Determining The Value of an Annuity

This video defines an annuity and uses a formula to determine the value of an annuity over a period of time.

[carolynlambert]

You don't pay the 500 at the end of the year, you pay it at the start, so does this first 500 not get any interest until the end of year 2?

[maryweaverling]

the decimal is written wrong on the end of year 3: it should be .05 not 0.5