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Notes › MATH 5441: Financial Mathematics Lecture 16

Annuities Due

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Annuity-Due

$$\begin{align} \ddot a_{\langle n \rangle} = (1+i)a_{\left< n \right> } &= \frac{a_{\left< n \right> }}{\nu} \\ &= \frac{1-\nu^n}{d} \\ &= \frac{1-(1-d)^n}{d} \end{align}$$ $$\ddot s_{\langle n \rangle} = (1+i)^n \ddot a_{\langle n \rangle} = (1+i) s_{\langle n \rangle}$$

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