Deriving formulas for the present value of a series of regular payments
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- Опубліковано 11 вер 2024
- David shows derivations for two different formulas for the present value of a series of regular payments (starting one time period in the future)
I really admire people who is good at math, ty.
5:04 you told me to pee on both sides of the equation, but it didn’t solve my problem
Thank you for simplifying this.
Thank you,you saved my test
thank you very much. It is very helpfull. Hello from Turkey:)
I have a question though. I tried to come up with the formula for future value of annuity using your method 1. However, I just can't get it right. I've arrived at P[(1+r)/1 -1]= A [1 - (1+r)^(n-1)] and then try to solve for P. I tried multiple times to simplify the current version but none of the derivations gets me the most simplified version. Could you explain it, please? Do I have to use geometric sequence to derive the formula for FV of annuity? Thank you so much for your help Professor.
excellent video!
5:00 -sign ??
@@CALMWAVESFREEMUSIC it was used to cancel out the extra number(the last number) that P has.
Let P(t) denote the present value (at the time 0) of the amount 1 that is to be received at the time t. Show that r(t) is a nondecreasing function of t if and only if P(αt) ≥ (P(t))^α
thank you so muchh !! you've been a great help !
Great job dude
Can I get a video for future value?
Great video!
Thanks!
Thanks man!
5:00 where did this - sign came from ....?
The top line has P = A/(1+i) + ... + A/(1+i)^n. If I subtract A/(1+i)^n from both parts of this equation I get P - A/(1+i)^n = A/(1+i) + ...+ A/(1+i)^{n-1}. Thus when I see A/(1+i) + ...+ A/(1+i)^{n-1} in the second line, I can replace it with P - A/(1+i)^n.
Yup. I'm still an idiot. 🙄🔫