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General Mathematics
Activity Sheets
Quarter 2
MELC 6-12

REGION VI – WESTERN VISAYAS

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 Quarter 2, Week 3
Learning Activity Sheets (LAS) No. 6

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Distinguishing Between Simple and General Annuities

I. Learning Competency with Code

Distinguishes between simple and general annuities. (M11GM-IIc-2)

II. Background Information for Learners

According to research, half of men reaching 65 can expect to live up to
age 85 or longer, and half of women reaching that age can expect to live
until 88 or longer. Thus, retirement often spans 20 years or more for men
and 23 years or more for women. In addition, longevity in other places
continues to increase. Yet, 69% of those who have savings and 92% of those
who don’t have savings believe that they will not have enough money to live
comfortably throughout retirement.
An annuity can be a guaranteed stream of payments that can provide
regular income for a certain period of years or a lifetime where anyone
nearing retirement or people desiring an income stream to cover specific
fixed expenses can be suited. The basic among annuities are simple annuity
and general annuity.
Take a look at the sample word problem for simple annuity and
compound annuity. Study the highlighted data in the problem.

Suppose Rodrigo, a high

Payment Interval annually
SIMPLE ANNUITY

school student, would like to

save ₱5,000 annually in a
f und that gives 10%
compounded annually. How
much is the amount or f uture
value of his saving s af ter 4 Interest Period annually
years?

Suppose Rodr igo , a high

GENERAL ANNUITY

school student, change his

Payment Interval annually
mind and decided to save
₱5,000 annually in a f und that
gives 10% compounded semi -
annually. How much is the
amount or f uture value of his Semi-
Interest Period
savings af ter 4 years? annually

Observe again the sample cash flow time diagram on the next page for
simple annuity and compound annuity. Study the highlighted data in the
figure.

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 P 0 F

SIMPLE ANNUITY
1 2 3 4 years
1 year 1 year 1 year 1 year
₱5,000 ₱5,000 ₱5,000 ₱5,000

annually Payment Interval

Interest Period annually

P 0 1 2 3 F
4 years
GENERAL ANNUITY

6 months 6 mo. 6 months 6 mo. 6 months 6 mo. 6 months 6 mo.

₱5,000 ₱5,000 ₱5,000 ₱5,000

annually Payment Interval

Interest Period Semi-annually

Simple Annuity is an annuity where the payment interval is the same as

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

III. Accompanying DepEd Textbook and Education Sites

https://www.youtube.com/watch?v=rvlgY01iLlw
https://www.youtube.com/watch?v=Qr7qYrsOXgE
https://www.youtube.com/watch?v=iYghPrs7JtM
https://www.youtube.com/watch?v=Xt0kh8VGF-I
General Mathematics Learner's Materials. Pasig City: Department of
Education - Bureau of Learning Resources, 2016, pp 168-204

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.
Exercise 1: Read and understand each problem. Identify if the given
problem is simple annuity or general annuity.
1. You win a lottery and receive ₱50,000 every month at a rate of 0.2%
compounded every year.
2. Barry intends to borrow money as capital for his business. To pay it off
he will pay ₱10,000 at the end of every month for 5 years. The money is
compounded by 5% quarterly.
3. AJ, a promising pop star, plans to save money for the future. She will set
aside ₱5,000 at the end of every month and put it on an investment
company where her money will grow by 4.5% monthly. She will do this
for 20 years.

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 4. Art wants to earn his first million 15 years from now. To do this, he will
save money at the end of every 2 months and put it on an investment
company, where his money will grow by 6.4% semi – annually.
5. Helen started to join the barangay’s cooperative and agreed to contribute
₱3,000 per month starting in January 2021, which will earn 4.1%
compounded monthly.

Exercise 2: Given the following figures, do the following tasks:

a. Determine the payment interval.
b. Determine the interest period.
c. Distinguish whether the figure is simple annuity or general annuity.

1. P 0 F
1 2 3 4 5 6years
6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo 6 mo
₱4,500 ₱4,500 ₱4,500 ₱4,500 ₱4,500 ₱4,500

2. P 0 F
1 2 3 4 5 6 years
1 year 1 year 1 year 1 year 1 year 1 year
₱4,000 ₱4,000 ₱4,000 ₱4,000 ₱4,000 ₱4,000

3.
P 0 1 2 3 4 5 F
6months
1 month 1 month 1 month 1 month 1 month 1 month
₱6,000 ₱6,000 ₱6,000 ₱6,000 ₱6,000 ₱6,000

4. P 0 F
1 2 3 4 5 6 quarterly
1 month 1 month 1 month 1 month 1 month 1 month
₱2,500 ₱2,500 ₱2,500 ₱2,500 ₱2,500 ₱2,500

Guide Question:
1. What data/clues do you need to look up to in the problem or figure for
you to be able to distinguish whether it is simple annuity or general
annuity?
2. How do you differentiate simple annuity from general annuity?

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. Why is distinguishing simple annuity and general annuity important in
your daily life or in the future?
2. If you are planning to invest or borrow, which annuity would you prefer to
follow? Why?

