A+ » VCE » Further Maths U3 & 4 Master Notes » A2 Recursion and Financial Modelling » 4.4 Annuities and Perpetuities

4.4 Annuities and Perpetuities

Annuities

Note: if you cannot remember what a compound interest system is, revise notes for 2.1 Simple and Compound Interest.

  • Compound interest systems with regular payments or withdrawals are often known as annuities.

Perpetuities

  • Perpetuities are a special case of annuity, which does not change value.
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