In this video, I provide deeper insight into how the Present Value and Future Value of Annuity formulas are related to each other. I also emphasize that the formulas that you usually see for Present Value and Future Value of Annuities (as well as PVIFA and FVIFA Tables) are based on the assumption that the annuities in question are ORDINARY ANNUITIES, i.e. annuities in which the first cash flow occurs one time period from today.

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My name is Atif Ikram. I am a member of the finance faculty at Arizona State University's W.P. Carey School of Business (https://wpcarey.asu.edu/people/profil.... I love to teach! Over the past few years, I have taught a variety of economics and finance courses to undergraduate and graduate students at Rutgers University, Wayne State University, and Lahore University of Management Sciences (LUMS, Pakistan). Presently I teach advance corporate finance courses at ASU.

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