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 VI. Answer Key
3. monthly, monthly, simple ; 4.quarterly, monthly, general
1. annually, semi-annually, general ; 2. annually, annually, simple ;
Exercise 2
1. General ; 2. General ; 3. Simple ; 4.General ; 5.Simple
Exercise 1

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Quarter 2, Week 4

Learning Activity Sheets (LAS) No. 7

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Finding the Future Value and Present Value of Both Simple Annuities and
General Annuities

I. Learning Competency with Code

Finds the future value and present value of both simple annuities and
general annuities. (M11GN-IIc-d-1)

II. Background Information for Learners

Future and Present Value of a General Ordinary Annuity
The future value F and present value P of a general ordinary annuity is given
by

 r nt   r  nt 
 (1  n )  1 1  (1  n ) 
F=A   and P=A  
 r   r 
 n   n 

where A is the regular payment;

r is the interest rate
n is the number of time interest applied per time period
t is the number of time periods elapsed

Example 1: Dora is planning to travel to Japan after 3 years. She deposits

₱2,000 every month in a fund that gives 2% compounded monthly. How
much money will she have for her travel allowance after 3 years of savings
if the deposits are made every end of the period?

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Solution: Given:
A = ₱2 000
r = 0.02 or 2 %
n = 12 (monthly)
t = 3 years

 r nt 
 (1  )  1
F=A  n

 r 
 n 

 0.02 36 
 (1  12 )  1
F = ₱2,000  
 0.02 
 12 

1.061783515  1
F = ₱2,000 
 0.001666667 

 0.061783515
F = ₱2,000 
 0.001666667 
F = ₱74,140.22

Example 2: Mrs. Castillo borrowed a certain amount from a lending

company with an interest of 6% compounded quarterly. If she has to pay
₱13,368.40 every three months for 2 years, how much did she loan from the
lending company?
Solution: Given:
A = ₱13 368.40
r = 0.06 or 6 %
n = 4 (quarterly)
t = 2 years

 r  nt 
1  (1  n ) 
P=A  
 r 
 n 

 0.06 8 
1  (1  4 ) 
P = ₱13,368.40  
 0.06 
 4 

1  0.8877111238
P = ₱13,368.40  
 0.015

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  0.1122888762
P = ₱13,368.40  
 0.015

P = ₱13,368.40 7.48592508

P = ₱100,074.84

Example 3: Dora is planning to travel to Japan after 3 years. If she needs

to have ₱90,000 for her travel, how much must she deposit every end of the
month for three years in an account that earns 2% compounded monthly?
Solution: Given:
A = ₱90,000
r = 0.02 or 2 %
n = 12 (monthly)
t = 3 years
F
A=
 (1  i ) nt  1
 
 i 
90000
A=
 0.02 36 
 (1  12 )  1
 0.02 
 
 12 

90000
A=
1.061783515  1
 0.0016666667 

90000
A=
 0.061783515 
 0.0016666667

90000
A=
37.07010826
A = ₱2,427.83

Example 4: Mrs. Castillo borrowed ₱150,000 from a lending company with

an interest of 6% compounded quarterly. How much must she pay every
end of three months for two years to pay off her debt?
Solution: Given:
P = ₱150,000
r = 0.06 or 6 %
n = 4 (quarterly)
t = 2 years

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 r
1  (1  )  nt
P=A n
r
n
P
A=
 r  nt 
1  (1  n ) 
 
 r 
 n 

150000
A=
 0.06 8 
1  (1  4 ) 
 0.06 
 
 4 

150000
A=
1  0.8877111238
 0.015 

150000
A=
 0.1122888762
 0.015 

150000
A=
7.48592508

A = ₱20,037.60

Example 5: Dora is planning to travel to Japan after 3 years. She deposits

₱2,000 every month in a fund that gives 2% compounded semi-annually.
How much money will she have for her travel allowance after 3 years of
savings if the deposits are made every end of the period?
Solution: Given:
A = ₱2,000
r = 0.02 or 2 %
n = 12 (every month), 2 (semi-annually)
t = 3 years

ieff ( m )  ieff ( q )

(1  in ) nm  1  (1  iq ) 1
nq

2
 0.02 
(1  in )12  1  
 2 

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 (1  in )12  1.0201

1  in  12 1.0201

1  in  1.0016598

in  0.0016598

 (1  i ) nt  1
F=A  
 i 

 (1  0.0016598)12(3)  1
F = ₱2,000  
 0.0016598 

 (1  0.0016598) 36  1
F = ₱2,000  
 0.0016598 

1.06152151  1
F = ₱2,000 
 0.0016598 

 0.06152151
F = ₱2,000 
 0.0016598 
F = ₱2,000(37.06561634)
F = ₱74,131.23

Example 6: Mrs. Castillo borrowed a certain amount from a lending

company with an interest of 6% compounded quarterly. If she has to pay
₱4,700 every month for 2 years, how much did she loan from the lending
company.
Solution: Given:
A = ₱4,700
r = 0.06 or 6 %
n = 4 (quarterly), 12 (every month)
t = 2 years

ieff ( m )  ieff ( q )

(1  in ) nm  1  (1  iq ) 1
nq

4
 0.06 
(1  in )  1 
12

 4 

(1  in )12  1.06136355

1  i n  12 1.06136355

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 1  in  1.0049752

in  0.0049752

1  (1  i )  nt
P=A
i
1  (1  0.0049752) 24
P = ₱4,700
0.0049752
1  (1.0049752) 24
P = ₱4,700
0.0049752
1  0.8877112568
P = ₱4,700
0.0049752

 0.1122887432 
P = ₱4,700  
 0.0049752 
P = ₱4,700 (22.56969432)
P = ₱106,077.56

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 183 -197

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.
Exercise 1: Teacher Kaye is saving ₱2,000 every month by depositing it in
a bank that gives an interest of 1% compounded quarterly. How much will
she save in 5 years?
Exercise 2: Ken borrowed an amount of money from Kat. He agrees to pay
the principal plus interest by paying ₱38,973.76 each year for 3 years. How
much money did he borrow if the interest rate is 8% compounded quarterly?
Exercise 3: Jason started to deposit ₱20,000 quarterly in a fund that pays
2% compounded quarterly. How much will be in the fund after 5 years?
Exercise 4: Angelo is paying ₱2,500 every 3 months for the amount he
borrowed at an interest rate of 8% compounded quarterly. How much did he
borrow if he agreed to that the loan will be paid in 2 years and 6 months?

