Study guides

☆☆

Q: What is the present value of a 30 year annuity with payments of 7000 per year if interest rates are 8 percent annually?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year

BY Gautam Brahma Duration of a level annuity is given by the formula ( 1+yield/yield )- (No of payments)/{(1+yield)^no of payments -1} i.e (1.06/.06) - (5)/{(1.06)^5-1} i.e 2.88 years

5% ($72.50) per year.

Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.

The interest paid annually is 700*5/100 = 35

Related questions

The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year

39,337.20

BY Gautam Brahma Duration of a level annuity is given by the formula ( 1+yield/yield )- (No of payments)/{(1+yield)^no of payments -1} i.e (1.06/.06) - (5)/{(1.06)^5-1} i.e 2.88 years

I wouldn't. I make better investments than that.

The interest rate on an ING variable annuity account as obtained via their official company website is anywhere from the 2.5 percent to 3.5 percent range.

400000

year

5% ($72.50) per year.

It means the percent of interest paid annually (p.a. means per annum).

Interest of r% per quarter is equivalent to {(1+r/100)4 - 1} percent annually.

The interest paid annually is 700*5/100 = 35

11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.11000*6/100 = 6606% per month is an outlandish interest rate - equivalent to more than 100 percent annually.

People also asked