Chapter 11: Key Concepts Summary

Key Concepts Summary

11.1: Fundamentals of Annuities

  • Understanding what an annuity is
  • The four different types of annuities
  • The difference between annuities and single payments
  • The annuity timeline format

11.2: Future Value of Annuities

  • The future value of ordinary annuities
  • Variable changes in future value annuity calculations
  • The future value of annuities due

11.3: Present Value of Annuities

  • The present value of both ordinary annuities and annuities due
  • Variable changes in present value annuity calculations
  • Applying both future value and present value calculations to loans
  • Determining loan balances
  • Selling loan contracts between companies

11.4: Annuity Payment Amounts

  • Calculating the annuity payment amount for both ordinary annuities and annuities due

11.5: Number of Annuity Payments

  • Calculating the number of annuity payments (term) for both ordinary annuities and annuities due
  • What to do when N has decimals

11.6: Annuity Interest Rates

  • Calculating the interest rate for both ordinary annuities and annuities due

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Business Math: A Step-by-Step Handbook Abridged Copyright © 2022 by Sanja Krajisnik; Carol Leppinen; and Jelena Loncar-Vines is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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