B.2.8 Annuity Tricks Flashcards
1
Q
what is the double dots cancel?
A
a due angle m / s due angle n
a angle m / s angle n
2
Q
what is upper m’s cancel?
A
a due ^(12) angle m / s due ^(12) angle n
a angle m / s angle n
3
Q
what is a angle 2n / a angle n trick?
A
a angle 2n / a angle n = 1 + v^n
4
Q
what pyramid annuity immediate eqn?
A
a angle n * a due angle n
5
Q
what pyramid annuity due eqn?
A
a due angle n * a due angle n
6
Q
what is the 0% Test?
A
when faced with a problem with algebraic answewr choices, you can easily test the viability of answer choices by checking them wth an interest rate of 0%
With i = 0, the time value of any annuity at any point in time is just the sum of its pmts
