Annuity Calculations
Free SOA Exam FM (Financial Mathematics) lesson in Annuities and Non-Contingent Cash Flows. 16 min read, ~2,470 words.
Payment = PV / annuity factor. Match the factor to the type (immediate vs. due, annual vs. -thly). Solve for:. Requires. Solve for: no closed form, compute, test two rates, interpolate. Deferred annuity: multiply standard PV by where is the deferral. Arithmetic annuity:.
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What this lesson covers
- Content
- Example 1
- Example 2
- Example 3
- Example 4
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 2b
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