Annuity formula: Difference between revisions

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imported>Doug Williamson
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''Financial maths''.
''Financial maths''.
The present value of an annuity calculated using an annuity factor as:
 
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.


See also