BASICS of

SIMPLE and GENERAL ANNUITIES

for General Mathematics
Senior High School (CORE)
Quarter 2 / Week 2

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 FOREWORD

This self-learning kit will serve as a guide in studying the

subject area General Mathematics. Guided by the Most
Essential Learning Competencies (MELC) it will be used as
an aid in learning Simple and General Annuities. Hence, it
illustrates and distinguishes simple and general annuities.
In this learning kit, students will gain knowledge in
defining and illustrating simple and general annuities.

I. What Happened
This section contains pre-activities like review of the
prior knowledge and a pre-test on what the learners have
learned in their previous discussions.

II. What You Need To Know

This section contains definition of simple and general
annuities, and real-life example problems and the
corresponding solutions that clearly illustrate the
applicability of a mathematical concept.

III. What Have I Learned

The exercises contained in this section are guaranteed
to build mathematical comprehension, skills and
competence. These serve as a diagnostic tool to identify
the learners’ areas of strengths and difficulties.

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OBJECTIVES:
K. Define simple and general annuities.
S. Illustrate and distinguish between simple and
general annuities.
A. Show patience in illustrating simple and general
annuities through its time interval.

LEARNING COMPETENCIES:

Illustrates simple and general annuities (M11GM-IIc-1)

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

I. WHAT HAPPENED
PRE-ACTIVITY: “GET TO KNOW THE TIME INTERVAL”
Match Column A to “How often each type of payment happen per
year?” in column B. Write the letter of your answer in your activity
notebook.
Column A Columnn B
1. Monthly A. 1
2. Semi-annually B. 2
3. Annually C. 4
4. Quarterly D. 12
5. Every 3 months
6. Every 6 months

PRE-TEST
Given the following situations, illustrate and distinguish whether it is simple
annuity or general annuity. Write your answer in your activity notebook.

1. Mrs. Remoto likes to save ₱3,000 every month for 6 years in a fund that
gives 9% compounded monthly.

2. Cris started to deposit ₱1,000 monthly in a fund that pays 6%

compounded quarterly for 15 years.

3. A teacher plans to save ₱5,000 every 6 months for 10 years in a bank

that pays 0.25% compounded monthly.

4. In order to save for her high school graduation, Marie decided to save
₱2,000 at the end of each quarter. The bank pays 0.50% compounded
quarterly.

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II. WHAT YOU NEED TO KNOW

Annuity – a sequence of payments made at

equal (fixed) intervals or periods of time.
(Verzosa et.al, 2016)
Simple Annuity – an annuity where the
payment interval is the same as the interest
period. (Verzosa et.al, 2016)
General Annuity – an annuity where the
payment interval is not the same as the interest
period. (Verzosa et.al, 2016)

DISCUSSION
To understand the concepts of simple and general annuities, let us have
the following examples.

EXAMPLE 1
Mrs. Remoto likes to save ₱3,000 every month for 6 years in a fund that
gives 9% compounded monthly.
Solution:
The problem above, shows that the payment interval is every month,
while the interest period is compounded monthly. Since the payment interval
and the interest period are the same, example 1 illustrates simple annuity.

EXAMPLE 2
Cris started to deposit ₱1,000 monthly in a fund that pays 6%
compounded quarterly for 15 years.

Solution:

In this problem, the payment period is monthly, and the interest period is
compounded quarterly. If we match the payment period to the interest period,
the two are different. Thus, this is an example of general annuity.

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EXAMPLE 3
A teacher plans to save ₱5,000 every 6 months for 10 years in a bank
that pays 0.25% compounded monthly.

Solution:
The example above, gives that the payment period is at every 6 months,
and the interest period is compounded monthly. Comparing the two periods,
we can say that they are different. Therefore, it is general annuity.
EXAMPLE 4

In order to save for her high school graduation, Marie decided to save
₱2,000 at the end of each quarter. The bank pays 0.50% compounded
quarterly.

Solution:
Example 4, presents that the payment period is quarterly, and the interest
period is compounded quarterly. Since the two periods are the same, this is
simple annuity.

III. WHAT HAVE I LEARNED

SIMPLE ANNUITY
Payment period per year = interest period per year
or in symbol, P/Y = I/Y.

