EXAMPLE 1: Exam FM (Financial Mathematics)
Topik: Present Value of an Annuity
Question: Calculate the present value of an annuity-immediate that pays $100 annually for 10 years, at an effective annual interest rate of 5%.
The Formula (LaTeX): $$PV = 100 \cdot a_{\overline{10|}0.05} = 100 \cdot \left( \frac{1 - (1+0.05)^{-10}}{0.05} \right)$$
Solution: $$PV = 100 \cdot 7.7217 = 772.17$$
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