What would you like to do?

# What is the formula for finding the future value of a growing annuity?

# What is the future value of a 5-year annuity due that promises to pay you 300 each year The interest rate is 7 percent?

Edward M. Melomey (F/A,i,n); F=?, A=300, i=7%, n=5 F={A[(1+i)n -1]}/ i F={300[(1+0.07)5-1]}/0.07 F=1725.2 where F- future value A-Annuity i-interest …n-period of payment

# The process of finding the present value of some future amount is often called?

It is discounting. Good luck!

# Where can one find Annuity tables for the best rate available?

One can find Annuity tables for the best rates from: Hargreaves Lansdown, This is Money, Which, Barrons, Find, Financial Times, Financial Posts, Annuity FYI, Sharing Pensions,… Money Facts, to name a few.

# When whole life cash value is converted to annuity is it taxable?

No, in that specific circumstance it is tax exempt. As a point of interest, this is known as a "1035 exchange."

# What is the future value of a growing annuity with a present value?

The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus… any surrender charges if applicable.

# What happens to the future value of an annuity if you increase the rate?

The future value will go up.

# What is the relationship between the value of an annuity and the level of interest rates?

The answer depends on the type of annuity. If the annuity is a fixed period annuity or an annuity which pays a fixed amount during the lifetime of one or more persons, the val…ue of the annuity will decrease if interest rates rise and will increase if interest rates fall. For example, san an annuity is paying $100 per month for 3 years and the interest rate is 5%. The value of the annuity is $100 x ( (1+5%)^(-1/12) + (1+5%)^(-2/12) + ... + (1+5%)^(-36/12) ) = $3,342.13. If the interest rate rises to 6%, the value of the annuity falls to $100 x ( (1+6%)^(-1/12) + (1+6%)^(-2/12) + ... + (1+6%)^(-36/12) ) = $3,294.90.

# How do you find out which formula is empirical formula?

The empirical formula is when you can not simplify the formula any further. Let's use the formula for glucose, C6 H12 O6 That is the molecular formula of glucose. The Empiric…al Formula of Glucose would be C1 H2 O1, because you can divide each element by 6. As for a compound such as ammonia N H3, that is it's Molecular Formula. It's empirical formula would be N H3 as well because it can not be simplified any further.

# How can you convert the present value of an ordinary annuity into the present value of annuity due?

The simplest way is to gross up the ordinary annuity (payments in arrears) by a single period at the discounting rate. For example, if the ordinary annuity has semi-annual p…ayments (half yearly) and the PV is $1000 using a discounting rate of 5% p.a., then the PV of the annuity due would be: PVDue= $1,000 x ( 1 + 5%/2 ) = $1,025

# What is annuity?

Technically, the term "annuity" means "a series of payments over time, where the original investment and interest will be distributed over the annuity payout period". However,… most people, when they use the term "annuity" are referring to a COMMERCIAL ANNUITY - a contract between an issuing insurance company and the purchaser. There are two basic types of commercial annuities: IMMEDIATE - These contracts guarantee an income for either a specified period of time ("Period Certain" annuities) or for the life of the "annuitant" ("Life Annuities"). The annuitant is the person whose age and sex determines the amount of the annuity payments. An immediate annuity may be "fixed" (guaranteeing a specified amount of money each year) or "variable" (guaranteeing an income, the amount of which will vary with the investment performance of the investment accounts chosen by the purchaser). DEFERRED - These contracts have two phases: (a) the Accumulation phase, during which the annuity will earn interest, and (b) the Payout phase, during which payments will be made to the annuitant either for a specified period or for life (the payout phase acts like, and is taxed like, an immediate annuity). Deferred annuities may be either "fixed" (where principal and a minimum rate of interest is guaranteed) or "variable" (where the value of the contract will vary with the investment performance of the accounts chosen by the purchaser. For more information, see "The Advisor's Guide to Annuities" by John Olsen and Michael Kitces (National Underwriter Co., 3rd ed., 2012) Answer 2 Series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals. Similar to a pension, the money is paid out of an investment contract under which the annuitant(s) deposit certain sums (in a lump sum or in installments) with an annuity guarantor (usually a government agency or an insurance firm). The amount paid back includes principal and interest, either or both of which (depending on the local regulations) may be tax exempt. An annuity is not an insurance policy but a tax-shelter. While the interest component (the taxable portion) of a regular annuity payment may be exempt from local or state taxes, it is never, under current law, exempt from Federal income tax. Moreover, to say that an annuity is a "tax shelter", rather than an "insurance policy" is not quite correct. First, an annuity is not a tax shelter, as that term is ordinarily used, because it does not EXEMPT any otherwise taxable income from Federal tax; it merely provides tax DEFERRAL. Moreover, many components of an annuity are, in fact, INSURANCE. An annuity contract is not LIFE INSURANCE, and does not enjoy the same tax treatment of a life insurance policy (e.g.: an income tax free death benefit), but the RISK TRANSFER characteristics of an annuity are certainly "insurance". (John Olsen)

Answered

# What is the future value on an ordinary annuity of 12000 dollars per year for three years at 9 percent interest compounded annually?

39,337.20

Answered

# What is the future value of a 5year ordinary annuity with annual payments of 200 evaluated at 15 percent?

Fv = $200(fvifa15%,5) = $200(6.7424) = $1,348.48.

Answered

In Technology

# 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.

Answered

# Where can one find information about fixed annuities rates?

To find out about fixed annuities rates visit your bank provider at your local bank. They will be able to provide you with all the information that you require.

Answered

# Where can one find annuity rate tables for the UK?

You can find annuity rate tables for the UK on diverse websites like "Sharing Pensions", 'Hargreaves Lansdown" "This is Money" and in almost every bank through the United King…dom.