
"Rate")

## Of course, Alex will have to pay back the original \$1,000

after one year, so this is what happens:
Alex Borrows \$1,000, but has to pay back \$1,100
This is the idea of Interest ... paying for the use of the
money.

## Note: I am showing a full year loan, but banks often want

you to pay back the loan in small monthly amounts, and they
also charge extra fees too!
Words
There are special words used when borrowing money, as
shown here:

## The important part of the word "Interest" is Inter- meaning

between (we see inter- in words like interior and interval),
because the interest happens between the start and end of
the loan.
More Than One Year ...
What if Alex wanted to borrow the money for 2 Years?

Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of (\$1,000 10%) x 2 Years = \$200
That is how simple interest works ... pay the same amount of
interest every year.

## Example: Alex borrows \$1,000 for 5 Years, at 10% simple

interest:
Interest = \$1,000 10% x 5 Years = \$500
Plus the Principal of \$1,000 means Alex needs to pay
\$1,500 after 5 Years
There is a formula for
simple interest Example: Jan borrowed
I = Prt \$3,000 for 4 Years at
where 5% interest rate, how
I = interest much interest is that?
P = amount borrowed I = Prt
(called "Principal") I = \$3,000 5% 4
r = interest rate years
t = time I = 3000 0.05 4
Like this: I = \$6
Compound Interest

But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning you
\$1,100 for the second year!"
And Alex pays \$110 interest in the second year, not just \$100.

## Because Alex is paying 10% on \$1,100 not just \$1,000

This may seem unfair ... but imagine YOU lend the money to
Alex. After a year you think "Alex owes me \$1,100 now, and is
still using my money, I should get more interest!"
And so this is the normal way of calculating interest. It is called
compounding.

With compounding we work out the interest for the first period,
add it the total, and then calculate the interest for the next
period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed \$100
interest, the Bank thinks of that as another loan and charges
interest on it, too.

11. Activities:
7. Jerry borrowed \$4,000 for 5 years at 6% simple interest rate.
How much interest is that?
8. Julie borrowed \$3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
9. Sam borrowed \$4,500 for 2 years and had to pay \$630
simple interest at the end of that time. What rate of interest
did he pay?

12. Application:
5. Sanjay borrowed \$7,000 at a simple interest rate of 3% per
year.
After a certain number of years he had paid \$840 in interest
altogether.
How many years was that?
6. Alice borrowed \$4,000 for 3 years at 10% compound interest
rate. How much interest is that?

I. Evaluation:
5. Simon borrowed \$1,000 for 3 years at 5% compound interest rate. How
much did he owe after 3 years?
6. Sam borrowed \$4,500 for 2 years and had to pay \$630 simple
interest at the end of that time. What rate of interest did he pay?

D. Assignment:
1. Alex borrowed \$2,000 for 2 years at 5% compound interest
rate. How much interest is that?
2. Dan borrowed \$2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 06, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple Interest and Compound Interest

Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.

Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.

Materials:
J. Reference: Next Century Mathematics, General Mathematics
K. http://www.mathsisfun.com/money/interest.html

Procedures:
J. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review

## K. Development of the Lesson

13. Motivation: Watch a video of simple interest vs compound
interest.

14. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!

## But they usually charge this way:

As a percent (per year) of the amount borrowed
It is called Interest

## Example: Borrow \$1,000 from the Bank

Alex wants to borrow \$1,000. The local bank says "10%
Interest". So to borrow the \$1,000 for 1 year will cost:
\$1,000 10% = \$100
In this case the "Interest" is \$100, and the "Interest Rate" is
10% (but people often say "10% Interest" without saying "Rate")

Of course, Alex will have to pay back the original \$1,000 after
one year, so this is what happens:
Alex Borrows \$1,000, but has to pay back \$1,100
This is the idea of Interest ... paying for the use of the money.

## Note: I am showing a full year loan, but banks often want

you to pay back the loan in small monthly amounts, and they
also charge extra fees too!
Words
There are special words used when borrowing money, as shown
here:

## The Interest is \$100

The important part of the word "Interest" is Inter- meaning
between (we see inter- in words like interior and interval),
because the interest happens between the start and end of the
loan.
More Than One Year ...
What if Alex wanted to borrow the money for 2 Years?

Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of (\$1,000 10%) x 2 Years = \$200
That is how simple interest works ... pay the same amount of
interest every year.

## Example: Alex borrows \$1,000 for 5 Years, at 10% simple

interest:
Interest = \$1,000 10% x 5 Years = \$500
Plus the Principal of \$1,000 means Alex needs to pay \$1,500
after 5 Years
There is a formula for
simple interest Example: Jan borrowed
I = Prt \$3,000 for 4 Years at
where 5% interest rate, how
I = interest much interest is that?
P = amount borrowed I = Prt
(called "Principal") I = \$3,000 5% 4
r = interest rate years
t = time I = 3000 0.05 4
Like this: I = \$6
Compound Interest

But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you \$1,100 for the second year!"
And Alex pays \$110 interest in the second year, not just
\$100.

## Because Alex is paying 10% on \$1,100 not just \$1,000

This may seem unfair ... but imagine YOU lend the money to
Alex. After a year you think "Alex owes me \$1,100 now, and
is still using my money, I should get more interest!"
And so this is the normal way of calculating interest. It is
called compounding.

## With compounding we work out the interest for the first

period, add it the total, and then calculate the interest for
the next period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed
\$100 interest, the Bank thinks of that as another loan and
charges interest on it, too.

15. Activities:
10. Jerry borrowed \$4,000 for 5 years at 6% simple interest
rate. How much interest is that?
11. Julie borrowed \$3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
12. Sam borrowed \$4,500 for 2 years and had to pay \$630
simple interest at the end of that time. What rate of
interest did he pay?

16. Application:
7. Sanjay borrowed \$7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid \$840 in interest
altogether.
How many years was that?
8. Alice borrowed \$4,000 for 3 years at 10% compound
interest rate. How much interest is that?

L. Evaluation:
7. Simon borrowed \$1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
8. Sam borrowed \$4,500 for 2 years and had to pay \$630 simple
interest at the end of that time. What rate of interest did he
pay?

D. Assignment:
1. Alex borrowed \$2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed \$2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?

Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 07, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple Interest and Compound Interest

Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.

Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.

Materials:
M. Reference: Next Century Mathematics, General Mathematics
N. http://www.mathsisfun.com/money/interest.html

Procedures:
M. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review

## N. Development of the Lesson

17. Motivation: Watch a video of simple interest vs
compound interest.
18. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!

## But they usually charge this way:

As a percent (per year) of the amount borrowed
It is called Interest

## Example: Borrow \$1,000 from the Bank

Alex wants to borrow \$1,000. The local bank says "10%
Interest". So to borrow the \$1,000 for 1 year will cost:
\$1,000 10% = \$100
In this case the "Interest" is \$100, and the "Interest Rate" is
10% (but people often say "10% Interest" without saying
"Rate")

## Of course, Alex will have to pay back the original \$1,000

after one year, so this is what happens:
Alex Borrows \$1,000, but has to pay back \$1,100
This is the idea of Interest ... paying for the use of the
money.

## Note: I am showing a full year loan, but banks often want

you to pay back the loan in small monthly amounts, and they
also charge extra fees too!
Words
There are special words used when borrowing money, as
shown here:

## The important part of the word "Interest" is Inter- meaning

between (we see inter- in words like interior and interval),
because the interest happens between the start and end of
the loan.
More Than One Year ...
What if Alex wanted to borrow the money for 2 Years?

Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of (\$1,000 10%) x 2 Years = \$200
That is how simple interest works ... pay the same amount of
interest every year.
Example: Alex borrows \$1,000 for 5 Years, at 10% simple
interest:
Interest = \$1,000 10% x 5 Years = \$500
Plus the Principal of \$1,000 means Alex needs to pay
\$1,500 after 5 Years
There is a formula for
simple interest
I = Prt
where
I = interest
P = amount borrowed
(called "Principal")
r = interest rate
t = time
Like this:

## Example: Jan borrowed

\$3,000 for 4 Years at
5% interest rate, how
much interest is that?
I = Prt
I = \$3,000 5% 4
years
I = 3000 0.05 4
I = \$6
Compound Interest

But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning you
\$1,100 for the second year!"
And Alex pays \$110 interest in the second year, not just \$100.

