GENERAL ANNUITY
GENERAL ANNUITY
an annuity where the payment
interval is NOT the same as the
interest compounding period
GENERAL ORDINARY
ANNUITY
a general annuity in which the
periodic payment is made at the
end of the payment interval
FUTURE VALUE OF GENERAL
ORDINARY ANNUITY
𝐹 =𝑅 ¿
R= periodic payment nt= number of payments
r= rate t= term/time
n= frequency of conversion
k=
1. Julia barrowed an amount of money from Marleah.
She agrees to pay the principal plus interest of 8%
compounded quarterly by paying Php 38 973. 76
each year for 3 years. Find the future amount of this
annuity.
FINDING THE PERIODIC PAYMENT IF
FUTURE VALUE IS THE GIVEN
𝑅=𝐹 ¿
R= periodic payment nt= number of payments
r= rate t= term/time
n= frequency of conversion
k=
PRESENT VALUE OF GENERAL
ORDINARY ANNUITY
𝑃= 𝑅 ¿
R= periodic payment nt= number of payments
r= rate t= term/time
n= frequency of conversion
k=
1. Julia barrowed an amount of money from Marleah.
She agrees to pay the principal plus interest of 8%
compounded quarterly by paying Php 38 973. 76
each year for 3 years. Find the present amount of this
annuity.
FINDING THE PERIODIC PAYMENT IF
PRESENT VALUE IS THE GIVEN
𝑅=𝑃 ¿
R= periodic payment nt= number of payments
r= rate t= term/time
n= frequency of conversion
k=
ACTIVITY 1
1.Teacher Galopo saves Php 5, 000 every 6
months in a bank that pays 0.25%
compounded monthly.
a.How much will be his savings after 10 years?
b.What is the present value of problem?
ACTIVITY 1
2. Mrs. Delizo wuld like to buy a television set
payable monthly for 6 months starting at the
end of the month. How much is the cost of the
TV set if her monthly payment is Php 3,000 and
interest is 9% compounded semi-annually? And
what is the present value of problem?
