Asked by Heath Gillette on Jul 01, 2024
Explain the concept of the present value of an annuity.
Present Value
The present worth of a future amount of money or series of cash flows, taking into account a certain rate of return.
Annuity
An economic product that delivers a constant payment stream to an individual, mainly used as a means of livelihood for people who are retired.
Concept
A general idea or understanding that serves as a foundation for developing theories, experiments, or innovations.
- Attain knowledge on the concepts of present and future value for annuities, including but not limited to, ordinary annuities and annuities due.
Learning Objectives
- Attain knowledge on the concepts of present and future value for annuities, including but not limited to, ordinary annuities and annuities due.