0
Still curious? Ask our experts.
Chat with our AI personalities
Coach
Rafa
TaigaAdd your answer:
Earn +20 pts
How is present value annuity factor calculated?
The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.
When there is only one compounding period in a ordinary annuity the table factor for future value is always 1?
True
How do you compute the present value factor of an annuity due?
well, you take a look at the % (aka the estimated rate) and the number of periods you'll be paying the anuity and look it up on this table. For example if the rate is 8% and you'll be paying 20 periods the number is 10.6036. take 10.6036 and multiply that by the payment and you should find the present value of your annuity due. right that table could be found here... http://www.principlesofaccounting.com/ART/fv.pv.tables/pvforannuitydue.htm
What are the six functions of a dollar?
1. What will the value of a dollar grow to in n periods at i interest? (Table #1 = Future value of a dollar) 2. What will a dollar set aside at the beginning of each year accumulate to after n periods at i interest? (Table #2 = Accumulation of a dollar per period) 3. How much must be set aside in each of n periods at i interest in order to reach a specific sum in the future? (Table #3 = Sinking fund factor) 4. What is the value today of a dollar received n periods in the future if one's opportunity cost is i? (Table #4 = Present value of a dollar) 5. What is the value of the right to receive a dollar each of the next n periods if opportunity cost is i? (Table #5 = Present value of an ordinary annuity) 6. What instalment payment is required to amortize a debt of one dollar over n periods at i interest? (Table #6 = Installment to amortize a dollar)
What is size change factor?
don't take this answer is a factor to the reasonable of the time table of course you stupid
