$1,000
A 5-year ordinary annuity has a present value of $1,000.

What is the future value of a $1000 annuity payment over five years if interest rates are 9 percent?

What is the future value of a $1000 annuity payment over five years if interest rates are 9 percent? FV=PMT/I (1-1/(1+i)n. PMT=1000; n=5; and i=9 Using financial calculator, the answer for FV for 9% is $5,984.71Recalculate the future value at 8 percent interest, and gain, at 10 percent interest.

What is the future value of a 5-year ordinary annuity with annual payments of 200?

What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate? Financial calculator solution: Inputs: N = 5; I = 15; PV = 0; PMT = -200. Output: FV = $1,348.48.

What is the present value of a Rs 1000 ordinary annuity that earns 8% annually for a period of 10 years?

1,000 ordinary annuity that earns 8% annually for a period of 10 years? Select one: a.? 6710.

What is the present value of the cash flow at the end of Year 1 cash flow is $1000 and $2000 at the end of year two the interest rate gain given is 10 %?

The answer is: $2,562. You can use the present value formula to find the answer to this question: Present value = Cash flow / (1 +interest rate.

How do you calculate the future value of an annuity factor?

Tip. The formula for the future value of an ordinary annuity is F = P * ([1 + I]^N – 1 )/I, where P is the payment amount. I is equal to the interest (discount) rate. N is the number of payments (the “^” means N is an exponent).

What is the present value of a 5 year annuity?

Keep track of how many you answer correctly and compare the total to the grading scale found at the bottom of the page. 1. A 5-year ordinary annuity has a present value of $1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following?

How is the interest rate calculated on an annuity?

Annual Interest Rate (%) – This is the interest rate earned on the annuity. The present value annuity calculator will use the interest rate to discount the payment stream to its present value. Number Of Years To Calculate Present Value – This is the number of years over which the annuity is expected to be paid or received.

How to calculate FVA for 5 year annuity?

Answer to question #7 C. ($100) (FVIFA at 8% for 5 periods) (1.08) Remember, you can treat an annuity due initially as an ordinary annuity, find the FVA, and simply multiply that answer by (1 + i%), which effectively shifts the earlier answer one period to the right. 8. A 5-year annuity due has periodic cash flows of $100 each year.

How is the equivalent value of an annuity determined?

The equivalent value would then be determined by using the present value of annuity formula. The result will be a present value cash settlement that will be less than the sum total of all the future payments because of discounting (time value of money).