Annuity Definitions

Free SOA Exam FM (Financial Mathematics) lesson in Annuities and Non-Contingent Cash Flows. 16 min read, ~2,441 words.

Numerator is always; the denominator sets the type:,, or. Due = immediate; the denominator switches from to. Perpetuity: (immediate) or (due). For -thly annuities paying per period, the annual rate is (the formula assumes a total of 1 per year). Increasing arithmetic:, using, not.