How does the Continuous Annuity Calculator work?
Free Continuous Annuity Calculator - Determines the Present Value and Accumulated Value of a Continuous Annuity
This calculator has 3 inputs.
What 3 formulas are used for the Continuous Annuity Calculator?
σ = Ln(1 + i)
v = 1/(1 + i)
PV = Pmt(1 - vn)/σ
What 6 concepts are covered in the Continuous Annuity Calculator?
- accumulated value
- The total value of an investment, including principal and interest accrued
- annuity
- A stream of payments
- continuous annuity
- a type of guaranteed annuity where the annuity issuer is required to make payments for at least a specified number of years
- continuous interest
- the process of calculating interest and reinvesting it into an account balance over an infinite number of periods.
P(t) = P0ert - 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