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Chapter 4. Simple and Compound Interest including Annuity – Applications<br /><ul><li>Annuity - An annuity can be defined as a sequence of periodic payments (or receipts) regularly over a specified period of time.</li></ul> <br /><ul><li> To be called annuity a series of payments (or receipts) must have the following features
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Amount paid (received) must be constant over the period of annuity, and
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Chapter 4. Simple and Compound Interest including Annuity – Applications<br /><ul><li> Future value of an annuity (regular)</li></ul>If A be the periodic payments the future value A(n i) of the annuity is given by<br /> A(n i) = <br /><ul><li>Future value of Annuity (immediate)</li></ul>Calculating the future value of the annuity due involves two steps<br /><ul><li> Step 1: Calculate the future value as though it was an ordinary annuity
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