SIMPLE ANNUITY

ORDINARY ANNUITY ANNUITY DUE

FUTURE
VALUE
PRESENT
VALUE

where
regular or periodic payment;
periodic rate, given by , where is the interest rate and is the number
of compounding periods within a year; and
total number of conversion periods for the whole term,
given by , where is the length of the term in years.
EXAMPLE 1

A man deposits ₱ 12,200 every end of

6 months in an account paying 5.5%
compounded semiannually. What amount
is in the account at the end of 9 years and
6 months?
EXAMPLE 2

What is the cash price of a series of

periodic payments of ₱ 5,000 made at the
beginning of every month for 3.5 years if
money is worth 9% compounded
monthly?
 GENERAL ANNUITY
ORDINARY ANNUITY where
regular or periodic payment;
FUTURE periodic rate, given by
VALUE
PRESENT where is the number of months in a
VALUE payment interval and is the number of
months in a compounding period.

ANNUITY DUE
FUTURE VALUE
PRESENT
VALUE
EXAMPLE 3

The purchaser