8.2 Review, Symbols, and Formulas
key Concepts
Deferred Annuities
- The stages of deferred annuities
- The four common unknown variables and how to solve for them
The Formulas You Need to Know
Symbols Used
[latex]C/Y[/latex] = compounding frequency
[latex]i[/latex] = periodic interest rate
[latex]N[/latex] = number of annuity payments
[latex]PMT[/latex] = annuity payment amount
[latex]PV_{Ord}[/latex] = present value of an ordinary annuity
[latex]P/Y[/latex] = payment frequency
Formulas Introduced
No new formulas are introduced
