 It is series of equal intervals of time.

Some
examples of annuities are regular monthly
deposit, monthly rentals, sss premium,
installment payment of properties like: car,
house, or home appliances, and so on.
 the period of time between succesive
payments is called payment interval. The
following convenient length like one month,
three months, six months, one year.
 It is an annuity whose interest conversion
period is equal to the payment interval. For
example, the deposit is made at the
beginning of the each quarter, the interest is
also computed and compounded quarterly at
the beginning of each quarter. The
conversion period and the payment is the
same.
Objectives
a. Illustrate
b. Find the future value and present value of
ordinary annuity.
c. Solve problems involving ordinary annuity
 The future value of an annuity formula is
used to calculate what the value at a future
date would be for a series of periodic
payments.
Examples: A man made a deposit of Php2000
at the end of each quarter for 2 years at 5%
compounded quaterly. How much is in his
account at the end of 2 years?
 The present value of an annuity is the sum of
money invested today at a specific rate which
may be withdrawn peroidically in later date.