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Guide Questions:
1. What type of annuity is being described by the cash flow time diagram in
Exercise 1.a?
2. What type of annuity is being described by the cash flow time diagram
in Exercise 1.b?
3. What are the important data that you need in illustrating annuity?
Exercise 2: Study and illustrate the cash flow time diagram of the annuity
being referred to by the following problem:
a. Peier started to deposit P5,000 monthly in a fund that pays 1%
compounded monthly. How much will be in the fund after 8 months?
b. Ann's parents are planning for a house lease agreement. How much
money will they prepare in a house that has 6% inierest rate compounded
annually in order to pay P30,000 semi-annually for 5 years?
Guide Question:
1. What is your first step in illustrating an annuity problem?
2. What steps did you come up with to illustrate either the fuiure value or
present value in the problem?
3. Which of the following showed simple annuity? general annuity?
Reflection
Instruction. Reflect on the following questions and write your response on
your journal.
1. Why is it necessary to illustrate annuity structure or arrangements?
2. What is the importance of knowing whether the problem or situation is
simple annuity or general annuity?
3. What values have been embedded to you by the process of illustrating
annuity?​