7 Compound Interest – Annuities
Learning Objectives
- Define and distinguish between ordinary simple annuities and ordinary general annuities and annuities due.
- Calculate the future value and present value of both ordinary simple annuities and ordinary general annuities and annuities due.
- Calculate the fair market value of a cash flow stream that includes an annuity.
- Calculate the principal balance owed on a loan immediately after any payment.
- Calculate the the periodic payment in ordinary simple and ordinary general annuities and annuities due.
- Calculate the number of payments in ordinary simple and ordinary general annuities and annuities due.
- Calculate the interest rate in ordinary simple and ordinary general annuities and annuities due.
