Scribd
Upload
68 views31 pages

2.6 Deferred Annuity

The document provides an overview of a mathematics class taught by Mr. Jose C. Teodoro Jr. It begins with an opening prayer asking for guidance, wisdom, and protection during the class. The next sections discuss attendance, review annuity concepts like ordinary annuity, annuity due, and deferred annuity. Students then participate in a game to practice calculating the period of deferral for different annuity scenarios. Key points about deferred annuities are defined, and examples of calculating the present and future values of deferred annuities are shown and worked through. The class ends with a closing prayer.

Uploaded by

Shyla Patrice Dantes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
68 views31 pages

2.6 Deferred Annuity

The document provides an overview of a mathematics class taught by Mr. Jose C. Teodoro Jr. It begins with an opening prayer asking for guidance, wisdom, and protection during the class. The next sections discuss attendance, review annuity concepts like ordinary annuity, annuity due, and deferred annuity. Students then participate in a game to practice calculating the period of deferral for different annuity scenarios. Key points about deferred annuities are defined, and examples of calculating the present and future values of deferred annuities are shown and worked through. The class ends with a closing prayer.

Uploaded by

Shyla Patrice Dantes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 31

GENERAL MATHEMATICS

MR. JOSE C. TEODORO JR , LPT


Opening Prayer
Loving Heavenly Father,
We come to you this hour asking
For your blessing and help
As we are gathered together.
We pray for guidance in the matters at hand
And ask that You would clearly show us
How to conduct our work
With a spirit of joy and enthusiasm.
Give us the desire to find ways
To excel in our class.
Help us to work harmoniously and encourage
Your Logo each other towards excellence.
We also pray Lord for those
Who have been suffering due to this pandemic
Give us protection against Covid 19
We ask all of these in the name of the Lord,
Jesus Christ. Amen.
ATTENDANCE MATTERS
REVIE
W Read the following scenarios and recognize the type of
annuity each represents

• Mark’s monthly mortgage payment is Ordinary Annuity


₱35,148.05 at the end of each month

• The rent for the apartment is ₱7,000 and Annuity Due


due at the beginning of each month

• A house sells for ₱1,000,000 down and 10 Deferred Annuity


annual payment of 120,000.00 each. If the
first payment is deferred for 4 years
GAME
TIME!

“Use your imagination to solve the period of deferral”

Period of deferral (d) - time during which a borrower


does not have to pay interest or repay the principal on a
loan.
Payments of Php 1,500 at the end
of each year for three years with
the first payment made five years
from now.

d=4
Payments of Php 2,000 at the end
every six months for five years
with the first payment made two
years from now.

d=3
Payment of 100 every 3 months for 8
years that is defered 2 years if money is
worth 6% converted or compounded
quarterly.

d=8
In a sequence of 10 annual
payments of ₱2000.00, the first
one is due at the end of 6 years.

d=5
A house sells for ₱1,000,000 down
and 10 annual payment of
120,000.00 each. If the first
payment is deferred for 4 years

d=4
DEFERRED ANNUITY
Learning Objectives :

1. Illustrate Deferred Annuity


2. recognize the use of deferred
Annuity by using it in real life
scenarios.
3. solve the future value and
present value of deffered
Annuity.
Definition
 Deferred Annuity –
Annuity in which the first
payment is not made at the
beginning nor at the end of the
payment interval but a later date
 Period of deferment (d) –is a
time during which a borrower does
not have to pay interest or repay the
principal on a loan
.
Present value of a Deferred Annuity
Formula:
P

PV = Present Value
P = regular payment
= rate per conversion period
n = number of paying periods
d = number of deferred periods
Future value of a Deferred Annuity
Formula:

FV
FV = Future Value
P = regular payment
= rate per conversion period
n = number of paying periods

Note : The future value of deferred annuity is the same as the


future value of simple ordinary annuity.
Let’s Solve
Given: K=2
P = ₱2,000 i = 0.08/2= 0.04
r = 8% or 0.08
Problem 1: t = 5 years
n = 10

