ABM 11

LEARNING ACTIVITY SHEETS

General Mathematics
S.Y. 2021 – 2022 1st Semester
2nd Quarter Week 3 & 4

Exercise.
Solve the ff. problems:
1. Ronald borrows money to buy a car. He will repay the loan by making monthly payments of Php
12,899 for the next five years at an interest rate of 8% compounded monthly. How much did
Ronald borrow?
Step 1: Determine the kind of the annuity Step 2: Classify the annuity.
Simple Annuity, because the payment interval (monthly) is Ordinary Annuity
the same as the compounding period (monthly).
Step 3: Identify if the desired outcome is Present Value or Future Value. Step 4: Identify the formula that will
Future Value be used.
Future Value of a Simple Ordinary Annuity

Step 5: Identify the value of the variables Step 6: Substitute the variables by
their values.

Step 7: Solve and write the final answer. (You may input what you have in STEP 6 in your calculator)

FV = 947, 777.97
2. Mario’s parents saved for his college education by investing Php 18,000 at the beginning of each
year in an education plan that earns 4% interest compounded annually. What is the total
amount of investment at the end of 15 years

Step 1: Determine the kind of the annuity Step 2: Classify the annuity.
Simple Annuity, because the payment interval Annuity Due, because the payment was
(each year) is the same as the compounding period made at the beginning of the payment
(annually). interval.

Step 3: Identify if the desired outcome is Present Step 4: Identify the formula that will be
Value or Future Value. used.
Future Value, since we are asked for the total Future Value of a Simple Annuity Due
amount of investment after 15 years

Step 5: Identify the value of the variables Step 6: Substitute the variables by their
values.

Step 7: Solve and write the final answer. (You may input what you have in STEP 6 in your
calculator)

FVAD = 374,841.56
3. Php 20,000 will be invested in an account at the end of each year at 6% compounded quarterly.
How much will be the money after 10 years?

Step 1: Determine the kind of the annuity
General Annuity, because the payment interval
(each year) is not the same as the compounding
period (quarterly).
Step 3: Identify if the desired outcome is
Present Value or Future Value.
Future Value, since we are asked for the money
after 10 years.
Step 2: Classify the annuity.
Ordinary Annuity, because the payment was
made at the end of the payment interval.
Step 4: Identify the formula that will be
used.

Step 5: Identify the value of the variables Step 6: Substitute the variables by their
values.

Step 7: Solve and write the final answer. (You may input what you have in STEP 6 in your
calculator)

FVOGA= 265,310.07
4. Find the present value of an annuity due of Php 5000 payable monthly for 5 years if money is
worth 8% compounded annually.
Step 1: Determine the kind of the annuity Step 2: Classify the annuity.
General Annuity, because the payment Annuity Due
interval (monthly) is not the same as the
compounding period (annually).
Step 3: Identify if the desired outcome is Step 4: Identify the formula that will be used.
Present Value Present Value of Simple Annuity Due

Step 5: Identify the value of the variables Step 6: Substitute the variables by their values.

Step 7: Solve and write the final answer. (You may input what you have in STEP 6 in your
calculator)

PVGAD = 249, 821.60

5. Find the present value of 12 quarterly payments of Php 1,000 each if the first payment is due at
the end of 1 year and money is worth 3% compounded quarterly

Step 1: Identify what is asked Step 2: Identify what are given.

Present Value (��)

Step 3: Identify the formula that will be used. Step 4: Substitute

Step5: Solve and write the final answer. (You may input what you have in STEP 6 in your
calculator)

PVDEF = 2,763.41