payments of
5 years that will start 2 years from now.
WHAT'S MORE!
Activity 3: Performance Task on Annuities
Find situations involving annuities in your community.
For example:
Go to an appliance store, and ask how much a certain appliance costs If it is (0)
paid in full, or (b)paid by installment.
If you know someone borrowing from a money lender, you can ask how much you
will be charged if you want to loan P1,000. payable in 1 year. (One common non-
formal lending practice in the Philippines is called five-six.]
For the situation you chose, determine the interest rate for the period and the annual interest rate.
For example, if an appliance that costs P 15,000 can be paid in 8 monthly installments of P 2,000, then
the formula 15,000 = 2,000f--1--|must be satisfied. Experiment with different values of to
determine the interest rate for the period, and the annual interest rate.​