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ATARMAxxing · QCE General Mathematics revision notes

Present Value, Future Value of Annuities and Perpetuities

Annuities and Perpetuities
4 · Loans, Investments and Annuities

What this note covers

  1. What is an Annuity?
  2. The QCAA Formula Sheet Formulas
  3. Identifying and Setting Up Variables: n, r, and d
  4. Future Value of an Annuity — Savings and Investment Problems
  5. Present Value of an Annuity — Loans and Drawdown Problems
  6. Perpetuities: PV = d / r
  7. Comparing Annuity and Perpetuity Approaches — Choosing the Right Formula

7 sections · 14 key terms & formulas · 6 common mistakes

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QCE General Mathematics · revision note 14 of 20