HOLY CROSS COLLEGE

Sta. Lucia, Sta. Ana, Pampanga

SCHOOL OF ARTS SCIENCES AND EDUCATION

DETAILED LESSON PLAN IN

GENERAL MATHEMATICS 11

“FUTURE VALUE OF ANNUITY”

I. Objectives
At the end of the teaching and learning experiences, the students should be able to:
• Identify the factors that influence the future value of an ordinary annuity, such as interest rate and time.
• Differentiate between ordinary annuity and annuity due, identifying the timing differences in the cash flows.
• Calculate the future value of an ordinary annuity and annuity due by using and formula.
• Demonstrate a deep appreciation for the future value of an annuity and distinguish the implications of
ordinary annuity in financial decision-making.
II. Subject Matter
Topic: Future Value of an Ordinary Annuity and Annuity Due
Reference: G11 General Mathematics book; (pg. 244-251)
https://www.investopedia.com/terms/f/future-value-annuity.asp
https://wordfinder.yourdictionary.com/blog/pictoword-tips-to-help-you-master-every-level/
Materials: Laptop, Power Point Presentation, chalk and board, Instructional Materials.

III. Procedure

Teachers Activity Students Activity

A. Preparatory Activity
• Greetings

Good morning, class!

Good morning Miss!
It’s a pleasant day to start.

By the way, how is your day so far? Is it good?

Yes, it is!
It’s good to know that.

• Classroom conditioning

So before anything else, kindly pick up all the pieces

of dirt under and around your chair.

Very good, class! I do hope that this good

(The students will pick up all the pieces of
scenario will be maintained.
dirt)
May I request everybody to stand for our opening
prayer.
(students will stand)
Prayer leader, kindly lead the prayer to the Holy
Cross.
(Prayer leader will lead the prayer)
Alright, thank you

You may take your seats class!

• Checking of attendance Class monitor: there are 5 absent today with

excuse letter Miss.
Monitor of the class, who is the absent today?
(Class monitor will give the list of absents)
Kindly, give me a list of absent and their excuses.

• Review of the past Lesson

As you can see, I have a box here in my hand. This

box contains questions regarding to our topic last
meeting. Later on, I will pass this box to your
classmate, and I will play a song. Once the song
started. The person who had the box, needs to pass it
on to the next person beside him/her. When the song
has stopped. The person who had the box will pick
one question and answer it. Each question is
equivalent to 5 points.

Remember class, once you answer the question. Do

not put it back on the box, because that will serve as
(The student will answer yes with full of
your credit points.
excitement)
Are we clear, class?

(This activity will last for 5-10 minutes)

B. Motivation
(Some of the students will say yes and the
I have prepared a game “PICTO WORD”. Are you
others are no)
familiar to this game?

Ok, class, settle down. “Picto Word” is a game

where you need to guess the word or phrase using
the pictures given. This game will enable you to
have an idea about our next topic for today. How
does this game be played?
Yes Miss.
(The teacher will show an example and explain it
in order for the students to understand the game)

Does the game “Picto Word” clear to all of you

class?
Alright, since you understand the game, allow me to
share the mechanic of this game.

Mechanics: in this game, you will be grouped into 6,

and will be given an illustration board and a chalk
each group. Assign 1 person to be the secretary who
will write the answer that you will get in the Picto
Word. Other members must participate by guessing
the word or phrase from the given pictures. Each
correct answer will have a corresponding point. the
group who will get the highest points will be declare
as the winner of this game and will be rewarded.

Does the mechanics of this game is clear to all of Students: yes miss!
you class?

(Before starting the game, the teacher will instruct

the students to work accordingly and to avoid
unnecessary noise)

Alright then, let’s start the game.

(This activity will last for 5-10 minutes)

C. Lesson Proper

Our topic for today is all about the FUTURE

VALUE OF AN ORDINARY ANNUITY AND
ANNUITY DUE.

Before I continue, allow me to share the objectives

of this lesson.

(Present the slide of the objectives in the power

point presentation)
Students:
Everybody, kindly read.
At the end of the teaching and learning
experiences, the students should be able to:

• Identify the factors that influence the

future value of an ordinary annuity, such
as interest rate and time.
• Differentiate between ordinary annuity
and annuity due, identifying the timing
differences in the cash flows.
• Calculate the future value of an ordinary
annuity and annuity due by using
formula.
• Demonstrate a deep appreciation for the
future value of an annuity and distinguish
 the implications of ordinary annuity in
financial decision-making.
Alright, thank you.

Before jumping to our main topic, let’s first discuss

what is an Annuity?

(Teacher will share the next slide which is the

definition of annuity)

Mykee, kindly read the definition of an annuity.

