Annuities (2 of 2: The Bird's Perspective)

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  • Опубліковано 18 лис 2024

КОМЕНТАРІ • 4

  • @thegoosemeisterohmy
    @thegoosemeisterohmy 4 роки тому +7

    i love you eddie

  • @sanchithaa3191
    @sanchithaa3191 Рік тому

    I can't get it, why is it taken in reverse order?

    • @slothbearanonymous
      @slothbearanonymous 8 місяців тому

      It doesn't have to be taken in reverse order. You could instead examine each $1000 starting from the end of the first year. How long does the first $1000 you invest stay in the bank account and generate interest? Answer: 4 years. A year later when you invest another $1000 dollars, it only stays in the bank for 3 years. And so on.
      S = 1000(1.09)^4 + 1000(1.09)^3 + 1000(1.09)^2 + 1000(1.09) + 1000
      Does that help?

    • @sanchithaa3191
      @sanchithaa3191 8 місяців тому +1

      @@slothbearanonymous Thank you