Standard Financial Mathematics - Annuities

This lesson comprises two (2) master classes focusing on:

• Home loans
• Savings accounts
• Investments with contributions

Content:

MS-F5

• Solve compound interest-related problems involving financial decisions, for example a home loan, a savings account, a car loan or an annuity
  • identify an annuity as an investment account with regular, equal contributions and interest compounding at the end of each period, or as a single sum investment from which regular, equal withdrawals are made
  • using technology, model an annuity as a recurrence relation, and investigate (numerically or graphically) the effect of varying the amount and frequency of each contribution, the interest rate or the payment amount on the duration and/or future value of the annuity
  • use a table of interest factors to perform annuity calculations, eg calculating the present or future value of an annuity, the contribution amount required to achieve a given future value or the single sum that would produce the same future value as a given annuity