Find the present and future


value of 10 semi-annual
payments of ₱2,000 each if the Formula:
first payment is due at the end
of 3 years and money is worth FV = 𝑷 ¿
8% compounded semi-
annually.
Solution:

₱ 24,012.21
Given: K=2
P = ₱2,000 i = 0.08/2= 0.04
r = 8% or 0.08
Problem 1: t = 5 years
n = 10
d=5
Find the present and future
value of 10 semi-annual
payments of ₱2,000 each if the Formula:
first payment is due at the end
of 3 years and money is worth P 𝐕=𝑷 ¿
8% compounded semi-
annually.
Solution:

P 𝐕 =𝟐𝟎𝟎𝟎 ¿
₱ 𝟏𝟑 ,𝟑𝟑𝟑 .𝟏𝟑
TRY THIS
2000(((1-(1.04)^-15) ÷0.04) – ((1-(1.04)^-5) ÷0.04))

₱ 𝟏𝟑 ,𝟑𝟑𝟑 .𝟏𝟑
Given: K=4 i
P = ₱1,500 = 0.06/4= 0.015
r = 6% or 0.06
Problem 2: t = 8 years
n = 32
d = 12
Find the present value of a
deferred annuity of 1,500 every 3
months for 8 years that is defered Formula:
3 years if money is worth 6%
converted or compounded P 𝐕=𝑷 ¿
quarterly.
Solution:

P 𝐕 =𝟏 , 𝟓𝟎𝟎 ¿
₱31,699.68
TRY THIS
1500(((1-(1.015)^-44) ÷0.015) – ((1-(1.015)^-12) ÷0.015))

₱ 31699.68
Given: K=4 i
P = ₱5,000 = 0.06/4= 0.015
r = 6% or 0.06
Problem 3: t = 10 years
n = 40
d = 20
A deferred annuity is purchased
that will pay ₱5,000 per quarter
for 10 years after being deferred Formula:
for 5 years and with interest rate
of 6% compounded P 𝐕=𝑷 ¿
quarterly.What is the present value
of the annuity.
Solution:

P 𝐕 =𝟓𝟎𝟎𝟎 ¿
₱ 111,058.15
TRY THIS
5000(((1-(1.015)^-60) ÷0.015) – ((1-(1.015)^-20) ÷0.015))

₱ 111,058.15
ANY
QUESTION
?
Shortquiz #6 : Answer The ff. In 30 minutes
1. Find the present value of 2. In a series of monthly
a deferred annuity of ₱500 payments of ₱1,200.00 each,
every 3 months for 10 years the first payment is due at the
that is deferred 4 years if end of 3 years and the last at
the end of 5 years. Find the
money is worth 4%
present value of deferred
compounded quarterly.
annuity if money is worth 8%
compounded monthly.

25
GIVEN (Problem 1) : Solution :
● P = ₱500
● r = 4% OR 0.04
●
●
t = 10
K=4
P 𝐕 =𝟓 𝟎𝟎 ¿
● n = 40
● d = 16
● i = r/K = 0.04/4 = 0.01 P = ₱14,001.06

formula :
P 𝐕=𝑷 ¿
26
GIVEN (Problem 2) : Solution :
● P = ₱1,200
● r = 8% OR 0.08
●
●
●
t=5
K = 12
n = 60
P 𝐕=𝟏 , 𝟐𝟎𝟎¿
● d = 35
● i = r/K = 0.08/12 P = ₱46,902.01

formula :
P 𝐕=𝑷 ¿
27
Generalization:

What are your takeaways


from the lesson
What is the essence of
deferred annuity?
30
Closing Prayer
Glory be to the Father,
and to the Son,
and to the Holy Spirit,
as it was in the beginning,
is now, and ever shall be,
world without end.
Amen.

Your Logo

You might also like