B15 Annuity Due

Question 1

what is s̈ angle n mean intuitively?

Answer 1

the accumulated value of an annuity due (s̈ angle n i) with n payments of 1, accumlated using an effective periodic interest rate of i

Question 2

what is the formula for s̈ angle n i

Answer 2

s̈ angle n i = ä angle n i * (1+i)^n = ((1+i)^n)-1/d

this is the value of the annuity one period after the final payment