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General Mathematics
Activity Sheets
Quarter 2 – MELC 7
Finding the Future Value and Present
Value of Both Simple Annuities and
General Annuities

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 QUARTER 2 - LEARNING ACTIVITY SHEETS
Subject: General Mathematics Date: December 13, 2021
Name: Date of Submission: December 20, 2021
Grade & Section:

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 r
(1+ )nt −1 1−(1+ )−nt
n n
r r
F=A n and P=A 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?
Solution: Given:
A = ₱2 000
r = 0.02 or 2 %
n = 12 (monthly)
t = 3 years

[ ]
r
(1+ )nt −1
n
r
n
F=A

2
 [ ]
0 . 02 36
(1+ ) −1
12
0 .02
12
F = ₱2,000

F = ₱2,000
[ 1 .061783515−1
0. 001666667 ]

F = ₱2,000
[ 0 . 061783515
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
1−( 1+ )−nt
n
r
n
P=A

[ ]
0 . 06 −8
1−(1+ )
4
0 . 06
4
P = ₱13,368.40

P = ₱13,368.40
[ 1−0. 8877111238
0 .015 ]

P = ₱13,368.40
[ 0 . 1122888762
0 . 015 ]
[ 7. 48592508 ]
P = ₱13,368.40
P = ₱100,074.84

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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

[ ]
0 . 02 36
(1+ ) −1
12
0 .02
12
A=
90000

A=
[1 . 061783515−1
0 .0016666667 ]
90000

A=
[0 . 061783515
0 . 0016666667 ]
90000
37 . 07010826
A=
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
n
r
n
P=A
P

[ ]
r
1−(1+ )−nt
n
r
n
A=
150000

[ ]
0. 06 −8
1−(1+ )
4
0 . 06
4
A=
150000

A=
[1−0 .8877111238
0 . 015 ]
150000

A=
[1−0.8877111238
0.015 ]
150000
7 . 48592508
A=

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

i eff ( m)=i eff ( q)

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 n n
(1+ i n ) m−1=(1+i q ) q −1

( )
2
0. 02
(1+in )12= 1+
2
12
(1+ i n ) =1 . 0201

12
1+i n= √ 1. 0201

1+i n=1 . 0016598

in =0 .0016598

F=A
[ (1+i) nt −1
i ]
[ ]
12 (3 )
(1+0 . 0016598 ) −1
0 . 0016598
F = ₱2,000

F = ₱2,000
[ (1+0 . 0016598 )36 −1
0 . 0016598 ]
F = ₱2,000
[ 1 .06152151−1
0. 0016598 ]

F = ₱2,000
[ 0 . 06152151
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)

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 t = 2 years

i eff ( m)=i eff ( q)

n n
(1+ i n ) m−1=(1+i q ) q −1

( )
4
12 0. 06
(1+i n ) = 1+
4
12
(1+ in ) =1 . 06136355

12
1+i n= √ 1. 06136355

1+in=1 . 0049752

i n =0 .0049752

−nt
1−(1+i)
i
P=A
−24
1−(1+0 . 0049752)
0. 0049752
P = ₱4,700
−24
1−(1 .0049752 )
0 . 0049752
P = ₱4,700
1−0 .8877112568
0 . 0049752
P = ₱4,700

( 0 .1122887432
0. 0049752 )
P = ₱4,700
P = ₱4,700 (22.56969432)
P = ₱106,077.56

III. Accompanying DepEd Textbook and Education Sites

General Mathematics Learner’s Module pages 183 -197

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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?

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?