## Because Alex is paying 10% on \$1,100 not just \$1,000

This may seem unfair ... but imagine YOU lend the money to
Alex. After a year you think "Alex owes me \$1,100 now, and is
still using my money, I should get more interest!"
And so this is the normal way of calculating interest. It is called
compounding.

With compounding we work out the interest for the first period,
add it the total, and then calculate the interest for the next
period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed \$100
interest, the Bank thinks of that as another loan and charges
interest on it, too.

19. Activities:
13. Jerry borrowed \$4,000 for 5 years at 6% simple interest rate.
How much interest is that?
14. Julie borrowed \$3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
15. Sam borrowed \$4,500 for 2 years and had to pay \$630
simple interest at the end of that time. What rate of interest
did he pay?

20. Application:
9. Sanjay borrowed \$7,000 at a simple interest rate of 3% per
year.
After a certain number of years he had paid \$840 in interest
altogether.
How many years was that?
10. Alice borrowed \$4,000 for 3 years at 10% compound
interest rate. How much interest is that?

O. Evaluation:
9. Simon borrowed \$1,000 for 3 years at 5% compound interest rate. How
much did he owe after 3 years?
10. Sam borrowed \$4,500 for 2 years and had to pay \$630 simple
interest at the end of that time. What rate of interest did he pay?

D. Assignment:
1. Alex borrowed \$2,000 for 2 years at 5% compound interest
rate. How much interest is that?
2. Dan borrowed \$2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 10, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple and General Annuity

Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.

Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.

Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
P. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest

## Q. Development of the Lesson

1. Motivation:
How many of these can you answer orally?
a. 6 is what percent of 24?
b. 60 is what percent of 4?
c. What percent of 18 is 90?
d. 150 is what percent of 100?
e. 86 is what percent of 860?

2. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).

Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of \$1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) \$1000 \$1000 \$1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is \$3310.13 Example 2: A four-year lease
agreement requires payments of \$10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is \$36,647.36

Practice Questions:
1.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?

## 2.) Laura wants to accumulate 150,000 in her bank account by

depositing 1000 at the beginning of each month. If interest
on the account is 5% compounded quarterly, for how long
does Laura have to deposit the money?

3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.

## What will the balance be after 12 years?

Answers: 1) \$656.40 2) n = 116.5/12 = 9.7 years 3) \$4,404.70.
Hint: first step is to find balance [FV] after 2 years, which will
become the Present Value using the FV formula for compound
interest since PMT=0 for the last 4 years

More Examples:

## 1 Find the future value of an ordinary annuity using the simple

interest formula method.
Finding the future value of an annuity into which periodic
payments are made means finding the amount of the annuity at the
end of the accumulation phase. This is similar to finding the future
value of a lump sum. The significant difference is that for each
interest period, more principal the annuity paymentis added to
the amount on which interest is earned. The simple interest formula
I = PRT is still the basis of calculating interest for each period of the
annuity.
HOW TO Find the future value of an ordinary annuity in the
accumulation phase
with periodic payments using the simple interest formula
method
1. Find the first end-of-period principal.
2. For each remaining period in turn, find the next end-of-period
principal.
(a) Multiply the previous end-of-period principal by the sum of 1
and the decimal equivalent of the period interest rate.
(b) Add the product from step 2a and the annuity payment.
3. Identify the last end-of-period principal as the future value.
For an ordinary annuity, no interest accumulates on the annuity
payment during the period in
which it is paid because the payment is made at the end of the
period. For the first period, this
means no interest accumulates at all.

## Carolyn Ellis is setting up an annuity for her retirement. She can

set aside 2,0000 at the end of each year for the next 20 years and
it will earn 6% annual interest. What lump sum will she need to
set aside today at 6% annual interest to have the same retirement
fund available 20 years from now? How much more will Carolyn
need to invest in periodic payments than she will if she makes a
lump sum payment if she intends to accumulate the same
retirement balance?

c. Evaluation
Group yourselves by three (3). Solve these problems.

## 1. If an individual put the equivalent of \$50 per month, or

\$600 annually into an ordinary annuity, how much money would
accumulate in
20 years at 3% compounded annually? How much at 5%?

## 2. Using the same information from Exercise 1 and assuming a

25% tax bracket, what would be the net effect of investing at 8%
for
20 years if taxes on the earnings were paid from the
investment fund each year? How would this compare if no taxes
as in a tax-deferred annuity at 8% for 20 years?

d. Assignment

## 1. Jessica, a 25-year-old client of Andres, wants to retire by age

65 with \$1,000,000. How much would she have to invest annually
assuming a 6% rate of return?

