Ordinary Annuities Deferred Annuities教学教案.ppt

Chapter 10 Ordinary Annuities:future value and present value; A deferred annuity: a deferred annuity may be viewed as an ordinary annuity that does not begin until a time interval has passed. Period of deferral: the time interval until the beginning of the first interval.; ;The future value of a deferred annuity;Algebraic method; ;Algebraic method;Financial calculator method;Deferred simple annuity and deferred general annuity;Calculating the number of payments--n;Calculating the number of compounding interval for p in the period of deferral--d;Calculating the interest rate per payment interval--p;Example;Solution:; term=3 years n=3*4=12 j=7.2% compounded quarterly payment interval=3 months p=i=j/m=7.2%/4=1.8% per quarter ;Algebraic method:;Financial calculator method;Example;Solution;Financial calculator method;Example;Solution:;Financial calculator method; The period of deferral is 17.00 calendar quarter (4 years, 3 month) before July 1,1998. That place the date of purchase of the deferred annuity at April 1, 1994.;Example;Solution:;Financial calculator method;The fund will be depleted after 27 withdrawals. The last withdrawal will be smaller. It is $1000*.025=$250.;Financial calculator method