11

Mathematics
Quarter 2 – Module 2
Simple, General, and Deferred Annuities

Locally
General Mathematics Developed
– Grade 11 Self-Learning Material
 2

Locally Developed Self-Learning Material

Quarter 2 – Module 2
Lesson 1: Simple Annuity
Lesson 2: General Annuity and Deferred Annuity

Development Team of the Module

Key-Teacher Writer: Danica Mae B. Cleopas

Teacher-Writer (Collaborators): Felina A. Ting

Richel R. Quinto
Michaela C. Madamecila

Editors: Ruel D. Emberga

Jesusima P. Facal
Sandy T. Cabarle, EdD

Reviewer: Ruel D. Emberga

Corazon B. Dumlao, EdD

Management Team: Leilani S. Cunanan, CESO V

Maylene M. Minimo, EdD, CESE
Ariel C. Lansang
Jose C. Tala, EdD

TABLE OF CONTENTS

LESSON 1: Simple Annuities

What I Need to Know …………………………………………………. 4
 3

What I know …………………………………………………. 4

What’s In …………………………………………………. 5
What’s New …………………………………………………. 5
What is It …………………………………………………. 6
What’s More …………………………………………………. 8
What I Have Learned …………………………………………………. 9
What I Can Do …………………………………………………. 9
Additional Activities …………………………………………………. 10

LESSON 2: General, and Deferred Annuities

What I Need to Know …………………………………………………. 11
What’s In …………………………………………………. 11
What’s New …………………………………………………. 11
What is It …………………………………………………. 13
What’s More …………………………………………………. 14
What I Have Learned …………………………………………………. 15
What I Can Do …………………………………………………. 16
Assessment (Post-test) …………………………………………………. 16

Answer Key …………………………………………………. 18

References …………………………………………………. 18

Lesson
Simple
1 Annuities

What I Need to Know

At the end of the lesson, the learners should be able to:

1. Illustrate simple and general annuities;
2. Distinguish between simple and general annuities; and
3. Find the future value and present value of simple annuity.
 4

What I Know (Pretest)

Directions: Read each statement carefully. Choose the letter of the correct answer and write it on a 1 whole sheet of
paper.
1.) This refers to a sequence of payments made at equal (fixed) interval or periods of time.
A. Annuity C. Future Value
B. Term D. Present Value
2.) An annuity where the payment interval is the same as the interest period.
A. General Annuity C. Ordinary Annuity
B. Simple Annuity D. Annuity Due
3.) An annuity where the payment is not the same as the interest period.
A. Simple Annuity C. Ordinary Annuity
B. General Annuity D. Annuity Due
4.) A type of annuity in which the payments are made at the end of each payment interval.
A. Simple Interest C. Ordinary Annuity
B. General Annuity D. Annuity Due
5.) A type of annuity in which the payments are made at the beginning of each payment interval.
A. Simple Interest C. Ordinary Annuity
B. General Annuity D. Annuity Due
6.) It is the amount of each payment.
A. Future Value C. Present Value of an Annuity
B. Regular or Periodic Payment D. Annuity Due
7.) Time between the first payment interval and last payment interval.
A. Term of an Annuity C. Annuity Due
B. Periodic Payment D. Annuity Certain
8.) It is the sum of future values of all the payments to be made during the entire term of the annuity.
A. Future Value C. Present Value of an Annuity
B. Amount of an Annuity D. Term of an Annuity
9.) It is the sum of present values of all the payments to be made during the entire term of the annuity.
C. Future Value C. Present Value of an Annuity
D. Amount of an Annuity D. Term of an Annuity
10.) It is an annuity in which payments begin and end at definite times.
A. Simple Annuity C. Annuity Certain
B. General Annuity D. Annuity Due
11.) Determine the amount of the annuity of Php 1,500 every end of three months for two years and three
months, money is worth 12% converted quarterly.
A. Php 16,238.66 C. Php 15,238.66
B. Php 15,125.55 D. Php 16,125.55
12.) Gian bought a piece of land with a down payment of Php 200,000 and Php 7,500 every end of three months
for 5 years at 8% compounded quarterly. Determine the cash equivalent of the lot.
A. Php 332,635.25 C. Php 122,365.75
B. Php 322,635.75 D. Php 122,635.25
13.) Find the amount of an annuity of Php 400 every 3 months for 10 years if interest is 8% compounded
annually.
A. Php 86,603.56 C. Php 186,603.56
B. Php 286,603.56 D. Php 386,603.56
14.) Find the amount of an annuity of Php 700 every 6 months for 12 years if interest is 6%, compounded
monthly.
A. Php 34,821.12 C. Php 43,821.12
B. Php 42,212.83 D. Php 24,212.83
15.) What is the accumulated amount of an annuity of Php 2,000 every year for 15 years which has an interest of
8% compounded every three months.
 5

