what is the value of annuity?

Q: If you're calculating the present value of future payments, you're using an annuity. Is this…

A: The question explains about  the present value of future payments, you're using an annuity.

Q: what is the difference between annuity and annuity due?

A: An annuity is a series of cash flows wherein an equal amount is paid every period which can be…

Q: What is the difference between the present value of an annuity and the futurevalue of an annuity?

A: Annuity refers to a series of payments made at regular interval of time.

Q: Define ordinary annuity.

A: An ordinary annuity refers to the payment of equal amount made after the completion of the time…

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: In order to recognize a question that requires fv of an annuity formula rather than just fv,…

A: Compounding: Compounding is the interest charged on interest. When any investment is made for…

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: What is an annuity?

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: Compute the present value of an ordinary annuity, an annuity due, and a deferred annuity.

A: Computation of the present value (PV) of an ordinary annuity can be done by using the…

Q: What is an annuity? How does it differ from a lump sum payment?

A: Annuity:An annuity refers to a series of payments made at regular time intervals. These are…

Q: what is an annuity? Provide an example

A: Annuity is an important concept in finance especially in the context of time value of money. Annuity…

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 best thing to consider in solving general ordinary annuity?

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

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 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 ordinary annuity?

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

Q: Give an example of the Present Value of Perpetuities?

A: Perpetuity is a continuous annuity, a progression of equivalent interminable cash flows happening…

Q: Name and describe the benfits/features of annuity due, ordinary annuity, and perpetuity.

A: A series of equal payments that take place annually is referred as annuity. Perpetuity is referred…

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

A: Annuity is the fixed sum paid on annual basis. In other words, annuity is the series of payment…

Q: Which of the following cannot be calculated? Select one: a. the interest rate on perpetuity given…

A: Perpetuity is referred to as an annuity, which does not have an end or the stream of the cash…

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 growing annuity?

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

Q: Discuss the present value of an annuity due with an example

A: Present value of an annuity An Annuity is a stream of regular periodic payments made or received for…

Q: The process that determines the present value of a single payment or stream of payments to be…

A: Annuity means regular payment to be received from an investment.

Q: What are some instances of an ordinary annuity and annuity due in the real worl

A: This question tells about instances of an ordinary annuity and annuity due in the real world

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 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: Distinguish between an ordinary annuity and an annuity due

A: There are two types of annuities one is ordinary and another is annuity due.

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: How do I determine the present value of an annuity by single computation?

A: The capital is the backbone of the company, and the company will be willing to raise the capital for…

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: Explain the difference between an ordinary annuity and an annuity due situation.

A: Annuity: It is amount of money payable to an individual at a periodic basis which is normally a…

Q: What is the formula in finding the present value of a deferred annuity

A: Deferred annuity is a type of contract which pays the purchaser a periodic payment or an lump sum…

Q: What are the Classifications of Annuity.

A: An Annuity is a periodic payment which are made from time to time from a lump sum corpus.

Q: How is the present value of an annuity determined?

A: Present value:   Present value is the value of future cash flow today. Present value is the…

Q: 1. What is an annuity and how does it differ from a perpetuity? Discuss the difference between an…

A: Annuity is a system of equal, periodic payments received or to be made for a constant number of…

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: Define Annuity.

A: Definition:   Present value: This is the amount of future value reduced or discounted at a rate of…