The document explains annuities, defined as sequences of payments made at fixed intervals, with examples including rental payments and pensions. It describes different types of annuities, such as annuity due, and includes a short quiz to assess understanding of the key concepts. Various scenarios are provided to illustrate the calculations and characteristics of annuities.

1. SIMPLE AND GENERAL
ANNUITIES

2. What is annuity?
Annuity - a sequence of payments made
at equal (fixed intervals or periods)
time.
Examples:
Rental payment
Monthly pensions
Monthly payment for car loan

3. Annuity due – a type of
annuity in which the
payments are made at
each period’s beginning
rather than the end.

4. Other Terms

6. Example

7. Try This!

8. Example

9. Try This!

10. Short Quiz!
1. What is referred to as a fixed sum of money paid to
someone at regular intervals, subject to a fixed compound
interest rate?
a. compound interest c. annuity
b. simple interest d. annuity certain
A. Choose the letter of your answer.

11. Short Quiz!
2. What type of annuity is illustrated when the interest
conversion or compounding period is equal or the same as
the payment interval?
a. annuity certain c. simple annuity
b. annuity uncertain d. general annuity
A. Choose the letter of your answer.

12. Short Quiz!
3. What type of annuity is illustrated when the interest
conversion or compounding period is unequal or not the
same as the payment interval?
a. annuity certain c. simple annuity
b. annuity uncertain d. general annuity
A. Choose the letter of your answer.

13. Short Quiz!
4. Which of the following is NOT an example of annuities?
a. pension c. car loan
b. educational plan d. deposit
A. Choose the letter of your answer.

14. Short Quiz!
5. Which is an example of annuities?
a. interest c. bills
b. rent d. savings
A. Choose the letter of your answer.

15. 1. ₱ 20,000 deposited every year for 4 years at 7% per year
compounded annually.
B. Create a time diagram for the following and compute for
the future value of an annuity:
Short Quiz!
2. Semi-annual payments of ₱ 1,000 for 2 years with interest
rate of 10% compounded annually.

16. THANK YOU!
Guessing Game