MATH253 Lecture 2: 4.6 Decreasing annuity(4)
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Decreasing annuity-immediate: payments of n, n - 1, n - 2, . , nth period, respectively, with periodic interest rate i. The present value of a decreasing annuity-immediate is denoted by (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667)(cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) Alternate proof: (cid:4666) (cid:4667) (cid:4666) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667)(cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) (cid:4666) (cid:4667) . The accumulated value of a decreasing annuity-immediate at time n is denoted by (cid:4666) (cid:4667) . The accumulated value of a decreasing annuity-due at time n is denoted. Payments of n, n - 1, n - 2, . , 1 are made at the end of the. Determine the pv at time 0 of payments of at time 1 year, at time 2 years, at time 3 years, and so on, down to at time 11 years.