Note to the Teacher:

Summative test 11.2.2 will be given after the learners accomplished the module 7. (see the
Teachers and Learners Guide in the utilization of modules for the recommended dates)

Note to the Learner:

Answer the summative test 11.2.2 after you accomplished the module 7.
GENERAL MATHEMATICS
SUMMATIVE ASSESSMENT 11.2.2
Name:___________________________Section:______________Date:________Score:_____
I. Encircle the letter of the correct answer. (1 point for each correct answer)
1. What annuity is being referred to when the payments do not coincide with the interest
periods?
A. Annuity Due B. General Annuity C. Ordinary Annuity D. Simple Annuity
2. What annuity is being referred to when a purchased annuity allows you to pay P1000 at
the beginning of the payment interval?
A. Annuity Due B. General Annuity C. Ordinary Annuity D. Simple Annuity

3. The following are situations involving annuity, which of these illustrate simple annuity?
A. Monthly installment payment of a car with an interest rate that is compounded annually
B. Paying a debt semi-annually when the interest is compounded monthly
C. Quarterly payment of a lot with an interest rate compounded semi-annually
D. Regular quarterly payment of an insurance is made similar with the interest period

4. What annuity is referred to when Rica purchased a house and lot and has to pay for it
monthly for five years with an interest rate that is compounded quarterly?
A. Annuity Due B. General Annuity C. Ordinary Annuity D. Simple Annuity

5. What is the amount of each annuity payment if a 5-year ordinary annuity has a future
value of Php 1 000 with an interest rate of 8%?
A. Php 170.46 B. Php 181.62 C. Php 184.08 D. Php 250.44

6. What is the present value of an ordinary simple annuity that pays Php 400 for 7 years at
4.3% per year compounded monthly.
A. Php 103.81 B. Php 28 970.12 C. Php 39 123.64 D. Php 82 657.79

7. Kit and Kat are twin daughters of a banker. To encourage them to save for their upcoming
debut, their father offered them a 7.5% interest rate compounded monthly if they are going
to deposit a certain amount of money to him. Kit decided to give Php 500 at the end of each
month for 12 months. Kat prefers to give a lump sum on that day. What lump sum can Kat
give that will equal the present value of Kit’s monthly deposits?
A. Php 4816.25 B. Php 5763.20 C. Php 5768.20 D. Php 6 783.25

8. Ziggy started to deposit P1,000 monthly in a fund that pays 6% compounded quarterly.
How much will be in the fund after 15 years?
A. Php 290,082.51 B. Php 28758.70 C. Php 1900.00 D. Php 900.00
9. Given that daily payments of Php 20 for 30 days with interest rate of 20% compounded
annually, how much will the future value of this annuity?
A. Php 604.37 B. Php 640.37 C. P640.73 D. Php 643.70

10. How much is the cash price of a house & lot when the down payment made was Php
200,000 and the remaining amount shall be paid monthly at P5000 for 5 years with 4%
interest rate compounded monthly?
A. Php 471,594.34 B. Php 471, 495.34 C. Php477, 495.34 D. Php 417, 495.34

11. Mr. Unabia received an offer on a lot that he wants to sell. Mr. Ocampo has offered
P68,000 and a P1 million lump sum payment 5 years from now. How much is the fair market
value of the offer if money can earn 5% compounded annually.
A. Php 1,000,680.20 B. Php 1 000 068 C. Php 932 000 D. Php 851 526.20

12. How much is the present value of P 1 million in problem #25?

A. Php 738, 526.20 B. Php 783, 562.20 C. Php 783, 526.20 D. Php 783 520.20

13. What is the period of deferral for a deferred annuity due with payments of Php 100 000
at beginning of every month for eight years with the first payment made two years from now.
A. 2 years B. 3 years C. 4 yrs & 6 mos D. 6 yrs & 6 mos

14. What amount should you invest now if you want to receive payments of Php 1 000 at the
end of each year for ten years with the receipt of the first payment three years from now?
Assume that money earns 5% compounded annually.
A. Php 7 003.84 B. Php 7 721.73 C. Php 14 007.68 D. Php 15 443.46

15. At what period will the actual payment end when an annuity is deferred for 5 months and
has to pay monthly for 3 years.
A. 6th period B. 31st period C. 36th period D. 41st period

II. Solve the following problems. Show your solution.

5 points – correct answer with correct solution
4 points – correct answer with few mistakes in the solution
3 points – correct answer with no solution
2 points – wrong answer with wrong solution
1 point – wrong answer with no solution
0 point – no answer

1. The buyer of the cellphone pays Php 2,500 every beginning of the month for 2 years.
If money is 3% compounded monthly, how much is the price of the cellphone?

2. Annual payments of Php 1,500 at the end of each term for 6 years with interest rate
of 5% compounded quarterly. Find the present value.