Enter what you know below

<-- Present Val
<-- Accum Val
<-- Payment
<-- n
<-- Interest Rate
<-- Immediate
<-- Due
  
For an Annuity Immediate:
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 * n
Principal = 1 * 25
Principal = 25

Calculate Interest Paid:

Interest Paid = Accumulated Value - Principal
Interest Paid = 73.1059 - 25