11

GENERAL MATHEMATICS
Simple and General Annuities
Quarter 2 Week 3
Name: ________________________Date: __________
Grade: ___________________ Section: ___________

Is it Simple or Not?
Learning Competency (LCC):
Distinguishes between simple and general annuities. (M11GM-IIc-3)

Behavioral Learning Objectives:

Cognitive: Differentiate simple annuities from general annuities.
Psychomotor: Construct Venn Diagram to identify the similarities and
differences of simple and general annuities.
Affective: Value the importance of knowing simple and general annuity

What I Need to Do

Hello! Do you know that aside from interest, there is also what we call “annuity”?
Yes, this term exists! And perhaps you may wonder, what is an annuity? Are there certain
types of annuities? How does it work? Well, annuity pertains to the time value of our
money with interest and it is so useful as to almost everything is associated with it. There
are certain types of annuity and two of them will be the focus of this activity. These are
simple and general annuities. These two share some commonalities and do have
differences. With this, various types of transactions in our everyday life have to do with
these annuities such as regular payments for appliances, gadgets, savings, and the like.
In this activity, you will be going to distinguish between simple and general
annuities. With this, you will learn to recognize the differences and similarities of the
mentioned annuities. You will also learn to understand some concepts and solve real-life
problems to further reinforce your knowledge which may increase your ability to know the
value of your money in a particular period of time.

2
 Gearing Up
Activity 1: I’ll Recognize

Directions: Recognize the statement in Column A that matches to the words in Column
B. Choose the letter of the correct answer and write your answer on the space provided
before each item number. (2 points each)

Column A Column B
___1. A sequence of payments made at A. Ordinary Simple Annuity
equal (fixed) intervals or periods of B. Ordinary General Annuity
time to fulfill a financial obligation. C. Annuity
___2. It is the time between successive D. Simple Annuity
payments. E. Amount of Annuity (P)
___3. It is the amount of each payment. F. Regular or Periodic Payment (A)
___4. The payment frequency is the G. Payment Interval
same as the compounding H. General Annuity
frequency.
___5. The payment frequency and
compounding frequency are
different.

Getting Better
Activity 2: Identify Me

Directions: Identify if the following statement is a simple annuity or general annuity.

Write your answer in the provided space before each item number. (2 points each)

____________1. Motortrade Inc. offers an installment of ₱ 3,000 every month for a

motorcycle for 3 years at 0.5% interest compounded monthly.
____________2. Mrs. De Juan is paying his debt of ₱ 20,000 every six months that earns
1.5% interest compounded monthly for 2 years.
____________3. An Oppo phone that is for sale at ₱ 13,599 in cash or on monthly
installment of P1,399 for 2 years with 6% compounded monthly.
____________4. Octagonic offer an installment of ₱ 2,750 every quarter for a laptop
with 7% interest compounded semi-annually for 1 year.
____________5. Mrs. Sarcol would like to buy a television (TV) set payable monthly
payment of ₱ 3000.00 for 2 years with interest of rate 9% compounded
monthly.

3
 Gaining Mastery
Activity 3: Compare and Contrast

Directions: Identify the differences and similarities of simple and general annuities. Use
the Venn diagram below to perform the activity.

COMPARE AND CONTRAST

4
Activity 4: Read, Write and Think

Directions: Read the situation below and answer the question that follows. (5 points each)

Situation:
Jessa received two deals for an investment. The first one is ₱ 50,000 every year for 5
years at 9% compounded annually. The other investment scheme is ₱5,000 per month
for 5 years with the same interest rate compounded annually.

Periodic Payment (A) Compounding Period (m1)

Annual Interest Rate (i) Payments per year (m2)
Term or Number of Years (t) Future Value (F)
Total Number of Periods which Interest Rate per Period (r)
Payments will be made (n)

First Offer (Simple Annuity) Second Offer: (General Annuity)

Given: Given:
A = ₱ 50, 000 A = ₱ 5, 000
i1 = 0.09 i1 = 0.09
m=1 m1 = 1
t=5 m2 = 12
n = (1)(5) = 5 payments n = (12)(5) = 60 payments
𝑖 t=5
𝑟= -.
𝑚 𝑟 = (1 + 𝑖)-/ − 1
0.09 1
𝑟=
1 𝑟 = (1 + 0.09)12 − 1
𝑟 = 0.09 𝑟 = 0.007207
(1 + 𝑟)8 − 1 (1 + 𝑟)8 − 1
𝐹=𝐴 7 9 𝐹=𝐴 7 9
𝑟 𝑟
(1 + 0.09)< − 1 (1 + 0.007207)EF − 1
𝐹 = 50000 ; = 𝐹 = 5000 ; =
0.09 0.007207

