Annuity Immediate vs Annuity Due | Exam FM | Financial Mathematics Lesson 14 - JK Math

[@JKMath]

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[@enriqueservantesfonseca1206]

Congratulation! Your video is very helpful

[@hey7068]

thank you for this!

[@JKMath]

You're welcome! Glad to help :)

[@isaacoluwasegunadeniyi9532]

You have done well 🎉

[@JKMath]

Thank you sir!

[@yaweli2968]

Nice videos, but why don’t you call the S and S double dot FV of “basic level” annuity immediate and annuity due respectively as well as their counterpart a and a double dot values as PV’s. I am just saying just to clear any ambiguity.

[@JKMath]

If I understand your question correctly, when I first learned this material I was never taught how to “pronounce” each notation. My professor at the time didn’t call them by “s double dot” etc., so that was not something I picked up on until much later in my own time. My apologies if that lead to some ambiguity. Thankfully, pronouncing the notations doesn’t have an effect on any calculations, the formulas they represent do not change regardless. If I were to make this video again, I would definitely be more clear on their pronunciation/ how to read the notations aloud. Thanks for the feedback!

[@yaweli2968]

@@JKMath : No need to apologize. Your calculations are legit, your methods are clear and conscience. I wasn’t asking about the pronunciation with the dots in particular. I was asking why you don’t pronounce the PV of the annuities as “basic level” . Like “a” is pronounced PV of basic level annuity immediate. “a double dot” as basic level annuity due. “S” as FV of basic level annuity due. I ask because I understand the “a” is the PV if you had a unit monetary deposit like $1 with pmt at the end of each period up to time n. Just “annuity” alone could mean any pmt amount which isn’t a unit of 1, and not necessarily constant or leveled.

[@JKMath]

Ah I see what you’re saying now. I think once again, it goes back to how I originally learned the material. That exact wording was not taught in my FM course years ago, the focus was calculation and problem solving heavy. Conceptually, I understand that a and s are basic level annuities where the payments are $1, and this can be changed by multiplying the notation by the amount of the payments if they are a value other than $1. I suppose I never learned to refer to them that way verbally however. I do agree with your understanding though, even if I don’t express it the same way with words in the video. I appreciate you asking me this, it helps me reflect on how I can be more clear and make better videos in the future!