Present Value of an Annuity

This video explains how to calculate the present value of an annuity. A formula is presented for calculating the present value of an annuity and an example is used to illustrate the calculations.
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[@yaucora3810]

seriously, without this channel, I doubt if I can graduate from college.

[@BGxLoki]

Did you graduate?

[@yaucora3810]

I did

[@BGxLoki]

@@yaucora3810 let's goo. Congrats, I just started watching his videos. I'm about to test rn in an accounting class. Looking to graduate soon too

[@lemondrop8203]

@@yaucora3810 Im so proud of you

[@yangyu4489]

wow this is just so elegantly and clearly explained haha. love your teaching style

[@stevenoparaku2788]

Your lectures are explicit,and quite comprehensive.

[@rajaiyer79]

You have the best videos, not to mention handwriting about NPV, IRR, Annuities and Perp. THANK YOU!

[@Edspira]

Thanks!

[@bhagatsingh5019]

Thank you for your all beautifully explained videos.

[@latifabinhaider9510]

you helped me for my midterm our professor explains it in a very complicated way. thank you so so much

[@Edspira]

Glad to help. Good luck on your class!

[@kaydeeamundson3534]

Great explanation thank you so much!

[@bseenonn1922]

Thank you!!!! My book only showed me how to do it the long way and I was getting so frustrated! Super helpful!

[@Edspira]

Glad you found it helpful!

[@gamrboy100]

Great video making this key concept very simple!

[@sdiptanil]

Amazingly simple, where is the super like button ? Thanks EU

[@Edspira]

Thank you!

[@sanfran224]

I remember couple of yrs ago this channel was named education unlocked when I was taking my MBA now I'm studying for CFA

[@Edspira]

Sami, thank you for being a loyal follower. Good luck on the CFA!

[@sanfran224]

Thank you for unlocking the education

[@nastelleleroux6016]

Really LOVE the way you explain things in your presentation. It is simple and understandable, even for someone with no prior experience. Keep it up! Also would you be able to do a presentation on Normal and Abnormal losses

[@Edspira]

Thank you for the kind words! I will try to get this video posted this fall semester. Take care and best wishes :)

[@Daniel.Hernandex]

awesome video. made it seem soooo simple. thank you so much for your help.

[@annieruth7]

I appreciated the explanation of what the formula actually means. (first 3 minutes.) Thank you!

[@SierraandSoufian]

Thanks so much for this video I was so confused this is very informative!!!

[@Edspira]

No problem!

[@MyBerlin10]

thank you for explaining the "factor" element. that was throwing me previously

[@adlin61]

Was searching for this formula, thank you so much!

[@Edspira]

Glad it was helpful!

[@Me-ji2pn]

you should explain how you got the annuity formula - talk about geometric progression

[@bhapampa]

Beautifully done!

[@dcr6001]

thanks, saved my exam !

[@mostafamosalm7643]

This is amazing. Thanks

[@financialcounting5603]

Amazing way of clarifying what an annuity is and how to determine its PV! It has many useful applications such as determining the price of a mortgage, since it is a series of equal cash outflows.

[@brandonspiegel2293]

thanks for the great video!!!

[@franksmith8012]

this is so helpful, thankyou!!

[@irisjiang4607]

Thank you so much for the video!

[@omarzeyad1382]

just want to say thank you so much!

[@summerjho2781]

Thank you!

[@neilandrews7053]

Still very helpful to me today

[@annalisa2341]

He is great

[@dilshadmotivates]

I love your short videos

[@Edspira]

😀

[@shions3135]

amazing video

[@Edspira]

Thank you!

[@airaabrahano9535]

Thank you so muuch

[@tonton9598]

you really sound like chef john from the foodwishes channel

[@dilshoddubai7197]

:)))))))

[@talatqamar8750]

superb

[@Edspira]

Thank you!

[@jeremystrauss3440]

This is rocket science

[@waynerisner4974]

Thank you

[@Edspira]

+Wayne Risner No problem!

[@faisalabughazaleh9715]

Thank you :) good job!

[@akhliyoribragimov9185]

How did you get 4.21236?

[@asrevta]

I have my exam in 2 hours.

[@Edspira]

I hope you did well!

[@asrevta]

@@Edspira yes... thankyou

[@lizjk4]

What happens to the present value of an annuity when the interest is compounded more frequently?
For example, monthly or quarterly.

[@Edspira]

You adjust the number of periods and the interest rate to reflect the difference. For example, if you were to do quarterly you would multiply the number of periods by 4 (since there are quarters in one year) and divide the interest rate by 4. Then you compute the PV as you would normally.

[@IVideo8]

I need to calculate the right of use present value of lease payments, the lease payments increases by 3% a year, how can I do that?

[@jerichopascua1]

how did you wnd up with 4.21236?

[@kemerios1]

What if there is no deposit at 2 and 4? how do you calculate that?

[@natalieshinobi3454]

what is the first payment starting 2 years from now?

[@austin3201]

How do you came up with the answer 4.21236

[@mollisixx]

Then for present value of an annuity due would you multiply the present value of the ordinary annuity times (1+r)?

[@professorikram]

Yup. That's correct!

[@jamietan1122]

is this the same as growing annuity?

[@sumalathab5117]

Now only I came to know how to calculate present value of annuity

[@anjelenemartinez9047]

How did you get the 4.21236?

[@vemundrye8999]

THANK YOU FOR THIS MY TEACHER KEEPS TALKING FOR HOURS AND HOURS AND HE STILL COULDNT EXPLAIN THIS S"!=#)

[@andyzzz5398]

I can't see what is the different between
Present Value;
Present Value Annuity;
Future Value;
Future Value Annuity;
excuse me, do you mind for ask me with the details and give me advice, thanks

[@asharockz7]

I'm replying late but anyway.. Present value means finding out present value of say $100 which we receive *after* say 2 years time.
Present value of annuity means finding out present value of $100 that we receive *every year for next 2 years*

[@Lululavish]

Didn't explain how we get the 100

[@wendyzhang1920]

Hi, anyone knows why 500 euros received each year (total amount of 25,000) but only have to invest about 420 euros

[@jeremystrauss3440]

Nothing will make this easy

[@osamaalam7685]

playback speed should be 1.5 !!

[@emanuelkubatayev7901]

what is the purpose of this formula? I understood PV of single cash flow, but what is PV mean in this formula?

[@emanuelkubatayev7901]

Cash Depreciation? Does it mean things like inflation?

[@ronaldc1582]

What if the cash flow every year is not $100?

[@meierjoe]

say the last sentence earlier in this video

[@impactodelsurenterprise2440]

So where does the 6% come from? What does it represent in the real world?

[@natashac3358]

the rate i think

[@Syndicate205]

The long term U.s treasury bond rate is the usual benchmark.

[@peterd5843]

cyash

[@clivetanakamahachi7379]

twabam