# Questions tagged [annuity]

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### Put-call parity for cash settled swaptions

The Euro swaption market is changing from cash to physical settlement quotation in July 2018 $-$ see e.g. "Euro swaptions market prepares for pricign revamp (Risk, 2018)". When describing the issues ...
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### Calculation of Combined IRR

How to calculate combined IRR for two different cost of funds? The emi (Equated Monthly Installment) amount, whether it is calculated separately or based on the combined IRR should be same. I tried ...
721 views

### Why is the annuity factor proportional to the CV01?

For an asset with par amount of one unit (with a semiannual payment regime) we have $$\frac{C(T)}{2}\sum_{t=1}^{2T}d\Big(\frac{t}{2}\Big) + d(T) = 1$$ $$\implies\frac{C(T)}{2}A(T) + d(T) = 1,$$ ...
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### Pricing with-profit/smoothed bonus annuity using Black-Scholes

Would this be possible? Subsequently, would the pricing of such an annuity be somewhat similar to pricing a lookback option?
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### Present Value versus. Future Value of an Annuity Due

To determine the present value of an annuity due, 1 is added to the discount factor of the ordinary annuity. However, to determine the future value of an annuity due, 1 is removed from the discount ...
243 views

### Is there a formula for present value of a growing annuity with yearly payment growth and monthly payments? [closed]

I have seen formulas that have cracked the future value of growing annuity where there are monthly payments and yearly growth rates. But given a future value, is it possible to derive the present ...
15 views

### Future wealth calculation with investment

Task: The student is 25 years old now. He say, that next year his salary will be 15000€ per year. His salary will grow +5% each year until his pension (when he will be 65 years old). Calculate how ...
16 views

### capital recovery factor isolate interest

in the capital recovery factor formula: CRF = i(1+i)^n / ((1+i)^n)-1 If we know CRF and n, is it possible to isolate the i? right now I am using excel to get ...
341 views

### Increasing Annuities [closed]

Olga buys a 5-year increasing annuity for X. Olga will receive 2 at the end of the first month, 4 at the end of the second month, and for each month thereafter the payment increases by 2. The nominal ...
54 views

### Find a relationship between the present value and future value of an annuity [closed]

The following is a previous examination question in Financial Mathematics: If $A, r, n, PV$ and $FV$ represents the ordinary annuity (annuity immediate) amount, rate of interest, number of years, ...