2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate \$1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 11, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple and General Annuity

Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.

Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.

Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
R. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest

## S. Development of the Lesson

4. Motivation:
How many of these can you answer orally?
a. 6 is what percent of 24?
b. 60 is what percent of 4?
c. What percent of 18 is 90?
d. 150 is what percent of 100?
e. 86 is what percent of 860?

5. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).

Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of \$1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) \$1000 \$1000 \$1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is \$3310.13 Example 2: A four-year lease
agreement requires payments of \$10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is \$36,647.36

Practice Questions:
3.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?

## 4.) Laura wants to accumulate 150,000 in her bank account by

depositing 1000 at the beginning of each month. If interest
on the account is 5% compounded quarterly, for how long
does Laura have to deposit the money?
3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.

## What will the balance be after 12 years?

Answers: 1) \$656.40 2) n = 116.5/12 = 9.7 years 3) \$4,404.70.
Hint: first step is to find balance [FV] after 2 years, which will
become the Present Value using the FV formula for compound
interest since PMT=0 for the last 4 years

More Examples:

## 1 Find the future value of an ordinary annuity using the simple

interest formula method.
Finding the future value of an annuity into which periodic
payments are made means finding the amount of the annuity at the
end of the accumulation phase. This is similar to finding the future
value of a lump sum. The significant difference is that for each
interest period, more principal the annuity paymentis added to
the amount on which interest is earned. The simple interest formula
I = PRT is still the basis of calculating interest for each period of the
annuity.
HOW TO Find the future value of an ordinary annuity in the
accumulation phase
with periodic payments using the simple interest formula
method
1. Find the first end-of-period principal.
2. For each remaining period in turn, find the next end-of-period
principal.
(a) Multiply the previous end-of-period principal by the sum of 1
and the decimal equivalent of the period interest rate.
(b) Add the product from step 2a and the annuity payment.
3. Identify the last end-of-period principal as the future value.
For an ordinary annuity, no interest accumulates on the annuity
payment during the period in
which it is paid because the payment is made at the end of the
period. For the first period, this
means no interest accumulates at all.

## Carolyn Ellis is setting up an annuity for her retirement. She can

set aside 2,0000 at the end of each year for the next 20 years and
it will earn 6% annual interest. What lump sum will she need to
set aside today at 6% annual interest to have the same retirement
fund available 20 years from now? How much more will Carolyn
need to invest in periodic payments than she will if she makes a
lump sum payment if she intends to accumulate the same
retirement balance?

c. Evaluation
Group yourselves by three (3). Solve these problems.

## 1. If an individual put the equivalent of \$50 per month, or

\$600 annually into an ordinary annuity, how much money would
accumulate in
20 years at 3% compounded annually? How much at 5%?

## 2. Using the same information from Exercise 1 and assuming a

25% tax bracket, what would be the net effect of investing at 8%
for
20 years if taxes on the earnings were paid from the
investment fund each year? How would this compare if no taxes
as in a tax-deferred annuity at 8% for 20 years?

d. Assignment

## 1. Jessica, a 25-year-old client of Andres, wants to retire by age

65 with \$1,000,000. How much would she have to invest annually
assuming a 6% rate of return?

2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate \$1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?

Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 12, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple and General Annuity

Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.

Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.

Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
T. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest

## U. Development of the Lesson

7. Motivation:
How many of these can you answer orally?
a. 6 is what percent of 24?
b. 60 is what percent of 4?
c. What percent of 18 is 90?
d. 150 is what percent of 100?
e. 86 is what percent of 860?

8. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).

Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of \$1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) \$1000 \$1000 \$1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is \$3310.13 Example 2: A four-year lease
agreement requires payments of \$10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is \$36,647.36

Practice Questions:
5.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?

## 6.) Laura wants to accumulate 150,000 in her bank account by

depositing 1000 at the beginning of each month. If interest
on the account is 5% compounded quarterly, for how long
does Laura have to deposit the money?

3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.

