Professional Documents
Culture Documents
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.
Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.
Materials:
A. Reference: Next Century Mathematics, General Mathematics
B. http://www.mathsisfun.com/money/interest.html
C. https://www.youtube.com/watch?v=nWRhC71SgGk
Procedures:
A. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of ($1,000 10%) x 2 Years = $200
That is how simple interest works ... pay the same amount of
interest every year.
Example: Alex borrows $1,000 for 5 Years, at 10% simple
interest:
Interest = $1,000 10% x 5 Years = $500
Plus the Principal of $1,000 means Alex needs to pay
$1,500 after 5 Years
There is a formula for
simple interest Example: Jan borrowed
I = Prt $3,000 for 4 Years at
where 5% interest rate, how
I = interest much interest is that?
P = amount borrowed I = Prt
(called "Principal") I = $3,000 5% 4
r = interest rate years
t = time I = 3000 0.05 4
Like this: I = $6
Compound Interest
But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you $1,100 for the second year!"
And Alex pays $110 interest in the second year, not just
$100.
3. Activities:
1. Jerry borrowed $4,000 for 5 years at 6% simple interest
rate. How much interest is that?
2. Julie borrowed $3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
3. Sam borrowed $4,500 for 2 years and had to pay $630
simple interest at the end of that time. What rate of
interest did he pay?
4. Application:
1. Sanjay borrowed $7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid $840 in interest
altogether.
How many years was that?
2. Alice borrowed $4,000 for 3 years at 10% compound
interest rate. How much interest is that?
C. Evaluation:
1. Simon borrowed $1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
2. Sam borrowed $4,500 for 2 years and had to pay $630 simple
interest at the end of that time. What rate of interest did he
pay?
D. Assignment:
1. Alex borrowed $2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed $2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.
Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.
Materials:
D. Reference: Next Century Mathematics, General Mathematics
E. http://www.mathsisfun.com/money/interest.html
F. https://www.youtube.com/watch?v=nWRhC71SgGk
Procedures:
D. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
E. Development of the Lesson
5. Motivation: Watch a video of simple interest vs compound
interest.
https://www.youtube.com/watch?v=nWRhC71SgGk
Answer the guide questions.
6. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!
Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of ($1,000 10%) x 2 Years = $200
That is how simple interest works ... pay the same amount of
interest every year.
But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you $1,100 for the second year!"
And Alex pays $110 interest in the second year, not just
$100.
7. Activities:
4. Jerry borrowed $4,000 for 5 years at 6% simple interest
rate. How much interest is that?
5. Julie borrowed $3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
6. Sam borrowed $4,500 for 2 years and had to pay $630
simple interest at the end of that time. What rate of
interest did he pay?
8. Application:
3. Sanjay borrowed $7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid $840 in interest
altogether.
How many years was that?
4. Alice borrowed $4,000 for 3 years at 10% compound
interest rate. How much interest is that?
F. Evaluation:
3. Simon borrowed $1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
4. Sam borrowed $4,500 for 2 years and had to pay $630 simple
interest at the end of that time. What rate of interest did he
pay?
D. Assignment:
1. Alex borrowed $2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed $2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.
Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.
Materials:
G. Reference: Next Century Mathematics, General Mathematics
H. http://www.mathsisfun.com/money/interest.html
I. https://www.youtube.com/watch?v=nWRhC71SgGk
Procedures:
G. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
10. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!
Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of ($1,000 10%) x 2 Years = $200
That is how simple interest works ... pay the same amount of
interest every year.
But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning you
$1,100 for the second year!"
And Alex pays $110 interest in the second year, not just $100.
With compounding we work out the interest for the first period,
add it the total, and then calculate the interest for the next
period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed $100
interest, the Bank thinks of that as another loan and charges
interest on it, too.
11. Activities:
7. Jerry borrowed $4,000 for 5 years at 6% simple interest rate.
How much interest is that?
8. Julie borrowed $3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
9. Sam borrowed $4,500 for 2 years and had to pay $630
simple interest at the end of that time. What rate of interest
did he pay?
12. Application:
5. Sanjay borrowed $7,000 at a simple interest rate of 3% per
year.
After a certain number of years he had paid $840 in interest
altogether.
