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n - añ\ n * (Da)n\ = (Dä)n\ = i - Ant n - añ\ (Dā)n\ = δ d *Note: The decreasing annuity can be found from the corresponding increasing annuity (and vice-versa).

n - añ\ n * (Da)n\ = (Dä)n\ = i - Ant n - añ\ (Dā)n\ = δ d *Note: The decreasing annuity can be found from the corresponding increasing annuity (and vice-versa).

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 23GI: What is a deferred ordinary annuity? How does it differ from one that is not deferred? Draw a time...
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Question

show for the three decreasing annuity are given by: 

hint: you have to show your full workings from basic principles of valuing a constant payment stream

n - añ\ n * (Da)n\ = (Dä)n\ = i - Ant n - añ\ (Dā)n\ = δ d *Note: The decreasing annuity can be found from the corresponding increasing annuity (and vice-versa).
Transcribed Image Text:n - añ\ n * (Da)n\ = (Dä)n\ = i - Ant n - añ\ (Dā)n\ = δ d *Note: The decreasing annuity can be found from the corresponding increasing annuity (and vice-versa).
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