Lightning Notes - Annuities - Lightning Notes Annuities Geometric Series Annuities Immediate The present value of n level \$1 payments made at the end of

# Lightning Notes - Annuities - Lightning Notes Annuities...

• Notes
• 2

This preview shows page 1 - 2 out of 2 pages.

Lightning Notes – Annuities Geometric Series Annuities Immediate: The present value of n level \$1 payments made at the end of the term at a compound interest rate of . i 2 1 n n n i v a v v v i - = = + + + L Future Value ( 29 1 1 . n n n i n i i s v a i + - = = Annuities Due: The present value of n level \$1 payments made at the beginning of the term at a compound interest rate of . i 2 1 1 1 (1 ) . n n n i n i v a v v v i a d - - = = + + + + = + && L Future Value ( 29 ( 29 1 1 1 . n n n i n i n i i s v a i s d + - = = = + && && Perpetuities: 1 i a i i = and 1 1 . i i a a d i = = + && Deferred Annuities: Outstanding Loan Balances: Retrospective Method: FV of loan – Accumulated Value of Payments Prospective Method: FV of remaining payments Non-Level Annuities
Annuities with Payments in a Geometric Progression: The present value of an