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ANNUITIES AND PERPETUITIES
**Concept: **Understand the concept of annuities and perpetuities.
An annuity
is simply a series of equal payments or receipts
made on a regular basis over a period of time.
These can be payments or investments each year,
each quarter, or each month. We are surrounded
by annuities in our daily lives. For instance,
the monthly mortgage payments on our house,
quarterly payments to our child’s college trust
fund, and periodic loan payments are all
examples of annuities.
**Objectives:**
- Understand and define the concept of Annuities
- Understand and define the concept of Perpetuities
- Discuss the use of the future value (FV) formula
- Know how to calculate returns on Annuities and Perpetuities
- Learn how to value Annuities and Perpetuities
**Suggested
Grades:**
Ninth Grade -
Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education
- Business Education |