GENERAL MATHEMATICS
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Opening Prayer
Loving Heavenly Father,
We come to you this hour asking
For your blessing and help
As we are gathered together.
We pray for guidance in the matters at hand
And ask that You would clearly show us
How to conduct our work
With a spirit of joy and enthusiasm.
Give us the desire to find ways
To excel in our class.
Help us to work harmoniously and encourage
Your Logo each other towards excellence.
We also pray Lord for those
Who have been suffering due to this pandemic
Give us protection against Covid 19
We ask all of these in the name of the Lord,
Jesus Christ. Amen.
ATTENDANCE MATTERS
REVIEW
1. How to compute for the value
of i ?
2. How to compute for the value
of n ?
1. Go to [Link]
2. Enter the code 4438 1219
SIMPLE ANNUITY DUE
Learning Objects :
● define Simple Annuity Due.
● value the application of formula for
Future value and Present value of
simple annuity due through problem
solving
● solve the future value and present
value of simple annuity due.
SIMPLE ANNUITY
ORDINARY ANNUITY ANNUITY DUE DEFERRED ANNUITY
An annuity in which the An annuity in which the The periodic payment is not
periodic payment is periodic payment is made at the beginning nor at
made at the end of each made at the beginning of the end of eachpayment
payment interval each payment interval inteval,but some later date.
Definition
Future value – is the total
accumulation of the
payments and interest
earned
Present value- is the
principal that must be
invested today to provide
the regular payments of
an annuity.
Future value of simple annuity due
Formula:
𝐅𝐕= 𝑷 ¿
where:
FV = future value
P = Periodic payment
= interest rate per time
n = total number of conversion
period.
Present value of simple annuity due
Formula:
PV = 𝑃 ¿ ¿
where:
PV = Present value
P = Periodic payment
= interest rate per time
n = total number of conversion
period.
Let’s Solve
Given: K=1
Problem 1: P = ₱50,000
Hope Borrows money for r = 8% or i = 0.08
the renovation of her 0.08 t = 10 n = 10(1)=10
house and repays by years
making yearly payment of Formula:
.(1+i)
₱50,000 at the beginning
of each year for a period
of 10 years at an interest
Solution:
rate of 8% compounded 50 ,00 0 (1− ( 1.08 )−10 )
P (1.08)
annually. How much did ( 0.08)
Hope borrow?
TRY THIS
PV= ₱362,344.40
Given:
P = ₱ 20,000 K=1 i
Problem 2: r = 10% or 0.10 =0.10/1 = 0.10
t = 5 years n = 5(1)= 5
1. Suppose Mr. And Mrs.
Mariano Deposited ₱20,000 at
the beginning of the year for 5
Formula:
years in an investment that
earns 10% per year
compounded annually, what is Solution:
the amount or future value of
the annuity? F (20,000) (1.10)
TRY THIS
FV= ₱134,312.20
Given:
P = ₱ 12,000 K=2 i
Problem 3: r = 6% or 0.06 =0.06/2 = 0.03
Romano’s parents saved t = 16 years n = 16(2)= 32
for his college education by
investing ₱12,000 at the Formula:
beginning of each year in
an education plan that earns
𝐅𝐕 = 𝑷 ¿
6% per year compounded Solution:
semi-annually. What is the total
amount of investment at the
F (12,000) (1.03)
end of 16 years
TRY THIS
FV= ₱648,934.10
How can we
determine whether
the problem is an
ordinary annuity or
annuity due?
What are your
takeaways from
today’s lesson?
Uy,Nagkatinginan
yung tatlong
mageexam ulit!
Shortquiz #2
1. Go to [Link]
2. Enter the code 1204 2483
Feedbacking
It is a series of equal
payments at regular
intervals.
Annuity
Ordinary annuity is paid or
received at the _______ of the
time periods.
end
Annuity Due is an annuity that is
paid or received at
the ____________ of the time period
beginning
Another term used for Future Value of an
Annuity which is the sum of the compound
amount of all payments, compounded to the
end of term
Maturity Value
Kristoff is investing for an educational
plan for his son. He deposits every end
of the month a regular payment of
P5,000 with with an interest rate of 6%
compounded monthly for 7 years. What
is the value of P?
P5,000
If an simple annuity account has a
regular payment of P6,000 with a
quarterly compounding interest of 3%,
how many times will you regularly pay it
each year for 7 years?
4
It is the type of annuity in which
payments are made at the
beginning of each payment
interval.
Annuity Due
Find the present value of an annuity
with periodic payments of $2,000 at the
beginning of every six months, for a
period of 10 years at an interest rate of
6%, compounded semiannually.
$30,647.60
An annuity makes 25 annual payments
of ₱1,000 with the first payment
coming today. What is the future value
of this as of 25 years from now if the
interest rate is 9%?
$92,323.98
Closing Prayer
Glory be to the Father,
and to the Son,
and to the Holy Spirit,
as it was in the beginning,
is now, and ever shall be,
world without end.
Your Logo
Amen.
