Brand new a number of money from certain sum of money to own a certain time is called a keen annuity
Such as for instance, when we have to pay Rs. step 1,100 on a yearly basis for 5 decades, which selection of payments is called “a keen annuity off Rs. 1,000 for 5 decades”. When we calculate the current property value it selection of 5 annual money, it is called the expose value of so it annuity while we want to be aware of the future well worth immediately following five years, it’s known as readiness worth of new annuity.
Sorts of Annuities:
From the significantly more than analogy, the original percentage of annuity is at the end of 12 months 1.
Read More