A. Php 55,343.22 C. Php 55,334.22

B. Php 55,433.22 D. Php 55,033.22

What’s In

On the previous module, the basic concepts on functions were introduced. Functions were used as
mathematical models. These are abstract models that use mathematical language to describe relationships. With the
notion of mathematical modeling, mathematics is concerned not only with the measures of the physical world, but it
has also expanded its applicability to sciences, both social and biological, business, and finance. So, with this,
lessons relating to business and finance will then be introduced specifically on simple and general annuities.

What’s New

Annuities are insurance contracts that promise to pay you regular income either immediately or in the
future. You can buy an annuity with a lump sum or a series of payments. 
It is also a sequence of equivalent periodic payments or deposits. The interest for each deposit or payments
is computed using the compound interest method. Deposits or payments are made at equal intervals of time, for
instance annually, semi-annually, quarterly, or monthly. The sum of the compound amounts of each payment is
called the amount of annuity.
Before, the word annuity talks about annual deposits or payments only, but nowadays, it is applied to
payment intervals of any length of time. The time between each payment is called payment interval, while the time
from the beginning up to the end of the last payment is called as the term of the annuity.

Classification of Annuities
1. Annuities Classified by Length of Payment Intervals and Interest Compounding Period
a. Simple Annuity – the payment interval coincides with the interest compounding periods or the interest
is computed on payment date. For example, when the payment interval is six months, the interest is
compounded semi-annually. In case the payment of an annuity is made at the beginning of each quarter, the
interest is also computed and converted at the beginning of each quarter.
b. General Annuity – the payment interval does not coincide with the interest conversion periods. For
example, when the payment interval is three months, and the interest is converted semi-annually.
2. Annuities Classified by Term
a. Annuity Certain – the term of annuity certain begins and ends on a definite date. For example, a loan of
Php 100,000 may be settled within three years, let’s say from March 21, 2012 to March 21, 2015.
b. Perpetuity - the term of perpetuity begins on a definite date but never ends. The principal remains intact
and earning interest. The length of the term is endless.
c. Contingent Annuity – the term of this annuity begins on a definite date; however, the ending date is not
yet fixed in advance. The ending date depends on some certain conditions that will happen in the future.
For example, life insurance premiums are paid as long as the person insured is alive, we are not certain
when a person will die.
3. Annuities Classified by Dates of Payment
a. Ordinary Annuity – periodic payments are made at the end of each payment interval.
b. Annuity Due – periodic payments are made at the beginning of each payment interval.
c. Deferred Annuity - periodic payment is not given in the beginning or end of the period but instead on
the later time.
P – present value of an annuity F – sum or amount of an annuity
R – periodic payment m – conversion period per year
t – time (expressed in years) j – nominal rate
 6

j
i – periodic rate (i = ) n – total conversion period (n = mt)
m

What is It

Ordinary Annuity
When the annuity is made at the end of each period, it is known as an ordinary annuity.
Sum or Amount of an Ordinary Annuity (Ford)
The amount of an ordinary annuity is denoted by F ord, it is the sum of all periodic payments at the end of the
term.
Ford = R ¿ ¿ or Ford = R ¿ ¿ + down payment (if there is)
Scientific Calculator Input:
r ( ( 1 + j ÷ m ) ^ ( m * t ) - 1 ) ÷ ( j ÷ m ) =