Mykee: Annuity is the payment or receipt of

equal cash amounts per period for a specified
Alright, thank you.
amount of time.
In other words, annuity is a financial arrangement
where a person makes a series of regular payments
or receives a series of payments at equal intervals.

Some examples of annuity are, retirement annuity,

insurance annuity, investment bond, pensions,
mortgage payments, lease payments and etc.

These examples illustrate the diverse applications of

annuities in various financial contexts, from
retirement planning to insurance and legal
settlements

Annuities can be categorized into two.

(Teacher will share the next slide of her ppt)

It can be Annuities Certain or Contingent Annuities.

Ariane, kindly read the annuities certain and Ariane:

contingent certain. Annuities Certain refer to a type of annuity
where the payments are guaranteed to be made
for a specified and predetermined period,
regardless of whether the annuitant is alive or
deceased.
Contingent Annuities
involve payments that are dependent on certain
conditions or events, such as the survival of a
specific individual or the occurrence of a
Ok thank you.
particular event.

In simple manner, Annuities certain have guaranteed

payments for a specified period. while in contingent
annuities it involves payments dependent on certain
conditions or events, such as life insurance.
So in our lesson for today, we will be focusing only
to annuities certain.

Before I proceed, are we clear about the annuity

class? Do you have any questions or clarifications?
None, Miss!
If none let’s proceed to Future value of an Ordinary
Annuity and Annuity Due.

(Teacher share the next slide of the ppt about FV

of annuity due and ordinary annuity)

When we say Ordinary Annuity, payments are

made or received at the end of each period. For an
Annuity Due, payments are made or received at the
beginning of each period.

To further understand it, let’s take a look at the

figure on the screen.

(The teacher share the figure about ordinary

annuity and annuity due)

as you can see on the figure, Ordinary Annuity

Payments occur at the end of each period. While in
Annuity due, Payments occur at the beginning of
each period.

Do you get it now class? Yes, Miss!

Ok, let’s talk about now the Future Value of an

Annuity. Future value of annuity is also known as
the amount of an annuity.

First, let’s talk about Future value of an ordinary

annuity.

In calculating the Future Value of an Ordinary

Annuity. We use the Formula;

(𝟏 + 𝒊)𝒏 − 𝟏
𝑭𝑽 = 𝑷𝒎𝒕 𝒙
𝒊

Where:

𝐹𝑉 = Future Value
𝑃𝑚𝑡 = Annual payment
𝑖 = Interest rate per year (𝑛𝑜𝑚𝑖𝑛𝑎𝑙 𝑟𝑎𝑡𝑒 ÷
𝑝𝑒𝑟𝑖𝑜𝑑𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟)
𝑛 = Number of periods
( 𝑦𝑒𝑎𝑟𝑠 𝑥 𝑝𝑒𝑟𝑖𝑜𝑑𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟)
Let’s have an example.

(The teacher will share the next slide about the

example problem)

Everybody kindly read the given problem. Students: Example 1: Mimiyuh deposited
₱3,000 at the end of each year for 8 years in
her savings account. If her bank paid 5%
interest compounded annually, find the future
value of Mimiyuh’s account.
Okay, very good.

In our given problem, we need to find the future value

of the account of Mimiyuh. How we can solve the
given problem?
Students: using the Future value of an ordinary
annuity Formula.
Alright, very good. And what is the formula for future
value of an ordinary annuity? Students:
(𝟏 + 𝒊)𝒏 − 𝟏
𝑭𝑽 = 𝑷𝒎𝒕 𝒙
𝒊
Ok, so since we have the formula to be use in order to
(Students raises their right hand)
get the amount of the future value. What are we going
to do next? Raise your hand if you want to answer.

Yes, Alexa? Alexa: identify the given value in the given

problem. And substitute them to the the given
formula.
Exactly! Very good, alexa. What are the given values
of our problem here?

Yes, kyle? Kindly write them on the board.

Kyle: (write the given values on the board)
Pmt= 3000, i= 0.05 (5% / 1 period per year),
n= 8 (8 years x 1 period per year)
Ok, thank you kyle. does the work of your classmate
is correct class?
Students: Yes, Miss!
Alright, very good kyle. Since we have the given
value, let’s now substitute them to the given formula
which is

(𝟏 + 𝒊)𝒏 − 𝟏
𝑭𝑽 = 𝑷𝒎𝒕 𝒙
𝒊

(The teacher will start writing on the board to

show the process in solving the given problem to
the students)

Since we have the value of the annual payment which

is 3000, we change pmt as 3000 and i as 0.05 which
is the interest rate per year and n will become 8,
which is the number of periods. Then it will become

(𝟏 + 𝟎. 𝟎𝟓)𝟖 − 𝟏
𝑭𝑽 = 𝟑𝟎𝟎𝟎 𝒙
𝟎. 𝟎𝟓

Let’s simplify it now. We copy, FV (future Value) is

equal to 3000 multiply by,…

What is 1+ 0.05?
Students: 1.05 Miss.
th
Then raised it to the 8 power. And get only the first
8 digits after the decimal point. It will give us what?