GENERAL ANNUITY
Payment period per year ≠ interest period per year
or in symbol, P/Y ≠ I/Y.

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POST-TEST
Given the following situations, illustrate and distinguish whether it is simple
annuity or general annuity. Write your answer in your activity notebook.

1. Monthly payments of ₱3,000 for 4 years with interest rate of 3%

compounded monthly.

2. Semi-annual payments of ₱150,000 with intrest rate of 8% compounded

annually for 10 years.

3. Annual payments of ₱20,500 with interest rate of 8.5% compounded semi-

annually for 3 years.

4. Quarterly payment of ₱5,000 for 10 years with interest rate of 2%

compounded quarterly.

5. Quarterly payment of ₱15,000 for 10 years with interest rate of 8%

compounded annually.

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 REFERENCE
Verzosa, D., et al, 2016. General Mathematics: Learner’s Material.
Lexicon Press Inc.

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 DEPARTMENT OF EDUCATION
SCHOOLS DIVISION OF NEGROS ORIENTAL

SENEN PRISCILLO P. PAULIN, CESO V

Schools Division Superintendent

FAY C. LUAREZ, TM, Ed.D., Ph.D.

OIC - Assistant Schools Division Superintendent
Acting CID Chief

NILITA L. RAGAY, Ed.D.

OIC - Assistant Schools Division Superintendent

ROSELA R. ABIERA
Education Program Supervisor – (LRMS)

ARNOLD R. JUNGCO
Education Program Supervisor – (SCIENCE & MATH)

MARICEL S. RASID
Librarian II (LRMDS)

ELMAR L. CABRERA
PDO II (LRMDS)

VANESSA P. SUMAGANG
Writer

RADHIYA A. ABABON
Lay-out Artist
_________________________________

ALPHA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
MERCYDITHA D. ENOLPE
RONALD TOLENTINO

BETA QA TEAM
RICKLEOBEN V. BAYKING
LITTIE BETH S. BERNADEZ
GIL S. DAEL
MARIA SOLEDAD M. DAYUPAY
MARIA ACENITH D PASTOR
JEE LIZA T. INGUITO
MERCYDITHA D. ENOLPE
RONALD G. TOLENTINO

DISCLAIMER

The information, activities and assessments used in this material are designed to provide accessible
learning modality to the teachers and learners of the Division of Negros Oriental. The contents of this module are
carefully researched, chosen, and evaluated to comply with the set learning competencies. The writers and
evaluator were clearly instructed to give credits to information and illustrations used to substantiate this material.
All content is subject to copyright and may not be reproduced in any form without expressed written consent from
the division.

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 SYNOPSIS AND ABOUT THE AUTHOR

Self-Learning Kit
designed for senior high school
learners to do independent
learning. This kit is aligned with
the K to 12 Curriculum Guide
and Most Essential Learning
Competencies (MELC).
Activities, examples, and
exercises are tailored
achieving the objectives and
organized to guide learners to a
is
Since P/Y ≠ I/Y, it is general annuity.
I/Y = compounded annually
5. P/Y = quarterly
Since P/Y = I/Y, it is simple annuity.
I/Y = compounded quarterly
4. P/Y = quarterly
Since P/Y ≠ I/Y, it is general annuity.
I/Y = compounded semi-annually
in 3. P/Y = annual
Since P/Y ≠ I/Y, it is general annuity.
I/Y = compounded annually

successful and insightful

2. P/Y = semi-annual
Since P/Y = I/Y, it is simple annuity.
exploration of General I/Y = compounded monthly
Mathematics and its 1. P/Y = monthly
application.
ANSWER KEY: POST-TEST

Vanessa P. Sumagang graduated from Silliman

University with a Bachelor of Secondary Education
degree major in Mathematics. She earned her Master
of Science in Mathematics from Negros Oriental State
University. She spent her 10 years in teaching
Mathematics at the private school: 7 years at
Mindanao Institute and 3 years at St. Louis School –
Don Bosco Dumaguete. Currently, she is now
employed as a Senior High School teacher at Dauin
National High School. Her experience for more than
10 years as a Mathematics teacher, help her in
preparing this kit.