B21 Annuities Payable m-thly Flashcards
1
Q
What is an m-thly annuity?
A
annuity with m payments per year
2
Q
how do we find the PV of pmts of 1/m every m-th of a year for n years using the effective rate per pmt period?
A
a^(m) angle n i = 1/m * a angle m*n i(m)/m
3
Q
how do we find the PV of pmts of 1/m every m-th of a year for n years using the effective rate per pmt period?
A
a^(m) angle n i = 1/m * a=s angle m i(m)/m * a angle n i
