Understanding Annuities and Perpetuities: A Tutorial

This video gives an overview of what annuities and perpetuities are and how to calculate present value of these instruments. The video also covers cases where stream of cash flows is growing at a constant rate. Focus is on calculating present value as that is the most convenient way to understand the nature of annuities and what they are worth today. This tutorial is extremely useful in understanding almost all financial instruments as concepts learnt here are directly applicable to bond and stock valuation.

• #education
• #annuity
• #perpetuity
• #bond_pricing
• #present_value
• #stock_pricing
• #valuation
• #growing_annuity
• #growing_perpetuity