标题: TVM questions - define if it is a regular annuity. [打印本页] 作者: jlg1982 时间: 2011-7-13 16:41 标题: TVM questions - define if it is a regular annuity.
Hi,
i chance upon some questions and i like to check if the questions states if it is an regular annuity.
with the first payment to be received 5 years from NOW = This is regular annuity, therefore no need to set to BGN mode.
with first payment is to be received 5 years from TODAY = This is regular annuity, therefore no need to set to BGN mode.
Is my understanding correct?
Thanks for the help and guidances.作者: siavosh 时间: 2011-7-13 16:41
So can i say the question which i post, both of them are Ordinary annuity?作者: ramdabom 时间: 2011-7-13 16:41
It doesn't actually matter what you call it. Like Beatnik said, you can calculate it as a ordinary annuity or annuity due. Just discount it by the correct number of years to the present.
If you get confused between the two, it helps if you draw up a time line.
