Simple-Annuity-Week3-Q2.pptx sjbdjx djdi

pang aral ng maaga

1. SIMPLE ANNUITY

2. ANNUITY – a sequence of payments made at equal (fixed) intervals or periods of time.

3. Ang pantay pantay na bayad o kita na ibinabayad o tinatanggap sa pantay na pagitan ng panahon . (regular intervals.

4. Example: Buwan- buwang hulog sa house loan o car loan. Taunang pension na tinatanggap ng retirado . Regular na hulog sa isang insurance o investment plan.

5. According to payment interval and interest period Example: Buwanang hulog kung ang interest ay buwanan din.

6. According to payment interval and interest period Example: Nagbabayad ka buwan-buwan pero ang interest ay kinukwenta kada taon .

7. According to time of payment Example: Pagbabayad ng utang sa bangko kada buwan (ang hulog ay katapusan ng buwan ).

8. According to time of payment Example : Pagbabayad ng renta ng bahay ( karaniwang bayad muna bago tumira )

9. According to duration Example: May simula at may katapusan ang pagbabayad o pagtanggap ng pera .

10. According to duration Nakadepende sa pangyayari . Example: Habang buhay pa ang isang tao , magpapatuloy ang bayad . Kapag hindi na natupad ang kondisyon ( namatay ang isang tao , hihinto na ang annuity.

11. TERM OF ANNUITY (t) – time between the first payment interval and last payment interval. 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. REGULAR OR PERIODIC PAYMENT (R) – the amount of each payment.

12. PRESENT VALUE OF ANNUITY (P) – sum of present values of all the payments to be made during the entire term of the annuity.

13. Annuities may be illustrated using a time diagram. The time diagram for an ordinary annuity (i.e., payment are made at the end of the year is given below.

14. Example 1: Suppose Mrs. Remoto would like to save Php 3,000.00 every month in a fund that gives 9% compounded monthly. How much is the amount or future value of her savings after 6 months?

15. Given: Periodic payment, R = Php 3,000.00 Term, t = 6 months Interest rate per annum = 0.09 Number of conversions per year, m = 12 Interest rate per period, j = 0,09/12 = 0.0075 n = mt = (12)(0.5) = 6 periods Find: amount (future value) at the end of the term, F = ?  

16. Example 2: In order to save for her high school graduation, Marie decided to save Php 200.00 at the end of each month. If the bank pays 0.25% compounded monthly, how much will her money be at the end of 6 years.

17. Example 3: Mr. Ribaya paid Php 200,000.00 as down payment for a car. The remaining amount is to be settled by paying Php 16,200.00 at the end of each month for 5 years. If the interest is 10.5% compounded monthly, what is the cash price of his car?

18. The FUTURE VALUE of an annuity is total accumulation of the payments and interest earned. The PRESENT VALUE of an annuity is the principal that must be invested today to provide the regular payment of an annuity.

19. Example 4: Paolo borrowed Php 100,000.00. He agrees to pay the principal plus interest by paying an equal amount of money each year for 3 years. What should be his annual payment if interest is 8% compounded annually?