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 Guide Questions
1. What clues are needed to identify the given values?
2. What are the steps that you need to follow in solving for the simple
and general annuities?

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way can you apply or use the lessons learned in your daily life as
a student or in the future?

VI. Answer Key

Exercise 4: ₱ 22,456.46
Exercise 3: ₱ 419,582.31
Exercise 2: ₱ 100 000
Exercise 1: ₱ 126 671.55

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Quarter 2, Week 4

Learning Activity Sheets (LAS) No. 8

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Calculating the Fair Market Value of Cash Flow Stream that Includes
Annuity

I. Learning Competency with Code

Calculates the fair market value of a cash flow stream that includes an
annuity. (M11GM-IId-2)

II. Background Information for Learners

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 negative numbers.
The fair market value or economic value of a cash flow (payment stream)
on a particular date refers to a single amount that is equivalent to the value
of the payment stream at that date. This particular date is called the focal
date
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Example 1: Mr. Ribaya received two offers on a lot that he wants to sell. Mr.
Ocampo has offered ₱50,000 and a ₱1 Million lump sum payment 5 years from
now. Mr. Cruz has offered ₱50,000 plus ₱40,000 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?
Solution: Given the following,
Mr. Ocampo’s offer Mr. Cruz’s offer

₱50,000 down payment ₱50,000 down payment

₱1,000,000 after 5 years ₱40,000 every quarter for 5 years

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

Mr. Ocampo’s offer:

₱50,000 ₱1 million

0 1 2 3 4 5

Mr. Cruz’s offer:

₱50,000

₱40,000 ₱40,000 ₱40,000 … ₱40,000

0 1 2 3 … 20

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 ₱50,000 is offered today, then its present value
is still ₱50,000. The present value of ₱1,000,000 offered 5 years from now
is
P = F (1+ j)-n
P = ₱1,000,000(1+0.05)-5
P = ₱783,526.20

Fair Market Value (FMV) =Down Payment + Present Value

FMV = ₱50,000 + ₱783,526.20

FMV = ₱833,526.20

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 the equivalent rate, compounded quarterly of 5% compounded
annually,

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 F1= F2

i ( 4) (4)(5) i (1) (1)(5)

P (1 + ) = P(1+ )
4 1

i (4) 20 0.05 5
1+ ) = (1+ )
4 1

i (4)
= (1.05)(1/4) – 1
4

i (4)
= 0.012272
4

The present value of an annuity is given by

r
1  (1  )  n
P=R n
r
n

1  (0.012272) 20
P = ₱40,000
0.012272

P = ₱705,572.70

Fair Market Value = Down payment + Present Value

FMV = ₱50,000 + ₱705,572.70

FMV = P755, 572.70

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 = ₱77,953.50

Example 2: A recently married couple wants to establish a trust fund that

will serve as their savings fund for their future family. The trust fund will pay
the couple ₱50 000 per year for 20 years after being deferred for 10 years.
It will earn 4% interest compounded quarterly and is to be paid quarterly.
How much is the present value of the trust fund?
Solution: Given:
A = ₱12,500
r = 4% or 0.04/4(per quarter) = 0.01
n = 4 (quarterly)
t = 10 years
k = 10 x 4 = 40

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 P= A
1  (1  r ) 
 nt

i (1  r ) k

P = ₱ 12500
1  (1  0.01)  80

0.01(1  0.01) 40

P = ₱ 12500
1  (1  0.01)  80

0.01(1  0.01) 40

P = ₱ 12500
1  (1  0.01)  80

0.01(1  0.01) 40

P = ₱ 12500
1  (1.01) 80

0.01(1.01) 40

P = ₱ 12500
1  0.4511179389
0.01(1.488863734)

 0.54888611 
P = ₱ 12500 
 0.01488863734 
P = ₱12,500(36.86610786)
P = ₱460,826.35

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 188 -198

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.

Exercise 1: Your grandparents have decided to sell their real estate

property in the Province of Iloilo and they are planning to buy a property in
Iloilo City. They posted an online advertisement for this. Two offers came:
 Offer 1 : ₱500,000 down payment plus ₱1,500,000 lump-sum
payment 10 years from now
 Offer 2 : ₱500,000 down payment plus ₱12,500 per month for 10
years
Which among the 2 offers should your grandparents choose if the payment
will have an interest of 12% compounded monthly? Find the fair market
value of the two offers.

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 Example 2: Andy and Rose were recently married and they want to establish
a trust fund that will serve as their savings fund for their future family. After
20 years, ₱1,000,000 will be paid to the couple per year for 10 years. The
trust fund will earn an interest of 6% compounded semi-annually and is to
be paid out semiannually. How much is the present value of this trust fund?

Guide Questions
1. What clues are needed to determine the unknowns in the problem?
2. What are the steps that you need in solving for the market value?

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way can you apply or use the lessons learned in your daily life as
a student or in the future?

VI. Answer Key

Exercise 2: ₱ 2 8 , 4 1 5 , 3 7 5 . 3 3
Exercise 1: ₱ 1 , 3 7 1 , 2 5 6 . 5 3 . Th e s e c o n d o f f e r i s b e t t e r f o r t h e g r a n d p a r e n t s .

