Deriving the Present Value of Annuity Formula

In this video Mike shows how the formula to calculate the Present Value of a level stream of payments is derived. It's important to remember the formula for the sum of a geometric series along with the fact that each cash flow is discounted for one additional time period.
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[@flake8382]

Exactly what I was looking for. I've seen other finance professionals discussing the sum of geometric series and would you beleive it, my University never covered it! We just went straight to rote-learning the formulas. I'd rather understand the formulas then just memorise them. Thanks for the explanation.

[@tv98vn]

they assumed that everyone would understand how the formula is concluded :v

[@coffeemachtspass]

My frustration exactly. Please don't hand me a fish; teach me how to do it myself.

[@georgebeckons539]

I wouldn't survive self learning math without UA-cam holy hell.

[@under_the_night_sky5380]

This was the explanation I was looking for! Thank you so much.

[@wn.4112]

Thank you for explaining the derivation procedure for the formula

[@AbhishekGupta-wx2ib]

This was nicely explained, making it very simple for the learners. Thank You

[@boredomgotmehere]

Greatly explained. Thanks

[@AbdulQadir-gf5nv]

Thanks a lot and also glad to subscribe the channel 👍🏼

[@teentitans1999]

awesome! Best one I've found!

[@davidmoore3329]

Great stuff, thanks

[@sameepat3735]

thank u for ur assistance it made easier to remember

[@albinpauldevid6194]

well explained.

[@null_rev7336]

Thank you so much!

[@HabibUrRehman1988]

can you please share that how to derive the formula for future value of annuity due.?

[@saravjit6427]

Thank you!

[@shashankdevang1458]

Thank you ❤️❤️

[@-__MuhammadNur]

Thank you

[@ange.p1251]

Very helpful

[@ArnoldTutoring]

Stranger Nick thanks! Let us know if there’s anything else we can do.

[@ange.p1251]

Sure😊

[@thembalethuthesacred8520]

Is this first principle proof ?

[@kunalbenee9295]

1 Dislike!!! It means that there is a stupid who did not understand this CLEAR proof.

[@osaskeys7316]

I was enjoying the explanation until the point you just cleaned “1” and replaced it with another figure, that really looked fishy and not quite explanatory