Annuity Of Financial Mathematics

Have you calculated your own installment to be paid every month if you will buy the house by way of installment? If you ever, can you calculate the rest of your loan, if it has been repaid for n years from the payment of the house that you are installing? That's the kind of thing that's discussed in annuities.

Defenition of Annuity

An annuity is an amount of loan repayment of an equal amount paid out over a period of time, and consists of the interest and the installment.

Formula of  Anuitas

A = an + bn
an = a1(1 + i)n atau an = ak(1 + i)n - k

Information :
A = Annuity
an = The nth installment
bn = The nth interest
ak = The kth installment

Example Question of Anuitas


A loan will be repaid on a yearly annuity. Please determine the magnitude of the annuity if the 6th installment and the 6th interest are $ 215,000 and $ 85,000!

Answer :
a6 = $215,000
b6 = $85,000

A = an + bn
A = a6 + b6
A = $215,000 + $85,000
A = $400,000

So the annuity value is $ 400,000.

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Referensi :
  • To'Ali's book math group accounting and sales

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