For an Annuity Due:
Payment = 5000
n = 20
Interest Rate = 7
Calculate Present Value, Accumulated Value
PV annuity due formula:
| än|i = | Payment * (1 - vn) |
| d |
Calculate v:
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.07 |
| v = | 1 |
| 1.07 |
v = 0.93457943925234
Calculate d
| d = | i |
| 1 + i |
| d = | 0.07 |
| 1 + 0.07 |
| d = | 0.07 |
| 1.07 |
d = 0.065420560747664
Calculate PV given i = 0.07, n = 20, and d = 0.065420560747664
| ä20|0.07 = | 5000 * (1 - 0.9345794392523420) |
| 0.065420560747664 |
| ä20|0.07 = | 5000 * (1 - 0.25841900281387) |
| 0.065420560747664 |
| ä20|0.07 = | 5000 * 0.74158099718613 |
| 0.065420560747664 |
| ä20|0.07 = | 3967.4583349458 |
| 0.065420560747664 |
ä20|0.07 = 56677.9762
AV annuity due formula:
| sn|i = | Payment * ((1 + i)n - 1) |
| d |
Calculate AV given i = 0.07, n = 20, and d = 0.065420560747664
| s20|0.07 = | 5000 * ((1 + 0.07)20 - 1) |
| 0.065420560747664 |
| s20|0.07 = | 5000 * (1.0720 - 1) |
| 0.065420560747664 |
| s20|0.07 = | 5000 * (3.8696844624862 - 1) |
| 0.065420560747664 |
| s20|0.07 = | 5000 * 2.8696844624862 |
| 0.065420560747664 |
| s20|0.07 = | 14348.422312431 |
| 0.065420560747664 |
s20|0.07 = 219325.8839
How much of the accumulated value is principal and interest?:
Principal = Payment Amount * nPrincipal = 5000 * 20
Principal = 100000
Calculate Interest Paid:
Interest Paid = Accumulated Value - PrincipalInterest Paid = 219325.8839 - 100000
Interest Paid = 119325.88
You have 2 free calculationss remaining
What is the Answer?
Interest Paid = 119325.88
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
For more math formulas, check out our Formula Dossier
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
For more math formulas, check out our Formula Dossier
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
Example calculations for the Annuities Calculator
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