The question is:
What would be the increase in the per annum cost of the maintenance contract?
The information I already have is that maintenance costs £8000 per year currently. I have the formula needed to work this out:
Change in maintenance cost –
X * Annuity factor = Change in NPV
My change in NPV is £431,868.20
I have the solution, but I have no idea where to get the annuity factor from? It is not provided anywhere. Thanks.
I want to buy a house (my first) and I would like to use some of my 403 funds for it
I am really interested in investing in the stock market, but I don’t want to use a broker. Is there a website or something to go to, to invest in a companie?
here is the word problem,Calculate the amount of money that you must deposit all at once, for a deferred annuity, if you want to provide your in come amount(2600) after a deferral time of 8 years, extending 17 years after that, with an interest of 4.8%, solve for twice monthly
I’m trying to get the present value of interest on a bond.
face value is 500,000, interest is 12% for five years paid semi annually.
Using an ordinary annuity table I get 7.3601 as the factor, but for the life of me I cannot remember how to use a financial calculator to solve this problem. Can you tell me what keys I should use to answer problems like this?
Lately, I’ve been thinking much about an early retirement. Have worked over 20 years in the same company. Plus, always good to prepare as I’ve seen friends and family get an early retirement forced upon them. I was thinking about using an immediate annuity (along with a pension) for a guarenteed income stream. However, since a regular income wouldn’t keep up with inflation, I’d definitely still want to have money invested in mutual funds too.
Let’s say the annuity plus penison brings in about $50,000 a year, with about $400,000 left in other investments and a Roth IRA about $50,000. Also, no mortage in home, no dependents to provide for. With $50,000, some of that can still be used to continue investing in mutual funds even in retirement. Thus, if a bear market comes along, it’s comforting to know there is a steady income stream.
Would that combination of annuity and mutual funds be the best of both worlds for a stress free early retirement?
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
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.