Deriving formulas for the present value of a series of regular payments
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- Опубликовано: 13 сен 2024
- David shows derivations for two different formulas for the present value of a series of regular payments (starting one time period in the future)
I really admire people who is good at math, ty.
5:04 you told me to pee on both sides of the equation, but it didn’t solve my problem
Thank you,you saved my test
Thank you for simplifying this.
excellent video!
5:00 -sign ??
@@CALMWAVESFREEMUSIC it was used to cancel out the extra number(the last number) that P has.
thank you very much. It is very helpfull. Hello from Turkey:)
Great job dude
I have a question though. I tried to come up with the formula for future value of annuity using your method 1. However, I just can't get it right. I've arrived at P[(1+r)/1 -1]= A [1 - (1+r)^(n-1)] and then try to solve for P. I tried multiple times to simplify the current version but none of the derivations gets me the most simplified version. Could you explain it, please? Do I have to use geometric sequence to derive the formula for FV of annuity? Thank you so much for your help Professor.
Great video!
Can I get a video for future value?
thank you so muchh !! you've been a great help !
Thanks!
Let P(t) denote the present value (at the time 0) of the amount 1 that is to be received at the time t. Show that r(t) is a nondecreasing function of t if and only if P(αt) ≥ (P(t))^α
Thanks man!
5:00 where did this - sign came from ....?
The top line has P = A/(1+i) + ... + A/(1+i)^n. If I subtract A/(1+i)^n from both parts of this equation I get P - A/(1+i)^n = A/(1+i) + ...+ A/(1+i)^{n-1}. Thus when I see A/(1+i) + ...+ A/(1+i)^{n-1} in the second line, I can replace it with P - A/(1+i)^n.
Yup. I'm still an idiot. 🙄🔫