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Following the End of Each Payment Period  Form

Following the End of Each Payment Period Form

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Instructions and help about Following The End Of Each Payment Period

hi I'm Helen taken and today what I'd like to do is talk to you about general annuities general annuities differ from ordinary simple annuities in that the annuity payment periods do not coincide with the interest periods that is if we have payments that are made monthly and the interest is compounded semi-annually as is often the case with mortgages we have a general annuity that is the number of payments per year does not equal the number of interest periods per year the focal date for the future value of a general annuity or any other annuity is on the same date as the date of the final payment so here we have a time diagram with a general annuity and in payments and we have the focal date for the final value now we know that the final value formula tells us that the future value of any annuity is equal to the total of all of the payments plus the accrued interest and that can be calculated by are multiplied by the annuity factor 1 plus i to the exponent n subtract 1

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