#summary #tvm
Annuities may be handled in a similar fashion as single payments if we use annuity factors instead of single-payment factors.
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Open it a time line, we can index the present as 0 and then display equally spaced hash marks to represent a number of periods into the future. This representation allows us to index how many periods away each cash flow will be paid.
<span>Annuities may be handled in a similar fashion as single payments if we use annuity factors instead of single-payment factors.
The present value, PV, is the future value, FV, times the present value factor, (1 + r) − N .
The present value of a perpetuity is A/r, where A is the pe Summary
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