00:03
So we need to find the accumulated values of some annuities, right? now, dealing with the first one, we are receiving 400, right? and since it's an annuity, the formula that we use is to say that 1 plus i, so it's 1 plus 5 % to the power n, right? my n is for 10 years, minus 1 over i.
00:34
I is 5 % right then this is equal to 5 ,000 and 31 .16 right so that's all we need to do we need to just say the amount times 1 plus i to the power n minus 1 over i right then for the second one it will then be it's 200 now times 1 plus i to the 1 plus 5 % again but it's to the power 5 minus 1 over 5 % and this is equal to 1 ,105 .13 right then the third one is an amount of 400 right but the interest rate changes it's now 1 plus 0 0 % to the power 5 minus 1 over 0%.
01:50
Now, because we have this 0 below, even if you look at the numerator, it's going to be 1 to the power 5, which is just 1.
01:58
1 minus 1 is 0.
02:00
So this accumulated value is just 0, right? now, in the second case, right, if these annuities which were to be made in advance, the only difference is that you would be saying, x times my previous formula was one plus i to the power n minus one over i the only thing that you add is one plus i right if we were to make this payment in advance we need to accumulate it a further period right so it means that my a would be 5 000 and 31 .16 because the first part is the same times one plus 5%...