Examples.
1. Suppose Mrs. Remoto would like to save Php 3,000 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?
Given: R = Php 3,000 m = 12
t = 6 months or 0.5 years j = 9% or 0.09
Ford = ?
Solution:
Ford = 3000 ¿ ¿ = Php 18,340.89
Scientific Calculator Input:
3000 ( ( 1 + 0.09 ÷ 12 ) ^ ( 12 * 0.5 ) - 1 ) ÷ ( 0.09 ÷ 12 ) =

2. In order to save for her high school graduation, Marie decided to save Php 5,000 and Php 200 at the end of every
three months in a bank that pays 0.250% quarterly. How much will be her money be at the end of 6 years assuming
that no withdrawal was made?
Given: R = Php 200 m=4
t = 6 years j = 0.250% or 0.00250
DP = Php 5,000 Ford = ?
Solution:
Ford = 200 ¿ ¿ + 5,000= Php 9,834.66

Present Value of an Ordinary Annuity (Ford)

The present value of an ordinary annuity is denoted by P ord, it is the amount at the beginning of the term,
cash equivalent, or the principal amount.
Pord = R ¿ ¿ or Pord = R ¿ ¿ + down payment (if there is)
Scientific Calculator Input:
r ( 1 - ( 1 + j ÷ m ) ^ ( - m * t ) ) ÷ ( j ÷ m ) =

Examples.
1. Mr. Ribaya paid Php 200,000 as down payment for a car. The remaining amount is to be settled by
paying Php 16,200 at the end of each month for 5 years. If the interest is 10.5% compounded monthly, what is the
cash equivalent of his car?
Given: R = Php 16,200 m = 12
t = 5 years j = 10.5% or 0.105
DP = Php 200,000 Pord = ?
Solution:
 7

Pord = 16200 ¿ ¿ + 200,000 = Php 953,702.20

2. Determine the present value of an annuity is Php 950 every end of six months for two years and six
months. If money is worth 7.34% converted semi-annually.
Given: R = Php 950 m=2
t = 2 years and 6 months (2.5) j = 7.34% or 0.0734
Pord = ?
Solution:
Pord = 950 ¿ ¿ = Php 4,268.73
Scientific Calculator Input:
950 ( 1 - ( 1 + 0.0734 ÷ 2 ) ^ ( - 2 * 2.5 ) ) ÷ ( 0.0734 ÷ 2 ) =

What’s More

Periodic Payments of Ordinary Annuity (R)

j
F( )
If Ford is known: R= m
¿¿
Scientific Calculator Input:
( F ( j ÷ m ) ) ÷ ( ( 1 + j ÷ m ) ^ ( m * t ) - 1 ) =

j
P( )
If Pord is known: R= m
1−¿ ¿
Note: If there is a Down Payment, the known value in the problem is Pord. Subtract Down Payment from Pord to
obtain new P.
Scientific Calculator Input:
( P ( j ÷ m ) ) ÷ ( 1 - ( 1 + j ÷ m ) ^ ( - m * t ) ) =

Examples.
1. Ms. Fe Suyat wants to have Php 500,000 five years from now in preparation for her small business. What
amount must she deposit at the end of every end of three months in a fund that gives 12.25% nominal rate
compounded quarterly?
Given: Ford = Php 500,000 m=4
t = 5 years j = 12.25% or 0.1225
R=?
Solution:
0.1225
500000( )
R= 4 = Php 18,489.85
¿¿
Scientific Calculator Input:
( 500000 ( 0.1225 ÷ 4 ) ) ÷ ( ( 1 + 0.1225 ÷ 4 ) ^ ( 4 * 5 ) - 1 ) =

