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What do you call an annuity where the payment interval is not the same as the interest compounding period?
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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 is monthly interest payment on a 10000 loan for 5 years at 12 percent interest?
The monthly interest is 100.
What is annual interest?
Annual interest is interest that accumulates every year. This is a predetermined percentage that is added to a loan or credit card payment.
What would happen to a monthly payment if the interest rate increased?
Either the monthly payment would have to increase or the period of the loan.
How much interest would you pay on 6000.00 for 24 months at 6 percent?
This depends on the compounding periods, and the payment schedule. Assuming monthly compounding, and 6% per year, so the monthly rate is 0.06/12 = 0.005 {½ of a percent per month}. If you're borrowing for 24 months then paying the whole thing back at the end of 24 months, that's easy: FV = PV*(1+rate)^time, so Future value {FV} = 6000*(1+.005)^24 = 6762.96, so the interest amount is 762.96 If making payments each month, then need to know how much each month. It's a little more complex, then.
What is an amortization home loan?
On a traditional loan the interest is compounding monthly. With amortization the monthly payment is split up equally between the interest and the actual house payment.
What is an immediate annuity rate?
An immediate annuity is an annuity that begins making payments to you shortly after you deposit your money. The rate of interest you earn on this depends on age, payment options, and other factors.
What does it mean the the next annuity payment will be fully taxable?
If this a payment to you from your annuity then the total amount of the payment being made to you is from the interest you made during the growth of the annuity. Since the interest grew tax-deferred you must pay the taxes owed on that portion when it is removed from the product. It seems that the company is using the LIFO method of distribution which is Last In First Out. This means that any interest added to the product will be paid out first in most cases whereas taxes will be do on that money since you have not already paid taxes on this growth.
What is variable annuity?
A Transamerica Variable Annuity is a fixed system of payment, based on a minimum monthly payment, that ensures payment to individuals during and after retirement.
What is transamerica variable annuity?
A Transamerica Variable Annuity is a fixed system of payment, based on a minimum monthly payment, that ensures payment to individuals during and after retirement.
What is the present value of a 30 year annuity with payments of 800 per year if interest rates are 12 percent annually?
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
What is annuity kind of cash flow?
Annuity is fixed sum of money paid every year in at any other fixed interval shorter than a year. This annuity may be by way of return of some principal plus interest payment of against money invested or by way of payment of other dues such as pensions after retirement. In any case it represents out flow of cash from one account to in flow of cash to another account. In this way all annuities involve movements of cash or funds. Therefore all annuities are cash flows that can be suitably represented in cash flow statements. An annuity will be represented as inflow of cash in the cash flow statement for the recipient of the annuity and out flow of cash in the cash flow statement of the person or firm paying out the annuity.
Is pure endowment an annuity?
Yes. A pure endowment is a one-payment annuity.
Differentiate between ordinary annuity and annuity due?
In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
How does one go about calculating an annuity payment?
One goes about calculating an annuity payment in a number of ways. First, one must determine the type of annuity. Second, one must find the option for payout. Then, one must determine the other details about the annuity and finally, factor in how the payment will be working in relation to the time frame of payment.
What is the difference between ordinary annuity and annuity due?
In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
What is an annual payment called?
A fixed payment which is made annually is called an annuity.