How many years was that?
6. Alice borrowed $4,000 for 3 years at 10% compound interest
rate. How much interest is that?
I. Evaluation:
5. Simon borrowed $1,000 for 3 years at 5% compound interest rate. How
much did he owe after 3 years?
6. Sam borrowed $4,500 for 2 years and had to pay $630 simple
interest at the end of that time. What rate of interest did he pay?
D. Assignment:
1. Alex borrowed $2,000 for 2 years at 5% compound interest
rate. How much interest is that?
2. Dan borrowed $2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.
Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.
Materials:
J. Reference: Next Century Mathematics, General Mathematics
K. http://www.mathsisfun.com/money/interest.html
L. https://www.youtube.com/watch?v=nWRhC71SgGk
Procedures:
J. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
14. Presentation:
How Much does it Cost to Borrow Money?
Different places charge different amounts at different times!
Of course, Alex will have to pay back the original $1,000 after
one year, so this is what happens:
Alex Borrows $1,000, but has to pay back $1,100
This is the idea of Interest ... paying for the use of the money.
Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of ($1,000 10%) x 2 Years = $200
That is how simple interest works ... pay the same amount of
interest every year.
But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning
you $1,100 for the second year!"
And Alex pays $110 interest in the second year, not just
$100.
15. Activities:
10. Jerry borrowed $4,000 for 5 years at 6% simple interest
rate. How much interest is that?
11. Julie borrowed $3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
12. Sam borrowed $4,500 for 2 years and had to pay $630
simple interest at the end of that time. What rate of
interest did he pay?
16. Application:
7. Sanjay borrowed $7,000 at a simple interest rate of 3%
per year.
After a certain number of years he had paid $840 in interest
altogether.
How many years was that?
8. Alice borrowed $4,000 for 3 years at 10% compound
interest rate. How much interest is that?
L. Evaluation:
7. Simon borrowed $1,000 for 3 years at 5% compound interest rate.
How much did he owe after 3 years?
8. Sam borrowed $4,500 for 2 years and had to pay $630 simple
interest at the end of that time. What rate of interest did he
pay?
D. Assignment:
1. Alex borrowed $2,000 for 2 years at 5% compound
interest rate. How much interest is that?
2. Dan borrowed $2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIa-1. Illustrate simple and compound interest.
M11GM-IIa-2. Distinguishes between simple and compound interest.
M11GM-IIa-b-1. Solve problems involving simple and compound
interest.
Objective:
Define simple and compound interest.
Identify the terms used in solving simple and compound interest.
Solve problems involving simple and compound interest.
Materials:
M. Reference: Next Century Mathematics, General Mathematics
N. http://www.mathsisfun.com/money/interest.html
O. https://www.youtube.com/watch?v=nWRhC71SgGk
Procedures:
M. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review
Simple Interest
If the bank charges "Simple Interest" then Alex just pays
another 10% for the extra year.
Alex pays Interest of ($1,000 10%) x 2 Years = $200
That is how simple interest works ... pay the same amount of
interest every year.
Example: Alex borrows $1,000 for 5 Years, at 10% simple
interest:
Interest = $1,000 10% x 5 Years = $500
Plus the Principal of $1,000 means Alex needs to pay
$1,500 after 5 Years
There is a formula for
simple interest
I = Prt
where
I = interest
P = amount borrowed
(called "Principal")
r = interest rate
t = time
Like this:
But the bank says "If you paid me everything back after one
year, and then I loaned it to you again ... I would be loaning you
$1,100 for the second year!"
And Alex pays $110 interest in the second year, not just $100.
With compounding we work out the interest for the first period,
add it the total, and then calculate the interest for the next
period, and so on ..., like this:
It is like paying interest on interest: after a year Alex owed $100
interest, the Bank thinks of that as another loan and charges
interest on it, too.
19. Activities:
13. Jerry borrowed $4,000 for 5 years at 6% simple interest rate.
How much interest is that?
14. Julie borrowed $3,500 for 3 years at 7% simple interest
rate.
How much interest is that?
15. Sam borrowed $4,500 for 2 years and had to pay $630
simple interest at the end of that time. What rate of interest
did he pay?
