Annuity Ratio
Calculator-Annuity
FORMULA:
- A sequence of periodic payments (or receipts) regularly over a specified period of time
- Also a fixed amount of money paid regulary over a speicfied period of time
- The calculator below can be used to calculate how much you could accumulate by saving or investing fixed part of your income every week,month,year in an account or investment that has a weekly,monthly,annual rate of return
- Computed as followed:
Future value=
p(1+r/n)t-1 r/n -
Where:
P=present value
r=annual rate
t=number of years
n=number of times compounded per year -
Most have the following features:
Amount paid or received most be constant over the period of annuity
Time interval between two consecutive payments or receipts most be the same -
Types:
Annuity due
Annuity regular