Annuity Calculations

Free SOA Exam FM (Financial Mathematics) lesson in Annuities and Non-Contingent Cash Flows. 20 min read, ~2,953 words.

Payment = PV / annuity factor. Match the factor to the type (immediate vs. due, annual vs. -thly). Solve for:. Requires, or the loan never amortizes. Solve for: no closed form. Compute, test two bracketing rates, then interpolate. Solve for on the AV side:, then logs. A non-integer means a...