For an Annuity Immediate:
Payment = 5000
n = 9
Interest Rate = 10
Calculate Present Value, Accumulated Value
PV annuity immediate formula:
| an|i = | Payment * (1 - vn) |
| i |
Calculate v:
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.1 |
| v = | 1 |
| 1.1 |
v = 0.90909090909091
Calculate PV given i = 0.1, n = 9, and v = 0.90909090909091
| a9|0.1 = | 5000 * (1 - 0.909090909090919) |
| 0.1 |
| a9|0.1 = | 5000 * (1 - 0.42409761837248) |
| 0.1 |
| a9|0.1 = | 5000 * 0.57590238162752 |
| 0.1 |
| a9|0.1 = | 2879.5119081376 |
| 0.1 |
a9|0.1 = 28795.1191
AV annuity immediate formula:
| sn|i = | Payment * ((1 + i)n - 1) |
| i |
Calculate AV given i = 0.1, n = 9
| s9|0.1 = | 5000 * ((1 + 0.1)9 - 1) |
| 0.1 |
| s9|0.1 = | 5000 * (1.19 - 1) |
| 0.1 |
| s9|0.1 = | 5000 * (2.357947691 - 1) |
| 0.1 |
| s9|0.1 = | 5000 * 1.357947691 |
| 0.1 |
| s9|0.1 = | 6789.738455 |
| 0.1 |
s9|0.1 = 67897.3846
How much of AV is principal?:
Principal = Payment Amount * nPrincipal = 5000 * 9
Principal = 45000
Calculate Interest Paid:
Interest Paid = Accumulated Value - PrincipalInterest Paid = 67897.3846 - 45000
Interest Paid = 22897.38
You have 2 free calculationss remaining
What is the Answer?
Interest Paid = 22897.38
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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