Mathematics Prayer

Dear Lord,
May we through your guidance
Add love to the world,
Subtract evil from our lives
Multiply your good works to your children
And divide your gifts and share them to others.

This we pray in the name of Mary, our mother

And Jesus Christ, our Lord. Amen.
 GENERAL
MATHEMATICS
January 4, 2023
Can you give examples
where people pay by
installments?
ANNUITY– a sequence
of payments made at
equal(fixed) intervals or
periods of time
Annuities may be classified in
different ways
1. According to payment interval and
interest period

2. According to time of payment

3. According to duration
According to payment
interval and interest
period
Simple Annuity
- an annuity where the
payment interval is the same
as the interest period
General Annuity - an
annuity where the payment
interval is not the same as
the interest period
According to time
of payment
Ordinary Annuity (or Annuity
Immediate) – a type of annuity in
which the payments are made at
the end of each payment interval
 Annuity Date – a type of
annuity in which the
payments are made at
beginning of each payment
interval
According to duration
Annuity Certain– an
annuity in which payments
begin and end at definite
times
Contingent Annuity – an annuity
in which the payments extend
over an indefinite (or
indeterminate) length of time
Term of an annuity, t –
time between the first
payment interval and last
payment interval
Regular or Periodic
payment, R
– the amount of each
payment
Amount (Future Value) of an
annuity, F
– sum of future values of all
the payments to be made
during the entire term of the
annuity
Present value of an annuity, P
– sum of present values of all the
payments to be made during the
entire term of the annuity
Annuities may be
illustrated
using a time diagram
Suppose Mr. Dalisay would like to
save P3,000 every month in a fund
that gives 9% compounded
monthly. How much is the amount
or future value of his savings after
6 months?
Mr. Dalisay will have P18,
340.89 after six months.
In order to save for her high school
graduation, Aryann decided to save P200
at the end of each month. If the bank
pays 0.250% compounded monthly, how
much will her money be at the end of 6
years?
Aryann will be able to save
Php 14 507. 02 for her
graduation.
Aling Paring started to deposit
P2,000 quarterly in a fund that
pays 5.5% compounded quarterly.
How much will be in the fund
after 6 years?
(Recall the problem in 1.) Suppose Mrs.
Dalisay would like to know the present
value of her monthly deposit of P3,000
when interest is 9% compounded
monthly. How much is the present value
of her savings at the end of 6 months?
Grace borrowed P150,000 payable in 2
years. To repay the loan, she must pay
an amount every month with an interest
rate of 6% compounded monthly. How
much should he pay every month?
Mr. Ribaya would like to save
P500,000 for his son’s college
education. How much should he
deposit in a savings account every 6
months for 12 years if interest is at
1% compounded semi-annually?
Find the future value F of the following
ordinary annuities.
1. Monthly payments of P3,000 for 4
years with interest rate of 3%
compounded monthly
2. Quarterly payment of P5,000 for 10
years with interest rate of 2%
compounded quarterly
3. Semi-annual payments of P12, 500 with
interest rate of 10.5% compounded semi-
annually for 6 years 4. Annual payments of
P105,000 with interest rate of 12%
compounded annually for 5 years
5. Daily payments of P20 for 30 days with
interest rate of 20% compounded daily for 1
month
The cash value or cash price of a
purchase is equal to the down
payment (if there is any) plus the
present value of the installment
payments.
Mr. Ribaya paid P200,000 as down
payment for a car. The remaining
amount is to be settled by paying
P16,200 at the end of each month for 5
years. If interest is 10.5% compounded
monthly, what is the cash price of his
car?