4 concepts
Calculating Annuities
Understanding the relationship between each variable and the broader concept of the time value of money enables simple valuation calculations of annuities.
Present Value of Annuity
The PV of an annuity can be found by calculating the PV of each individual payment and then summing them up.
Future Value of Annuity
The future value of an annuity is the sum of the future values of all of the payments in the annuity.
Annuities
An annuity is a type of investment in which regular payments are made over the course of multiple periods.