This lesson will tackle first the definition and types of annuities and the difference between simple and compound annuities. There are types of annuity according to correspondence of payment intervals with interest periods Simple Annuity - the payment interval is also the same as the interest period. General Annuity refers to an annuity where the length of the payment interval is not the same as the length of the interest compounding period What's In REMEMBER ME As the saying goes, "A person who does not remember where he came from will never reach his destination". This saying is very popular, passing from one generation to another generation. For you to remember the previous lesson, here are some exercises to refresh your mind. Activity 1 Answer each of the following 1. If P40,000 is invested for 6 years at 5% compounded quarterly. A Give the value of the following using the formula A-P(1+0)" where i= and n= kt 1. P 21 3. j 4. n B. Find the compound amount. Solution:​