acct209 at Texas A&M

6. Purchasing with an Annuity

in Time Value of Money (Video 6 of 7)
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Often times, a company will buy equipment but not pay for the full amount up front. In this way, a company can purchase equipment using an ordinary annuity.

This Video Mentioned Some Formulas

Payment Amount
* PVOA(i, n) (Look this up in the PVOA Table)
Present Value of an Ordinary Annuity

The Rest Of The Videos

1 What is Present Value 8:15
2 Simple vs Compound 14:41
3 PV of a Lump Sum 4:39
4 PV of a Lump Sum 6:09
5 Ordinary Annuity 7:16
6 Purchasing with an Annuity
You are here. 		4:31
7 Finding the Payment 6:07
Chapter 10 →

Time Value of Money Practice Problems

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1 Purchasing with a Non-Interest Bearing Note Moderate
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