Annuity Due and Annuity calculation a-Calculate the annual payment that can be r

Question

Annuity Due and Annuity calculation

a-Calculate the annual payment that can be received over 30 years from a single investment of $ 1000000 earning 9% compounded annually.

b- Calculate monthly payment to be received over 15 years from a single investment of $ 250000 earning 14.4% compounded monthly.

c- Calculate the payment to be received at the beginning of each month for 15 years from an investment of $ 250000 earning 14.4% compounded monthly.

d- Calculate the future value of a quarterly annuity of $ 2000 beginning and continuing today and continuing for 10 years assuming an annual earning rate of 10%.

Explanation / Answer

a PV 1000000 Rate 9% NPER 30 PMT $97,336.35 Ans =PMT(9%,30,-1000000) b PV 250000 Rate 1.20% (14.4%/12) NPER 180 (15 x 12) PMT $3,396.81 Ans =PMT(1.2%,180,-250000) c PV 250000 Rate 1.20% (14.4%/12) NPER 180 (15 x 12) PMT $3,356.53 Ans Beginning of period annuty i.e. annuity due) =PMT(1.2%,180,-250000,,1) d PMT 2000 NPER 40 (10 x 4) rate 2.50% (10%/4) FV $138,175.23 Beginning of period annuty i.e. annuity due) =FV(2.5%,40,-2000,,1)

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