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What is the future value of a 900 annuity payment over five years if interest rates are 9 percent?
To calculate the future value of a $900 annuity payment over five years at an interest rate of 9 percent, you can use the future value of an annuity formula: FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the interest rate, and n is the number of periods. Plugging in the values: FV = 900 * [(1 + 0.09)^5 - 1] / 0.09. This results in a future value of approximately $5,162.80.
What variables are required to calculate the present value of a future amount?
The future amount itself and a discount rate.
How do you account for structured settlement factoring?
Structured settlement factoring involves the sale of future payment rights from a structured settlement in exchange for a lump sum payment. To account for this transaction, the present value of the future payments is calculated using an appropriate discount rate, reflecting the time value of money. The lump sum received is recorded as cash, while the receivable from future payments is derecognized. The difference between the present value and the amount received may be recognized as a gain or loss in the financial statements.
What Excel function calculates the future value an investment based periodic payments?
FV( interest_rate, number_payments, payment, PV, Type )
Why present values are dependent upon interest rates?
Interest rates are also known as discount rates because in order to calculate the present value of a future amount, the future amount must be discounted back to the present
What is the purpose of the pmt argument in the Future Value function?
Payment is the amount of the payment made each period.
How can a payment create a credit balance on an account?
A payment can create a credit balance on an account when the amount paid exceeds the total amount owed. This results in the account having a positive balance, which can be used towards future purchases or refunded to the account holder.
Why we treat provison for tax as current liability?
With the process of provision we create the amount and set aside to payment for taxes in future as it is payable in short term future that's why it is called current liability.
What variables are used in solving a time value of money problems without a periodic payment?
Present Value (PV)Future Value (FV) Number of periods (n) Interest Rate (i) Payment Amount (PMT)
Do future value calculators account for inflation?
No. Future Value Calculators use a set amount, payment and interest fee to calculate. If you need to apply the inflation factor, you will need to use an Inflation Calculator.
Is accrued salaries payable a liability account?
Yes, accrued salaries are those amount which is due but not yet paid and payment is deferred for future time.
What is a pick up payment in an auto loan and how is it applied?
A pick up payment is an irregular or deferred down payment. The down payment is the amount paid up front and reduces the amount financed. Some amounts may be deffered to future dates. The amounts and dates of these payments must be disclosed on your contract and are separate from your regular payments. If interest accrues off these payments depends on the state and dealer.
How accurate is the Future Value Calculator?
The Future Value Calculator bases its responses on your input of rate per period, payment amount, present value etc. If your input for these values is accurate than Future Value Calculator should be fairly accurate.
What happens for non payment on unsecured debt?
It will most likely be turned over to a collection agency. Then it will be reported to the credit bureaus which will make it difficult for you to get loans in the future.
Is it beneficial to calculate a mortgage payment for the future?
It is always beneficial to calculate a mortgage payment for the future. Being aware of financial obligations, especially one as large a a mortgage payment, whether in the present or future, is a good step toward financial security.
What happens if your card declines after a haircut?
If your card declines after a haircut, you may be asked to provide an alternative form of payment or to settle the payment at a later time. The salon may also have a policy in place for handling declined payments, such as charging a fee or suspending future services until the payment is resolved.
What can you do if you cant make your car payment and any future payments?
what can you do when you cant make a car payment what can you do when you cant make a car payment