2. How much will be paid every end of the month for three years and 9 months, if the present value of Php
20,000 has Php 5,000 down payment earns an a nominal rate of 7% compounded monthly?
Given: Pord = Php 20,000 DP = Php 5,000
 8

P = 20,000 – 5,000 = 15,000 t = 3 years and 9 months (3.75)

m = 12 j = 7% or 0.07 R=?
Solution:
0.07
15000( )
R= 12 = Php 65,516.12
1−¿ ¿
Scientific Calculator Input:
( 15000 ( 0.07 ÷ 12 ) ) ÷ ( 1 - ( 1 + 0.07 ÷ 12 ) ^ ( - 12 * 3.75 ) ) =

What I Have Learned

Problems Involving Simple Annuities

1. The buyer of a house and lot pays Php 200,000 cash and Php 10,000 every month for 20 years. If money is 9%
compounded monthly, how much is the cash value of the lot?
Given: DP = Php 200,000 m = 12
t = 20 years j = 9% or 0.09
R = Php 10,000 Pord = ?
Solution:
Pord = 10000 ¿ ¿ + 200,000 = Php 1,311,449.54

2. Grace borrowed Php 150,000 payable in 2 years. To repay the loan, she must pay an amount every month with an
interest rate of 6% compounded monthly. How much should she pay every month?
Given: Pord = Php 150,000 m = 12
t = 2 years j = 6% or 0.06
R=?
Solution:
0.06
15000( )
R= 12 = Php 6,648.09
1−¿ ¿

What I Can Do

Answer the following problems involving simple annuities. Write your complete solutions and answers on
a 1 whole sheet of paper.

A. Find the future value F.

1. Monthly payments of Php 3,000 for 4 years with rate of 3% compounded monthly.
2. Quarterly payment of Php 5,000 for 10 years with rate of 2% compounded quarterly.
B. Find the present value P.
1. Semi-annual payments of Php 2,000 for 5 years with nominal rate of 12% compounded semi-
annually.
2. Annual payment of Php 15,000 for 10 years with nominal rate of 8% compounded yearly.
 9

C. Find the periodic payments of the following ordinary annuity.

1. Future value of Php 50,000 for 1 year with an interest rate of 10% compounded monthly.
2. Cash equivalent of Php 80,000 for 2 years with rate of 10% compounded quarterly.

Additional Activities

Solve the problems involving Simple Ordinary Annuity. Show your complete solution and write your
answer on 1 whole sheet of paper.

1. How much is the monthly amortization on an automobile loan of Php 900,000 to be amortized over a 5-
year period at a rate 9.5% compounded monthly?
2. Shirl started to deposit Php 18,000 semi-annually in a fund that pays 5% compounded semi-annually.
How much will be in the fund after 10 years?
 10

Lesson General Annuities

2 and Deferred Annuity

What I Need to Know

At the end of the lesson, the learners should be able to:

1. Find the future and present value of General Annuities;
2. Compute the periodic payment of a General Annuity; and
3. Calculate the present value of deferred annuity.

What’s In

General Annuity is an annuity where the length of the payment interval is not the same as the length of the
interest compounding period. A General Ordinary Annuity is a general annuity in which the periodic payment is
made at the end of the payment interval.
Illustration:
1. Monthly installment payment 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.

What’s New

Future and Present Value of General Ordinary Annuity

The Future Value (F) of a General Ordinary Annuity is given by:

F = R¿¿ or F = R ¿ ¿ + down payment (if there is)
Scientific Calculator Input:
R ( ( 1 + j ) ^ ( n ) - 1 ) ÷ j =

Present Value (P) of a General Ordinary Annuity is given by:

P = R¿¿ or P = R ¿ ¿ + down payment (if there is)
Scientific Calculator Input:
R ( 1 - ( 1 + j ) ^ ( - n ) ) ÷ j =

Note: The formulas for F and P are same as those in Simple Annuity. The extra step occurs in finding j: the given
rate per period must be converted to an equivalent rate per payment interval.
 11

