Formula of annuity, Financial Accounting

Assignment Help:

In common terms the present value of a regular annuity may be shown as given below:

PVNn = A/(1 + k) + A/(1 + k)2+ ..................+ A/(1 + k)N

= A (1/(1 + k) + 1/(1 + k)2+ ..................+ 1/(1 + k)N)

= A [((1 + k)N- 1)/(k (1 + k)n)]

In case of annuity due:

PVAn (due ) = A [(1 + k)n  - 1)/(k (1 + k)n)] (1 + k)   ...........................Eq(12)

Here PVAn = Present value of an annuity that has a duration of n periods;

A = Constant periodic flows and k = discount rate


Related Discussions:- Formula of annuity

Rules of intestacy-one surviving spouse and children, The intestate leaves ...

The intestate leaves one surviving spouse and children The surviving spouse is entitled to: a. The personal and household effects of the deceased absolutely; b. A life inte

Closing entries, Closing Entries: Expenses Below is a list of accounts with...

Closing Entries: Expenses Below is a list of accounts with corresponding ending balances. Account: Account Balance a.Insurance Expense: $1,300 b.Cash: 750 c.Accounts Receivable: 4,

Explain in detail about the sole proprietorship, Explain in detail about th...

Explain in detail about the Sole proprietorship Sole proprietorship, as the name suggests, is where an individual is the sole owner of a business. This type of business is ofte

Multiple choice, A____ is a loss to the business and a gain to the debtor

A____ is a loss to the business and a gain to the debtor

Determine the present value or worth of a bond, 1.) Assume a $1000 face val...

1.) Assume a $1000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10.25 percent rat

#Withholding Tax Payable, #Hi! would you mind to help me? is there such an ...

#Hi! would you mind to help me? is there such an accounting term as Withholding Tax Payable??? please help me.. thanks

What factors in preview company''s control environment, WILL SOMEONE PLEASE...

WILL SOMEONE PLEASE ASSIST ME WITH THIS ASSISGNMENT Preview Company, a diversified manufacturer, has five divisions that operate throughout the United States and Mexico. Preview ha

ACCRUED INTEREST, IF I HAVE A LOAN AND ACCRUED INTEREST .THEN ACCRUED INTER...

IF I HAVE A LOAN AND ACCRUED INTEREST .THEN ACCRUED INTEREST GOES ON WHICH SIDE- DEBIT OR CREDIT ?

Successive interest computations, Show that if an investment of P dollars d...

Show that if an investment of P dollars declines by 4% during a year , the balance at the end of the year is P(1-.04) that is P(.96) ?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd