The relationship of present value (PV), future value (FV), risk and opportunity cost (the discount rate, r ), and time ( t ), may be expressed as: PV × (1 + r) t = FV
In the case of annuities that occur at the end of each period, this formula can be
This is because the names of the first four arguments for the PMT function also are the names of functions that calculate those values if you know the other four values
The Basic Types of Deferred Annuities There are three primary types of deferred annuities you might encounter:
A lump sum is a one-time payment or repayment of funds at a particular point in time