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Quarter 2 - Module 7 General Mathematics

Deferred annuities are a series of payments that start at a later date rather than immediately. Some examples include purchasing an appliance with deferred payments, taking out a credit card that allows deferred payments for 3 months, or buying a house with payments starting after 3 years of occupancy. A deferred annuity's payments or deposits begin more than one period from the present, with the first payment interval not coinciding with the first interest period and being put off to a later date. The period of deferral is the time between purchasing an annuity and the start of payments for the deferred annuity.

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187 views6 pages

Quarter 2 - Module 7 General Mathematics

Deferred annuities are a series of payments that start at a later date rather than immediately. Some examples include purchasing an appliance with deferred payments, taking out a credit card that allows deferred payments for 3 months, or buying a house with payments starting after 3 years of occupancy. A deferred annuity's payments or deposits begin more than one period from the present, with the first payment interval not coinciding with the first interest period and being put off to a later date. The period of deferral is the time between purchasing an annuity and the start of payments for the deferred annuity.

Uploaded by

Kristine Alcordo
Copyright
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We take content rights seriously. If you suspect this is your content, claim it here.
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11 SENIORHIGH

DAVAO INSTITUTE OF TECHNICAL EDUCATION, INC

GENERAL MATHEMATICS
QUARTER 2
Module 7 - Deferred Annuity

Name:

Grade and Section:


Module 7 - Deferred Annuity
Deferred annuities are a series of payments, as they have already learned in the past lessons on annuities but will start
on a later date.

Some examples of this type of annuity in real life.

1. If you will buy appliance, some big stores or appliance center offers deferred payment.

2. A credit card company is offering its clients to purchase today but to start paying monthly with their choice of the
term after 3 months.
3. A real estate agent is urging a house and lot buyer to purchase now and start paying after 3 years when the housing
unit is ready for occupancy.
4. A worker who has gained extra income now and wants to save his money so that he can withdraw his money
monthly starting on the day of his retirement from work.

Deferred Annuity is an annuity that does not begin until a given time interval has passed. It is a kind of annuity whose
payments (or deposits) starts in more than one period from the present. Likewise, the first payment interval does not
coincide with the first interest period and it is put off to some later date.

It may also be considered as an insurance contract designed for long-term savings. Unlike an immediate annuity, which
starts annual or monthly payments almost immediately, investors can delay payments from a deferred annuity
indefinitely. During that time, any earnings in the account are tax-deferred.

Period of Deferral is a time between the purchase of an annuity and the start of the payments for the deferred annuity.

GENERAL MATHEMATICS | PAGE 1


GENERAL MATHEMATICS | PAGE 2
GENERAL MATHEMATICS | PAGE 3
____________________________________________________

DAVAO INSTITUTE OF TECHNICAL EDUCATION, INC


General Mathematics
LEARNING ACTIVITY SHEET

Name: ___________________________________________________ Module #: _____________

Grade and Section: _________________________________________ Score: _______________


Quarter 2
Activity 1
Find the period of deferral in each of the following deferral annuity problems (one way to find the period of deferral is to
count the number of artificial payments (k). Make a diagram.

GENERAL MATHEMATICS | PAGE 4


____________________________________________________

DAVAO INSTITUTE OF TECHNICAL EDUCATION, INC


General Mathematics
LEARNING ACTIVITY SHEET

Name: ___________________________________________________ Module #: _____________

Grade and Section: _________________________________________ Score: _______________


Activity 2
Solve the following problems completely.
Read and understand the situation below, then answer the question or perform the tasks
that follow.

1. A group of college students decided to invest the money they earned from the fund-raising
project. After 6 months from today, they want to withdraw from this fund ₱ 10,000.00 quarterly for 1
year to fund community service. How much is the present total deposit if the interest rate is 4%
converted quarterly?

2. A company offers a deferred payment option for the purchase of any furniture. Gladys plans to
buy a dining table set with a monthly payment of ₱ 4,000.00 for 2 years. The payment will start at
the end of 3 months. How much is the cash price of the dining set if the company will give 10%
compounded monthly?

GENERAL MATHEMATICS | PAGE 5

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