Let's have this simple activity, to know if we have idea about the topic Simple and...

 

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Let's have this simple activity, to know if we have idea about the topic Simple and General annuity. This activity is called "Agree or Disagree." Read each statement under the column STATEMENT. Then, write A if you Agree with the statement; Otherwise, write D if it is Disagree. Write your answer on the "Response-Before-The- Discussion." Response Before The Discussion STATEMENT A simple annuity is defined as an investment vehicle designed to accept, grow and, upon annuitization, payout a stream of income. A general annuity is an annuity where the payment interval is the same as the interest period. A simple annuity is an annuity where the payment interval is not the same as the interest period. In simple annuity, in according to time of payment it is known as Ordinary Annuity in which the payment is made in the beginning of each payment interval. Response After the Discussion In general annuity, according to duration it represents Contingent Annuity in which the payments extend over an indefinite length of time. 1 State whether the following is simple annuity or general annuity. 1. The "payments" are made at the end of the n periods, so that "interest" is accumulated before the payment. It is also known as Ordinary Annuity. 2. It is an annuity whose payments are made at the beginning of each period. Deposits in savings, House rent, and insurance premiums are examples of annuities due. 3. By contrast, payments come at the beginning of each period. Rent, which landlords typically require at the beginning of each month, is a common example. 4. It is bonds generally pay interest at the end of every six months. 5. It is an annuity where the payments do not coincide with the interest periods 1. Give at least three (3) examples for simple annuity. a. b. C. 2. Based on you answer in question number 1, why do you think this three is an example of simple annuity? 3. Give at least three examples that represents General Annuity? a. b. C. 4. Based on your answer in general annuity, why do you think they represents general annuity? Let's have this simple activity, to know if we have idea about the topic Simple and General annuity. This activity is called "Agree or Disagree." Read each statement under the column STATEMENT. Then, write A if you Agree with the statement; Otherwise, write D if it is Disagree. Write your answer on the "Response-Before-The- Discussion." Response Before The Discussion STATEMENT A simple annuity is defined as an investment vehicle designed to accept, grow and, upon annuitization, payout a stream of income. A general annuity is an annuity where the payment interval is the same as the interest period. A simple annuity is an annuity where the payment interval is not the same as the interest period. In simple annuity, in according to time of payment it is known as Ordinary Annuity in which the payment is made in the beginning of each payment interval. Response After the Discussion In general annuity, according to duration it represents Contingent Annuity in which the payments extend over an indefinite length of time. 1 State whether the following is simple annuity or general annuity. 1. The "payments" are made at the end of the n periods, so that "interest" is accumulated before the payment. It is also known as Ordinary Annuity. 2. It is an annuity whose payments are made at the beginning of each period. Deposits in savings, House rent, and insurance premiums are examples of annuities due. 3. By contrast, payments come at the beginning of each period. Rent, which landlords typically require at the beginning of each month, is a common example. 4. It is bonds generally pay interest at the end of every six months. 5. It is an annuity where the payments do not coincide with the interest periods 1. Give at least three (3) examples for simple annuity. a. b. C. 2. Based on you answer in question number 1, why do you think this three is an example of simple annuity? 3. Give at least three examples that represents General Annuity? a. b. C. 4. Based on your answer in general annuity, why do you think they represents general annuity?

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