Lecture on Basic Annuity
Subject: Business Mathematic | Topics:

Annuity is financial institutions that is designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time. Suppose, we want to make payment of Tk.5000 each year for 10 years to an account which earns 6 percent interest, compounded annually, and we want to calculate the total amount which will be in the account after 10 payments. This series of periodic payments is called an annuity.

 

Related Business Mathematic Paper: