Annuity formula: Difference between revisions
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imported>Doug Williamson (Add second definition.) |
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''Financial maths''. | ''Financial maths''. | ||
1. | |||
Strictly, the annuity formula calculates the present value of an annuity, using an annuity factor (AF), as: | |||
= AF x Time 1 cash flow. | = AF x Time 1 cash flow. | ||
2. | |||
More loosely, the same as annuity factor. | |||
== See also == | == See also == | ||
* [[Annuity]] | * [[Annuity]] | ||
* [[Annuity factor]] | * [[Annuity factor]] | ||
* [[Present value]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Manage_risks]] | |||
Latest revision as of 10:38, 18 August 2018
Financial maths.
1.
Strictly, the annuity formula calculates the present value of an annuity, using an annuity factor (AF), as:
= AF x Time 1 cash flow.
2.
More loosely, the same as annuity factor.
