Lightning Notes - Annuities

Lightning Notes - Annuities - The present value of an n...

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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
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Annuities with Payments in a Geometric Progression:
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Unformatted text preview: The present value of an n period immediate annuity with first payment P and increasing by g each month with a periodic interest rate of . i 1 1 1 . n g i PV P i g +-+ =-Annuities with Payments in an Arithmetic Progression: The present value of an n period immediate annuity with first payment P and increasing by a fixed amount Q each month with a periodic interest rate of . i . n n i n i a n v PV P a Q i-= + ( 29 n i Ia and ( 29 n i Da Yield Rates Balloon Payment and Drop Payment: General Accumulation Functions The Investment Year Method:...
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This note was uploaded on 04/21/2008 for the course M 101 taught by Professor Maxwell during the Fall '07 term at University of Texas at Austin.

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Lightning Notes - Annuities - The present value of an n...

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