Juan Sumulong High School

Lesson Plan for General Mathematics Second Quarter, Week 5

December 9, 2022 Friday
Simple Ordinary and General Ordinary Annuities

I. OBJECTIVES

a. Distinguish simple ordinary and general ordinary annuities.

b. Solve Present and Future Values of both simple and general annuities.
c. Compare the present and/or future values to the total deposit/payment of an annuity.
d. React to the comparison of present and/or future values to its total deposit/payment of an
annuity.

II. SUBJECT MATTER

a. Topic: Annuity
b. Subtopic: Simple Ordinary and General Ordinary Annuities
c. Reference: General Mathematics Teacher’s Guide by Department of Education

III. PROCEDURE

a. Prayer
b. Checking of attendance

IV. REVIEW

Definition of terms
a.) Simple Annuity – An Annuity where the payment interval is the same as the interest
period.
b.) General Annuity – An annuity where the payment interval is not the same as the
interest period.
c.) Ordinary Annuity – A type of annuity in which the payments are made at the end of each
payment interval.

The formula for Future and Present Values of Simple Ordinary Annuity.

( ) ( )
tm −tm
r r
1+ −1 1− 1+
m m
F=R r
P=R r
m m

The formula for Future and Present Values of General Ordinary Annuity.

( ) ( )
tm −tm
r r
1+ −1 1− 1+
m m
F=R P=R
(1+ mr ) (1+ mr ) −1
m÷T m÷T
−1

where,

F – future value/maturity value. The amount after the term.

P – Present value/principal. The money borrowed or the one-time payment.
R – Regular or Periodic payment. Equal amount for each payment
r – interest rate per annum.
m – interest period or compounding interest period.
t = term or time in year.
T = total number of payments per year or payment interval.
 V. LESSON PROPER

Faith’s new year resolution for 2023 is to save 1250 pesos in an investment every
month end. She will end her new year resolution at the end of the year 2026. She has
options to choose between Bank A and Bank B.

Bank A offers 5.25% compounding monthly.

Bank B offers 5.3% compounding quarterly.

1.) What kind of annuity does Bank A offers?

2.) What kind of annuity does Bank B offers?
3.) How much is the future value of investment of Bank A after the year 2026?
4.) How much is the future value of investment of Bank B after the year 2026?
5.) How much is the present value of investment of Bank A after the year 2026?
6.) How much is the present value of investment of Bank B after the year 2026?
7.) How much will be her total deposit?
8.) If you are Faith, which offer will you choose? Why?

VI. SUMMATIVE ASSESSMENT

Mr. Abet wants to avail a housing loan without a down payment. He needs to choose
between two housing loan offers, assume that the two houses are similar and equal.
a. Pabahay Loan offers a 5,000 pesos monthly payment for 30 years with 7.4%
compounding monthly.
b. Tahanan Loan offers a 4,500 pesos monthly payment for 35 years with 7.7%
compounding annually.
1.) How much is the cash price of each housing loan?
2.) How much will be his total payment for each housing loan?
3.) How much will be the amount of each housing loan after its term?
4.) If you are Mr. Abet which offer, will you choose? Why?

VII. GENERALIZATION

What is annuity? What are simple and general annuity? What is the difference between
Simple and General Annuity? Is comparing total deposit or payment to present and/or future
values important? Why?

PREPARED AND SUBMITTED BY:

MANUEL M. BALLON JR.

Teacher I

CHECKED BY:

JULIETA B. ALBARIDA
Head Teacher III