acct209 at Texas A&M

6. Purchasing with an Annuity

in Time Value of Money (Video 6 of 7)
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

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