6. Annuities Due and Deferred
What you'll learn
- When you have completed this course, you will be able to determine the future value and present value of annuities due
- You will be able to determine the payment size of an annuity due when given either the future value or the present value
- You will be able to determine the number of required payments for an annuity due
- You will be able to determine the present value (cash value) of a deferred annuity
- You will be able to determine the periodic payment of a deferred annuity when given the present value and the deferral period.
- scientific calculator (with exponential function and logarithms) or a Business Financial calculator
- an understanding of how annuities work and compound interest calculations.
- to have the most benefit in this course, you might consider taking an introduction to annuities (an earlier course)
This short course discusses how the present and future value of annuities are affected when the payments are made in advance of the interest periods (i.e. at the beginning of each period), instead of at the end of the periods. We will also discuss deferred annuities which are the result of postponing the first annuity payment by more than one interest period.
With this course, you will receive a comprehensive set of course notes and examples which will be covered with the video lectures. The course might take you 3-4 days to complete although this will vary among students.
If you are interested in mathematics of finance and would like to study these topics in more depth, then this is an excellent introduction to the formulas used with annuities and how to solve finance problems.
Who this course is for:
- students who are in a Business Program at college or university
- CFA students
- individuals who are interested in mathematics of finance and financial calculations
Hi. I hold a 4 year Bachelor of Mathematics degree from the University of Waterloo and a B Ed (Honours) from the University of Western Ontario. While I have been trained as a high school mathematics educator, I have had the pleasure of teaching mathematics at the post secondary level for four community colleges in southern Ontario. When I am not teaching, I like to fool around with my camera, muck about in the garden, read a good book and sail around in a boat. Not necessarily in that order.
Feel free to browse through all of my Udemy courses on Mathematics of Finance. There are many links to be able to have limited view of some videos and/or notes for most of the courses. This will enable you to have a sneak preview of what you can expect and whether my materials will be of benefit to you. I have listed the courses by number sequencing the order that they should be taken in, however, if you have prior knowledge or experience with simple and compound interest, then you can jump right into the annuities and annuity applications courses. The content covered is closely matched to what is taught at the community college level but is also valuable to those who are interested in financial mathematics.
While much material can be found on YouTube, the topics are consolidated and better organized in this Udemy course format.