Detailed Lesson Plan in General Mathematics

Prepared by: Badayos, Angilee V.

I. Objectives:
At the end of the lesson, the learner should be able to:
a. Calculate the perriod of deferral of a deferred annuity.
b. Compute the present value of a deferred annuity.

II. Subject matter:

a. Topic
Deferred Annuity
b. Learning Content

Deferred Annuity- an annuity that does not begin until a given time interval
has passed.

Period of Deferral- time between the purchase of an annuity and the start
of the payments for the deferred annuity.

c. Reference
General Mathematics LM, pp. 199-205
d. Materials

Internet, Laptop/Android phone, PowerPoint Presentation, Google Meet,

Quizziz

e. Values integration- Attentiveness and Critical-thinking

f. Teaching Strategy- Guided discussion and Questioning

III. Learning Procedure

Teacher’s Activity Student’s Activity

A. Preliminary
 Good day, students. Allow me to (The students will turn on their mic or
introduce myself: my name is Angilee cameras)
Badayos. It's a pleasure to meet you all. Good morning, Ma’am Angilee. I'm doing
How are you all doing, by the way? well.

That's great to hear. Anyway, if you have I am good, ma’am.

any concerns or need clarification or you
are going to answer, kindly utilize the chat
box or you may raise your hand to speak Okay, ma’am.
by tapping the raise hand button.
Understood?

B. Lesson Proper

a) Review

I am sure the discussion from a while ago

is still vivid in your mind. Is there anyone
who can recall it? What are the two
annuities that were discussed earlier? Simple and General Annuity, ma’am.

Very Good!

What is the difference between a simple Simple Annuity is an annuity in which the
annuity and a general annuity? payment interval is the same as the
compounding interval while General
Annuity is an annuity in which the
payment interval differ from the
compounding interval.

Very good answer. Simple annuity is an

annuity where the payment interval is the
same as the interest period while General
Annuity is an annuity where the payment
interval is not the same as the interest
period.

b) Motivation

Now, class, I have a mixed up set of

letters for you to unscramble in order to
find the words. Kindly type your answer in Yes, ma’am
the chat box. Is it clear?
 (The students will type their answers in
the chat box.)
1. EFDERRDE YAUINNT
2. ROIRPDE OF LARREFED 1. DEFERRED ANNUITY
2. PERRIOD OF DEFERRAL

Verry good, students

c) Discussion

What do you think the lesson that we are

going to discuss based on the activity we Deffered Annuity, ma’am
did earlier?

Very Good

Now, the lesson that I am going to

discuss is about the deferred annuity. But
first, here are the objectives that students
are expected to learn at the end of the
lesson.

At the end of the lesson, the learner

should be able to:

i. Calculate the perriod of deferral

of a deferred annuity.
ii. Compute the present value of a
deferred annuity.

So, is there anyone here who has an idea

what a Deferred Annuity is? (Somebody from the class will answer)

Alright, very good.

Following are the definition of terms,

kindly read the definition of Deferred
Annuity, student C (Student C will read the definition of
Deferred Annuity)
Thank you, Student C

Deferred Annuity is an annuity that does

not begin until a given time interval has
passed. What differentiates it from simple
and general annuities? We know that in
Simple and General Annuity, for example,
when you start purchasing an item, you
will instantly begin paying, but in Deffered
Annuity, you must wait a certain amount
of time before you can begin paying.Is it
clear, class? Yes, ma’am

Okay, let’s proceed

Period of Deferral- time between the

purchase of an annuity and the start of
the payments for the deferred annuity.

In this diagram, the perriod of deferral is k

because the regular payments of R start
at time k+1

The notation R* represent k “artificial

payments,” equal to R, but are not
actually paid during the period of deferral.

Example:

Annual Payments of P2,500 for 24 years

that will start 12 years from now.

𝑦12
 Do you get me class? If you have any
questions, feel free to ask. None, ma’am

Before we proceed, please keep in mind

the following conversion periods in a
year.

Annually= 1
Semi-Annually= 2
Quarterly= 4
Monthly= 12

Now, I have here some examples on

FINDING THE PERRIOD OF DEFERRAL
in the deferred annuity.

1. Quarterly payments of 300 for 9

years that will start 1 year from
now.

From this problem, what is our conversion 4, ma’am.

period?

Why? Because the payment is made quarterly.

Very Good.

Take a look at the diagram. It states that

the payment will be made quarterly within
9 years, and its payment will start 1 year
from now.

Solution: The first payment is at time 4

because there are 4 quarters in a year.
 Therefore, the perroid of deferral is 3
periods or 3 quarters.

2. Monthly payments of P50,000 for 3

years that will start 8 months from
now.

