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# What exactly is the annuity calculator Canada?

# What are Mathematical calculations for annuity due?

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# How do you calculate annuity payments?

An annuity is a series of equal cash flows over time that comes at regular intervals. The cash flows must be either all payments or all receipts, consistently occur either at …the beginning or the end of the interval and represent one discount period. Payments made at the beginning of the period indicate an "annuity due" which can include rents and insurance payments. Payments at the end of the period indicate an "ordinary annuity" which include mortgage payments, bond payments, etc. Although loan payments, mortgages and similar financial instruments can be regarded as an annuity, the term is mostly applied from the perspective of being an asset. For example, payments from a lottery or distributions from a lump-sum amount can be considered as an annuity. Annuities can also be an investment used to guarantee a regular income during a retirement. Calculating annuity payments can come from two perspectives: the future value of an annuity or the present value of an annuity. Calculating Ordinary Annuity Payments From Future Value If the desired ending amount is known together with the discount rate and number of periods, the payments can be calculated as follows: PMT = FV / (((1 + r)^n - 1) / r) Where: PMT = Payment amount made at the end of the period FV = The future value of the annuity (how much the balance will be after all payments have been made) r = the discount rate ^ = raises the value to the left to an exponential number on the right n = the number of payments In this calculation, the present value (PV) is assumed to be zero. Calculating Ordinary Annuity Payments From Present Value If the sum of money or balance on hand is known together with the discount rate and the number of periods, the amount of payments to reduce the balance to zero can be calculated as follows: PMT = PV / ((1-[1 / (1 + r)^n] )/ r) Where: PMT = Payment amount made at the end of the period PV = The present value of the annuity (how much is currently on hand) r = the discount rate ^ = raises the value to the left to an exponential number on the right n = the number of payments In this calculation, the future value (FV) is assumed to be zero. Calculating Annuity Due Payments From Future Value Because the payment earns interest for one additional period than the ordinary annuity, the future value should be adjusted as follows: FV annuity due = FV ordinary annuity X (1+r) The new value for future value can now be inserted in the original equation to compute the annuity due payments. Calculating Annuity Due Payments From Present Value To remove the additional discount period for each payment made on an annuity due, the present value of the annuity must be adjusted as follows: PV annuity due = PV ordinary annuity X (1+r) The new value for future value can now be inserted in the original equation to compute the annuity due payments. Alternate Methods Because calculating the payments for ordinary annuities and annuities due, a financial calculator such as the HP 10bII can be used to simplify the process. When many calculations must be performed, the process can be expedited through the use of a spreadsheet such as Microsoft Excel which is equipped with time value of money functions. See the related links below for an annuity calculator for different types of contracts that compute the balance, distributions, or present value using the amounts you specify.

# How accurate are annuity calculators in Canada?

They will be as accurate as annuity calculators in other countries, all of them exclude liability of accuracy so it is best to get a real calculation.

# In Canada which annuity calculator will handle the currency conversion rates?

All of the Calulators are standard. None of them handle currency conversion. You may have to speak with a financial adviser for a more detailed quote.

# What is an annuity calculator Canada and how is it used?

An annuity calculator Canada is a calcualtor that they use in Canada for math. They do things a little differently and math is one of those things that they do differently.

# Why are certain annuity calculators only available in Canada?

Canadian calculators are based on the laws of that country and the way interest is calculated on monies. This can be a great savings compared to American laws. IE: Interest ca…n only be compounded twice anually and must always be in arrears, whereas in America the interest is accrued monthly and never in arrears.

# Where can you buy an annuity value calculator?

You can not buy an annuity value calculator. It is a tool used in the financial industry to figure out future values or fixed payments. You can use a scientific calculator to …figure this out. Just key in the correct formula and you will have your answer.

# How do you use an annuity value calculator?

You use an annuity value calculator by inserting the starting principle amount, then enter the growth rate (in %), and then enter the number of years you are looking into then… hit calculate.

# Where can you find an online annuity calculator?

Calculating the value of your annuity can be an important aspect of settling your finances. Many companies, banks, or colleges have online annuity calculators to help you calc…ulate the value of your annuity.

# Exactly what values are calculated by a annuity value calculator?

An annuity value calculator calculates past value, present value, and estimated future value of an item or stock. It can also tell you what your current payout would be.

# What does an annuity calculator do?

This type of calculator gives you the annual payment of annuity. If you don`t know what annuity is, then this won't help you out very much. But I hope that it will.

# What exactly are insurance annuities?

An insurance annuity is when a seller makes payments to a buyer for payment of one large amount of money. You usually would go through a bank to get this process going.

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# What are annuity calculators used for?

Annuity calculators are used to calculate the returns on investments made in annuities.

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# What exactly is an annuity settlement?

An annuity settlement is a financial or insurance arrangement where the insured party receives periodic payments from the accused. The accused may then transfer their periodic… payment responsibilities to an organized settlement organization.

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# What can be calculated on the Immediate Annuities website?

The Immediate Annuity Calculator calculates the amount of monthly income you will receive in return for a specific Premium. One can also find how much Premium would be necess…ary in order to receive a specific monthly income amount.

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# What exactly are annuities used for?

Annuities are payed out at intervals over a period of time. One would invest in an annuity to ensure that they had income still coming in regularly if something should happen …to their steady income.

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# What exactly is a life annuity?

A life annuity is an insurance product that gives a predetermined amount of money on a periodic basis to an individual until the receiver (referred to as the annuitant) dies.