Constant Annuities in Arrears

Figure 7.2 shows the timeline for a regular constant annuity where A is the constant periodic cash flow, n is the number of cash flows, and r is the periodic discount rate. Most often the word "constant" is dropped and unless otherwise qualified, an annuity is assumed to be a constant annuity. In a regular annuity, the first annuity payment occurs at time 1, that is, in one period from now or at the end of the first period. Such an annuity is called a regular annuity or an annuity in arrears. We can calculate the present value PVC0 and future value FVCn of an annuity in arrears as:

Was this article helpful?

0 0
Sell Your Annuity

Sell Your Annuity

Do you have annuity you dont want? Discover When is it Time to Sell Your Annuity? What can I do? Where can I get the money I need? I have an annuity, but I dont know that I can sell it. Is there a good time to sell my annuity? I already have a home improvement loan, but it was used before the roof needed replacing.

Get My Free Ebook

Post a comment