Present Value of an Annuity (aka Ordinary Annuity)

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5 жыл бұрын

In this video, I explain annuities. The term "Ordinary" in the title refers to annuities in which the first cash flow occurs one time period from today. As you will see later, "ordinary" annuities are different from annuities "due".
More specifically, I show the formula to calculate the PV of an annuity and also use it in an example.
ABOUT ME:
My name is Atif Ikram. I am a member of the finance faculty at Arizona State University's W.P. Carey School of Business (wpcarey.asu.edu/people/profil.... I love to teach! Over the past few years, I have taught a variety of economics and finance courses to undergraduate and graduate students at Rutgers University, Wayne State University, and Lahore University of Management Sciences (LUMS, Pakistan). Presently I teach advance corporate finance courses at ASU.
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Пікірлер: 7

@christinyan9231 4 жыл бұрын

Thanks for the video, much clearer than my prof online class

@badabingbadaboom7968 11 ай бұрын

Thank you so much for the video.

@123bilallatif 5 ай бұрын

Thank you very much for explaining it. Could you please recommend any finance book easy to understand for a beginner at bachelor level.

@professorikram 5 ай бұрын

Sure. I’d recommend Essentials of corporate Finance by Ross, Westeefield and Jordan. There’s a book by Titman as well, but I don’t like it as much.

@crispylemon 5 ай бұрын

Do you have a video on the common question of earning the lottery? Eg. Taking the lump sum now or taking equal payments for X number of years. I have use present value to compare but could future value be used too, or is present value calculation a better option?

@professorikram 5 ай бұрын

I don’t have a separate video on that, but the principles of this one can be used. Future value can be used too, but using PV would be the easier option.

@crispylemon 5 ай бұрын

@@professorikram I appreciate your help, thank you so much! I understand the topic better now