𝑭 = ₱ 𝟐𝟗𝟗, 𝟐𝟑𝟓. 𝟓𝟑 𝑭 = ₱ 𝟑𝟕𝟑, 𝟔𝟔𝟎. 𝟓𝟓

Questions to Ponder:
1. Which fair market value between these deals is preferable?
I prefer _________________________________________________________
_____________________________________________________________________
2. Give a 30- to 50-word explanation of the significance of understanding general and
simple annuities.
My significant understanding ________________________________________
_______________________________________________________________

5
 Rubrics for Scoring

Your Compare and Contrast activity will be scored with this rubric. Read it carefully!
Holistic Scale

Your Read, Write and Think activity will be scored with this rubric. Read it carefully!

5 4 3 2 1
Comprehensive/ Well written/ Well written but Weak essay/ Poorly
Analytical Includes some lacks Lacks written/Barely
Essay analysis organization/ organization/ addresses
Lacks analysis No Analysis question

6
 What I Need to Remember

It is crucial to understand the concepts of simple and general annuities for it will
allow us to know the value of our money with interest over a particular period of time. This
will help us to be wiser with our own money. Just remember,

There are types of annuity according to correspondence of payment intervals with

interest periods:
• Simple Annuity – is the payment interval is also the same as the interest period.
• General Annuity – it refers to an annuity where the length of the payment interval
is not the same as the length of the interest compounding period
• Annuity – is a sequence of payments made at equal (fixed intervals or periods of
time).
The following are examples of annuities:
Rental payment
Monthly pensions
Monthly payment for car loan
Educational plan
• Term of the Annuity (t) – is the time between the first payment interval and last
payment interval.
• Payment Interval – is the time between the successive payments dates of an
annuity.
• Periodic Payment (A) – is each payment in an annuity.
• Future Value or the Amount of an Annuity (F) – is the sum of the future values of
all the payments to be made during the entire term of the annuity.
• Present value of an annuity (P) – is the sum of the present values of all payments
to be made during the entire term of the annuity.
• Compounding Period - is the span of time between when interest was last
compounded and when it will be compounded again.
Compounding Period Number of Interest Length of Each
Periods per year, m Compounding Period
Annually 1 1 year
Semi-Annually 2 6 months
Quarterly 4 3 months
Monthly 12 1 month
Daily 365 1 day
• Periodic Interest - is the rate charged or paid on a loan or realized on an investment
over a specified period of time.

7
References

Ludita S. Aljas, General Mathematics – Grade 11 Quarter 2 Module 7: Annuities, 1st ed.
Cagayan De Oro City: Department of Education, Region X, 2019

Dennis E. Ibarrola. First Edition 2021. In General Mathematics – Senior High School
Alternative Delivery Mode Quarter 2 – Module 4: Simple and General Annuities.
San Isidro, Cainta, Rizal, CALABARZON: Department of Education.

readwritethink.org. 2007. Accessed October 11, 2022.

https://www.readwritethink.org/sites/default/files/resources/lesson_images/lesson
54/detectiverubric.pdf.

Walter Barret. 2015. slideplayer. Accessed October 2022.

https://slideplayer.com/slide/4450078/.

Writers: Honey Lyn C. Paras

School: Davao del Sur School of Fisheries
Division: Davao del Sur
Illustrator: Honey Lyn C. Paras
School: Davao del Sur School of Fisheries
Division: Davao del Sur
Content Editor: Catherine F. Necesario
School: Lower Bala National High School
Division: Davao del Sur
Language Editor: Ivy Jean L. Durangparang
School: Sibulan National High School
Division: Davao del Sur

8
 Answer Key

Gearing Up
Activity 1: I’ll Recognize
1. C – Annuity
2. G – Payment Interval
3. B – Ordinary General Annuity
4. A – Ordinary Simple Annuity
5. F – Regular or Periodic Payment (A)

Getting Better
Activity 2: Identify Me
1. Simple Annuity
2. General Annuity
3. Simple Annuity
4. General Annuity
5. Simple Annuity

Gaining Mastery
Activity 3: Compare and Contrast
Answer may vary

Activity 4: Read, Write and Think

Answer may vary

Writers: Honey Lyn C. Paras

School: Davao del Sur School of Fisheries
Division: Davao del Sur
Illustrator: Honey Lyn C. Paras
School: Davao del Sur School of Fisheries
Division: Davao del Sur
Content Editor: Catherine F. Necesario
School: Lower Bala National High School
Division: Davao del Sur
Language Editor: Ivy Jean L. Durangparang
School: Sibulan National High School
Division: Davao del Sur