Payment = 1
n = 25
Interest Rate = 8
Calculate Present Value, Accumulated Value
PV annuity immediate formula:
| an|i = | Payment * (1 - vn) |
| i |
Calculate v:
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.08 |
| v = | 1 |
| 1.08 |
v = 0.92592592592593
Calculate PV given i = 0.08, n = 25, and v = 0.92592592592593
| a25|0.08 = | 1 * (1 - 0.9259259259259325) |
| 0.08 |
| a25|0.08 = | 1 * (1 - 0.14601790491291) |
| 0.08 |
| a25|0.08 = | 1 * 0.85398209508709 |
| 0.08 |
| a25|0.08 = | 0.85398209508709 |
| 0.08 |
a25|0.08 = 10.6748
AV annuity immediate formula:
| sn|i = | Payment * ((1 + i)n - 1) |
| i |
Calculate AV given i = 0.08, n = 25
| s25|0.08 = | 1 * ((1 + 0.08)25 - 1) |
| 0.08 |
| s25|0.08 = | 1 * (1.0825 - 1) |
| 0.08 |
| s25|0.08 = | 1 * (6.8484751962193 - 1) |
| 0.08 |
| s25|0.08 = | 1 * 5.8484751962193 |
| 0.08 |
| s25|0.08 = | 5.8484751962193 |
| 0.08 |
s25|0.08 = 73.1059
How much of AV is principal?:
Principal = Payment Amount * nPrincipal = 1 * 25
Principal = 25
Calculate Interest Paid:
Interest Paid = Accumulated Value - PrincipalInterest Paid = 73.1059 - 25
Interest Paid = 48.11
What is the Answer?
Interest Paid = 48.11
How does the Annuities Calculator work?
Free Annuities Calculator - Solves for Present Value, Accumulated Value (Future Value or Savings), Payment, or N of an Annuity Immediate or Annuity Due.
This calculator has 5 inputs.
This calculator has 5 inputs.
What 4 formulas are used for the Annuities Calculator?
PV Annuity Immediate = Pmt * (1 - vn)/i
PV Annuity Immediate = Pmt * (1 - vn)/d
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/i
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/d
PV Annuity Immediate = Pmt * (1 - vn)/d
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/i
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/d
What 8 concepts are covered in the Annuities Calculator?
- accumulated value
- The total value of an investment, including principal and interest accrued
- annuities
- annuity
- A stream of payments
- future value
- the value of a current asset at a future date based on an assumed rate of growth
- interest
- payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
- interest rate
- the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
- present value
- the value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.
PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future Value - principal
- The amount borrowed on a loan, before interest is charged
