How is the present value of an annuity determined?

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: 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: 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 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: uture of General Or

A: Given information : Loan amount 40000 Time period (moths) 18 Interest rate 10% Since the…

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: Explain how the present value of an ordinary annuityinterest table is converted to the present value…

A:

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 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 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: Give an example of the Present Value of Perpetuities?

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

Q: what is the value of annuity?

A: Time value of money means that the amount of money received in the present period will have more…

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: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

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: 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: What is an annuity? How is it defined? What is the difference between an ordinary annuity and an…

A: Annuity is defined as payments that are made at intervals. Monthly payments of insurance, amount…

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: what are examples of ordinary annuity and annuity due

A: As per the time value of money, a dollar is worth more today than the same dollar in future. It is…

Q: What is future value interest factor for an annuity?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

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: An annuity is a kind of financial contract. What's the difference between this and a one-time…

A: An annuity is a fixed series of payments over the period and contains a number of cashflows.

Q: Can someone give an example or scenario of deferred annuity?

A: Under deferred annuity, the investment is made with the insurance company and any taxes to be paid…

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: 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: 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: 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: What is the formula used in annuity due if your looking for the compounded interest rate with given…

A: Present Value of an Annuity is used when a business wants to know how much amount it should pay for…

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: What is future value of annuity, FVA?

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: Define present value of an ordinary annuity.

A: Present value:   The value of today’s amount to be paid or received in the future at a compound…

Q: Which of the following method is used for calculating Time value of Money?

A: The correct answer is b. All of the options.

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: What is the Cumulative interest payment?

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