Present Value of a Deferred Annuity (Example 5.26) | Step-by-Step Timeline Approach скачать в хорошем качестве

Present Value of a Deferred Annuity (Example 5.26) | Step-by-Step Timeline Approach

In this video, we walk through Example 5.26, calculating the present value of a deferred annuity using a clear, intuitive timeline approach. Mohammed is set to receive a four-year annuity of $500 per year, beginning in period 6, with an interest rate of 10%. Instead of relying on memorized annuity formulas, we break the problem down into simple present value calculations of individual cash flows, then sum them to find the total present value. We also compare this method with: The financial calculator approach The Excel PV function A discussion of why calculator/Excel results must be discounted further when payments are deferred This video is ideal for students studying finance, accounting, economics, or CFA/CPA coursework, and for anyone looking to strengthen their understanding of time value of money concepts. Disclaimer: This video is for educational purposes only and does not constitute financial or investment advice.