ANNUITIES

| May 26, 2015

An annuity is a series of equal dollar payments for a specified number of years. Examples of annuities include mortgage payments, interest payments on bonds, fixed lease payments, and any fixed contractual payment. Presented are two formulas to calculate annuities: Present value of annuity and future value of annuity

The offered several examples and shortcuts in calculating annuities.

 

If you are a lottery winner, would you accept a cash option or annuity for your winnings? If so, why? How would choosing either cash option or annuity benefit you now or in the future

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Category: Business Studies

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