ABSTRACT
This chapter introduces annuities, which are uniform series of payments or disbursements deposited or withdrawn at equal intervals such as yearly, monthly, or daily. This chapter also explains the difference between problem time zero (PTZ) and equation time zero (ETZ). The formulas for the uniform series compound amount factor and the uniform series present worth factor are introduced, and a case study is included on social security income that illustrates using the uniform series present worth factor. The uniform series sinking fund factor and the uniform capital recovery factor are covered along with the process for calculating the remaining balances on loans and balloon payments. The last section of this chapter demonstrates the process for calculating the present worth of infinite uniform series and the infinite uniform series of a present worth.
