ADAPTIVE TEACHING GUIDE in General Mathematics

Most Essential Topic # 2 : Simple and General Annuity

Lesson # 3 : Ordinary and Deferred Annuity

Prerequisite Content-knowledge:
● Simple and Compound Interest
● Concept of Simple and General Annuities

Prerequisite Skill:
● Solving Problems Involving Simple and Compound Interests

Prerequisites Assessment:
Students will solve the simple and compound interest problems.
Apply the 3-step GPS navigation in answering
Given
Plug-in
Solve

“How well do you know me?”

How much interest would Maria pay to her loan amounting to php 20,000 for 3 years at 6% per year at simple interest?

Given:
P=20,000.00 r= 6%= 0.06 t= 3 years

Plug-in:
I= Prt = 20,000.00 x 0.06 x 3

Solve:
I= php 3,600.00
Therefore, the interest of her loan at the end of 3 years is php 3,600.00

Find the future value and the amount of interest if php 20,000 was loaned for a period
of 3 years with interest of 6% compounded annually.

Given:
A=? I=? P-php 20,000.00 r=6%=0.06 t=3

Plug-in:
𝑡
𝐴 = 𝑃(1 + 𝑟)
3
𝐴 = 20000(1 + 0. 06)

Solve:
3
𝐴 = 20000(1.. 06)
𝐴 = 23, 820. 32

Therefore, the interest at the ended of 3 years is

𝐼=𝐴−𝑃
𝐼 = 23, 820. 32 − 20, 000. 00)
𝐼 = 3, 820. 32

Pre-lesson Remediation Activity:

1. For Participants with Insufficient Level of Prerequisite Content-knowledge and/or Skill(s):
They will be provided worksheet activities and video links in solving problems involving simple and compound interests.

2. For Participants with a Fairly Sufficient Level on Prerequisite Content-knowledge and/or Skill(s):
They will be asked to share their computation in solving problems involving simple and compound interests.

Introduction:
 1. The teacher must present the overview of the topics to be discussed, learning objectives and the purpose of the discussion.
2. Students are required to prepare and use a calculator to solve the problems that will be given.
3. Students are expected to gain knowledge and understating in:
a. Defining Annuity
b. Defining and Differentiating Simple and General Annuity
c. Solving the Present and Future Values of: Ordinary Annuity, Annuity Due, and Deferred Annuity.
4. Students are presented with a Slide Presentation on how to solve Ordinary Annuity, Annuity Due, and Deferred Annuity
5. It is important to give the students an idea of what the lesson all about, where and they can relate it real-life and non-real-life scenarios

Introduction spiel:
In this lesson, you will gain understanding of different types of annuities that you can invest in and how to calculate their future and present values.

Participant’s Experiential Learning: (Note: Use the Flexible Learning Activity Identified for the topic/lesson relative to the General Enabling Teaching Strategy)

Chunk 1: Present and Future Values of Ordinary Annuity

A. Formative Question
Look at the image on the right side and ask the students to share their thoughts
1. What is common with these properties considering their prices?
2. How are these properties usually purchased?
3. How can you relate the word “accumulate” with the manner of payment for the
properties in the picture?

B. Enabling Formative Questions

1. What is the definition of annuity?
2. What is Simple Annuity?
3. What is General Annuity?
4. How does Simple and General Annuity differ from each other?

C. Discussion

Present definitions of annuity, payment interval, and term of annuity.

Annuities are classified according to payment intervals and interest conversion periods.
 • Payment interval - The time between successive payments of an annuity
• Term of an annuity - The number of periods from the first payment interval to the last payment interval

Discuss the classifications of an annuity

• Simple Annuity - Payment intervals and interest conversion periods are the same
• General Annuity - Payment intervals and interest conversion periods are unequal

Activity 1: Identify whether the given is Simple or General Annuity and explain why.

a. Lisa pays P5,000 monthly, with interest at 6% compounded semi-annually. General Annuity
b. Dimple pays P1,200 monthly, with interest at 5% compounded monthly. Simple Annuity

Explain how simple and general annuities are further classified into ordinary annuity, annuity due, and deferred annuity.
Simple and general annuities are further classified into three (3) classifications:
• Ordinary annuity (annuity-immediate) – Periodic payments are made at the end of the payment intervals.
• Annuity due – Periodic payments are made at the beginning of payment intervals.
• Deferred annuity – Periodic payment is due at some later date.

Explain that annuity is an investment with the promise that it will be paid over a certain number of periods.

Define the accumulation phase and distribution phase of an annuity.

Accumulation phase – The time money is put into the annuity until it is released
Distribution phase – The time after the release of annuity

If each phase consists of a single payment, then there is no annuity. If each phase consists of more than one payment,
then an annuity exists. The present value or future value of a sequence of payments can be computed like the present
value or future value of a single amount. But, recursive computation for every payment and adding them together would
be tedious.