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Quarter 2, Week 4

Learning Activity Sheets (LAS) No. 9

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Calculating the Present Value and Period of Deferral of a Deferred Annuity

I. Learning Competency with Code

Calculates the present value and period of deferral of a deferred annuity.
(M11GM-IId-3)

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II. Background Information for Learners

Time Diagram for a Deferred Annuity

R* R* … R* R R ... R
0 1 2 … k k+1 k+1 k+n

In this time diagram, the period of deferral is k because the regular payments of
R start at time k + 1.
The notation R* represents k “artificial payments”, each equal to R, but are not
actually paid during the period of deferral.

Present Value of a Deffered Annuity

The present value of a deffered annuity is given by

r ( k  mt ) r
1  (1  ) 1  (1  )  k
m m
r r
P=R m - R m

where
R is the regular payment
r is the interest rate;
m is the conversion period;
t is the time;
k is the number of conversion periods in the deferral
Example 1: On the 40th birthday, Mr. Ramos decided to buy a pension plan
for himself. This plan will allow him to claim ₱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?
Solution: Given:
R = ₱10,000
m=4
I(4)= 0.08

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
i ( 4) 0.08
Interest rate per period j = = = 0.02
m 4

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If you assume that there are payments in the period of deferral, there would
be a total of K + n = 80 + 20 = 100 payments.

Time Diagram:

₱ 10,000 ₱ 10,000 … ₱ 10,000

0 1 2 … 80 81 82 … 100

Thus, the present value of the deferred annuity can be solved as:

r ( k  n ) r
1  (1  ) 1  (1  )  k
P=R m - R m
r r
m m

1  (1  0.02) 100 1  (1  0.02) 80

P = ₱10,000 - 10 000 = ₱33,538.38
0.02 0.02

Therefore, the present value of these monthly pensions is ₱33,538.38.

Example 2: Ralph wants to buy a Television set which is at installment basis

of ₱1,000 per month compounded monthly for 12% within 2 years. If the
payment will start at the end of 4 months, what is the present value of the
Television set?
Solution: Given:
R = ₱1,000
t = 2 years
r = 12% or 0.12
k=4–1=3
m = 12
r r
1  (1  ) ( k  mt ) 1  (1  )  k
P=R m - R m
r r
m m

0.12 (312( 2 )) 0.12 3

1  (1  ) 1  (1  )
P = (₱1,000) 12 - (₱1,000) 12
0.12 0.12
12 12

1  (1  0.01) 27 1  (1  0.01) 3

P = (₱1,000) - (₱1,000)
0.01 0.01

1  0.7644039241 1  0.9705901479
P = (₱1,000) - (₱1,000)
0.01 0.01

17
 P = ₱23,559.61 - ₱2,940.99

P = ₱20,618.62

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 199 -204

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.

Exercise 1: Arabella converted her loan to light payments which gives her
an option to pay ₱12,000 every 2 years for 6 years. The first payment is
due 4 years from now. How much is the amount of the loan if the interest
rate is 10% converted every 2 years?
Exercise 2: Find the present value of a deferred annuity on a regular
payment of ₱1,000 semi-annually for 3 years that is deferred for 1 year on
a rate of 2.5% compounded semi-annually.

V. Guide Questions
1. What clues are needed to identify the given data?
2. What are the steps in finding for the present value of a deferred
annuity?

VI. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way can you apply or use the lessons learned in your daily life as
a student or in the future?

VII. Answer Key

Exercise 1: ₱ 5,605.01
Exercise 1: ₱ 21 064.81

18
 Quarter 2, Week 5

Learning Activity Sheets (LAS) No. 10

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Illustrating Stocks and Bonds

I. Learning Competency with Code

Illustrates stocks and bonds. (M11GM-IIe-1)

II. Background Information for Learners

“Do you dream to be part owner of SM City? Or fund a
Telecommunication Company?” To do this, you should have a basic
financial plan and understand the risks as well as the rewards of the
investment or securities. As an investor, there is a need to make sure that,
in addition to the regular income, there is money set aside for personal
emergencies because investments require time to increase its value.
According to Jordan E. Goodman, author of master your debt, a rigid
study of the products, financial histories, and future plans of the companies
can help investors to choose securities that will allow their money to grow
over time. An investor who prefers less risk might consider funding the
money wherein they earn current rates of interest.
These investments can be categorized into stocks or bonds. Stocks
and bonds are also called securities, and people who buy them are
called investors.
Important Terminologies Related to Stocks:
 Stock – a share in the ownership of a company
 Dividend – share in the company’s profit
 Dividend Per Share – ratio of the dividends to the number of shares
 Stock Market – a place where stocks can be bought or sold
 Market Value – the current price of a stock at which it can be sold
 Stock Yield Ratio – also called current stock yield, is a ratio of the annual
dividend per share and the market value per share
 Par Value – the per share amount as stated on the company certificate.
It is determined by the company and remains stable over time
Important Terminologies Related to Bonds:
 Bond – interest-bearing security which promises to pay an amount of
money on the maturity date and through coupons
 Coupon – a periodic interest payment that the bondholder receives
during the time between purchase date and maturity date
 Coupon Rate (r) – the rate per coupon payment period
 Price of a bond (P) – the price of the bond at purchase time
 Par Value or Face Value (F) – the amount payable on the maturity date
If P = F, the bond is purchased at par
If P < F, the bond is purchased at a discount
If P > F, the bond is purchased at premium
 Term (or Tenor) of a Bond – fixed period of time (in years) at which the
19
 bond is redeemable as stated in the bond certificate; number of years
from time of purchase to maturity date
 Fair Price of a Bond – present value of all cash inflows to the bondholder
 Current Yield – ratio of the annual interest and the face value of the
bond
Let us use the scenario below to illustrate Stocks and Bonds:
Scenario: Mr. Cruz won the Philippine Charity Sweepstakes Office (PCSO)
Ultra Lotto draw with the biggest jackpot of ₱500,000 on 5th of October 2018
at 9:00 PM. He is planning to invest the money to his friend’s coffee shop
branch. He can be the part owner or a lender of the new coffee shop. Which
investment do you think is a wise choice?
Solution: Let us assume that Mr. Cruz will invest for ₱100,000 for 10 years.
Using the two options; let us analyze the options in different level of success
of the scenario of the business using the table below:

