Present Value of an Annuity

[@yaucora3810]

seriously, without this channel, I doubt if I can graduate from college.

[@BGxLoki]

Did you graduate?

[@yaucora3810]

I did

[@BGxLoki]

@@yaucora3810 let's goo. Congrats, I just started watching his videos. I'm about to test rn in an accounting class. Looking to graduate soon too

[@lemondrop8203]

@@yaucora3810 Im so proud of you

[@Cheesecake99YearsAgo]

​@@yaucora3810 nice

[@rajaiyer79]

You have the best videos, not to mention handwriting about NPV, IRR, Annuities and Perp. THANK YOU!

[@Edspira]

Thanks!

[@yangyu4489]

wow this is just so elegantly and clearly explained haha. love your teaching style

[@sanfran224]

I remember couple of yrs ago this channel was named education unlocked when I was taking my MBA now I'm studying for CFA

[@Edspira]

Sami, thank you for being a loyal follower. Good luck on the CFA!

[@sanfran224]

Thank you for unlocking the education

[@stevenoparaku2788]

Your lectures are explicit,and quite comprehensive.

[@latifabinhaider9510]

you helped me for my midterm our professor explains it in a very complicated way. thank you so so much

[@Edspira]

Glad to help. Good luck on your class!

[@nastelleleroux6016]

Really LOVE the way you explain things in your presentation. It is simple and understandable, even for someone with no prior experience. Keep it up! Also would you be able to do a presentation on Normal and Abnormal losses

[@Edspira]

Thank you for the kind words! I will try to get this video posted this fall semester. Take care and best wishes :)

[@bseenonn1922]

Thank you!!!! My book only showed me how to do it the long way and I was getting so frustrated! Super helpful!

[@Edspira]

Glad you found it helpful!

[@sdiptanil]

Amazingly simple, where is the super like button ? Thanks EU

[@Edspira]

Thank you!

[@annieruth7]

I appreciated the explanation of what the formula actually means. (first 3 minutes.) Thank you!

[@financialcounting5603]

Amazing way of clarifying what an annuity is and how to determine its PV! It has many useful applications such as determining the price of a mortgage, since it is a series of equal cash outflows.

[@Me-ji2pn]

you should explain how you got the annuity formula - talk about geometric progression

[@adlin61]

Was searching for this formula, thank you so much!

[@Edspira]

Glad it was helpful!

[@dcr6001]

thanks, saved my exam !

[@bhagatsingh5019]

Thank you for your all beautifully explained videos.

[@lizjk4]

What happens to the present value of an annuity when the interest is compounded more frequently? For example, monthly or quarterly.

[@Edspira]

You adjust the number of periods and the interest rate to reflect the difference. For example, if you were to do quarterly you would multiply the number of periods by 4 (since there are quarters in one year) and divide the interest rate by 4. Then you compute the PV as you would normally.

[@IVideo8]

I need to calculate the right of use present value of lease payments, the lease payments increases by 3% a year, how can I do that?

[@MyBerlin10]

thank you for explaining the "factor" element. that was throwing me previously

[@kaydeeamundson3534]

Great explanation thank you so much!

[@mollisixx]

Then for present value of an annuity due would you multiply the present value of the ordinary annuity times (1+r)?

[@professorikram]

Yup. That's correct!

[@SierraandSoufian]

Thanks so much for this video I was so confused this is very informative!!!

[@Edspira]

No problem!

[@austin3201]

How do you came up with the answer 4.21236

[@dilshadmotivates]

I love your short videos

[@Edspira]

😀

[@tonton9598]

you really sound like chef john from the foodwishes channel

[@dilshoddubai7197]

:)))))))

[@akhliyoribragimov9185]

How did you get 4.21236?

[@omarzeyad1382]

just want to say thank you so much!

[@jerichopascua1]

how did you wnd up with 4.21236?

[@gamrboy100]

Great video making this key concept very simple!

[@mostafamosalm7643]

This is amazing. Thanks

[@brandonspiegel2293]

thanks for the great video!!!

[@anjelenemartinez9047]

How did you get the 4.21236?

[@Daniel.Hernandex]

awesome video. made it seem soooo simple. thank you so much for your help.

[@kemerios1]

What if there is no deposit at 2 and 4? how do you calculate that?

[@neilandrews7053]

Still very helpful to me today

[@asrevta]

I have my exam in 2 hours.

[@Edspira]

I hope you did well!

[@asrevta]

@@Edspira yes... thankyou

[@irisjiang4607]

Thank you so much for the video!

[@natalieshinobi3454]

what is the first payment starting 2 years from now?

[@franksmith8012]

this is so helpful, thankyou!!

[@andyzzz5398]

I can't see what is the different between Present Value; Present Value Annuity; Future Value; Future Value Annuity; excuse me, do you mind for ask me with the details and give me advice, thanks

[@asharockz7]

I'm replying late but anyway.. Present value means finding out present value of say $100 which we receive *after* say 2 years time. Present value of annuity means finding out present value of $100 that we receive *every year for next 2 years*

[@bhapampa]

Beautifully done!

[@summerjho2781]

Thank you!

[@emanuelkubatayev7901]

what is the purpose of this formula? I understood PV of single cash flow, but what is PV mean in this formula?

[@emanuelkubatayev7901]

Cash Depreciation? Does it mean things like inflation?

[@jeremystrauss3440]

This is rocket science

[@jamietan1122]

is this the same as growing annuity?

[@shions3135]

amazing video

[@Edspira]

Thank you!

[@wendyzhang1920]

Hi, anyone knows why 500 euros received each year (total amount of 25,000) but only have to invest about 420 euros

[@annalisa2341]

He is great

[@talatqamar8750]

superb

[@Edspira]

Thank you!

[@airaabrahano9535]

Thank you so muuch

[@impactodelsurenterprise2440]

So where does the 6% come from? What does it represent in the real world?

[@natashac3358]

the rate i think

[@Syndicate205]

The long term U.s treasury bond rate is the usual benchmark.

[@Mcwangr]

Thank you

[@Edspira]

+Wayne Risner No problem!

[@LifeUnfiltereLifeUnscripted]

Didn't explain how we get the 100

[@ronaldc1582]

What if the cash flow every year is not $100?

[@vemundrye8999]

THANK YOU FOR THIS MY TEACHER KEEPS TALKING FOR HOURS AND HOURS AND HE STILL COULDNT EXPLAIN THIS S"!=#)

[@sumalathab5117]

Now only I came to know how to calculate present value of annuity

[@osamaalam7685]

playback speed should be 1.5 !!

[@faisalabughazaleh9715]

Thank you :) good job!

[@jeremystrauss3440]

Nothing will make this easy

[@meierjoe]

say the last sentence earlier in this video

[@peterd5843]

cyash

[@clivetanakamahachi7379]

twabam