Explain the concept of present and future values of ordinary annuity and how it is calculated using the GPS.
Illustrate the application of the formulas through the examples.
a. In the identification of variables, note that numerical values are colored correspondingly with the word from the problem dictating the values so that students may easily
comprehend.
b. Likewise, in the application of the formula, variables are colored correspondingly with the values substituted.
Activity 2: Think-Pair-Share
a. If money is worth 8% compounded quarterly, what is the present value and future value of an ordinary annuity paying P2,000 quarterly for a term of four (4) years?
Chunk 2: Present and Future Values of Annuity Due & Deferred Annuity

A. Formative Question

1. What are the 2 classifications of Annuity?

2. How do they differ?

2. Enabling Formative Questions

1. What is Annuity Due?

2. What is Deferred Annuity?

3. Discussion

Introduce present and future values of annuity due.

Illustrate computations through examples.

Explain the relationship of the problem with the presented diagram.
Before proceeding to the solution, ask the students to identify the given variables in the formula.

Explain deferred annuity further with the aid of the illustration below.
Explain the derivation of the formula of PV of def.

Tell the class that creating a time diagram eases up analysis of problems related to deferred annuities.

Example: What is the present value of an annuity whose sequence of 12 annual payments of ₱3,000 at a rate of 5%, with the first one due at the end of five (5) years?

Solution: The time diagram for the problem can be made as follows.
Allow the class to solve deferred annuity using GPS.

Develop a seatwork that will evaluate the skills students acquired about the calculation of present and future values of ordinary annuity, annuity due, and deferred annuity. Include
drawing time diagrams in the seatwork. Take into consideration the learning objectives indicated above in formulating the seatwork.

Activity 2: Think-Pair-Share

1. Mr. Julian decided to buy a house and lot for his son before the latter’s big day. A payment for every month is P24,000 for 25 years starting at the end of 4 months with an
interest of 6% compounded monthly.
Answer: P3, 669, 644.39

2. Joy gave allowance to her mother for her medicine. She withdrew P25,000 semi-annually for 10 years starting at the end of 2 years. How much is the mother‘s allowance if the
interest rate is 8%converted semi-annually?
Answer: P302, 043.77

Ask students for any misconceptions or for additional insights they may want to contribute about the topic.

Ask the students to search on their devices for words that relate to the words modest and steady.
Synthesis
Draw the student’s minds outside the box and think (figuratively) of their own riches, risks, and
investments. Use the questions below in facilitating insights of the class. You may share your thoughts
first.

Listed below are possible answers:

a. Question 1: Good communication skills, intelligence, rich family
b. Question 2: Murmurings, taking advantage of others, costly living
c. Question 3: Public information, education, charitable acts

RUA of a Student’s Learning:

Students are required to create a video presentation demonstrating their comprehension of the topic. This
could take various forms such as a drama, informative video, or motivational piece. The presentation
should cover:
1. Ordinary annuity, annuity due, and deferred annuities
2. Real-life examples illustrating annuities
3. Your foundational understanding of the topic

The video presentation is graded based on the given criteria

Criteria Fair (2 pts) Good (5 pts) Excellent (10 pts) Remarks

Content Knowledge The topic was roughly executed and it was The topic was all executed but Each Topic was effectively and creatively done.
obvious that there was no preparation at there was a need for more Thedemonstrators appeared well-prepared.
all preparation to have a polished Confident And comfortable. Theexecution of the
presentation concepts was polished.

OrganizationandStructure The presentation was difficult to follow The presentation is slightly easy The presentation was very organized and easy to
due to disorganization of the otterness to follow understand

Visual andAudioElements The audio or video is garbled and hard to The audio and/video effects are Audio/video effects flow exceedingly well and are
understand. Too much background moderate quality.Some high quality
interference and/or the video is of low background noises not related to
quality. the presentation are heard
 TOTAL

Feedbacks/Suggestion:_________________________________________________________________________________________________________________________________________________________________________________________

Post-lesson Remediation Activity:

The students will be provided with additional learning resources on Ordinary Annuity, Annuity Due, and Deferred Annuity.

References:
Chua, R., Ubarro, A., & Wu, Z. (2016). Soaring 21st century mathematics (general mathematics). Quezon City: Phoenix Publishing House.
Fernando, O. (2016) Next century mathematics (general mathematics). Quezon City: Phoenix Publishing House. Lim, Y., Nocon E., Nocon, R., & Ruivivar L. (2016). Math for engaged
learning (general mathematics). Quezon City: Sibs Publishing House.
Melosantos, L. (2016). Math connections in the digital age (general mathematics). Quezon City: Sibs Publishing House.
Regacho, C., Benjamin, M., & Oryan, S. (2017). Mathematics skills for life. Quezon City: Abiva Publishing House, Inc.
Zorilla, R. (2016). General mathematics for senior high school. Malabon City: Mutya Publishing House.

Prepared by: Ruth Arra A. Lalog