Option # 1 (part owner) Option # 2 (lender)

10 years for 50% ownership 10 years with interest rate of 5%
Successful 50% ownership ₱5,000 x 10 yrs = ₱50,000
Scenario ₱100,000 + ₱50,000 = ₱150,000
(Ex. Branch value
increases to ₱1 Billion Mr. Cruz will have a returned of Mr. Cruz will have a returned of
after 10 yrs) ₱500 million after 10 years. ₱150,000 after 10 years.
Moderately
50% ownership ₱5,000 x 10 yrs = ₱50,000
Successful ₱100,000 + ₱50,000 = ₱150,000
Scenario
(Ex. Branch value Mr. Cruz will have a returned of Mr. Cruz will have a returned of
increases to ₱1 Million ₱500,000 after 10 years. ₱150,000 after 10 years.
after 10 yrs)
Moderately
50% ownership ₱5,000 x 10 yrs = ₱50,000
Unsuccessful ₱100,000 + ₱50,000 = ₱150,000
Scenario
(Ex. Branch value Mr. Cruz will have a returned of Mr. Cruz will have a returned of
decreases to ₱100,000 ₱50,000 after 10 years. ₱150,000 after 10 years.
after 10 yrs)

Unsuccessful 50% ownership ₱5,000 x 8 yrs = ₱40,000

₱100,000 + ₱40,000 = ₱140,000
Scenario
(Ex. Branch went Mr. Cruz will have a returned of Mr. Cruz will have a returned of
bankrupt after 8 years) ₱0 or nothing after 8 years. ₱140,000 after 8 years.

Option # 1 above is an illustration of ownership, shares or shares of stock.

These words are used interchangeably which referred to stocks. If Mr. Cruz
chooses this option, buying stocks, he will be buying a piece of that coffee
branch.

Here are additional scenarios that can illustrate stocks:

1. Mrs. Reyes bought 10,000 shares of stocks in a certain corporation who
declared ₱2,000,000 for its common stock. She will be receiving a
divided share of ₱2,000,000/10,000 = ₱200/share.

20
 2. Lily bought shares of stocks in certain corporation that had ₱100
dividend per share for its common stock. If the market value of the stock
is ₱210, she yielded a stock ratio of 47.62%.
Option # 2 above is an illustration of a lender, fixed income or debt. These
words are used interchangeably which referred to bonds. If Mr. Cruz
chooses this option, buying bonds, he will be lending money to the coffee
branch.

Here are additional scenarios that can illustrate bonds:

1. Mrs. Logan bought a 7.5% bond for ₱200,000. After 10 years, she
receives ₱200,000 back. She also receives ₱200,000 (0.075) = ₱15,000
every year or ₱15,000/2 = ₱7,500 semi-annually for 10 years.
2. Ms. Sheila is offered an 8% bond for ₱100,000. The bond has a face
value of ₱100,000 with maturity value for exactly 5 years. If the bond is
purchase at face value at ₱150,000 its current yield will be
₱100,000(0.08)/ ₱150,000=5.33%.

Taking into consideration that the potential of higher returns comes at the
expense of more risk, which do you think is the best options for Mr. Cruz?

III. Accompanying DepEd Textbook and Education Sites

https://m.youtube.com/watch?v=I68ADN5TnXA
https://m.youtube.com/watch?v=vjOzWXrBGnw
https://m.youtube.com/watch?v=P2uIWCn6jXo&t=12s
https://m.youtube.com/watch?v=cahLTBRwgEg
https://m.youtube.com/watch?v=aRc3R1IIBdw
https://m.youtube.com/watch?v=dAKBAPXXurg
https://m.youtube.com/watch?v=h9O_x8RhzwE
General Mathematics Learner's Materials. Pasig City: Department of
Education - Bureau of Learning Resources, 2016, pp 208-216

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.
Exercise 1: Alec inherited ₱1,000,000 from his grandparents. He planned
to invest it for his future. He was offered a 45% ownership and the other one
is 6.5% bond of the fast food chain that will be built on their local area. Help
Alec decide by illustrating to him the two options with the different successful
rate. A rubric was provided below as your guide.

21
Rubrics for scoring:
Score Criteria
100% Learner demonstrates a clear and thorough understanding of
the task. Any necessary work is clearly shown and any
necessary explanations are concise, targeted and correct.

