Annuities have the characteristics of equality and continuity, but the interval between annuities is not necessarily one year. According to the different time and method of payment and receipt, annuities can be divided into ordinary annuity, early annuity, deferred annuity and permanent annuity.
Extended data:
1, ordinary annuity: Collect and pay an annuity with the same amount at the end of each period, also called deferred annuity. This kind of annuity is the most common in daily life.
2. annuity in advance: Annuity with income at the beginning of each period, also known as annuity in advance.
3. Deferred annuity: Also known as deferred annuity, it refers to a series of equal receipts and payments that occur after several periods instead of the first period. It is a special form of ordinary annuity.
4. Perpetual annuity: Also known as permanent annuity or indefinite annuity, it refers to an indefinite annuity with equal income and expenditure, which can be regarded as a special form of ordinary annuity. For example, interest on interest-bearing deposits and interest on irregular interest-bearing bonds.
The formula for calculating the final value of ordinary annuity is:
= Settings:
A- annuity amount; I- interest rate; N—— Number of interest-bearing periods; ? Ffan- The final value of the annuity. The above formula is called the final value coefficient of annuity or the compound interest coefficient of annuity. Can be written as FVIFAi, n or ACFi, n, then the calculation formula of the final value of annuity can be written as:
FVAn？ =? Answer? *? FVIFAi，n？ =? Answer? *? ACFi，n
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