Say you want to have :
* $1,000,000 in 40 years (so FV=1,000,000).
* Bank pays 8% APR with quarterly compounding..
* Payments are made at the end of the periods.
How do you get this? Thanks!
Edit: Payments are made the end of periods.
Posts Tagged ‘interest’
How do you figure annuities with different interest periods and payment periods?
02
Apr
how to find interest rate using annuity formula?
02
Apr
using following Annuity formula
FV=PV*((((1+i/n)^n*y) -1)/(i/n))
how can you calculate interest rate i.
FV = Future value
PV = Present value
i = interest rate
n = number of periods in a year
y = number of years
to get out interest rate in annuity case with monthly compounding?
30
Mar
depositing $1000 every month in a bank and i want i million after 7 year compunded month,interest rate needed?
Given today’s low interest rate environment should a 70yr. old buy a fixed immediate annuity?
29
Mar
I understand that the monthly dollar amount of the distribution from an annuity would be less today than say a year ago because of the low current interest rate environment that exists.
What is the amount of bond interest paid in cash for 2009?
28
Mar
Assume that the following information is relevant for one of the bond issues of Steve Company:
Face value $600,000
Bond term 20 years
Stated interest rate 8% (paid semiannually)
Market interest rate 10%
Issue dateJanuary 1, 2009
Interest payment datesJune 30 and December 31
Present Value Factors:4%5%8%10%
Present value of 1 for 20 periods0.4560.3770.2150.149
Present value of 1 for 40 periods0.2080.1420.0460.022
Present value of annuity for 20 periods13.59012.4629.8188.514
Present value of annuity for 40 periods19.79317.15911.9259.779
On January 1, 2009, the amount the bonds should sell for is
$___________
The total amount of bond interest to be paid in cash over the life of the bonds is:
$_____________.
The amount of interest expense for 2009 using the effective interest method of amortization is
$__________. (show exact amount including cents)
(round to nearest cent)
(Use only the present value factors shown above to make calculations.)
The amount of bond interest paid in cash for 2009 is
$___________.
this entire topic is extremely fuzzy to me i have no idea how to find what percent to use, my book is extremely unclear.. HELP! 
What is the PV of an annuity due with 5 payments of $1,000 at an interest rate of 5%?
28
Mar
What is the PV of an annuity due with 5 payments of $1,000 at an interest rate of 5%?
1)$1,736.50
2)$4,329.48
3)$432.94
4)$5,025.00
5)$4.750.00
Annuities and interest rates?
27
Mar
An annutiy consists of 20 annual payments of 85,000.
Interest rates from 5.5% to 7.5% were used, and i have to find the prices payable in the 2 years to secure this annuity.
I noticed that the higher the interest rates, the lower the price payable.
Can anyone write a brief report as to why this happens?
What monthly payment is needed to make an ordinary annuity obtain $200,000 in 30 years at 9.75% interest?
27
Mar
What monthly payment is needed to make an ordinary annuity obtain $200,000 in 30 years at 9.75% interest?
What effects will a high or low interest rate have on annuities?
22
Mar
Say an interest rate of 5.5% and 7.5%.
Find the future value of an ordinary annuity of $400 paid quarterly for 6 years, if the interest rate is 13% c?
21
Mar
Find the future value of an ordinary annuity of $400 paid quarterly for 6 years, if the interest rate is 13% compounded quarterly.
thank you.
If the interest rate is negative, present value of an annuity due would be?
20
Mar
If the interest rate is positive, the the present value of an ordinary annuity will less than the present value of the annuity due.
What would happen opposite?
Why the higher the interest on annuity, lower present value?
20
Mar
I’m doing a problem where i’m calc’ing how much i should be willing to pay now (present value) for an annuity that has an interest payment (discount) of varying amounts. The high the i goes, calcs telll me the less I should give in money right now.
If its got a higher interest rate wouldn’t it be worth more in the future, so why would I pay less?
Is $11,500 in interest on $37,000 over 2yrs. seem fair?
19
Mar
I’ll make this as short as possible. I had an annuity fund set up when I was 5. The payments were to be paid out in 2000, 2002, 2004, 2006. Right before turning 18 my father practically forced me to sell the annuities for one lump sum payment. I talked my way into keeping the last one. So we sold the first three for pennies on the dollar. I entered the contract before I was 18, but it was finalized a few days after my 18th B-day. In 2004 I received a check for X amount of dollars from the annuity fund by mistake. I kept it and spent it all. Soon after I was contacted by the buyers. Since I still had the last payment, we came to an agreement for repayment. Now they are wanting me to sign the agreement again because they lost the originals. I’ve now changed my mind about how much to repay them back while the money is just sitting in the fund. I called the annuity company and they said it can’t be touched until both parties reach an agreement. What should I do?
What is an annuity interest rate index?
19
Mar
I am trying to figure out if an annnuity would be my best bet when I retire.
What is the Highest interest rate that I can earn on an Annunity?
16
Mar
If i place 1 million or 1/2million in an annuity then what is the highest rate of interest i can get? Will that mean that my money is not guaranteed or at some risk? Does that mean my agent who gives me this high yield annunity will get less commission?
Like if I were a teacher transferring my current annuity to another one, what is the safest annuity yet the highest paying, interest rate wise, regardless of the field i am looking for interest???