T-4.1 p 1

1. Define what is an annuity and explains the difference between an ordinary annuity ("ordinary annuity") and annuity due ("annuity due").

2. What is the most efficient way to calculate the present value of an ordinary annuity way?

3. Explain what a perpetuity and provides an example of business-related concept.

4. Discuss the reason why financial managers often have to assess cash flows that increase steadily over time.