## What will the balance be after 12 years?

Answers: 1) \$656.40 2) n = 116.5/12 = 9.7 years 3) \$4,404.70.
Hint: first step is to find balance [FV] after 2 years, which will
become the Present Value using the FV formula for compound
interest since PMT=0 for the last 4 years

More Examples:

## 1 Find the future value of an ordinary annuity using the simple

interest formula method.
Finding the future value of an annuity into which periodic
payments are made means finding the amount of the annuity at the
end of the accumulation phase. This is similar to finding the future
value of a lump sum. The significant difference is that for each
interest period, more principal the annuity paymentis added to
the amount on which interest is earned. The simple interest formula
I = PRT is still the basis of calculating interest for each period of the
annuity.
HOW TO Find the future value of an ordinary annuity in the
accumulation phase
with periodic payments using the simple interest formula
method
1. Find the first end-of-period principal.
2. For each remaining period in turn, find the next end-of-period
principal.
(a) Multiply the previous end-of-period principal by the sum of 1
and the decimal equivalent of the period interest rate.
(b) Add the product from step 2a and the annuity payment.
3. Identify the last end-of-period principal as the future value.
For an ordinary annuity, no interest accumulates on the annuity
payment during the period in
which it is paid because the payment is made at the end of the
period. For the first period, this
means no interest accumulates at all.

## Carolyn Ellis is setting up an annuity for her retirement. She can

set aside 2,0000 at the end of each year for the next 20 years and
it will earn 6% annual interest. What lump sum will she need to
set aside today at 6% annual interest to have the same retirement
fund available 20 years from now? How much more will Carolyn
need to invest in periodic payments than she will if she makes a
lump sum payment if she intends to accumulate the same
retirement balance?

c. Evaluation
Group yourselves by three (3). Solve these problems.

## 1. If an individual put the equivalent of \$50 per month, or

\$600 annually into an ordinary annuity, how much money would
accumulate in
20 years at 3% compounded annually? How much at 5%?

## 2. Using the same information from Exercise 1 and assuming a

25% tax bracket, what would be the net effect of investing at 8%
for
20 years if taxes on the earnings were paid from the
investment fund each year? How would this compare if no taxes
as in a tax-deferred annuity at 8% for 20 years?

d. Assignment

## 1. Jessica, a 25-year-old client of Andres, wants to retire by age

65 with \$1,000,000. How much would she have to invest annually
assuming a 6% rate of return?

2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate \$1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 13, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple and General Annuity

Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.

Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.

Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
V. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest

## W. Development of the Lesson

10. Motivation:
How many of these can you answer orally?
a. 6 is what percent of 24?
b. 60 is what percent of 4?
c. What percent of 18 is 90?
d. 150 is what percent of 100?
e. 86 is what percent of 860?
11. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).

Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of \$1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) \$1000 \$1000 \$1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is \$3310.13 Example 2: A four-year lease
agreement requires payments of \$10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is \$36,647.36

Practice Questions:
7.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?

## 8.) Laura wants to accumulate 150,000 in her bank account by

depositing 1000 at the beginning of each month. If interest
on the account is 5% compounded quarterly, for how long
does Laura have to deposit the money?

3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.

## What will the balance be after 12 years?

Answers: 1) \$656.40 2) n = 116.5/12 = 9.7 years 3) \$4,404.70.
Hint: first step is to find balance [FV] after 2 years, which will
become the Present Value using the FV formula for compound
interest since PMT=0 for the last 4 years

More Examples:

## 1 Find the future value of an ordinary annuity using the simple

interest formula method.
Finding the future value of an annuity into which periodic
payments are made means finding the amount of the annuity at the
end of the accumulation phase. This is similar to finding the future
value of a lump sum. The significant difference is that for each
interest period, more principal the annuity paymentis added to
the amount on which interest is earned. The simple interest formula
I = PRT is still the basis of calculating interest for each period of the
annuity.
HOW TO Find the future value of an ordinary annuity in the
accumulation phase
with periodic payments using the simple interest formula
method
1. Find the first end-of-period principal.
2. For each remaining period in turn, find the next end-of-period
principal.
(a) Multiply the previous end-of-period principal by the sum of 1
and the decimal equivalent of the period interest rate.
(b) Add the product from step 2a and the annuity payment.
3. Identify the last end-of-period principal as the future value.
For an ordinary annuity, no interest accumulates on the annuity
payment during the period in
which it is paid because the payment is made at the end of the
period. For the first period, this
means no interest accumulates at all.

