Respected Friend;
A.O.A thanks for reply
My problem is:
I know about the concept of annuity as well as ordinary or due annuity.
but i not understand both these concepts in present as well as future
annuity. I check it in different FM books of forgion authorz but i am
not clear about these concepts. Plz help me to understand them in
simple wordings.
Secondly,
in which condition we use that formula1) PV=C[(1+i)^n-1]/i instead of
(2) PV= PMT[(1+i)^n-1]/i
for example: A company xyz establish a fund to retire 5,00,000 8% debanture a year from today. The company plan to put a fix ammount in to a fund each year for 10yrz. A company antisipate that a firm earn 6% annual. what equal annual contribution to accomulate 5,00,000 in 10 years.
why we solve it with formula (1)?
surly its not a big problem 4r you bt for me its a big rock

Thanks for cooperation
Ayesha raja

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