2025-05-24

Growing annuity questions explained step-by-step

This video focuses on solving a time value of money (TVM) problem involving a growing annuity. Using an example where a borrower repays a loan with increasing annual payments, we break down the problem into simple, manageable steps. You’ll learn how to identify the type of annuity (growing, normal, or due), extract key variables like present value, discount rate, growth rate, and time horizon, and apply the growing annuity formula to calculate the loan’s value. By the end, you’ll be confident in solving similar TVM questions for exams, assignments, or personal use.

Previous

How to calculate principal over interest using TVM

Next

Overview of the present and future value of money