General

Mathematics
Activity # 3
2nd Quarter
Review
Question and Answer

 What is an annuity?

 What are the classifications of annuity?

 What is the formula in finding the future

value of an ordinary annuity?
I just to know….
 Do you think you can now solve the
problems involving annuity?

 Do you already memorize the formulas

of interest and annuities?
Learning Targets
 Illustrate simple and general annuities.
 Distinguish between simple and general

annuities.
 Find the future value and present value

of both simple annuities and general

annuities.
Essential Question
 Whatis the use of learning
annuities in your life?
Content

“Annuity”
 Future and Present Value of Simple
and General Annuities
 The value today of a set of cash flows in the future with a
rate of return is called present value of an annuity. It is
essentially the amount of money that one has to invest
today in a lump-sum payment in order to accumulate the
same amount of money produced by contributing
regularly to the annuity over some particular period of
time. This is also called single-payment annuity. Cash
flow is the movement of funds which could either be an
inflow (i.e., credits or receipts) or an outflow (i.e., debits
or disbursements).
Example 1: College Educational Plan
 Find the present value of your college
educational plan earning 4%
compounded quarterly if payments of
Php 5 000 are made quarterly for 10
years.
Solution
Size up activity
Individual Activity (Seatwork or Assignment)
Copy and answer the following problems
1. Find the present value of an ordinary annuity earning 3%
compounded semi annually if payments of Php 10 000 are
made semi annually for 10 years.

2. Suppose your uncle owns a bar and wants to invest his

accumulated income in a long-term investment. He plans
to set aside Php 30 000 of his net income per month for 5
years. He found a long term investment product from
Bank L that offers 10% interest compounded monthly.
Given that he already has funds now, how much up-front
money should he invest? (up-front money means money
received at the beginning of the period)
Gospel Values
Faith

 “Do not be deceived, my beloved brothers.”

-James 1:16