Calculating the Present Value of Annuities
Learn how to calculate the present value of an ordinary or deferred annuity using a formula. Example scenarios with specific amounts and interest rates.
00:00:00 This video explains how to calculate the present value of an ordinary or deferred annuity. It is a common type of annuity where payments are made at the end of each interest period.
馃摎 This video is about calculating the present value of an ordinary or deferred annuity in the context of financial mathematics.
馃挵 Ordinary or deferred annuities are those where the rent payment is made at the end of each interest period, and they are the most common type of annuity.
馃М The video will provide a solution to a proposed problem related to calculating the present value of an ordinary or deferred annuity.
00:01:04 To obtain an annual income of 50,000 C贸rdobas for the next six years with a market interest rate of 12%, Mr. N煤帽ez needs to invest a certain amount today.
馃挵 The video discusses how to calculate the present value of an ordinary annuity.
馃捀 It explains how to determine the amount that Mr. Nu帽ez should invest today to receive a yearly income of 50,000 c贸rdobas for the next six years.
馃搱 The video also mentions the market interest rate of 12% and provides the necessary formula to calculate the present value.
00:02:11 Calculating the present value of an ordinary or deferred annuity with given parameters using a formula. Example: 6-year annuity with a value of $50,000.
馃搱 The video discusses how to calculate the present value of an ordinary or deferred annuity.
馃М The formula for determining the present value of an ordinary or deferred annuity is explained.
馃挵 An example calculation is shown, using a given interest rate and annuity amount.
00:03:20 Calculate the present value of a ordinary or due annuity and the amount to invest today to have a future value of 205,570.4 c贸rdoba in 12 periods.
馃搳 Calculation of the present value of an ordinary or deferred annuity.
馃挵 The present value of the annuity is calculated to be 205,570.4 cordobas.
馃挕 An ordinary or deferred annuity involves payments made at the end of each period.
00:04:27 Calculation of the present value of an ordinary or expired annuity. The video explains a specific scenario with specific amounts and interest rates.
馃挵 The video discusses the calculation of the present value of a deferred ordinary annuity.
馃搳 The initial amount is given as 205,570.42 units, and an additional amount of 250,000 units will be paid at the end of each year for the next six years.
馃搱 The interest rate is 12%.
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