Examples.
1. Cris started to deposit Php 1,000 monthly in a fund that pays 6% compounded quarterly. How much will
be the fund after 15 years?
Given: R = Php 1,000 n = (12)(15) = 180 payments
i(4) = 6% or 0.06 F=?
Solution: Convert 6% compounded quarterly to its equivalent interest rate for monthly payment
interval.
F1 = F2

P(1 +
i 12 12(t) = P(1 + i 4 4 (t )
¿¿ ¿¿
12 4
P(1 +
i 12 12(t) = P(1 + 0.06 ¿ ¿ 4(t )
¿¿
12 4
12
i 12 0.06 4
P(1 + ¿ ¿ = P(1 + ¿¿
12 4
i 12 12 = (
(1 + ¿¿ 1.015 ¿ ¿4
12
1+
i 12 =
¿¿
12
i 12
=¿–1
12
i 12
= 0.00497521 = j
12

Thus, the interest rate per monthly payment interval is 0.00497521 or 0.497521%. Then, apply the formula in
finding the future value of an ordinary annuity using the computed equivalent rate.

F = 1000 ¿ ¿ = Php 290,082.51

Scientific Calculator Input:
1000 ( ( 1 + 0.00497521 ) ^ ( 180 ) - 1 ) ÷ 0.00497521 =

Therefore, Cris will have Php 290,082.51 in the fund after 20 years.

Note: Number of Decimal Places. It is suggested to use the exact value or at least six decimal places, for when
fewer or more decimal places are used, answer may be different.

2. Ken borrowed an amount of money from Kat. He agrees to pay the principal plus interest by paying Php
38,973.76 each year for 3 years. How much money did he borrow if the interest is 8% compounded quarterly.
Given: R = Php 38,973.76 n = (1)(3) = 3 payments
i(4) = 8% or 0.08 P=?
Solution: Convert 6% compounded quarterly to its equivalent interest rate for annual monthly
payment interval.
Convert 6% compounded quarterly to its equivalent interest rate for monthly payment interval.
F1 = F2

P(1 +
i1 1(t) = P(1 + i 4 4 (t )
¿¿ ¿¿
1 4
 12

P(1 +
i1 1( t ) = P(1 + 0.06 ¿ ¿ 4 (t )
¿¿
1 4
1
i 1 0.06 4
P(1 + ¿ ¿ = P(1 + ¿¿
1 4
i1 1
(1 + ¿ ¿ = (1.02 ¿ ¿4
1
1
i
1 + = (1.02)4
1
i = (1.02)4 - 1
i = 0.08243216 = 8.243216% = j

Thus, the interest rate per monthly payment interval is 0.08243216 or 8.243216%. Then, apply the formula in
finding the present value of an ordinary annuity using the computed equivalent rate.
P = 38973.76 ¿ ¿ = Php 100,000.00
Scientific Calculator Input:
38973.76 ( 1 - ( 1 + 0.08243216 ) ^ ( - 3 ) ) ÷ 0.08243216 =

What is It

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.
A 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.
Mr. Ribaya received two offers on a lot that he wants to sell. Mr. Ocampo has offered P50,000 and a P1
million lump sum payment 5 years from now. Mr. Cruz has offered P50,000 plus P40,000 every quarter for five
years. Compare the fair market values of the two offers if money can earn 5% compounded annually. Which offer
has a higher market value?
Given:
Mr. Ocampo’s offer Mr. Cruz’s Offer
Php 50,000 down payment Php 50,000 down payment
Php 1,000,000 after 5 years Php 40,000 every quarter for 5 years
Find: Fair market value of their offer.
Solution: Choose a focal date and determine the values of the two 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. Ocampo’s offer: Since Php 50,000 is offered today, then its present value is still Php 50,000. The present value
of Php 1,000,000 offered five years from now is
P = F(1 + j)-n = 1,000,000(1 + 0.05)-5 = Php 783,526.20
Fair Market Value (FMV) = Down Payment + Present Value
FMV = 50,000 + 783,526.20 = Php 833,526.20
 13

