annuities and perpetuities - new york university（养老金和永续年金u2014u2014纽约大学）.pdfVIP

Annuities and Perpetuities: Present Value William L. Silber I. The present value of an annuity, PV, can be written as the sum of the present values of each component annual payment, C, as follows: C C C (1) PV 2 L t 1 r (1 r ) (1 r ) where r is the single average interest rate per annum and t is the number of years the annuity is paid. This can be simplified as follows: 1 1 1 (2)