Talk:Annuity/Archives/2014

Untitled

In the introduction, I am bothered by the two phrases "terminating" and "specified period of time." Isn't a perpetuity a type of annuity? --B0mbrman 13:41, 26 June 2006 (UTC)

I agree - an annuity is not necessary terminating and hence perhaps this should be editted to something like 'a financial instrument providing a steady stream of payments over a period of time, which may or may not terminate'. --Foggy1974 15:56, 12 July 2007 (UTC)

Over the years since these two comments appeared above, I don't see any opposing point of view being made, so I have moved the simpler definition from the top of the "Annuity-immediate" section to the top of the Article.

Jonathan G. G. Lewis 06:12, 18 November 2013 (UTC) — Preceding unsigned comment added by Jonazo (talk • contribs)

Formula?

I have a question...what does the "i" represent in the formula?--80.227.100.62 05:15, 22 April 2007 (UTC)

Good catch. The 'i' should have been an 'r' to correspond to the main formula. I have changed to reflect this, thanks.--Gregalton 06:09, 22 April 2007 (UTC)

No, That isn't right - not unless m happens to be 1, which isn't always the case. This whole page is jacked - the meaning of the variables is not spelled out, and the symbols used could be better in many places (in my opinion). I'm going to fix it to match a linear algebra textbook, include a reference, and let it improve from there. —Preceding unsigned comment added by 71.105.166.166 (talk) 16:37, 1 September 2007 (UTC)

OK - I did what I could (for now). There are lots of improvements that can be made, still. I believe it's safe to remove the "Citations needed" block at the top, anyone agree? —Preceding unsigned comment added by 71.105.166.166 (talk) 17:47, 1 September 2007 (UTC)

Why does the "In the limit as n increases" need a citation? It's a simple mathematical identity that (1 + i)^n > i for n >= 1 thereby reducing the annuity formula to a perpetuity. 121.45.133.139 11:36, 1 October 2007 (UTC)

Chance of death

An important class of annuities lasts until the death of the recipient. These are life annuities. For these, the probability of death would also affect the value of the annuity. Could someone say how to calculate these? does anyone have real-world values from SEC or insurance companies for typical annuity values? —Preceding unsigned comment added by 194.94.224.254 (talk) 12:14, 11 September 2007 (UTC)

Link with PVIFA

In the formula for the present value, the term between squared brackets, is often referenced as PVIFA_i,n. Shouldn't this be mentioned, and maybe also linked do the PVIFA article?

JackStoneS (talk) 17:38, 1 February 2010 (UTC)

Annuity due is useful for lease payment calculations 1

Hi, what about the sentence "Annuity due is useful for lease payment calculations 1" - should it be there in the article? Best regards, --Jiří Janíček (talk) 17:01, 23 March 2010 (UTC)

month rate plain wrong?

The formula i=r/m is not ok. If i have 12% annual rate it is not the same as 1% per month. It would lead to (1.01)^12 = 1,126825 => 12,68% annual rate. Correct calculation is i=(1+r)^(1/m)-1 so unless you cite any resources there is a mistake. — Preceding unsigned comment added by 86.49.81.117 (talk) 12:12, 15 June 2012 (UTC)

While this might need clarification, it is not wrong as stated. Perhaps that is why it needs clarification. It is a convention that the monthly rate is 1/12 the stated annual rate, and more properly stated the "annual rate" is the "nominal annual rate". The effective rate is higher. Ozga (talk) 21:05, 28 July 2012 (UTC)

Ordinary Annuity redirect?

I think a redirect link should be added for "Ordinary Annuity" to this article, probably to the part of the article that defines the term. Other types of annuities could also get redirect links as well, but I am not sure which ones yet. Nutster (talk) 22:51, 13 February 2013 (UTC)

Is it just me, or are the brackets in the example section all wrong?

The answers seem alrigt though. — Preceding unsigned comment added by 124.180.200.221 (talk) 14:50, 5 October 2013 (UTC)