## Carolyn Ellis is setting up an annuity for her retirement. She can

set aside 2,0000 at the end of each year for the next 20 years and
it will earn 6% annual interest. What lump sum will she need to
set aside today at 6% annual interest to have the same retirement
fund available 20 years from now? How much more will Carolyn
need to invest in periodic payments than she will if she makes a
lump sum payment if she intends to accumulate the same
retirement balance?

c. Evaluation
Group yourselves by three (3). Solve these problems.

## 1. If an individual put the equivalent of \$50 per month, or

\$600 annually into an ordinary annuity, how much money would
accumulate in
20 years at 3% compounded annually? How much at 5%?

## 2. Using the same information from Exercise 1 and assuming a

25% tax bracket, what would be the net effect of investing at 8%
for
20 years if taxes on the earnings were paid from the
investment fund each year? How would this compare if no taxes
as in a tax-deferred annuity at 8% for 20 years?

d. Assignment

## 1. Jessica, a 25-year-old client of Andres, wants to retire by age

65 with \$1,000,000. How much would she have to invest annually
assuming a 6% rate of return?

2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate \$1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?

Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 14, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

## Topic: Simple and General Annuity

Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.

Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.

Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
X. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest

## Y. Development of the Lesson

13. Motivation:
How many of these can you answer orally?
a. 6 is what percent of 24?
b. 60 is what percent of 4?
c. What percent of 18 is 90?
d. 150 is what percent of 100?
e. 86 is what percent of 860?

14. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).

Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of \$1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) \$1000 \$1000 \$1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is \$3310.13 Example 2: A four-year lease
agreement requires payments of \$10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is \$36,647.36

Practice Questions:
9.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?

## 10.) Laura wants to accumulate 150,000 in her bank account

by depositing 1000 at the beginning of each month. If
interest on the account is 5% compounded quarterly, for how
long does Laura have to deposit the money?

3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.

## What will the balance be after 12 years?

Answers: 1) \$656.40 2) n = 116.5/12 = 9.7 years 3) \$4,404.70.
Hint: first step is to find balance [FV] after 2 years, which will
become the Present Value using the FV formula for compound
interest since PMT=0 for the last 4 years

More Examples:

## 1 Find the future value of an ordinary annuity using the simple

interest formula method.
Finding the future value of an annuity into which periodic
payments are made means finding the amount of the annuity at the
end of the accumulation phase. This is similar to finding the future
value of a lump sum. The significant difference is that for each
interest period, more principal the annuity paymentis added to
the amount on which interest is earned. The simple interest formula
I = PRT is still the basis of calculating interest for each period of the
annuity.
HOW TO Find the future value of an ordinary annuity in the
accumulation phase
with periodic payments using the simple interest formula
method
1. Find the first end-of-period principal.
2. For each remaining period in turn, find the next end-of-period
principal.
(a) Multiply the previous end-of-period principal by the sum of 1
and the decimal equivalent of the period interest rate.
(b) Add the product from step 2a and the annuity payment.
3. Identify the last end-of-period principal as the future value.
For an ordinary annuity, no interest accumulates on the annuity
payment during the period in
which it is paid because the payment is made at the end of the
period. For the first period, this
means no interest accumulates at all.

## Carolyn Ellis is setting up an annuity for her retirement. She can

set aside 2,0000 at the end of each year for the next 20 years and
it will earn 6% annual interest. What lump sum will she need to
set aside today at 6% annual interest to have the same retirement
fund available 20 years from now? How much more will Carolyn
need to invest in periodic payments than she will if she makes a
lump sum payment if she intends to accumulate the same
retirement balance?

c. Evaluation
Group yourselves by three (3). Solve these problems.

## 1. If an individual put the equivalent of \$50 per month, or

\$600 annually into an ordinary annuity, how much money would
accumulate in
20 years at 3% compounded annually? How much at 5%?

## 2. Using the same information from Exercise 1 and assuming a

25% tax bracket, what would be the net effect of investing at 8%
for
20 years if taxes on the earnings were paid from the
investment fund each year? How would this compare if no taxes
as in a tax-deferred annuity at 8% for 20 years?

d. Assignment

## 1. Jessica, a 25-year-old client of Andres, wants to retire by age

65 with \$1,000,000. How much would she have to invest annually
assuming a 6% rate of return?

