What is an annuity?

Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's

A: When you take a loan then you have to make payments towards the principal amount as well as towards…

Q: relationship between Future Value Factor and Future Value of an Annuity Factor

A: Future value factor is the equivalent value at the some future date of a cash flow at time 0. For…

Q: ompare an ordinary annuity with a prepayment annuity.

A: Annuity is a uniform series of cash flows over a given number of periods.

Q: what is the interest rate

A: Interest rate is the rate at which the bank or any other lenders charges from the borrowers for…

Q: Explain the Compound or Future Value of an Annuity

A: The question is based on the concept of calculation of future value of periodic annuity payment.

Q: Why should we call an annuity a periodic payment problem?

A: Annuity- An annuity is a contract between an individual and an insurance company in which the…

Q: How compound interest related to time value of money?

A: Compound Interest is the interest calculated on the principal that also includes the interest amount…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: What is General Annuity? (payment interval and interest period, time of payment, duration)

A: An annuity is a contract between you and an insurance company in which you make a lump-sum payment…

Q: What is interest rate?

A: Answer: At a particular situation, an interest rate determines how much money a borrower promises to…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: What is the difference between life insurance and annuity?

A: Meaning:Life insurance is a cover on financial loss, and it is a contract between insurer and a…

Q: what is the most he should have paid for the annuity?

A: Annuity method is the method of making payments either in lump-sum or in series of payments. The…

Q: Explain present value of annuity, PVA

A: An annuity is the series of payments which is received or paid for a fixed period of time. The equal…

Q: Explain different types of Annuity and perpetuity concept.

A: An annuity is a contract whereby a lump-sum payment is exchanged for a periodic payment which can be…

Q: What is the Importance of Accrued Interest and Loan Payments?

A: When the bonds are being purchased and sold at that time accrued interest is considered to be…

Q: What is ordinary annuity?

A: Ordinary annuity: An ordinary annuity is a sequence of equivalent payments made at last of…

Q: What is meant by annuity? What are the types of annuity? How does it differ from perpetuity?

A: Annuity is a series of regular payments that are made periodically at the end of the year or…

Q: What is the impact of annuity dues in consideration to business matter?

A: Annuity Due: It is the fixed amount of payment that is due immediately at the beginning of each…

Q: What is growing annuity?

A: Introduction: Annuities are insurance contracts that agrees to pay you steady income either…

Q: What are the primary characteristics of an annuity? ­Differentiate between an “ordinary annuity” and…

A: Annuity represents a series of equal amount of payment / receipt made on particular interval for a…

Q: How is Compound Interest calculated?

A: Compound interest refers to the addition of interest amount to the principal. The concept of…

Q: Explain the Present Value of an Annuity?

A: The present worth of the regular payment or the annuity that is received or paid in the future is…

Q: Define Future Value of an Annuity Due.

A: Annuity: An annuity refers to the fixed cash flows that are received or paid by a person at defined…

Q: What is the factor form equation to get EUAB/Annuity (A) ?

A: Interest Rate = 5% N = 7 Cash Flows: Year Cash Flow 0   1   2   3   4 1000.00 5…

Q: Give an interesting feature of any perpetual annuity?

A: Interesting feature of any perpetual annuity: The feature of perpetual annuity is that, a stream of…

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: What is the period of deferment of a deferred annuity?

A: Solution- Deferred Annuity-                 A deferred regular payment is a contract with an…

Q: What is the difference between an ordinary annuity and an annuity due?

A: Annuity is the regular series of deposit of money. It is paid in regular intervals by a person to a…

Q: k in deferred annuity

A: k = nt - 1 where k = The number of compounding periods in a year  n = number of years we intend to…

Q: Derive the formula

A: Future worth or Future value refers to the value of current asset at some future point of time on a…

Q: the table use to find present value of an annuity is called

A: Annuity is the sum of all the discounted factors from year 1 to n. It will provide the value of…

Q: why annuity due have larger value than ordinary annuity? with exampl

A: Annuity Due: Annuity due relates to a set of equal payments made at the identical interval at the…

Q: How much is the VAT Payable?

A: VAT payable is the amount of vat tax which is to be paid to the tax authority of the country and…

Q: Explain present value interest factor for an annuity

A: The present value is the current value of the sum of money or future cash flows at a certain rate.…

Q: at is annuity and perpetuity?  Explain in single sentence please

A: An annuity is a series of uniform cash flows received or paid at an equal interval over a period of…

Q: How VAT affects the interest rate?

A: Solution-Value Added Tax  A value-added tax (VAT) is a consumption tax placed on a product whenever…

Q: What is the relationship between the present value of a single amount and the present value of an…

A: Solution-   The present value of an annuity is that the current price of future payments from an…

Q: Which of the following is considered an annuity?

A: Annuity refers to equal amount of payment done over a period of time.

Q: Define an annuity due Payment.

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: What is the Cumulative interest payment?

A: Cumulative interest payment is the sum of all previous interest payments that are made for an…