Which of the following can be calculated? i. future value of an ordinary annuity ii. future value of a perpetuity iii. present value of a perpetuity iv. present value of an annuity due

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26-10-2022
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Which of the following can be calculated? i. future value of an ordinary annuity ii. future value of a perpetuity iii. present value of a perpetuity iv. present value of an annuity due

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rafikiedu17 rafikiedu17 · Answer 1 · 2022-10-29T00:49:01-04:00

i. future value of an ordinary annuity iii. gift value of a perpetuity iv. present value of an annuity due can be calculated.

The formula for the destiny cost of a normal annuity is F = P * ([1 + I]^N - 1 )/I, in which P is the payment quantity. It is equal to the hobby (bargain) fee. N is the variety of payments (the “^” approach N is an exponent). F is the future cost of the annuity.

A regular annuity is a series of everyday payments made at the give up of every period, which includes monthly or quarterly. In an annuity due, through assessment, bills are made at the start of every period. regular quarterly stock dividends are one example of an ordinary annuity monthly hire is an instance of an annuity due.

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