Session 06: Objective 3 - Present Value of Annuities (2016)

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The Finance Coach: Introduction to Corporate Finance with Greg Pierce

Textbook:
Fundamentals of Corporate Finance
Ross, Westerfield, Jordan

Chapter 6: Discounted Cash Flow Valuation

Objective 3 - Key Concepts:
Annuity: Paying the same amount each period (Rent, Car loans, Home mortgages)
Annuity of Present Value
C=Constant dollar rate paid per period
r=Percentage per period for an amount of time (t)

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