The annual contribution is $3,000 and the number of payments is 40 and the interest rate is 8%. What would the Future value be? Waht would this formula look like? Thanks in advance.
Archive for the ‘Value of Future Payments’ Category
future value of an annuity problem?
29
Mar
The future value of an annuity IF value is 4.5 and has interest of 10% for 4 years. In order to accumulate $8,000 by the end of 4 years, how much should the annual payments be?
A. 2,500
B. 1,778
C. 2,000
D. None of the above
Would it not be 8,000 x 4.5? This would be it the answer is D. I’m not really sure due to the way this problem is worded. Anyone know?
future value of annuity question?
28
Mar
Claire is planning to begin an individual retirement program in which she will invest $1500 at the end of each year. Claire plans to retire after making 30 annual investments in the program earning a return of 10%. What is the value of the program on the date of the last payment?
what is the future value of a 5 year ordinary annuity due that promises to pay you 300 each year?
27
Mar
Assume that all payments are reinvested at 7% a year until year 5
Does anyone know the answer to the following question?
26
Mar
9.Mrs. Crawford will receive $6500 a year for the next 14 years from her trust. If an 8% interest rate is applied, what is the current value of the future payments?
10% interest rate. What is the future value of this.?
25
Mar
A trust fund would be set up for the next 8 years. At the end of that period, Dr. Wolf would receive the proceeds (and discount them back to the present at 10 percent). The trust fund called for semiannual payments for the next 8 years of $200,000 (a total of $400,000 per year).
Future value of an annuity due?
25
Mar
What is the future value of a 5-year annuity due that promises to pay you $300 each year? Assume that all payments are reinvested at 7 percent a year, until Year 5.
present value/future value. please help.?
24
Mar
a student is paid a monthly allowance of $500 for the duration of his studies (1 yr = 12 months). the interest rate is 15% p.a. and the payments are made at the end of each month
a) how much money would need to be deposited on the day of departure to cover the allownce?
b) what is the total value of allowance on the day the final payment is affected?
a) PV of annuity = $22,477.50
b) FV of annuity = $40,834.83
I just don’t see how you can come up with those two values? Could someone please help me with this?
a)
PV = a/r * [1 - 1/(1 + r)^n]
PV = 500/.125 * [1 - 1/(1.0.125)^12]
b)
FV = a/r * [(1 + r)^n - 1]
FV = 500/.0125 * [(1.0125)12 - 1]
what am I doing wrong here?
Future Value and Present Value?
23
Mar
I am in Financial Management and I am not sure which formula to use for these problems. Any help would be appreciated. Thanks!
1. Linda has decided to set up an account that will pay her granddaughter $5000 a year indefinately. How much should Linda deposit in an account paying 8 percent annyal interest?
2. Cara establishes a seven year, 8 percent load with a bank requiring annual end of the year payments of 960.43. Calculate the original principal amount.
Does anyone know if I use Present Value Annuity Due, Present Value Ordinary Annuity, Present Value, Future Value Annuity due, Future Value Ordinary Annuity or Future Value?
Thanks!!
Find the monthly payment that will yield the future value of $110,000?
22
Mar
using an ordinary annuity at 10% interest for 34 years. (Round the answer to the nearest cent please)
Future value of ordinary annuity = payment (compound interest factor)?
21
Mar
CAN SOMEONE EXPLAIN IN DETAIL THE CONCEPT OF FUTURE VALUE OF ORDINARY ANNUITY = PAYMENT (COMPOUND INTEREST FACTOR). Also I would like the correct formula.
What is the future value of a 5-year annuity?
21
Mar
due that promises to pay you $300 each year? Assume that all payments are reinvested at 7 percent a year, until Year 5.
What is the present value and payment on these accounts?
20
Mar
What is the present value of an ordinary annuity that has $230 monthly payments for 12 years if the account receives 8 3/4 % interest.
present value = $
What are the payment(s) on this account? Find the monthly payments for an ordinary annuity that will yield a future value of $500000 at 6 1/4% interest for 29 years.
payment = $
What nominal interest rate must the analyst be using to find the future value in this problem?
19
Mar
If it were evaluated with an interest rate of zero percent, a 10-year ordinary annuity would have a present value of $4,000. If the future (compounded) value of this annuity, evaluated at Year 10, is $6,425, what nominal interest rate must the analyst be using to find the future value?
I can see two different ways of doing this problem.
1) With a $4,000 present value at a zero interest rate, the payment amount is equal to the present value divided by the number of periods (10). Thus, the payment amount is 400.
Now that we have the payment amount, we can plug in the rest of the data into the calculator:
FV=6425
PMT=400
N=10
I/Y=?
Computed: I/Y=10.16296890% or 10.16%
or
2)
PV=4000
FV=6425
N=10
I/Y=?
Computed? I/Y=4.85310944
Which one (if either) is correct?
need help with the future value of an annuity?
18
Mar
I’m going back to college after 10 years so it’s been forever since I’ve had to do an annuity problem lol and I need a little help, I think I’m having problems with the fractions…
Here’s the problem -
Find the future value of the following annuity due:
Payments of $2310 for 7 years at 10.2 % compounded annually