Mr. Cruz’s offer: We first compute for the present value of a general annuity with quarterly payments but with
annual compounding at 5%. Solve for the equivalent rate, compounded quarterly, but with annual compounding at
5%.
F1 = F2

P(1 +
i 4 4 (5) = P(1 + i1 1(5)
¿¿ ¿¿
4 1
i1 20
(1 + ¿ ¿ = (1 +
0.01 5
¿¿
4 1
i1
1 + = (1.05 4
1

4 ¿
i4 1
= (1.05 4 - 1
4 ¿
i4
= 0.012272
4

The present value of an annuity is given by:

P = 40,000 ¿ ¿ = Php 705,572.70
Fair Market Value (FMV) = Down Payment + Present Value
FMV = 50,000 + 705,572.70 = Php 833,526.20

Hence, Mr. Ocampo’s offer has a higher market value. The difference between the market values of the two offers at
the start of the term is 833 526.20 - 755 572.70 = Php 77,953.50.

Alternate Solution (Focal date at the end of the term):

Mr. Ocampo’s offer: The future value of Php 1,000,000 at the end of the term at 5% compounded
annually is given by
F = P(1 + j)n = 50000(1+0.05)5 = Php 63,814.08

Mr. Cruz’s offer: The future value of this ordinary general annuity is given by:
F = 40,000 ¿ ¿ = Php 900,509.40

The future of Php 50,000 at the end of the term is Php 63,814.08, which was already determined earlier.
Fair Market Value = 900,509.40 + 63,814.08 = Php 964,323.48

As expected, Mr. Ocampo’s offer still has a higher market value, even if the focal date was chosen to be at the end
of the term. The difference between the market values of the two offers at the end of the term is 1,063,814.08 –
964,323.48 = Php 99,490.60.

You can also check that the present value of the difference is the same as the difference computed when the focal
date was the start of the term: P = 99,490.60(1 + 0.05)-5 = Php 77,953.49.

What’s More

Deferred Annuity
Definition of Terms
 14

Deferred Annuity – an annuity that does not begin until a given time interval has passed.
Period of Deferral – time between the purchase of an annuity and the start of the payments for the deferred
annuity.
To determine the present value of a deferred annuity, find the present value of all k + n payments (including the
artificial payments), then subtract the present value of all artificial payments.

Present Value (P) of a Deferred Annuity is given by:

P = R¿¿ - R¿¿
Where: R = regular payment
j = interest rate per period
n = number of payments
k = number of conversion periods in deferral.

Scientific Calculator Input:

R ( 1 - ( 1 + j ) ^ - ( k + n ) ) ÷ j minus
R ( 1 - ( 1 + j ) ^ ( - n ) ) ÷ j =

Example.
On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him to
claim Php 10,000 quarterly for 5 years starting 3 months after his 60th birthday. What one-time payment should he
make on his 40th birthday to pay off this pension plan, if the interest rate is 8% compounded quarterly?
Given: R = Php 10,000 m=4 i(4) =8% or 0.08 P=?

Solution:
The annuity is deferred for 20 years and it will go on for 5 years. The first payment is due three months (one quarter)
after his 60th birthday, or at the end of the 81st conversion period. Thus, there are 80 artificial payments.
Number of artificial payments: k = mt = (4)(20) = 80
Number of actual payments: n = mt = (4)(5) = 20

Interest rate per period: j =

i 4 = 0.08 = 0.02
m 4

If you assume that there are payments in the period of deferral, there would be a
total of k = n = 80 + 20 =100 payments.
Thus, the present value of the deferred annuity can be solved as:
P = R ¿ ¿ - R ¿ ¿ = 10000 ¿ ¿ - 100 ¿ ¿ = Php 33,358.38

Therefore, the present value of these monthly pensions is Php 33,358.38

What I Have Learned

Reflection:
I have learned that ___________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________.
 15

What I Can Do

Answer the following problems. Write your complete solutions and answers on a 1 whole sheet of paper.

