ACLC COLLEGE OF MANDAUE

MANDAUE CITY

GENERAL EDUCATION DEPARTMENT

MATHEMATICS IN THE MODERN WORLD
Week 11 – Mathematics Finance and Apportionment and Voting
SIMPLE ANNUITY

OBJECTIVES :
At the end of the discussion, the students will be able to :
1.) Understand the concept of simple annuity.
2.) Identify different kind of annuities
3.) Solve problems involving annuities.

ANNUITY
It is a sequence of equal payment made at equal Periods. Payment may be done
Annually, semi-annually, etc. Some good examples are monthly payments of Rent,
weekly waves and annual premiums on life insurance policy.

Annuities are classiefied according to:

1. Annuity certain – it is one which payment begin and end at fixed times.
2. Continental annuity – it is one whose payment depending on an event that
cannot be directed accurately.

Kinda of annuity certain:

1. Ordinary annuity-payment is done at the end of the term

2. Annuity due-payment is done at the beginning of the term
3. Deleted annuity-payment is not given in the beginning or end of a period in
some later period.

FORMULAS for accumulated amount (F) of annuities

R-periodic payment

Prepared by:
Rodilla L. Laborte