95% Learner demonstrates an overall understanding of the task. All

elements for a 100% score are present, except one detail is
missing. For example, one computational error exists, units are
not labeled, or a detail is missing from an explanation.
90% Learner demonstrates a parted understanding of the task. There
are two computational errors present and one conceptual error,
or the explanation is not sufficient to completely support the
task.
85% Learners demonstrate a parted understanding of the task. There
are two computational errors present, one conceptual error, and
the explanation is not sufficient to completely support the task.
80% Learner demonstrates a limited understanding of the task. There
are more than two computational errors, two conceptual errors,
and there is either no explanation to support the task or the
explanation is completely off target.
75% Learner does not demonstrate an understanding of the task.
The task is missing, incomplete, or all work and explanations fail
to demonstrate understanding of the task.
Retrieved and modified from https://www.teacherspayteachers.com/Product/4-Point-
Holistic-Math-Scoring-Rubric-940513

Exercise 2: The problems below illustrate stocks or bonds. Using the

important terms related to stocks and bonds, answer the following problems
completely.
a. A land developer declared a dividend of ₱5,000,000 for its common
stock. Suppose there are 100,000 shares, how much is the dividend
per share?
b. Find the amount of semi-annual coupon for a ₱300,000 bonds which
pays 6.5% convertible semi-annually for its coupons.
c. A certain company gave out ₱50 dividend per share for its common
stock. The market value of the stock is ₱125. Determine the stock
yield ratio.
d. What is the current yield of a bond whose face value is ₱15,000 and
pays an annual interest of 6.5% if purchased at face value at
₱13,500?

Guide Questions:
1. How can we determine if the problem or scenario involves or
illustrates stocks or bonds?
2. What possible problems or questions may we encounter when we are
dealing with stocks? How about when we are dealing with bonds?
3. What factors have a great effect on the return of your investments
both on buying stocks or buying bonds?

22
 V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. Why is it necessary to illustrate stocks and bonds?
2. What real life scenario or situation can you give to represent stocks and
bonds?
3. What is the importance of understanding the concepts or examples of
stocks and bonds?
4. If you are going to invest your future money, will you prefer buying shares
or buying bonds? Why?

VI. Answer Key

Exercise 2 a. ₱50 ; b. ₱9,750 ; c. 40% ; d. 6.5 or 7.2%

Exercise 1 answer may vary

----------------------------------------------------------------------------------------------------------------

Quarter 2, Week 5

Learning Activity Sheets (LAS) No. 11

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Distinguishing Between Stocks and Bonds

I. Learning Competency with Code

Distinguishes between stocks and bonds. (M11GM-IIe-2)

II. Background Information for Learners

Investment is considered one of the most important factors that have
significant effect in the economic status of the country and plays an
important role in the economic development. Investing money in a business
in the form of technology or money will help in the growth of the economy. It
does not usually come from saving when an economy is growing: it comes
from loans created by nothing by the commercial banks.
Also, there are other methods that can help supplement savings and
creating an investment portfolio can help in growing the funds. Stocks and
bonds are the two main class of moneys investors use in the portfolio.

23
The diagram below offers a basic over view of the stocks and bonds.

STOCKS BONDS
Returns(dividend) = 0.50 (Profit) Returns(coupon) = 0.04 (Investment)

50% Share 7% Interest

₱100,000
Investment
RETURNS PROFIT RETURNS
Year 1
₱75,000 ₱150,000 ₱7,000
Year 2
₱60,000 ₱120,000 ₱7,000
Year 3
₱50,000 ₱100,000 ₱7,000
Year 4
₱30,000 ₱60,000 ₱7,000
Year 5
₱19,000 ₱38,000 ₱7,000
Year 6
₱9,500 ₱19,000 ₱7,000
Year 7
₱4,000 ₱8,000 ₱7,000
Year 8
Nothing Bankrupt ₱107,000

Analyze the diagram and ponder on the following questions:

1. What is the difference between stocks and bonds by definition?
2. What is your status if you invested in stocks? How about if you invest
in bonds?
3. Which of the two investments have a greater risk?
4. How do you make money on stocks? How about on bonds?
5. Which investment has lower potential returns?
6. What are the associated risks to be considered in the two
investments?
7. What do you think are the other benefits that you may get from the
two investments?
8. Which of the two investments do you prefer to invest?

24
 To differentiate stocks and bonds, understand the content of the table
below:
Stocks Bonds
1. Definition A form of equity A form of debt financing,
financing or raising or raising money by
money by allowing borrowing from investors
investors to be part
owners of the company
2. Status of holders Shareholders are the Bondholders are the
part-owners of the lenders to the company
company
3. Level of risk More risk Less risk
4. Form of returns Profit earned by the Interest payments are
company are paid in the made in the form of
form of dividends coupon payments
5. Potential returns Higher return Lower return
6. Major risk Market risk, business Interest rate risk,
associated risk Inflation risk
7. Additional Shareholders get the Bondholders get the
benefits right to vote in the liking in terms of
company compensation and in
liquidation
8. Where you Can be appropriate if the Can be appropriate for
should invest? investment is for long retirees because of the
term. This will allow the fixed income and cannot
investor to wait for stock afford to wait for stocks
prices to increase if ever to increase whenever it
it decreases decreases

III. Accompanying DepEd Textbook and Education Sites

https://m.youtube.com/watch?v=I68ADN5TnXA
https://m.youtube.com/watch?v=vjOzWXrBGnw
https://m.youtube.com/watch?v=P2uIWCn6jXo&t=12s
https://m.youtube.com/watch?v=cahLTBRwgEg
https://m.youtube.com/watch?v=aRc3R1IIBdw
https://m.youtube.com/watch?v=dAKBAPXXurg
https://m.youtube.com/watch?v=h9O_x8RhzwE

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please be reminded not to write anything here. All answers
must be written in a separate sheet of paper. Read each problem carefully
and answer it systematically. If solution is required, encircle your final
answer.
Exercise 1: Tell whether the following statements describe the
characteristics of stocks or bonds.
a. Issues of a stake of ownership in a company.
b. Investment that generally have higher reward.
c. Debt that is made with an investors for cash exchange for interest.

25
 d. Investors can earn money if the security increases, but they can lose
money if the security decreases.
e. The seller agrees to pay interest on the loan at a fixed rate and
schedule.

