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Thread: annuity formula

  1. #1
    Actuary.com - Newbie Poster
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    annuity formula

    I can't found any formula of annuities. I need escalating annuity formula, but it would be fine to find how to calculate others annuities too. I hope i will get answer here.

  2. #2
    Actuary.com - Posting Master
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    Quote Originally Posted by kastone View Post
    I can't found any formula of annuities. I need escalating annuity formula, but it would be fine to find how to calculate others annuities too. I hope i will get answer here.
    Not sure what you mean

    For an annuity immediate the formula is (1 - v^n)/i where v = 1/(1+i)
    For an annuity due the formula is (1 - v^n)/d where d = i/(1+i)

    Not sure what you mean by an escalating annuity but any and all annuities can be summed using a geometric series, you should look it up.

  3. #3
    Actuary.com - Level IV Poster
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    Quote Originally Posted by kastone View Post
    I can't found any formula of annuities. I need escalating annuity formula, but it would be fine to find how to calculate others annuities too. I hope i will get answer here.
    Quote Originally Posted by NoMoreExams View Post
    Not sure what you mean by an escalating annuity but any and all annuities can be summed using a geometric series, you should look it up.
    The poster is, presumably, referring to increasing/decreasing annuities. kastone, you will find the most help in the "SOA Exam FM / CAS Exam 2 - Financial Mathematics - with practice exam problems" sub-forum located toward the bottom of the home page. Also, here is a results link to a search using the words "increasing annuity." That might be a good place to start. Also, this post from a different forum altogether should likely have the formulas you request, though it is imperative that you not just memorize them but that you can apply them in exam-type questions. Hopefully this will help.
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