1. A teacher saves Php 5,000 every 6 months in a bank that pays 0.25% compounded monthly. How much
will be her savings after 10 years?
2. Mrs. Remoto would like to buy a television set from Abenson 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 Php 3,000 and interest is 9%
compounded semi-annually?
3. ABC Bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at
the end of 5 years if he deposits P3,000 every month?
4. A credit card company offers a deferred payment option for the purchase of any appliance. Rose plans to
buy a smart television set with monthly payments of P4,000 for 2 years. The payments will start at the end
of 3 months. How much is the cash price of the TV set if the interest rate is 10% compounded monthly?

Assessment (Post-test)

Directions: Read each statement carefully. Choose the letter of the correct answer and write it on a 1 whole sheet of
paper.
11.) This refers to a sequence of payments made at equal (fixed) interval or periods of time.
C. Annuity C. Future Value
D. Term D. Present Value
12.) An annuity where the payment interval is the same as the interest period.
C. General Annuity C. Ordinary Annuity
D. Simple Annuity D. Annuity Due
13.) An annuity where the payment is not the same as the interest period.
C. Simple Annuity C. Ordinary Annuity
D. General Annuity D. Annuity Due
14.) A type of annuity in which the payments are made at the end of each payment interval.
C. Simple Interest C. Ordinary Annuity
D. General Annuity D. Annuity Due
15.) A type of annuity in which the payments are made at the beginning of each payment interval.
C. Simple Interest C. Ordinary Annuity
D. General Annuity D. Annuity Due
16.) It is the amount of each payment.
C. Future Value C. Present Value of an Annuity
D. Regular or Periodic Payment D. Annuity Due
17.) Time between the first payment interval and last payment interval.
C. Term of an Annuity C. Annuity Due
D. Periodic Payment D. Annuity Certain
18.) It is the sum of future values of all the payments to be made during the entire term of the annuity.
E. Future Value C. Present Value of an Annuity
F. Amount of an Annuity D. Term of an Annuity
19.) It is the sum of present values of all the payments to be made during the entire term of the annuity.
G. Future Value C. Present Value of an Annuity
H. Amount of an Annuity D. Term of an Annuity
20.) It is an annuity in which payments begin and end at definite times.
C. Simple Annuity C. Annuity Certain
 16

D. General Annuity D. Annuity Due

11.) Determine the amount of the annuity of Php 1,500 every end of three months for two years and three
months, money is worth 12% converted quarterly.
A. Php 16,238.66 C. Php 15,238.66
B. Php 15,125.55 D. Php 16,125.55
12.) Gian bought a piece of land with a down payment of Php 200,000 and Php 7,500 every end of three months
for 5 years at 8% compounded quarterly. Determine the cash equivalent of the lot.
A. Php 332,635.25 C. Php 122,365.75
B. Php 322,635.75 D. Php 122,635.25
13.) Find the amount of an annuity of Php 400 every 3 months for 10 years if interest is 8% compounded
annually.
A. Php 86,603.56 C. Php 186,603.56
B. Php 286,603.56 D. Php 386,603.56
14.) Find the amount of an annuity of Php 700 every 6 months for 12 years if interest is 6%, compounded
monthly.
A. Php 34,821.12 C. Php 43,821.12
B. Php 42,212.83 D. Php 24,212.83
15.) What is the accumulated amount of an annuity of Php 2,000 every year for 15 years which has an interest of
8% compounded every three months.
A. Php 55,343.22 C. Php 55,334.22
B. Php 55,433.22 D. Php 55,033.22

Answer Key
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References:

[1] Teaching Guide for Senior High School – General Mathematics

by Commission on Higher Education (2016)
pages 172-207

[2] General Mathematics

by Abubo, Rosita P; Gadia, Ediric D.; Paguio, Darwin P.; et. al
Jimzcyville Publications (2016)
16 Concha St. Tinajeros, Malabon City
pages 152-157