2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate \$1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?

Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 17, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

Topic: Proposition

Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition

Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
Procedures:
Z. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic

## A. Development of the Lesson

Motivation: Watch a video of Propositional Logic

Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.

## Example 1.2.1. Drilling for oil caused dinosaurs to become

extinct. is a proposition.

proposition.

## Example 1.2.4. x + 2 = 2x is not a proposition. Example 1.2.5.

x + 2 = 2x when x = 2 is a proposition.

## Definition 1.3.1. Unary Operator negation: not p, p.

Definitions 1.3.1. Binary Operators
(a) conjunction: p and q, p q.
(b) disjunction: p or q, p q.
(c) exclusive or: exactly one of p or q, p xor q, p q.
(d) implication: if p then q, p q.
(e) biconditional: p if and only if q, p q.

Actitivty:

## Classify each proposition as simple or compound. Classify each

compound proposition as a negation, conjunction, disjunction,
conditional, or biconditional.

## a. My friend took his masters degree in Spain.

b. Roses are red, but violets are blue.
c. You are entitled to a 30% discount if you are a member.
d. Roel was on time, but Tom was late.
e. Either he watches a movie or dines with his friends.
f. If it has an acute angle, then it is an acute triangle.

4. Application:
Give three examples of simple and compound propositions.

c. Evaluation:
Write five examples of simple and compound propositions.

d. Assignment:
11 student using simple and compound proposition.
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 18, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

Topic: Proposition
Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition

Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
Procedures:
AA. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic

## B. Development of the Lesson

Motivation: Watch a video of Propositional Logic

Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.

## Example 1.2.1. Drilling for oil caused dinosaurs to become

extinct. is a proposition.

proposition.

## Example 1.2.4. x + 2 = 2x is not a proposition. Example 1.2.5.

x + 2 = 2x when x = 2 is a proposition.

## Definition 1.3.1. Unary Operator negation: not p, p.

Definitions 1.3.1. Binary Operators
(a) conjunction: p and q, p q.
(b) disjunction: p or q, p q.
(c) exclusive or: exactly one of p or q, p xor q, p q.
(d) implication: if p then q, p q.
(e) biconditional: p if and only if q, p q.

Actitivty:

## Classify each proposition as simple or compound. Classify each

compound proposition as a negation, conjunction, disjunction,
conditional, or biconditional.

## a. My friend took his masters degree in Spain.

b. Roses are red, but violets are blue.
c. You are entitled to a 30% discount if you are a member.
d. Roel was on time, but Tom was late.
e. Either he watches a movie or dines with his friends.
f. If it has an acute angle, then it is an acute triangle.

4. Application:
Give three examples of simple and compound propositions.

c. Evaluation:
Write five examples of simple and compound propositions.

d. Assignment:
11 student using simple and compound proposition.
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga

## School Year 2016-2017

Senior High School
Oct. 19, 2016 Week:______________ Quarter:_________________
Date:______________ 2nd
General Math 11 1st

Topic: Proposition

Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition

Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
Procedures:
BB. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic

## C. Development of the Lesson

Motivation: Watch a video of Propositional Logic

Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.

## Example 1.2.1. Drilling for oil caused dinosaurs to become

extinct. is a proposition.

proposition.

## Example 1.2.4. x + 2 = 2x is not a proposition. Example 1.2.5.

x + 2 = 2x when x = 2 is a proposition.

## Definition 1.3.1. Unary Operator negation: not p, p.

Definitions 1.3.1. Binary Operators
(a) conjunction: p and q, p q.
(b) disjunction: p or q, p q.
(c) exclusive or: exactly one of p or q, p xor q, p q.
(d) implication: if p then q, p q.
(e) biconditional: p if and only if q, p q.

Actitivty:

## Classify each proposition as simple or compound. Classify each

compound proposition as a negation, conjunction, disjunction,
conditional, or biconditional.

## a. My friend took his masters degree in Spain.

b. Roses are red, but violets are blue.
c. You are entitled to a 30% discount if you are a member.
d. Roel was on time, but Tom was late.
e. Either he watches a movie or dines with his friends.
f. If it has an acute angle, then it is an acute triangle.

4. Application:
Give three examples of simple and compound propositions.
c. Evaluation:
Write five examples of simple and compound propositions.

d. Assignment: