Business Math

Ordinary General Annuities FV FV PMT

1-(+i) PV = PMI H. PV - present value PMT - the size of periodic payment i - periodic rate of interest j - nominal annual rate of interest ill - number of compounding periods per year 1 - number of compounding periods in Term 1 = (# of years )x mOrdinary Simple Annuities - Finding the Periodic Payment PMT When the future value of an annuity is known, use the formula FV = PMT (1+1)" -1 When the present value of an annuity is known, use the formula PV = PMT 1-(+i)