Annuity factorForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Annuity factorThis topic has 1 reply, 2 voices, and was last updated 9 years ago by Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts March 9, 2016 at 10:01 am #304684 AustinParticipantTopics: 30Replies: 5☆Hi,May I know how to use normal calculator to calcuate the annuity factor?I know how to use calculator to calculate the discount factor only.Discount factor : 10% (1/1.1 for 1st year, then /1.1 for 2nd year….)Thanks in advance. March 9, 2016 at 2:40 pm #304760 Ken GarrettKeymasterTopics: 10Replies: 10575☆☆☆☆☆You need to be able to raise a figure to a power.Annuity factor = 1/r x (1 – (1/(1+r))^n)where ^ means raise to a power.So if r = 8% and n = 4 yearsAnnuity factor = 1/0.08 x (1 – (1/(1.08))^4)= 1/0.08 x (1 – 0.9259^4) = 1/0.08 x (1 – 0.7350) = 3.312The button you need to raise to a power might be ‘x’ with a small square at its top right. Practice with small numbers like 3 raised to power 4 etc.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In