GENERAL MATHEMATICS

Name: ____________________________________________________ Date: __________________ SCORE:

Strand/Year/Section: _____________________

Activity 6 (2nd Quarter)

DEFFERED ANNUITY

Part I. What is my period?

Find the period of deferral (k) (1 point each)

_______ 1. Monthly payments of Php 1 500 for 10 years that will start 11 months from now.

_______ 2. Quarterly payments of Php 500 for 5 years that will start at the end of two years.

_______ 3. Semi-annual payments of Php 10,500 for 5 years that will start 5 years from now.

_______ 4. Withdrawals of Php 3 000 every 3 months for 5 years that will start at the end of 25
months from now.

_______ 5. Payments of Php 2 000 every 4 months for 8 years that will start 4 years from now.

Part II. Read the following annuity problem. Fill in the blanks in the statements that follow.

Juan converted his loan to light payments which give him an option to pay Php2 000 every month for 3 years. The first
payment is due 6 months from now. How much is the amount of the loan if the interest rate is 9% compounded
monthly?

a. What type of annuity illustrated in the problem? (1 pt.)

b. The total number of payments is _______ (1pt.)

c. The number of conversion periods in the period of deferral is _________. (1 pt.)

d. The interest rate per period is ___________. (1 pt.)

e. The present value of the loan is ______________ (3 points) show your solution

Solution: