Worked examples

Compounding, annuities and amortization

One sheet for each type of problem, with several worked examples of increasing difficulty: first the computation, then the explanation in words. Each sheet starts with links to the theory it uses.

• 1Accumulated values, present values and discounts
• 2Equivalent rates, nominal rates and force of interest
• 3Annuities immediate and annuities due
• 4Problems with unknown time or rate
• 5Financial equivalences and average due dates
• 6Deferred annuities and perpetuities
• 7French and Italian amortization schedules
• 8NPV and IRR of investments