I am just surprised that 8-year-old youtube video explanation is better than the explanation of my 2023 college professors I had no clue what annuity is or present value
Why is n 10 and in the previous video I watched Welcome to Annuities n is 5, but there were 6 payments ? Why wouldnt this be 9 payments since it is at the end of the year?
It's because there will also be a payment at the end of the 10th year, too. So the 1st payment will be at the end of the 1st year (and it will have 9 years to grow), the 2nd payment will be at the end of the 2nd year (and it will have 8 years to grow, etc, until finally the 10th payment will be at the end of the 10th year (and it will have 0 years to grow; i.e. it won't grow at all). I hope that makes sense!
@@michaelfulkerson2486 sir this is ok but still I think as you said in the previous video in the introduction one where we took 5 years , here also instead of 10 , 9 would be appropriate. As you said in 10th years it's not growing so why do we need to consider that cash flow since it is not compounding. Clarify again please
Hi Vivek. That's a good question. The reason to use an annuity in that case is because most people don't have all of the money ($5000) right at the start... if they did, then you are correct that it would be best for them to invest it all right away. Usually, though, people get a paycheck each month (or week or year, etc), and they invest their money accordingly over monthly (or weekly or yearly) intervals. Does that make sense?
@@michaelfulkerson2486 Thankyou.I had one more question why future worth of each annuity is calculated separately .If you pay 500$ at the end of year then at the end of second year amount should be $500(new annuity)+500(1+i)^1 why it is calculated separately like 500(i+1)^5+500(i+1)^4+....?????
I'd like to ask if when would you use the formula for present value and future vavlue in annuity?? I get confused how to apply those formulas of which one should be used
wow! just......wow! that simple... you Sir are a hero!
Amazing courses. It's impossible to find such content on other UA-cam channels.
Thank you so much. I'm glad you're learning!
I am just surprised that 8-year-old youtube video explanation is better than the explanation of my 2023 college professors I had no clue what annuity is or present value
#1 UA-camr
Very helpful. Thanks alot
what a great explanation
your lession is awsome!
Why is n 10 and in the previous video I watched Welcome to Annuities n is 5, but there were 6 payments ? Why wouldnt this be 9 payments since it is at the end of the year?
* Introduction to Annuities
It's because there will also be a payment at the end of the 10th year, too. So the 1st payment will be at the end of the 1st year (and it will have 9 years to grow), the 2nd payment will be at the end of the 2nd year (and it will have 8 years to grow, etc, until finally the 10th payment will be at the end of the 10th year (and it will have 0 years to grow; i.e. it won't grow at all). I hope that makes sense!
@@michaelfulkerson2486 sir this is ok but still I think as you said in the previous video in the introduction one where we took 5 years , here also instead of 10 , 9 would be appropriate. As you said in 10th years it's not growing so why do we need to consider that cash flow since it is not compounding. Clarify again please
@@tadepalliraghavasai7694 Notice in the previous video, that we ultimately used 6 (instead of 5) in the final formula.
If present value is less than $5000 what is the point of annuity????why would one choose annuity???
Hi Vivek. That's a good question. The reason to use an annuity in that case is because most people don't have all of the money ($5000) right at the start... if they did, then you are correct that it would be best for them to invest it all right away. Usually, though, people get a paycheck each month (or week or year, etc), and they invest their money accordingly over monthly (or weekly or yearly) intervals. Does that make sense?
@@michaelfulkerson2486 Thankyou.I had one more question why future worth of each annuity is calculated separately .If you pay 500$ at the end of year then at the end of second year amount should be $500(new annuity)+500(1+i)^1 why it is calculated separately like 500(i+1)^5+500(i+1)^4+....?????
Is it logical to deposit the last 500 USD or the number tenth deposit? This is the time when you look for future amount of Money?
Great lesson actually 📖
will this mean that the ROI is higher if you deposit the lump sum today?
Thanks
❤
Thanks a lot...
Thanks ♥
I'd like to ask if when would you use the formula for present value and future vavlue in annuity?? I get confused how to apply those formulas of which one should be used
yesss
amazing professor! Everything seems so simple and easy with him. You saved my life!
you're my hero, omg. when ma lecturer given a bunch of ppt to self study. again, thanks!
Thanks a lot to you for solving my confusion
Sir I am from India, where are you from?
great video thanks for the lesson
Thank you
Better than my prof!!
superb work there
Thanks for this
Why the pv is lesser when we invest it in a lump sum
I don't understand how to put the formula on the calculator.
Yeah, it's a little tricky. The main thing is to use the parentheses correctly.
Great work