 ANNUITIES

Annuity – a sequence of payments made at equal (fixed) intervals or periods of time.

Payment Interval – the time between successive payments.
Annuities
According to Simple Annuity General Annuity
payment interval An annuity where the payment interval is the An annuity where the payment interval is not
& interest period same as the interest period. the same as the interest period
According to time Ordinary Annuity Annuity Due
of Payment A type of annuity in which the payments are A type of annuity where the payments are
made at the end of each payment interval. made at beginning of each payment interval
According to Annuity Certain Contingent Annuity
duration An annuity where payments begin and end at An annuity in which the payments extend
definite times over an indefinite length of time.
 BASIC CONCEPTS OF STOCKS AND BONDS
Stocks – share in the ownership of a company Dividend per share – ratio of dividends to the number of shares
Dividend – share in the company’s profit.
Stocks Bonds
A form of equity financing or raising money by allowing A form of debt financing or raising money by borrowing
investors to be part owners of the company. from investors
Stock prices vary every day. These prices are reported in Investors are guaranteed interest payments and a return
various media. of their money at the maturity date.
Involves uncertainty. Investors can earn if the stock prices Uncertainty comes from the bond issuer’s inability to
increase, but they can lose money if the stock prices pay the bondholders. Bonds issued by the gov’t pose less
decrease or worse, if the company goes bankrupt. risk.
Higher risk but possibility of higher returns Lower risk but lower yield.
 BASIC CONCEPTS OF LOANS
Collateral – assets used to secure the loan. It may be real-estate or other investments.
Term of the loan – time to pay the entire loan
2 Types of Loans:
1. Business Loan – money lent specifically for business purpose.
2. Consumer Loan – money lent to individual is for personal or family purpose.
Amortization method – method of paying loan (principal and interest) on installment basis, usually of equal amounts, at
regular intervals.
Mortgage – a loan, secured by collateral, that the borrower is obliged to pay at specific terms.
 LOGIC
A proposition is a declarative sentence that is either true or false, but not both. If it is true, then the truth value is T, if it
false, then the truth value is F.
Examples: Determine whether the following are proposition or not. If they are, determine their truth value.
Proposition? Truth Value
1) P: South Korea is a beautiful country.
2) q: Find a number which divides your age
3) r: Kim Taehyung is the president of the Philippines.
4) s: 3 + 2 = 5
5) t: I am lying
6) u: x + 2 = 6
7) v: Momoland’s Nancy is ugly.
Compound proposition is a proposition formed from simpler propositions using logical connectors such as:
“read as” denoted by called as
a) not p ~p negation
b) r and v r∧v conjunction
c) r or s r∨s disjunction
d) if p then r p -> r conditional
  ANNUITIES
Annuity – a sequence of payments made at equal (fixed) intervals or periods of time.
Payment Interval – the time between successive payments.
Annuities
According to Simple Annuity General Annuity
payment interval An annuity where the payment interval is the An annuity where the payment interval is not
& interest period same as the interest period. the same as the interest period
According to time Ordinary Annuity Annuity Due
of Payment A type of annuity in which the payments are A type of annuity where the payments are
made at the end of each payment interval. made at beginning of each payment interval
According to Annuity Certain Contingent Annuity
duration An annuity where payments begin and end at An annuity in which the payments extend
definite times over an indefinite length of time.
 BASIC CONCEPTS OF STOCKS AND BONDS
Stocks – share in the ownership of a company Dividend per share – ratio of dividends to the number of shares
Dividend – share in the company’s profit.
Stocks Bonds
A form of equity financing or raising money by allowing A form of debt financing or raising money by borrowing
investors to be part owners of the company. from investors
Stock prices vary every day. These prices are reported in Investors are guaranteed interest payments and a return
various media. of their money at the maturity date.
Involves uncertainty. Investors can earn if the stock prices Uncertainty comes from the bond issuer’s inability to
increase, but they can lose money if the stock prices pay the bondholders. Bonds issued by the gov’t pose less
decrease or worse, if the company goes bankrupt. risk.
Higher risk but possibility of higher returns Lower risk but lower yield.
 BASIC CONCEPTS OF LOANS
Collateral – assets used to secure the loan. It may be real-estate or other investments.
Term of the loan – time to pay the entire loan
2 Types of Loans:
3. Business Loan – money lent specifically for business purpose.
4. Consumer Loan – money lent to individual is for personal or family purpose.
Amortization method – method of paying loan (principal and interest) on installment basis, usually of equal amounts, at
regular intervals.
Mortgage – a loan, secured by collateral, that the borrower is obliged to pay at specific terms.
 LOGIC
A proposition is a declarative sentence that is either true or false, but not both. If it is true, then the truth value is T, if it
false, then the truth value is F.
Examples: Determine whether the following are proposition or not. If they are, determine their truth value.
Proposition? Truth Value
1) P: South Korea is a beautiful country.
2) q: Find a number which divides your age
3) r: Kim Taehyung is the president of the Philippines.
4) s: 3 + 2 = 5
5) t: I am lying
6) u: x + 2 = 6
7) v: Momoland’s Nancy is ugly.
Compound proposition is a proposition formed from simpler propositions using logical connectors such as:
“read as” denoted by called as
a) not p ~p negation
b) r and v r∧v conjunction
c) r or s r∨s disjunction
d) if p then r p -> r conditional