Future value of annuity

This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.

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November 16, 2016 at 11:23 pm #349411
nrafiq
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Hi
If in future value of annuity question it is not given that the rate of return percentage is p.a or it is monthly and even its not mention about compound, just in question its mention that in next 4 years a man will invest 3000£ yearly.
How can I treat this question? Do I need to treat return percentage as p.a?
November 17, 2016 at 7:19 am #349478
John Moffat
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You would always assume it to be per year unless told differently (although in the exam you will almost certainly be always told whether or not it is per year).
It is always compounded unless you are specifically told otherwise.
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