Chapter 12

School: Kwantlen Polytechnic University - Course: BUQU 1130 - Subject: Accounting

Where thought meets actionChapter 12 Annuities Due, Deferred Annuities, and Perpetuities
 
Objectives 1.Compute the future value, present value, periodic payment, term, and interest rate for simple annuities due. 2.Compute the future value, present value, periodic payment, term, and interest rate for general annuities due. 3.Compute the future value, present value, periodic payment, term, and interest rate for ordinary deferred annuities. 4.Compute the future value, present value, periodic payment, term, and interest rate for deferred annuities due. 5.Compute the present value, periodic payment, and interest rate for ordinary perpetuities, perpetuities due, and deferred perpetuities.
 
A Flowchart of Annuities
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Simple Annuities Due "Due" means that the payments are made at the beginningof the payment interval as opposed to ordinary which means that the payments are made at the end of the interval. "Simple" - payment interval and interest conversion interval are the same "General" - payment interval lengths are not the same. If the periodic payment is made at the beginning of each payment interval, the annuity is an annuity due.

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