Introduction to Present Value of an Ordinary Annuity

[@emiliaisabelavalosflores1937]

amazing professor! Everything seems so simple and easy with him. You saved my life!

[@minkmandex8115]

wow! just......wow! that simple... you Sir are a hero!

[@mskhealthandfitness]

I am just surprised that 8-year-old youtube video explanation is better than the explanation of my 2023 college professors I had no clue what annuity is or present value

[@bradcasper4823]

Amazing courses. It's impossible to find such content on other KZbin channels.

[@michaelfulkerson2486]

Thank you so much. I'm glad you're learning!

[@aufadedicated4633]

you're my hero, omg. when ma lecturer given a bunch of ppt to self study. again, thanks!

[@johnnybravo3010]

#1 KZbinr

[@TheMunchiesShowOfficial]

what a great explanation

[@studywithtarunbhatia462]

Thanks a lot to you for solving my confusion

[@studywithtarunbhatia462]

Sir I am from India, where are you from?

[@tangulochris1022]

Very helpful. Thanks alot

[@johnmunyaka3657]

superb work there

[@nalunatchyrenemae8339]

I'd like to ask if when would you use the formula for present value and future vavlue in annuity?? I get confused how to apply those formulas of which one should be used

[@miguelsalazar8851]

yesss

[@pbt7774]

great video thanks for the lesson

[@awesomelord2536]

Better than my prof!!

[@joeyhuang6830]

your lession is awsome!

[@joeniler5435]

Great lesson actually 📖

[@cassandral445]

Why is n 10 and in the previous video I watched Welcome to Annuities n is 5, but there were 6 payments ? Why wouldnt this be 9 payments since it is at the end of the year?

[@cassandral445]

* Introduction to Annuities

[@michaelfulkerson2486]

It's because there will also be a payment at the end of the 10th year, too. So the 1st payment will be at the end of the 1st year (and it will have 9 years to grow), the 2nd payment will be at the end of the 2nd year (and it will have 8 years to grow, etc, until finally the 10th payment will be at the end of the 10th year (and it will have 0 years to grow; i.e. it won't grow at all). I hope that makes sense!

[@tadepalliraghavasai7694]

@@michaelfulkerson2486 sir this is ok but still I think as you said in the previous video in the introduction one where we took 5 years , here also instead of 10 , 9 would be appropriate. As you said in 10th years it's not growing so why do we need to consider that cash flow since it is not compounding. Clarify again please

[@michaelfulkerson2486]

@@tadepalliraghavasai7694 Notice in the previous video, that we ultimately used 6 (instead of 5) in the final formula.

[@jaskarangrewal1353]

Great work

[@naptalee1924]

Thank you

[@Thegoodlifebruh]

will this mean that the ROI is higher if you deposit the lump sum today?

[@saniahashmi8840]

Why the pv is lesser when we invest it in a lump sum

[@carljustinemosquida9614]

Thanks for this

[@jhunnegienne2362]

Is it logical to deposit the last 500 USD or the number tenth deposit? This is the time when you look for future amount of Money?

[@eztech3820]

Thanks ♥

[@pamelamisheva7035]

I don't understand how to put the formula on the calculator.

[@michaelfulkerson2486]

Yeah, it's a little tricky. The main thing is to use the parentheses correctly.

[@vivekkumar-py6kp]

If present value is less than $5000 what is the point of annuity????why would one choose annuity???

[@michaelfulkerson2486]

Hi Vivek. That's a good question. The reason to use an annuity in that case is because most people don't have all of the money ($5000) right at the start... if they did, then you are correct that it would be best for them to invest it all right away. Usually, though, people get a paycheck each month (or week or year, etc), and they invest their money accordingly over monthly (or weekly or yearly) intervals. Does that make sense?

[@vivekkumar-py6kp]

@@michaelfulkerson2486 Thankyou.I had one more question why future worth of each annuity is calculated separately .If you pay 500$ at the end of year then at the end of second year amount should be $500(new annuity)+500(1+i)^1 why it is calculated separately like 500(i+1)^5+500(i+1)^4+....?????

[@kirimievans3870]

Thanks

[@ammaaaar]

❤

[@MultiUnique2010]

Thanks a lot...