Exercise 2: In your own word and understanding, briefly differentiate stocks

from bonds. You can give your own example to elaborate your
understanding of the content. A rubric was provided below as your guide.
Rubrics for scoring:
Criteria Beginning Developing Accomplished Exemplary
(2 pts) (3 pts) (4 pts) (5 pts)
Content & - Major points are - Major points are - Major points are - Major points are
Development not clear. addressed, but not well stated. stated clearly and are
-Specific supported. - Content is clear. well supported.
examples are not -Specific examples do -Specific examples - Content is clear.
used. not support topic. are used. -Specific examples
are used.
Organization & - Organization - Structure of the - Structure is mostly -Structure of the
Structure and structure answer is not easy to clear and easy to answer is clear and
detract from the follow. follow. easy to follow.
answer. - Transitions need - Transitions are - Transitions are
- Writing is improvement. present. logical and maintain
disjointed and the flow of thought
lacks transition of throughout the
thoughts. answer.
Grammar, - Answer - Answer contains few - Rules of grammar, - Rules of grammar,
Punctuation & contains grammatical, usage, and usage, and
Spelling numerous punctuation and punctuation are punctuation are
grammatical, spelling errors. followed with minor followed; spelling is
punctuation, and errors. correct.
spelling errors. Spelling is correct.
Retrieved and modified from https://www.rcampus.com/rubricshowc.cfm?sp=yes&code=N4AA82&

Guide Questions:
1. How can we determine if the problem or scenario involves or
illustrates stocks or bonds?
2. What possible problems or questions we may encounter when we are
dealing with stocks? How about when we are dealing with bonds?
3. What factors have a great effect on the return of investment both on
buying stocks or buying bonds?

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. What important idea/s have you learned from the learning activity
sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way it will benefit you after knowing the distinction between
stocks and bonds?

VI. Answer Key

Exercise 2: Answer may vary

Exercise 1: 1. Stock ; 2. Stock ; 3. Bonds ; 4. Stocks ; 5. Bonds

26
 Quarter 2, Week 5

Learning Activity Sheets (LAS) No. 12

Name of Learner: ___________________ Grade and Section: _________________

Date: _____________________________

GENERAL MATHEMATICS ACTIVITY SHEET

Describing the Different Markets for Stocks and Bonds

I. Learning Competency with Code

Describes the different markets for stocks and bonds. (M11GM-IIe-3)

II. Background Information for Learners

There are several ways to take care of your money. Previous lessons
discuss about how to earn through interest, simple and compound, and by
saving.
Other than saving, your money can also be used in trading that may yield
higher returns than interests in saving. Did you know that you can own a
small part of a company and earn money? Did you also know that you can
lend your money to the government or company and earn in a period?
That small part of a company that can be bought or traded is called
stocks while the money that was lent to a company or government is called
bonds. These two can make you earn higher amount of money than interests
but with accompanying risks.
To regulate the flow of these investments, there are rightful place to get
relevant information or conduct the trading. These places are called markets.
Important Terminologies:
 Stocks – shares of a company that can be traded to raise money.
 Bonds – securities that pays an amount of money on the maturity date
or interests through coupons.
 Stocks market – markets that enable trade of stocks
 Bonds market – markets that enable trade of debt securities (bonds)
 Equity market – it is where mostly stock trading happens.
 Fixed-Income market – it is where usually bonds are traded.

Key Differences between Bond Market and Stock Market

Generally, markets are where investors buy securities like stocks and bonds.
Stock market is where investors buy stocks while bond markets are where
bonds are being traded by corporations or government. There are key
differences on these two markets other than the securities traded.

1. Read the article Bond Market vs. Stock Market: What’s the Difference
of Morah, C. (2020) at Investopedia. Focus only on the Key
Differences. The link to the article is
https://www.investopedia.com/ask/answers/09/difference-between-bond-stock-
market.asp

27
 As you read the article, please be guided of the following:
a. Where do trading takes place for stock market and bond market?
b. What are the risks on the two different markets?
c. What are the indices mentioned?

The Equity Markets and Fixed-Income Markets

Equity markets are dominated with stock trading while bonds are the
common securities in the Fixed-Income markets. The key features of these
markets can be summarized on the types of securities traded, their
accessibility, the risk level on each market, the expected returns from the
securities, the goals of investors, and the strategies used to achieve these
goals.

1. Read the article of Maverick, J.B (2020) about the difference between
equity markets and fixed-income markets at Investopedia. The link to the
article is
https://www.investopedia.com/ask/answers/071415/what-difference-between-equity-
market-and-fixed-income-market.asp

Please be guided with these questions as you go along the article:

a. What are the types of securities traded in each market?
b. Is the market accessible to the public? Can it be seen readily online
or in newspaper?
c. What is the level of risk when dwelling on this investment?
d. Is the expected return higher or lower on this type of market?
e. Are the goals of the investors the same on both types of markets?
f. To achieve their goals, are investors applying same strategies to
both markets?
g. What is the example markets cited in the article?

Stock Tables
When visiting a stock market, you are prompt with data regarding the stocks
in the market. To use this information appropriately, one should be able to
read the table appropriately.

1. Read the Learner’s Material for General Mathematics of DepEd (2016)

pp 218. Familiarize yourself with the information on the Stock tables.
Example illustration is also given below.
2. Read the article about how to read a stock table at Desjardins Online
Brokerage by visiting this link https://www.disnat.com/en/learning/trading-
basics/stock-basics/how-to-read-a-stock-tablequote.

