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What are the four pieces to an annuity present value?

The four pieces to an annuity present value are: Present value(PV), Cashflow (C), Discount rate (r) and the life of the annuity (t)


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.


The factor for the future value of an annuity due is found by multiplying the ordinary annuity table value by one minus the interest rate?

The statement regarding the factor for the future value of an annuity due is incorrect. The correct method for calculating the future value of an annuity due involves taking the future value factor from the ordinary annuity table and multiplying it by (1 + interest rate). This adjustment accounts for the fact that payments in an annuity due are made at the beginning of each period, leading to additional interest accumulation compared to an ordinary annuity.


How do you calculate lifetime annuity payout?

To calculate a lifetime annuity payout, you typically need to know the annuitant's age, the principal amount invested, the interest rate, and the expected payout duration based on life expectancy. The payout can be calculated using actuarial tables to estimate life expectancy and applying the present value of annuity formulas, which factor in the interest rate to determine regular payment amounts. Financial calculators or annuity formulas can simplify this process, often yielding a monthly or annual payout amount. It’s advisable to consult with a financial advisor for personalized calculations.


On a 5000 annuity compounded daily what would be the annual percentage rate?

Depends on the daily percentage rate.

Related Questions

How are annuity payments calculated?

Annuity payments are calculated based on factors such as the initial investment amount, interest rate, and length of the annuity. The formula typically used is based on the present value of the annuity formula, which takes into account these factors to determine the regular payment amount.


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 an immediate annuity calculator allow a person to determine?

A Fixed Annuity can provide a very secure, tax deferred investment. It can provide a guaranteed minimum interest rate, with no taxes due on any earnings until they are withdrawn from the account. Use this annuity calculator to help you determine how a Fixed Annuity might fit into your retirement plan.


Will you earn a higher interest rate with a variable annuity than with a fixed annuity?

Yes, you do earn a higher interest rate with a variable annuity than with a fixed annuity. It depends on what kind of interest rate you have at the moment.


Fixed Annuity Calculator?

Oh, dude, a fixed annuity calculator is like a tool that helps you figure out how much money you'll get from a fixed annuity investment. It takes into account factors like your initial investment, interest rate, and payout period. So, if you're into crunching numbers and planning for the future, give it a whirl!


Do annuity rates remain steady or are they variable?

This actually depends on the annuity. A "fixed" annuity always gets you the same rate, while the rate of a "variable" annuity is indexed to some other rate, usually the federal prime rate. Rates are variable over the long term. It is possible to lock a steady rate in but it costs more to do so.


What type of annuity pays you a flat interest rate?

A tax deferred fixed annuity pays a flat interest rate.


What two factors determine the rate of colonization of an island?

Decay rate and rate of regrowth


Which of the fallowing must be known to compute the interest rate paid from financing an asset purchase with an annuity?

To compute the interest rate paid from financing an asset purchase with an annuity, you must know the total amount financed, the periodic payment amount, and the total number of payment periods. Additionally, the type of annuity (ordinary or due) affects the calculations. With this information, you can use financial formulas or calculators to determine the interest rate.


What are the best annuity rates?

Annuity rates are a tricky topic. Annuity rates have been fluctuating the past few years. Ever since the recession hit, the annuity rates have been rising and there is hope that will continue to. Based on the current market , an annuity rate that is between 8% and 15% is considered a good annuity rate.


When a 150000 annuity matures how much money do I get per month?

To determine how much you would receive per month from a $150,000 annuity at maturity, you need to know the terms of the annuity, including the interest rate and the duration of the payout period. For example, if the annuity pays out over 20 years with a fixed interest rate, you could calculate the monthly payments using an annuity formula or financial calculator. Without specific details, it's impossible to give an exact monthly amount. Generally, a financial advisor can help provide an accurate calculation based on your annuity's terms.


What factors determine the cost of bank financing?

Three major factors determine the cost of bank financing, the prime rate, the nominal rate, and the effective rate. Also, the creditworthiness of applicant is taken into account.