You may use your scientific calculator class, not

cellphone calculator.
Students: 1.4774554
Alright, since we have

𝟏. 𝟒𝟕𝟕𝟒𝟓𝟓𝟒𝟑 − 𝟏
𝑭𝑽 = 𝟑𝟎𝟎𝟎 𝒙
𝟎. 𝟎𝟓

Is this the final answer class?

Students: No Miss!
Alright, this is not yet the final answer, because we’re
not done simplifying the solution.

Then, what is 1.47745543-1 all over 0.05 class?

Using your calculator.it will give us what?
Students: 9.5491086 Miss.
Then multiply 9.5491086 to the value of annual
payment which is 3000 to get the future value of an
ordinary annuity.

We will get the answer of?...

Students: 28,647.3258
28,647.3258 and let’s round off, and get the first 2
digits after the decimal point, then it will give us
28,647.33

Therefore, the future value of Mimiyuh’s account will

be ₱28,647.33

Do you get the future value of an ordinary annuity,

Class?
Students: Yes Miss!
Let’s have another example before we proceed to
calculating the future value of an Annuity Due.

(The teacher will write another example in solving

the future value of an ordinary annuity using the
board and allow students to solve the given
(Student will participate to the board work)
problem on their own. Board work)
(This board work will take up to 5-10 mins.)

Alright, very good class. Since you really understand

the process in calculating the future value of an
ordinary annuity.

Let’s now proceed in calculating the Future Value of

an Annuity Due.

(the teacher will share the slide of her presentation

about FV of an annuity due)

In getting the future value of an annuity due, we use

the formula

(𝟏 + 𝒊)𝒏 − 𝟏
𝑭𝑽 = 𝑷𝒎𝒕 𝒙 𝒙 (𝟏 + 𝒊)
𝒊

Class, kindly observe the difference between the

formula of future value of an annuity due and
ordinary annuity.

What did you observe between the two, class? (Some students are raising their hand)

Yes, Nicole? Kindly stand up.

Nicole: the formula for future value of an
ordinary annuity and annuity due are almost
the same Miss, just had a slight difference
where in, Annuity Due formula, includes
Exactly! Very good Nicole. additional factor which is (1+i).

Because of the additional factor, the future value of

an annuity due will generally be higher than ordinary
annuity with the same cash flows, interest rate, and
time period.

Since the formula of an annuity due is

(𝟏 + 𝒊)𝒏 − 𝟏
𝑭𝑽 = 𝑷𝒎𝒕 𝒙 𝒙 (𝟏 + 𝒊)
𝒊

To solve for the annuity due of the first example

problem that we had in ordinary annuity, we will just
simply multiply (1+i) which includes in the formula
for annuity due, to the future value of the ordinary
annuity.

this will gives us,…

𝐹𝑉𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑑𝑢𝑒 = (1 + 𝑖 ) 𝑥 𝐹𝑉𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑎𝑛𝑛𝑢𝑖𝑡𝑦

What future value of an ordinary annuity we have for

our first example a while ago?
(The teacher will revisit the slide of the future
value of an ordinary annuity in the First example)

Students: its ₱28,647.33 Miss!

Alright, then let’s just substitute ₱28,647.33 as the
Future value of an ordinary annuity. then, what is the
value of the interest rate per period that we use? Students: it’s 0.05 Miss.

Okey, we will just simply copy the value of the

Quantity 1 + i (1+i) in the previous example. Then
this will become

𝐹𝑉𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑑𝑢𝑒 = (1 + 𝑖 ) 𝑥 𝐹𝑉𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑎𝑛𝑛𝑢𝑖𝑡𝑦

𝐹𝑉𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑑𝑢𝑒 = (1 + 0.05) 𝑥 ₱𝟐𝟖, 𝟔𝟒𝟕. 𝟑𝟑

This will give us, what?

Alright, very good! Therefore, the value of the

annuity due of Mimiyuh’s account will be,… Students: 30,079.6965 or 30,079.70 Miss!

𝐹𝑉𝑎𝑛𝑛𝑢𝑖𝑡𝑦 𝑑𝑢𝑒 = ₱𝟑𝟎, 𝟎𝟕𝟗. 𝟕𝟎

What have you observed between the future value of

an annuity due and ordinary annuity class? Anyone? (Students raises their hand)

Yes, rica?
Rica: The Future value of the annuity due is
higher that the future value of the ordinary

Exactly, very good Rica! annuity Miss.

