ABSTRACT
Chapter 4 treats the case of annuities certain (payments are guaranteed). Basic definitions of the various types of annuities and their valuation are provided. These include level payment annuities immediate and annuities due, varying payment annuities, continuous annuities, and perpetuities. Problems involving the value of an annuity are any point in time are considered. In addition, problems involving the present and future value of annuities in which the payment frequency differs from the frequency of interest conversion are also considered as the valuation of annuities with varying payments.
