School BAUTISTA NATIONAL HIGH SCHOOL Grade Level 12

DETAILED Learning General

LESSON Teacher MILES B. ALAGON Mathematics
Area
PLAN (DLP)
Teaching
October 28, 2024 Quarter 2nd
Date

I. OBJECTIVES
A. Content Standards The learner demonstrates understanding of:
1. Key concepts of simple and compound interests, and simple and
general annuities.
B. Performance Standards The learner is able to:
1. Investigate, analyze and solve problems involving simple and
compound interests and simple and general annuities using
appropriate business and financial instruments.
C. Learning Competency The learner:
1. illustrates simple and general annuities (M11GM-IIc-1)

II. CONTENT Basic Business Mathematics

III. LEARNING
RESOURCES
A. References
1. Teacher’s Guide
General Mathematics 2 Teacher’s Guide page
Pages
2. Learner’s Material
Quarter 2 Module 4 pages 1-23
Pages
3. Textbook pages Quarter 2 Module 4 pages 1-23

4. Additional Materials n/a

from Learning
Resources
B. Instructional Materials Laptop, TV, Powerpoint Presentation, Blackboard

TEACHER’S ACTIVITY
PRELIMINARIES

A. Daily Routine
1. Prayer
2. Checking of Attendance

ELICIT
ACTIVITY 1: REMEMBER ME
As the saying goes, “A person who does not remember where he came from will never reach his
destination”. This saying is very popular, passing from one generation to another generation. For
you to remember the previous lesson, here are some exercises to refresh your mind.
Before we start our lesson, let us first have a short review about our previous lesson.

What formula can be used to solve for the simple interest?

Very good.

Now, what is the amount calculated on the initial principal and with fixed interest throughout the
periods or term?

That’s right.

How will you define compound interest?

Excellent!

ENGAGE
ACTIVITY 2: Charades
The student will be divided into two groups. Each group will be given 3 minutes to guess the
given word written in the paper.
The fastest group that will get the correct answer will be the winners.

Given Words:
1. Annual
2. Interest
3. Money

EXPLORE
Annuity is a sequence of payments made at equal (fixed) intervals or periods of time. If the payment
for each period is fixed and the compound interest rate is fixed over a specified time the payment is
called an annuity payment. Accounts associated with streams of annuity payments are called
annuities.

EXPLAIN
CLASSIFICATION OF ANNUITY

According to payment Simple Annuity - an annuity General Annuity - an annuity

interval and interest period where the payment interval where the payment interval
is the same as the interest is not the same as the
period. interest period.

According to time of Ordinary Annuity (or Annuity Annuity Due - type of

payment Immediate) - a type of annuity in which the
annuity in which the payments are made at
payments are made at the beginning of each payment
end of each payment interval.
interval.

According to duration Annuity Certain - an annuity Contingent Annuity - an

in which payments begin annuity in which the
and end at definite times. payments extend over an
indefinite (or indetermine)
length of time.

Term of an Annuity, t - time between the first payment interval and last payment of interval.
Regular Payment, R- or periodic payment, the amount of each payment.
Future Value of an Annuity, F- sum of future values of all the payments to be made during the
entire term of the annuity.
Present Value of an Annuity, P- sum of present values of all the payments to be made during the
entire term of the annuity.
Cash Value or Cash Price- of a purchase is equal to the down payment (if there is any) plus the
present value of the installment payments.
Simple (Ordinary) Annuity

Future Value of a Simple (Ordinary) Annuity,

F

Present Value of a Simple (Ordinary)

Annuity, P

EXAMPLE # 1:
In order to save for her college graduation, Marie decided to save P500 at the end of each quarter. If
the bank pays 0.35% compounded quarterly, how much will her money be at the end of 6 years?
Given:
R = 500
r 0.0035
J= =
m 4
N = 4 x 6 = 24
n
(1+ j) −1
F=R
j
24
0.0035
(1+ ) −1
4
F=500
0.0035
4
F=P 12131.53
EXAMPLE # 2:
Mr. Jasper paid P200,000 as down payment of a car. The remaining amount is to be settled by
paying P16,200 at the end of each month for 5 years. If interest is 10.5% compounded monthly,
what is the cash price of his car?
Given:
R = 16 200
0.105
J=
12
N = 12 x 5 = 60
−n
1−( 1+ j )
P=R
j

( )
−60
0.105
1− 1+
12
P=16 200
0.105
12
P=753 702. 20

Periodic/Regular Payment, R, of Simple (Ordinary) Annuity

If future value is given
 If present value is given

EXAMPLE # 3:
Paolo borrowed P100,000. He agrees to pay the principal plus interest by paying an equal amount
of money each year for 3 years. What should be his annual payment if interest is 8% compounded
annually?
Given
P = 100 000
0.08
J=
1
N=3
P
R= −n
1−( 1+ j )
j
100 000
R=
( )
−3
0.08
1− 1+
1
0.08
1
R=388 033.51

EXAMPLE # 3:
Mr. Milan would like to save P500,000 for his son's college education. How much should he deposit
in a savings account every 6 months for 12 years if interest is at 1% compounded semi-annually?
Given
F = 500 000
0.01
J=
2
N = 24
F
R= n
(1+ j) −1
j
500 000
R= 24
0.01
(1+ ) −1
2
0.01
2
R=19660.31

ELLABORATE
Let’s summarize what we have discussed.

What is annuity?

Perfect!

What is the difference between the present and future value of annuities?

Precisely.
What are the formulas use in solving the present and future values of annuity?

Very well said.

EVALUATE

Directions: Solve the following problems about annuity. Write your complete solution and
answer on a one whole sheet of paper.

1. Suppose Mrs. Veloria would like to save P3,500 every end of the month in a
fund that gives 8% compounded monthly, how much is the amount or future
value of her savings after 2 years?
2. Suppose Mrs. Veloria would like to save P3,500 every end of the month in a
fund that gives 8% compounded monthly, how much is the amount or future
value of her savings after 2 years?

EXTEND

Assignment
Directions: Solve the following problems about annuity. Write your complete solution and
answer on a one whole sheet of paper.

1. Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded
quarterly. How much will be in the fund after 6 years?
2. Suppose Mr. Adaptar would like to save P10,000 every end of the quarter in a fund that
gives 5% compounded quarterly. How much is the amount or future value of her savings
after 5 years?

Prepared by: Approved by:

MILES B. ALAGON RUSLY C. MANINDING

Subject Teacher OIC, Office of the Assistant Principal

Noted by:

JULIUS J. QUINTO, EdD

Principal IV