M5 4.4 Future Value of Ordinary Annuity

An Annuity, In Business, Involves Only A Single Payment Made Without Any Regularity In Intervals.

Annuity In Business Terms Refers To A One-Time Payment Made At Irregular Intervals.

In Business Terms, An Annuity Refers To Unequal Payments Made At Irregular Intervals.

An Annuity, In Business Terms, Is A Series Of Equal Payments Made At Regular Intervals, Such As Monthly Or Annually.

Annuity

Ordinary Annuity

Annuity Due

Annuity

Ordinary Annuity

Annuity Due

Annuity

Ordinary Annuity

Annuity Due

$250.44

$231.91

  $184.08

$181.62

$170.44

Beginning of the period

First 3 days of the period

Middle of the period

End of the period

Beginning of the period

Three times during the period

Middle of the period

End of the period

A series of payments is made for annuities.

The cash value of annuities can be figured using the compound interest table.

Compound interest investments are for a shorter time period.

Annuities involve a series of payments of usually differing amounts, whereas compound investments involve regular contributions of equal amounts.

$32,000.00

$42,240.00

$37,278.00

$36,240.00