Claver, Jenemae A.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities
can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant
lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Capitalized Cost = FC + = FC +
Capitalized Cost =
y
y
y
y
y
y
y
Capitalized Cost = FC + = FC +
Baclayon, Cristine M.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities
can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant
lives.
Annuities occur in following instances:
y 3ayment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y 2rdinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y 'eferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity 'ue
-is one where the payments are made at the start of each period, beginning from the first period.
y 3erpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost Cost of 3erpetual Maintenance
To derive the formula;
Capitalized Cost =
/et:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S = S
Bade, Niezl B.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities
can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the
annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first
period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost = FC + = FC +
Capitalized Cost =
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Catulong, Maria Theresa M.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities
can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant
lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost (an application of perpetuity)
Capitalized Cost = FC + = FC +
Capitalized Cost =
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Acman, Frances Josephine M.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can be structured to pay out funds
for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue indefinitely.
Capitalized Cost (an application of perpetuity)
Capitalized Cost = FC + = FC +
Capitalized Cost =
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the present worth of all costs for
replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Cejas, Neljene C.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively,
annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long
the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first
period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost = FC + = FC +
Capitalized Cost =
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and
the present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Jaducana, Karl Vincent B.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can be structured to pay out funds for a fixed
amount of time, such as 20 years, regardless of how long the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue indefinitely.
Capitalized Cost (an application of perpetuity)
Capitalized Cost = FC + = FC +
Capitalized Cost =
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the present worth of all costs for replacement,
operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Datoy, Ireneo M.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively,
annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how
long the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
Capitalized Cost = FC + = FC +
Capitalized Cost =
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the
first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments
continue indefinitely.
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost
and the present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
Capitalized Cost = FC + = FC +
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Valmoria, Michael R.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities
can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant
lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue
indefinitely.
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
Capitalized Cost =
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Ortizano, Gary Joy C.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively,
annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how
long the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the
first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments
continue indefinitely.
Capitalized Cost = FC + = FC +
Capitalized Cost =
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost
and the present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Macadato, Marc Jacob L.
BS EcE-5
Annuity
-consists of a series of equal payments made at equal intervals of time
- are primarily used as a means of securing a steady cash flow for an individual during their retirement
years
- can be structured according to a wide array of details and factors, such as the duration of time that
payments from the annuity can be guaranteed to continue. Annuities can be created so that, upon
annuitization, payments will continue so long as either the annuitant or their spouse is alive. Alternatively, annuities can
be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.
Annuities occur in following instances:
y Payment of a debt by a series of equal payments at equal intervals of time.
y Accumulation of a certain amount by setting equal amounts periodically.
y Substitution of a series of equal amounts periodically in lieu of a lump sum at retirement of an individual.
Types of Annuities:
y Ordinary Annuity
-is one where the equal payments are made at the end of each payment period starting from the first period.
y Deferred Annuity
-is one where the payment of the first amount is deferred a certain number of periods after the first.
y Annuity Due
-is one where the payments are made at the start of each period, beginning from the first period.
Capitalized Cost = FC + = FC +
Capitalized Cost =
y Perpetuity
-is an annuity where the payment periods extend forever or in which the periodic payments continue indefinitely.
Capitalized Cost (an application of perpetuity)
-The capitalized cost of any structure or property (equipment, machinery, building, etc.) is the sum of its cost and the
present worth of all costs for replacement, operation, and maintenance for a long time or forever.
Capitalized Cost= First Cost + Cost of Perpetual Maintenance
To derive the formula;
Let:
FC= first cost of the structure
S= the amount needed to replace or maintain the property every k periods
= the amount of principal invested at i% per period
Then;
= interest on the amount X for each period
S=
And
If the property or structure costs B to obtain and it will have to be replaced every k periods for the same amount,
Then;
Capitalized Cost = S + = S +
Capitalized Cost = FC + = FC +
Capitalized Cost =