20. Application:
9. Sanjay borrowed $7,000 at a simple interest rate of 3% per
year.
After a certain number of years he had paid $840 in interest
altogether.
How many years was that?
10. Alice borrowed $4,000 for 3 years at 10% compound
interest rate. How much interest is that?
O. Evaluation:
9. Simon borrowed $1,000 for 3 years at 5% compound interest rate. How
much did he owe after 3 years?
10. Sam borrowed $4,500 for 2 years and had to pay $630 simple
interest at the end of that time. What rate of interest did he pay?
D. Assignment:
1. Alex borrowed $2,000 for 2 years at 5% compound interest
rate. How much interest is that?
2. Dan borrowed $2,000 for 6 months at 12% annual simple
interest rate. How much interest is that?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.
Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.
Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
P. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest
2. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).
Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of $1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) $1000 $1000 $1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is $3310.13 Example 2: A four-year lease
agreement requires payments of $10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is $36,647.36
Practice Questions:
1.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?
3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.
More Examples:
c. Evaluation
Group yourselves by three (3). Solve these problems.
d. Assignment
2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate $1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.
Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.
Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
R. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest
5. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).
Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of $1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) $1000 $1000 $1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is $3310.13 Example 2: A four-year lease
agreement requires payments of $10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is $36,647.36
Practice Questions:
3.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?
More Examples:
c. Evaluation
Group yourselves by three (3). Solve these problems.
d. Assignment
2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate $1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.
Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.
Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
T. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest
8. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).
Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of $1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) $1000 $1000 $1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is $3310.13 Example 2: A four-year lease
agreement requires payments of $10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is $36,647.36
Practice Questions:
5.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?
3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.
More Examples:
c. Evaluation
Group yourselves by three (3). Solve these problems.
d. Assignment
2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate $1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.
Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.
Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
V. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest
Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of $1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) $1000 $1000 $1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is $3310.13 Example 2: A four-year lease
agreement requires payments of $10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is $36,647.36
Practice Questions:
7.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?
3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.
More Examples:
c. Evaluation
Group yourselves by three (3). Solve these problems.
d. Assignment
2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate $1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Learning Competency:
M11GM-IIc-1. Illustrate simple and general annuities.
M11GM-IIc-2. Distinguishes between simple and general annuities.
M11GM-IIc-d-2. Find the future value and present value of both simple
and general annuities.
Objective:
Define simple and general annuities.
Identify the terms used in solving simple and general annuities.
Solve problems involving future value and present value of both simple
and general annuities.
Materials:
Reference: Next Century Mathematics, General Mathematics
http://www.investopedia.com/articles/03/101503.asp
Procedures:
X. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: simple an compound interest
14. Presentation:
An annuity is a contract between you (the annuitant) and an
insurance company (the insurer) for receiving and disbursing
money for the annuitant or the beneficiary of the annuitant. An
annuity has two phasesthe accumulation phase and the
liquidation phase.
An annuity is purchased by making either a single lump-sum
payment or a series of periodic
payments. Under the terms of the contract, the insurer agrees
to make a lump-sum payment or periodic payments to you
beginning at some future date. This investment option is a long-
term investment option that is commonly used for retirement
planning or as a college fund for small children.
Penalties are normally applied if funds are withdrawn before a
time specified in the agreement.
There are many options to consider when purchasing an annuity.
You can choose how the money is invested (stocks, bonds, money
market instruments, or a combination of these) and the level of risk
of the investment. High-risk options have the potential to earn a
high rate of return but the investment may be at risk. Low-risk
options normally earn a lower rate of interest but the risk is also
lower. A guaranteed rate of interest has no risk at all on the
principal and guarantees a specific interest rate.
Simple Annuities Due are annuities where payments
are made at the beginning of each period and the compounding
period
is EQUAL to the payment period (P/Y = C/Y) General Annuities
Due are annuities where payments are made at the beginning of
each period but the compounding period is NOT equal to the
payment period (P/Y C/Y).