As I said earlier class, since the formula of the annuity

due has an additional factor which is the (1+i) we
expect that the future value of an annuity due will
generally be higher than the future value of an
ordinary annuity, which accounts for the fact that in
annuity due, each payment is made at the beginning
of the period.

Am I getting myself, clear class?

Students: yes Miss!
Are you getting my point?
Students: None, Mam!

Do you have any questions? About annuity due,

class?

Alright, if you have no questions. Then find the

annuity due of the 2nd and 3rd example we have in
calculating the ordinary annuity a while ago.
(The students will solve on their own using
their paper)
You try it on your paper. After that, let’s have 2 (Some of the students will raise their hand to
volunteer to write their answers on the board. volunteer in solving the annuity due of the
given problem on the board)
(The teacher will let 2 students volunteer to
answer the annuity due on the board)

Okey, do you have any question regarding with our

topic for today class? Any clarifications?
None Miss!
Alright, since you already understand the process in
solving the ordinary annuity and annuity due using
the given formulas.

D. Generalization (revise)

Since, you don’t have any questions, and it seems

that you really understand our topic for today. let’s
have a RECAP.

Can anyone tell me what is the meaning of annuity?

Yes, Arthur?
(The student will tell his/her answer)
Very good!

What are the 2 categories of annuities that we talk

about a while ago?

Yes recca?

(The student will tell his/her answer)

When we say Annuities Certain, what do we mean
by that?

Yes Cathy?

what about the contingent annuities?

(The student will tell his/her answer)
Alright very good.

When we’re talking about ordinary annuity, what do

we mean by that?
(The student will tell his/her answer)
What about annuity due?
(The student will tell his/her answer)

Alright, very good.

Ok last question, this is for everybody. What are the

formulas do we use in getting the future value of an
ordinary annuity and annuity due?

Future value of an Ordinary annuity formula first.

Then, the annuity due formula.

(The students will tell their answer)

 E. Application

I see that you really understand our topic for today.

But I have a question for you class. Do we really
need to study annuity, specifically the future value Students: Yes Miss.
of an ordinary annuity and annuity due?

Why? Kindly raise your hand if you want to answer. (Students raises their hand)

Yes, Jacky.

Very good, Understanding the future value of (The student tell his/her answer)

ordinary annuity and annuity due is valuable in

various real-life situations, especially in personal
finance, investing, and retirement planning.

Aside from that? Any idea? What about from this

row? Yes richi?
(The student will share his/ her answer)
Alright, very good. Another example or real life
situations relating our topic is that,…

Just for instance, when you become a Parent, you

plan to save money for your child's education that
makes you pay regular contributions to education
funds. By applying your knowledge in calculating
the future value of annuities, you can be able to
estimate the amount available for the educational
expenses of your child, that will help you more to
plan and save accordingly.

Studying Annuities has a lot of advantages that will

offer to us, because it will enable us to be wiser in
Financial Planning, informed Decision-Making,
Wealth Accumulation and other various real life
situations.

In summary, studying the future value of ordinary

annuity and annuity due is essential for making
sound financial decisions and planning for long-term
financial goals in real-life situations.

Does our topic are all clear to all of you class? Do

Yes Miss!
you have any questions or clarifications?
None, Miss!
If none, I hope, you have earned a lot of learnings to
our discussion today. With that, let’s praise
ourselves a loud ”ALING DIONISIA CLAP” 1, 2,
3…

(The students will clap happily ever after)

 IV. Evaluation

Solve the following exercise:

A. Calculate the future value of the following ordinary annuity and annuity due using the table factor of
an ordinary annuity. Round to the nearest cent when necessary.

Annuity Payment Time period Nominal rate Interest Future Future

Payment Frequency (years) (%) Compounded value of the value of the
ordinary annuity
annuity
due

1. ₱ 1,000 Every 3 4 8 quarterly

months

2. ₱2,500 Every 6 5 10 Semi-annually

months

3. ₱10,000 Every year 10 9 annually

4. ₱200 Every month 2 12 Annually

5. ₱1,500 Every 3 7 6 quarterly

months

B. Solve the following problem using the formulas of Future value of an annuity due and ordinary
annuity.

1. Suntech Distributors, Inc. deposits ₱5,000 at the beginning of each 3-month period for 6 years in an
account paying 8% interest compounded quarterly. How much will be in the account at the end of the 6 years
period?

2. Diana, deposits ₱85 each payday into an account at 12% interest compounded monthly. She gets paid
on the last day of each month. How much will her account be worth at the end of 30 months?

Assignment:

REST, RELAX AND ENJOY! Have a Great day! God bless.

-Miss Nicole <3

Prepared by:

BERNA NICOLE C. SICAT

BSED MATHEMATICS 4-A