OSIMPLEO ANNUITY

annuityIt is a term that refers to a

deposit or investment

agreement between a

potential depositor or

investor and a financial

institution that promises to

pay out a steady amount of

annuity1. PALUWAGAN

annuity2.

PENSI

ON

annuity

3. MORTRAGE

annuity

4. INSURANCE

annuity

5.

RENTA

annuity6.

EDUCATIONA

L PLAN

annuityActivity: Create a picture about this quote of annuity.

“Last year I had a little too much fun, this year

is all about saving, building and growing.”

Simple annuity

Simple annuity

Ex 1. Your mom decided tojoin their office cooperativeand agreed to contributeP1,000 per monthbeginning in January 2016which will earn 3%compounded monthly. Howmuch will be the futurevalue of your mom’s

Simple annuity

How about after 5

years?

Simple annuity

Ex 2. The buyer of a lotpays P10,000 everymonth for 10 years. Ifmoney is 8%compounded annually,how much is the cashvalue of the lot?

Simple annuity

Ex 2. The buyer of a lotpays P10,000 everymonth for 10 years. Ifmoney is 8%compounded annually,how much is the cashvalue of the lot?

Simple annuityEx 3. Your dad started to join

your barangay’s cooperativeand agreed to contributeP2000 per month starting inJanuary 2017, which will earn4% compounded monthly.

a. How much will be the futurevalue of your dad’scontribution after March2017?

Simple annuityEx 3. Your dad started to joinyour barangay’scooperative and agreed tocontribute P2000 per monthstarting in January 2017,which will earn 4%compounded monthly.

b. How much will yourdad’s money grow in 4

Simple annuity

Ex 4. Your eldest brotherapplied for a term lifeinsurance. He decided to availof Insurance M’s flexibleinsurance product. Hiscontribution per year isP40,000 that earns 12%compounded monthly for 20years. How much will be paidout to him after 20 years by