Example 1: 1.) Find the FV (Future Value) at the end of the last
payment period. Payments of $1000 each are made at the
beginning of each year for 3 years with interest at 5% compounded
annually. 1 2 3 (Focal Date) $1000 $1000 $1000 |__________|
__________| BGN, P/Y = 1, C/Y = 1 (Therefore this is a simple annuity
due) PMT= 1000 (+/-), N= 3, I/Y= 5, CPT = FV (3,310.13) Annuities
Due (Simple and General) Therefore, the future value at the end of
the last payment period is $3310.13 Example 2: A four-year lease
agreement requires payments of $10,000 at the beginning of every
year. If the interest rate is 6% compounded monthly, what is the
cash value of the lease? (Focal Date) Now 2 3 4 10,000 10,000
10,000 10,000 |_________|_________|________| BGN, P/Y = 1, C/Y = 12
(PY CY, therefore this is an general annuity due) PMT=
10,000(+/-), N=4, I/Y=6, CPT=PV (36,647.36) Therefore, the cash
value of the lease is $36,647.36
Practice Questions:
9.) What deposit made at the beginning of each month will
accumulate to 120,000 at 8% compounded semi-annually at
the end of 10 years?
3.) James deposited 150 at the beginning of each month for two
years into his savings account. For the next four years he did not
make any more deposits, leaving the money in the account. The
bank charges 4% interest compounded monthly.
More Examples:
c. Evaluation
Group yourselves by three (3). Solve these problems.
d. Assignment
2. Jessica decides that 40 years is just too long to work, and she
thinks that she can do much better than 6%. She decides that she
wants to accumulate $1,000,000 by age 55 using a variable
annuity earning 12%. How much will she have to invest annually to
achieve this goal?
Do you think that 12% is a reasonable interest rate to use?
Why or why not?
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Topic: Proposition
Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition
Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
https://www.youtube.com/watch?v=OLGVhszBlq4
Procedures:
Z. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic
Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.
http://www.math.fsu.edu/~pkirby/mad2104/SlideShow/s2_1.pdf
Actitivty:
4. Application:
Give three examples of simple and compound propositions.
c. Evaluation:
Write five examples of simple and compound propositions.
d. Assignment:
Write an essay about your unforgettable experience as a grade
11 student using simple and compound proposition.
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Topic: Proposition
Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition
Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
https://www.youtube.com/watch?v=OLGVhszBlq4
Procedures:
AA. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic
Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.
http://www.math.fsu.edu/~pkirby/mad2104/SlideShow/s2_1.pdf
Actitivty:
4. Application:
Give three examples of simple and compound propositions.
c. Evaluation:
Write five examples of simple and compound propositions.
d. Assignment:
Write an essay about your unforgettable experience as a grade
11 student using simple and compound proposition.
Department of Education
Region III
DIVISION of PAMPANGA
BETIS HIGH SCHOOL
Guagua, Pampanga
Topic: Proposition
Learning Competency:
M11GM-IIg-1. Illustrate a proposition
M11GM-IIg-2. Symbolizes a proposition
M11GM-IIg-3. Distinguishes a simple and compound proposition
Objective:
Define proposition.
Identify the symbols use in proposition
Distinguishes a simple and compound proposition
Materials:
Reference: Next Century Mathematics, General Mathematics
https://www.youtube.com/watch?v=OLGVhszBlq4
Procedures:
BB. Preparatory Activities:
Daily Routine
a. Prayer
b. Checking of attendance
c. Review: Logic
Presentation:
Definition 1.1.1. A proposition is a declarative sentence that is
either true (denoted either T or 1) or false (denoted either F or 0).
Notation: Variables are used to represent propositions. The most
common variables used are p, q, and r. Discussion Logic has been
studied since the classical Greek period ( 600-300BC). The Greeks,
most notably Thales, were the first to formally analyze the
reasoning process. Aristotle (384-322BC), the father of logic, and
many other Greeks searched for universal truths that were
irrefutable. A second great period for logic came with the use of
symbols to simplify complicated logical arguments.
http://www.math.fsu.edu/~pkirby/mad2104/SlideShow/s2_1.pdf
Actitivty:
4. Application:
Give three examples of simple and compound propositions.
c. Evaluation:
Write five examples of simple and compound propositions.
d. Assignment:
Write an essay about your unforgettable experience as a grade
11 student using simple and compound proposition.
Oct 20 and 21 will be the finals of Senior High School. (see the
attach test paper for General Math)