Professional Documents
Culture Documents
“ORDINARY ANNUITY”
Periodic Sum or amount of Interest earned
payment (R) Annuity
P __________ S I
Term of Total number
Annuity of payments
(t) (n)
1st year 1 P P
2 P P
3 P P
4 P P
5 P P
6 P P
7 P P
8 P P
9 P P
10 P P
11 P P
12 P P
2nd year 13 P P
14 P P
15 P P
16 P P
17 P P
18 P P
19 P P
20 P P
21 P P
22 P P
23 P P
24 P P
3rd year 25 P P
26 P P
27 P P
28 P P
29 P P
30 P P
31 P P
32 P P
33 P P
34 P P
35 P P
36 P P
Guide questions:
1. If you were to accumulate your money for a period of 36 months, what do you predict
your ending balance and interest will be?
Cash loan P P P
Cellphone loan P P P
Bank loan P P P
2. What conclusion can you make about the relationship the interest charged and the
sum/amount of annuity?
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Si
1i 1
R= n