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John Moffat.
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richardscully
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Is there a way to do a quick add up on an annuity and discount calculation without writing down each year then adding up. I am noticing more and more questions where they did not round up but calculated their own
John Moffat
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You are given the annuity discount factors in the exam (and they are printed at the front of our free lecture notes)!!!
The tables only cover whole rate of interest (1%, 2% etc.). If you are required to calculate an annuity factor for a non-whole rate of interest (e.g. 4.8%) then you use the formula that is given at the top of the annuity discount factors sheet (although using the nearest whole % will usually get you the marks anyway).
All of this is explained, with examples, in the Paper F2 lectures on discounting.
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