Susan Miller is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1600 per month for 35 years. How much money must she deposit if her monay earns 8% interest compounded monthly? (Round to the nearest cent)
P=
Posts Tagged ‘Formula’
Can someone please explain to me the formula for this problem?
30
May
I need help with recognizing when to use either the PRESENT VALUE or FUTURE VALUE formula for annuities.?
06
May
I know the P-Value and F-Value formulas for both annuities due and original annuities.
I also know what values to plug into the given equation.
However, I have a hard time being able to discern when I should use either one of the two FUTURE VALUE or PRESENT VALUE equations.
Are there any tricks or tips that you finance experts might have for a finance student?
Thanks!
Math Formula Help?
04
May
Alright, here is the question:
Bob is considering two different investment structures for his IRA. One structure has him pay $500 each month into an account with an APR of 7.2%. The second structure has him pay $1500 every quarter into an account with an APR of 7.3%. Which structure will give Bob a better return on his investment in 30 years? In 5 years?
Okay, my question is do I use a compound interest formula, or an annuity formula? I do not need the actual problem solved, just which formula to use. : )
what is the formula for future value of an ordinary annuity with interest compounded continuously?
24
Mar
A bank pays 10% interest compounded continuously.
what is the future value of a 5 year ordinary annuity with payments of 2000 each?
In the state of California is there a formula insurance companies use to calculate personal injury settlements
06
Mar
I was rear ended with some injury. I don’t know what to expect regarding a settlement or if I should contact an attorney. I am not a litigious person just want what is right. Any advice would be appreciated. Thanks in advance!
annuity payment problem i just need formula and answer.?
04
Mar
You have set up an ordinary annuity that will pay you $650.00 a month for the next 25 years. You will earn interest at a rate of 5.5% compounded monthly. What amount did you invest to accomplish this goal?
Can you please evaluate the three offers in Time Value of Money formula and provide the value of each offer?
27
Feb
1- 1 mil now + 200k from year 6-15. If product sold over 100mil in sales after 15 yrs. an addition 3mil. Dr. Wolf believes there is a 70% probability this would happen.
2- 30% of buyer’s gross profit on the product for the next 4 years. The offeree’s gross profit margin is 60%. Sales in yr. 1 projected at 2mil. and to grow 40% per yr.
3- Trust Fund set up for next 8 yrs. proceeds to Dr. Wolf discounted back at 10%. Fund has semiannual payments for next 8 years of 200k (400k per yr.) Payments start immediately at beginning of each period as an annuity due. To look up the FV in tables add 1 to n (16+1) and subtract from value in table. Assume the annual interest rate on annuity is 10% annually (5% semiannually) determine the present value of the trust fund.
Find the present value of each of the three offers and indicate which one has the highest present value, please show your work.
Interest Rates / Annuities /etc. What Is The Formula For This Problem?
09
Nov
Bob makes his first deposit into an IRA earning % compounded annually on the day he turns 22 and his last deposit on the day he turns 44. (23 equal deposits in all.) With no additional deposits, the money in the IRA continues to earn % interest compounded annually until Bob retires on his 65th birthday. How much is the IRA worth when Bob retires?
Just looking for the formula(s) that i’ll need for this problem
i can solve them no need to waste anymore of your time
best answer goes to the first to give me the correct formulas
i appreciate it alot
Interest Rates / Annuities /etc. I Need This Formula Please?
09
Nov
In 8 years Harry and Sally would like to have $12000 for a down payment on a house. How much should they deposit each month into an account paying 10% compounded monthly?
Just want to note that i’ve posted this before and i still haven’t received the correct answer. Any help would be appreciated!
Formula For Interest Rate For An Annuity
31
Oct
can anyone have the formula for calculating interest rate for an annuity?
if yes, please give me.
if you know about a website where I can find all financial formulae,please give me the link
How To Find Interest Rate Using Annuity Formula?
25
Oct
using following Annuity formula
FV=PV*((((1+i/n)^n*y) -1)/(i/n))
how can you calculate interest rate i.
FV = Future value
PV = Present value
i = interest rate
n = number of periods in a year
y = number of years
Why Do Payments Come Out Lower With Monthly Compounding When Using The Ordinary Annuity Formula?
16
Oct
It seems counter-intuitive, but when I try to solve for monthly payments on this problem, the payments are lower for the annuity that is compounded monthly.
Problem:
A debt of $25,000 is to be amortized over 7 years at an annual interest rate of 7%. Calculate the value of monthly payments (a) if interest is compounded once a year, and (b) if interest is compounded monthly.
I get $386.57 as the monthly payment for the annually compounded debt and $377.32 for the monthly payments for the debt compounded monthly.
How Do I Solve For The Rate Of Return In A Future Value Of Annuity Formula?
11
Oct
In the future value of an annuity formula:
pv*[(1+r)^n - 1]/r = fv
how do I solve for r? Thanks.