how to use annuity formula

Hi
Please tell me when we use annuity formula and how?????

 

Suggest you ask something a bit more specific. Honest answer to your question is:
(a) when we want to value an annuity - and (b) by writing down the right one and with practice!!

 

Thanx ....
How can I confirm the use of annuity
A"N" AND A DUE N AND A BAR N

 

have you read the course notes???
(valuing the PV of payments in arrear, in advance or paid continuously)

 

CT-1 Question No.-8.8
which formula we get (i) interest rate.
Calculate i if P = 70 , I = 5 , R = 120 and n = 10 .

 

Use the equation at the top of page 5. The right-hand-side is a function of i. The solution then uses trial and error to show the answer lies between 10% and 12%, before interpolating. We might be homing in on your problem - but again suggest you try to be a bit more specific. The formula is given in the solution and so the most obvious answer is to say "read the solution". You could explain which bit of the solution you don't understand. Just trying to help you be more efficient!!

 

£4,600 is invested at time 0 and the proceeds at time 10 are £8,200.
Calculate A(7,10) if A(0,9) = 1.8, A(2,4) = 1.1, A(2,7) = 1.32, A(4,9) = 1.45.
Please tell me solution for this question
Question No.-3.4

 

δ (t) =.08+.02/t+1,(t greater and equal to 0)
find:----- t1 to t2 (t1 < t2 )
any other process for solve this equation than book soloution

 

A continuous payment stream is such that the level rate of payment in year t is
100 ¥1.05t-1, t =1,2,…,10 . Calculate the present value of the payment stream as at its
commencement date, assuming a rate of interest of 10% pa.

 

Deepak, can u pls write the question no., for both? I will cross check with my solutions...

 

Hi Raghunath,
Are u reach some leasson in CT_1
Please...