Illustration of Stock Table:

Example 1: The following table is shown in a stock market about 3
companies, ABC, BCA, and CAB. As an investor, you should be able to read
these data and use it for your strategy. Note that not all stock tables are the
same, but the columns or indicators stands for the same purpose. Here is
the information about their stocks. (Data are hypothetical)

28
 52 W 52 W Vol Net
Ticker Div High Low Close
High Low (100s) chg
51.25 27.69 ABC 1.02 6412 47.99 47.00 47.54 0.24
31.31 16.63 BAC 2.30 15 24.49 24.29 24.49 -0.01
11.63 3.55 CBA 2.30 162 6.09 5.90 6.09 0.12

Guide Questions:
For Stocks of ABC,
1. What are the highest and lowest prices at which a stock has traded over
the last 52 weeks?
2. What is the annual dividend payment per share?
3. What is the total number of shares traded for the day of company ABC?
4. What are the highest and lowest prices at which a stock has traded
throughout the day?
5. What is the last trading price recorded after the market closed?
6. What is the value change in the stock price? Did the stock price increased
or decreased?
7. What is the closing price from the day before the last trading day?

Solutions:
1. The highest price of stocks of company ABC is 51.25 while the lowest
price is 27.69 over the last 52 weeks.
2. The annual dividend is 1.02.
3. The total number of shares traded is 641,200. (Since the volume is by
100’s, we should multiply 6412 by 100.)
4. The highest price of stocks traded for the day is 47.99 while the lowest is
47.00.
5. The closing price for the day is 47.54.
6. The net change is 0.24. Since it is positive, the stock price increased
before the closing.
7. Closing price from the day before the last trading day is 47.30. It was
taken from subtracting net change from the closing price
(47.54 – 0.24 = 47.30).

III. Accompanying DepEd Textbook and Education Sites

Department of Education (2016). General Mathematics: Learner’s Material,
pp 218. DepEd-BLR, Philippines.

Desjardins Online Brokerage. How to read a stock table/quote. Retrieved

from https://www.disnat.com/en/learning/trading-basics/stock-basics/how-to-read-
a-stock-tablequote

Morah, C. (2020). Bond market vs. stock market: What’s the difference.
Investopedia. Retrieved from
https://www.investopedia.com/ask/answers/09/difference-between-bond-stock-
market.asp

29
 Maverick, J.B (2020). The equity markets and fixed-income markets.
Investopedia. Retrieved from
https://www.investopedia.com/ask/answers/071415/what-difference-between-
equity-market-and-fixed-income-market.asp

IV. Activity Proper

General Directions: In answering the exercises in the Learning Activity
Sheet (LAS), please do not write anything in the LAS. All answers must be
written in a separate sheet of paper. Read each problem carefully and
answer it systematically. If solution is required, encircle your final answer.

1. Activity 1: Key Differences. From the readings above, summarize the

key differences of the markets by completing the table below.

Performance
Markets Place Risk
(Index)
Stock market

Bond market

Please be guided by the following questions when completing the table on

the summary of key differences of the markets.
a. Which of the markets is centralized? How about the other?
b. Which of the two has higher risks?
c. What are the indices that can gauge the stock market
performance?

2. Activity 2: Markets’ Features. Based on your readings, summarize the

key features of the markets with the guide questions below.

Features Equity Market Fixed-Income Market

Types of Securities
Traded
Accessibility of the
Market
Levels of Risk

Expected Returns

Goals of Investors
Strategies Used by
Market Participants
Example markets

30
 Please be guided by the following questions when completing the table
above on the features of the markets.
a. What are the types of securities traded? Which of them is for
stocks or bonds?
b. Is the market accessible to the public? Can it be seen readily online
or in newspaper?
c. What is the level of risk when dwelling on this investment?
d. Which of them yield higher expected returns?
e. What is the goal of the investors in this type of market?
f. Are the strategies used by the market participants vary?
g. What is the example markets cited in the resource?

3. Activity 3: Stock Table. The Philippine Stock Exchange (PSE) is the

only equity market in the Philippines. The table shows the JDC and SMH
companies’ stocks for 52 weeks. Answer the questions below based on
the given data below. (Companies and data are hypothetical)

52 W 52 W Vol Net
Ticker Div High Low Close
High Low (100s) chg
31.31 16.63 JDC 2.30 15 24.49 24.29 24.49 -0.01
11.63 3.55 SMH 2.30 162 6.09 5.90 6.09 0.12

Answer the questions:

For Stocks of Juan Dela Cruz Company (JDC),

1. What are the highest and lowest prices at which a stock has traded
over the last 52 weeks?
2. What is the annual dividend payment per share?
3. What is the total number of shares traded for the day of company
JDC?
4. What are the highest and lowest prices at which a stock has traded
throughout the day?
5. What is the last trading price recorded after the market closed?
6. What is the value change in the stock price? Did the stock price
increased or decreased?
7. What is the closing price from the day before the last trading day?

V. Reflection
Instruction. Reflect on the following questions and write your response on
your journal.

1. What important idea/s have you learned from the learning activity sheet?
2. What important value/s has been embedded to you by the lesson?
3. In what way can you apply or use the lessons learned in your daily life as
a student or in the future?

31
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Activity 1: Key Differences
Activity 2: Markets’ Features
Low
Activity 3: Stock Tables
1. High (52W) = 31.31
Low (52W) = 16.63
2. The annual dividend is 2.30.
3. Total number of shares traded is 1,500.
4. High = 24.49
Low = 24.29
5. Close = 24.49.
6. Net Chg = -0.01. Since it is negative, the stock
price decreased before the closing.
7. Closing price from the day before the last
trading day is 24.50.
Answer Key VI.