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It is called the rule of 72. You take the interest rate you will be receiving and divide that number into 72. the answer will be the number of years it will take you to double your money at that interest rate.

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11y ago

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What is the interest rate of the annuity formula and how is it calculated?

The interest rate in the annuity formula represents the rate at which your money grows over time. It is calculated by dividing the annual payment by the present value of the annuity, and then adjusting for the number of compounding periods per year.


What is the formula for solving for the interest rate (r) of an annuity?

The formula for solving for the interest rate (r) of an annuity is: r left( fracAP right)frac1n - 1 Where: r interest rate A future value of the annuity P periodic payment n number of periods


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 the formula for finding the future value of a growing annuity?

FV of growing annuity = P * ((1+r)^n - (1+g)^n) / (r-g) P=initial payment r=discount rate or interest rate g=growth rate n=number of periods ^=raised to the power of NB: This formula breaks when r=g due to division by 0. When r=g, use P * n * (1+r)^(n-1)


Deferred annuity formula?

Deferred annuity is a type of contract that allows the delay of payments until the investor chooses to receive them. To calculate the deferred annuity you, divide the future amount by (1+rate of return)^the length of the term.


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.


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.


What are the formula of how to measure growth in a company?

The formula to measure growth is a company is simple. The annual percentage growth rate is the percentage of growth divided by the number of years.


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.


Population growth rate definition?

Population growth rate is the rate at which populations change in size over time as a fraction of the initial population. The formula used to measure growth rate is (birth rate + immigration) - (death rate + emigration).


How can one find the annuity payment for a given investment?

To find the annuity payment for a given investment, you can use the formula: annuity payment investment amount / present value factor. The present value factor is calculated based on the interest rate and the number of periods the investment will last.