{"id":46,"date":"2020-04-17T15:13:37","date_gmt":"2020-04-17T19:13:37","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=part&#038;p=46"},"modified":"2020-09-02T13:19:42","modified_gmt":"2020-09-02T17:19:42","slug":"chapter-5-annuities","status":"publish","type":"part","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/part\/chapter-5-annuities\/","title":{"raw":"Chapter 5: Annuities","rendered":"Chapter 5: Annuities"},"content":{"raw":"An <em>annuity <\/em>is a series of payments, with one payment per period for a given number of periods.\r\n\r\nThe <em>variables <\/em>in an annuity are:\r\n<ul>\r\n \t<li>N: the number of periods, in the <em>term <\/em>(equal to the number of payments)<\/li>\r\n \t<li>I\/Y: the nominal interest rate<\/li>\r\n \t<li>PMT: the periodic payment<\/li>\r\n \t<li>PV: the present value of the annuity<\/li>\r\n \t<li>FV: the future value of the annuity<\/li>\r\n<\/ul>\r\n<em>Annuities <\/em>can be used for:\r\n<ul>\r\n \t<li><em>amortizing <\/em>a loan, where the loan value is the <em>present value <\/em>of the annuity. The variables are N, I\/Y, PMT and PV.<\/li>\r\n \t<li><em>accumulating <\/em>an amount, where the amount is the <em>future value <\/em>of the annuity. The variables are N, I\/Y, PMT and FV.<\/li>\r\n<\/ul>\r\n<em>Annuities <\/em>can be solved in many ways:\r\n<ul>\r\n \t<li>by formula<\/li>\r\n \t<li>by calculating interest period by period<\/li>\r\n \t<li>by focal date methods<\/li>\r\n \t<li>by calculator program, which is what we will concentrate on.<\/li>\r\n<\/ul>","rendered":"<p>An <em>annuity <\/em>is a series of payments, with one payment per period for a given number of periods.<\/p>\n<p>The <em>variables <\/em>in an annuity are:<\/p>\n<ul>\n<li>N: the number of periods, in the <em>term <\/em>(equal to the number of payments)<\/li>\n<li>I\/Y: the nominal interest rate<\/li>\n<li>PMT: the periodic payment<\/li>\n<li>PV: the present value of the annuity<\/li>\n<li>FV: the future value of the annuity<\/li>\n<\/ul>\n<p><em>Annuities <\/em>can be used for:<\/p>\n<ul>\n<li><em>amortizing <\/em>a loan, where the loan value is the <em>present value <\/em>of the annuity. The variables are N, I\/Y, PMT and PV.<\/li>\n<li><em>accumulating <\/em>an amount, where the amount is the <em>future value <\/em>of the annuity. The variables are N, I\/Y, PMT and FV.<\/li>\n<\/ul>\n<p><em>Annuities <\/em>can be solved in many ways:<\/p>\n<ul>\n<li>by formula<\/li>\n<li>by calculating interest period by period<\/li>\n<li>by focal date methods<\/li>\n<li>by calculator program, which is what we will concentrate on.<\/li>\n<\/ul>\n","protected":false},"parent":0,"menu_order":5,"template":"","meta":{"pb_part_invisible":false,"pb_part_invisible_string":""},"contributor":[],"license":[],"class_list":["post-46","part","type-part","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/46","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/types\/part"}],"version-history":[{"count":4,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/46\/revisions"}],"predecessor-version":[{"id":1116,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/46\/revisions\/1116"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/media?parent=46"}],"wp:term":[{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/contributor?post=46"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/license?post=46"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}