Basic Financial Math 2: Annuities and Perpetuities

Video 2 of 3: We discuss what an Annuity and Perpetuity are, and go through both the "formal derivation" and a "common sense derivation" of present and future value formulas (PVIFA, FVIFA, and Present Value of a Perpetuity). I also discuss some "real world" examples of perpetuities. We don't just show the formulas, we derive them in a way you can easily repeat for yourself.
Playlist of 3 videos: • Financial Mathematics
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00:00 - Introduction to Annuity/Perpetuity
2:24 - Review of Video 1
5:39 - Perpetuity Formula
8:23 - Common Sense Perpetuity Formula Derivation
10:47 - Formal Perpetuity Formula Derivation
14:33 - Examples of Perpetuities in the real world
20:03 - A perpetuity received in the future
23:02 - FVIFA, The Basics
30:22 - FVIFA Formal Derivation
34:32 - Present Value of Annuity, Basics
35:49 - Comparing two annuity streams
37:10 - Derivation of PVIFA formula
39:22 - Common Sense derivation of the PVIFA

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[@anuradhachoudhry9765]

Well explained. Thank you