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Learning objectives : future and present value of annuity

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Added on  2022-01-25

Learning objectives : future and present value of annuity

   Added on 2022-01-25

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2.4 Annuity
MAHANI FSKM
Learning objectives : future and present value of annuity_1
Learning
objectives
Student should be able to:
• find the future and present value of annuity
• solve for annuity payment, R
no. of payments, n
interest rate, k
• identify the problems of present and future value
Learning objectives : future and present value of annuity_2
2.4.1
Introduction to
Annuity and Types
of Annuities
Learning objectives : future and present value of annuity_3
Introduction
• Annuity is a series of equal payments made at equal intervals of time
• Equal payments are deposited or paid periodically over time (at the end
of payment period)-ordinary annuity certain
• Ex: shop rental, insurance policy premiums, annual dividends received
and instalment payments
• Annuity enable people to plan for future investments, savings and
retirement.
• Use by financial consultants to advise people on investments
• Use by property agent to estimates the repayments of housing and car
loans
Learning objectives : future and present value of annuity_4

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