Annuities

Annuities

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 3: Time Value of Money

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of annuities.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Future and present values of ordinary annuities and annuities due
• Finding payments, periods and interest rates

Detailed Microsyllabus

1. Ordinary annuities

   1. Equal payments at period ends.
   2. Calculate present and future values.
   3. Identify the appropriate valuation date.

2. Annuities due and unknowns

   1. Payments at period beginnings and timing adjustment.
   2. Solve for payment, periods or interest under supplied conditions.
   3. Verify timing and distinguish ordinary from due annuities.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.