Annuities and Perpetuities

Basic financial concepts in bonds and other financial instruments.

By the end of this module you will be able to:

• Explain annuities and perpetuities and define the financial instruments that use them
• Calculate the value of an annuity and perpetuity when the cash flow is either static or growing
• Estimate the value of a company using a growing perpetuity
• Estimate the value of your pension fund or how long it will take to pay off your mortgage