Business Math - Finance Math (11 of 30) Future Value of an Annuity (Beginning of Pay Period)

[@rafaelbawono8437]

the 11th video? 11 awesomeness in a row

[@ansh9713]

sir is saving lives.

[@MichelvanBiezen]

Glad you find our videos helpful

[@titilolaodegbaro8194]

I actually love mathematics. Thank you🙏🙏

[@irvanagrace9909]

Hi! Thank you Sir... Why do I have to subtract by 1? Is it like a percentage? Like I decrease the interest rate from 1 which is 100% or?

[@MichelvanBiezen]

The plus one in the front is needed so that the interest earned can be computed on both the original principle invested as well as the previous interest earned. I do believe if I remember correctly we have videos explaining how the equations are derived, if you watch the rest of the playlist.

[@irvanagrace9909]

@@MichelvanBiezen Thank you. It's clearer now. When you have a logic behind the formula, it's more easier to keep it in mind. Thank you. Your channel is a miracle to me. Preparing the path to be a freshman in BBA. Blessed be!

[@Clifffffffffford]

Thanks !

[@curtpiazza1688]

Great! 😊

[@MichelvanBiezen]

Glad you liked it.

[@zzz7408]

thank you!

[@annakopyl269]

I kinda lost why would making the first payment in the beginning of the period result in a different number than the one we would get making a payment in the end. Is it due to more time given for our interest rate to work?

[@annakopyl269]

Also is it ONLY the first payment that we are talking about here in both cases?

[@MichelvanBiezen]

Yes, that is correct. But it would also affect all the other payments as they would be earning interest 1 period longer or shorter.

[@annakopyl269]

@@MichelvanBiezen thank you for such good answers. You’re really helping me to feel more ready for the business school I hope to get into. Your Algebra lessons are also fantastic. ❤️

[@MichelvanBiezen]

All the best in your future studies.