When will the payment start based on this 8 months from now, ma’am.
problem?

Very Good

So, what is the period of deferral? 7 periods or 7 months, ma’am

Very Good. The first payment is at time 8.

The Period of deferral is from time 0-7,
which is equivalent to 7 periods or 7
months.

3. Semi-annual payments of 6,000 for

13 years that will start 4 years from
now.

What is the perriod of deferral in this (The student will answer)

problem?

𝑦1 𝑦2 𝑦3 𝑦4 𝑦5

𝑦0 𝑦13

Solution: The first payment is at time 8.

Therefore, the period of deferral is 7
periods or 7 semi-annual intervals.

For our last example, kindly read the Payments of 10, 000 every 2 years
problem student A. starting at the end of 16 years.
 Thank you, student A.

What is the period of deferral for this (Expected answer from student D)
problem, student D? 7 periods, ma’am

Your answer correct, student D.

Solution: The first payment is at time 8

because there is one payment in every
two-year period. The perriod of deferral is
from time 0-7, which is equivalent to 7
periods or 7 two-year intervals.

Do you have any questions or

clarifications on finding the period of
deferral before we begin computing for None, ma’am
the present value of a deferred annuity?
Okay, let’s proceed.

To find the present value of a deferred

annuity, we are going to use this formula,

FORMULA OF PRESENT VALUE OF A

DEFERRED ANNUITY

𝟏 − (𝟏 + 𝒋)−(𝒌+𝒏) 𝟏 − (𝟏 + 𝒋)−𝒌
𝑷=𝑹 −𝑹
𝒋 𝒋

where,
R is the regular payment
𝑖𝑚
j is the interest rate period 𝑗 = 𝑚
n is the number of payments (number
of actual payments) n=mt
k is the number of conversion periods
of the deferral (artificial payments)
t is the term/time
m is the conversion period

Let’s have the first example

1. On his 40th birthday, Mr. Ramos

decided to buy a pension plan for
 himself. This plan will allow him to
claim P10,000 quarterly for 5 years
starting 3 months after his 60th
birthday. What one-time payment
should he make on his 40th
birthday to pay off his pension
plan, if the interest rate is 8%
compounded quarterly?

So, we are going to find the present value

What are the given in the problem?

R = 10, 000
m=4
𝑖 𝑚 = 𝑖 (4) = 8% = 0.08
t = 20 years (for artificial payment)
t= 5 years (for actual payment)
𝑖 (𝑚) 𝑖 4 0.08
𝑗= = = = 0.02
𝑚 4 4
(students are silent during this time)
Solution: The annuity is deferred for
20 years and it will go on for 5 years.
The first payment is due 3 months, (one
quarter) after her 60th birthday, or at the
end of the 81st conversion period. Thus,
there are 80 artificial payments.

Number of artificial payments : k = mt =

(4) (20) = 80
Number of actual payments : n = mt =
(4) (5) = 20
We can now find the present value or the
one-time payment of Mr. Ramos using
this formula,

𝟏 − (𝟏 + 𝒋)−(𝒌+𝒏) 𝟏 − (𝟏 + 𝒋)−𝒌
𝑷=𝑹 −𝑹
𝒋 𝒋

𝟏 − (𝟏 + 𝟎. 𝟎𝟐)−𝟏𝟎𝟎
𝑷 = 𝟏𝟎𝟎𝟎𝟎
𝟎. 𝟎𝟐
𝟏 − (𝟏 + 𝟎. 𝟎𝟐)−𝟖𝟎
− 𝟏𝟎𝟎𝟎𝟎
𝟎. 𝟎𝟐
 Using your scientific calculator, we get,

𝑷 = 𝟑𝟑, 𝟓𝟑𝟖. 𝟑𝟖

For our last example,

A credit company offers a deferred

payment option for the purchase of any
appliance. Rose plans to buy a smart
television set with monthly payments of
P4,000 for 2 years. The payments will
start at the end of 3 months. How much is
the cash price of the TV set if the interest
rate is 10% compounded monthly?

Given:
R = 4,000
m = 12
𝑖 𝑚 = 𝑖 (12) = 10% = 0.10
t= 2 years (for actual payment)
𝑖 (𝑚) 𝑖 12 0.10
𝑗= = = = 0.00833 (students will be asked what are the given
𝑚 12 12 for this problem)

Solution: The annuity is deferred for

2 months and it will go on for 2 years.
The first payment is due at the end of
3 months, or at the end of the 3rd
conversion period. Thus, there are 2
artificial payments.

