Enter what you know below

<-- Present Val
<-- Accum Val
<-- Payment
<-- n
<-- Interest Rate
<-- Immediate
<-- Due
  
For an Annuity Immediate:
Payment = 1
n = 7
Interest Rate = 3
Calculate Present Value, Accumulated Value

PV annuity immediate formula:

an|i  =  Payment * (1 - vn)
  i

Calculate v:

v  =  1
  1 + i

v  =  1
  1 + 0.03

v  =  1
  1.03

v = 0.97087378640777

Calculate PV given i = 0.03, n = 7, and v = 0.97087378640777

a7|0.03  =  1 * (1 - 0.970873786407777)
  0.03

a7|0.03  =  1 * (1 - 0.81309151134335)
  0.03

a7|0.03  =  1 * 0.18690848865665
  0.03

a7|0.03  =  0.18690848865665
  0.03

a7|0.03 = 6.2303

AV annuity immediate formula:

sn|i  =  Payment * ((1 + i)n - 1)
  i

Calculate AV given i = 0.03, n = 7

s7|0.03  =  1 * ((1 + 0.03)7 - 1)
  0.03

s7|0.03  =  1 * (1.037 - 1)
  0.03

s7|0.03  =  1 * (1.2298738654249 - 1)
  0.03

s7|0.03  =  1 * 0.22987386542487
  0.03

s7|0.03  =  0.22987386542487
  0.03

s7|0.03 = 7.6625

How much of AV is principal?:

Principal = Payment Amount * n
Principal = 1 * 7
Principal = 7

Calculate Interest Paid:

Interest Paid = Accumulated Value - Principal
Interest Paid = 7.6625 - 7