Number of artificial payments : k = 2

Number of actual payments : n = mt =
(12) (2) = 24

Now, we have to find the present value

𝟏 − (𝟏 + 𝒋)−(𝒌+𝒏) 𝟏 − (𝟏 + 𝒋)−𝒌
𝑷=𝑹 −𝑹
𝒋 𝒋
 𝟏 − (𝟏 + 𝟎. 𝟎𝟎𝟖𝟑𝟑)−(𝟐𝟔)
𝑷 = 𝟒𝟎𝟎𝟎
𝟎. 𝟎𝟎𝟖𝟑𝟑
𝟏 − (𝟏 + 𝟎. 𝟎𝟎𝟖𝟑𝟑)−𝟐
− 𝟒𝟎𝟎𝟎
𝟎. 𝟎𝟎𝟖𝟑𝟑 (somebody from the class will answer)
Simplify this using your scientific
The present value is equal to 𝟖𝟓, 𝟐𝟔𝟎. 𝟓𝟑
calculator, what is the present value?

Verry Good!
None, ma’am
This concludes our discussion for this
topic. Have you gained any knowledge,
class? If you have any questions or
clarifications, please don’t hesitate to ask. Yes, ma’am

Are you sure?

d) Generaization
(Student A will give her answer)
Can anyone then share their learnings
from our discussion?

What is a deferred annuity? The formula of finding for the Present

value of a deferred annuity is,

What formula shall we use to compute for 𝟏 − (𝟏 + 𝒋)−(𝒌+𝒏) 𝟏 − (𝟏 + 𝒋)−𝒌

𝑷=𝑹 −𝑹
the present value of a deferred annuity? 𝒋 𝒋

Very Good
 e) Application

Based on your response, I believe that

everyone is ready for the quiz. To put
everything you have learned from our
discussion into practice, you will take a
quiz through Quizizz. It is a multiple-
choice type of quiz with five questions,
and it will close later at 2pm. You can
start answering after we end our meeting
today. Yes, ma’am

Do I make myself clear?

The link is...

https://quizizz.com/join?gc=26448465

Read the questions carefully and choose

the correct answer. God bless!

1. It is an annuity that does not begin

until a given time interval has
passed.

a. Deferred Annuity
b. Simple Annuity
c. Variable Annuity
d. General Annuity

2. Time between the purchase of an

annuity and the start of the
payments for the deferred annuity.

a. Artificial
b. Perriod of Deferral
c. Actual payments
d. Regular Payment

3. Which of the following is the

formula of finding the present value
of a deferred annuity?
 𝟏−(𝟏+𝒋)(𝒌+𝒏) 𝟏−(𝟏+𝒋)−𝒌
a. 𝑷 = 𝑹 −𝑹
𝒋 𝒋
𝟏−(𝟏+𝒋)−(𝒌+𝒏) 𝟏−(𝟏+𝒋)𝒌
b. 𝑷 = 𝑹 −𝑹
𝒋 𝒋
𝟏−(𝟏+𝒋)−(𝒌+𝒏) 𝟏−(𝟏+𝒋)−𝒊
c. 𝑷 = 𝑹 −𝑹
𝒋 𝒋
𝟏−(𝟏+𝒋)−(𝒌+𝒏) 𝟏−(𝟏+𝒋)−𝒌
d. 𝑷 = 𝑹 −𝑹
𝒋 𝒋

4. Lance purchased a smart television

set through the credit cooperative
of their company. The cooperative
provides an option for a deferred
payment. Lance decided to pay
after 4 months of purchase. Her
monthly payment is computed at P
4,800.00 payable in 12 months. If
the interest rate is 12% convertible
monthly, what is the period of
deferral?

a. 4
b. 5
c. 2
d. 3

5. What is the present value in

problem number 4?

a. P52,435.52
b. P52,345.52
c. P52,544.52
d. P50,435.52

IV. Evaluation

Create one deferred annuity problem in

which you must solve for the present
value. It should be written neatly and
systematicaly on a short bond paper.
 V. Assignment

Direction: Solve the present

value of a deferred annuity of
the following problems.

1. A cellular phone may be

purchased at P1,500
payable monthly for 18
months The first payment is
due after 3 months. How
much is the cellular phone if
the interest rate is 12%
convertible monthly?
2. Mr. Canlapan deposited his
money from selling his old
vehicle. The fund would
allow him to withdraw
P45,000 semi-annually for 5
years starting at the end of
1 year. How much is the is Okay, ma’am
the amount deposited if the
interest rate is 2%
converted semi-annually?

Deadline of the submission will be on

Monday next week at 12AM. Kindly submit
your work through my gmail account
badayosangilee29@gmail.com Good bye, ma’am

Thank you for participating and good bye,

class.