How To Find Annuity

An annuity running over 20 years with a starting principal of 25000000 and growth rate of 8 would pay approximately 209110 per month.

How to find annuity. RATE is the discount rate or interest rate NPER is. Studying this formula can help you understand how the present value of annuity works. To find the amount of annuity interest you first need to calculate the maturity value of the annuity then subtract it by the amount of money you invested.

To do these calculations you need to know the amount of money per payment the number of payments the length of each payment period and the interest rate. To find the interest rate per payment period we need to divide the 6 annual percentage. The annuity payment formula can be determined by rearranging the PV of annuity formula.

Present value of annuity 100 1 - 1 05 -3 05 27232 When calculating the PV of an annuity keep in mind that you are discounting the annuitys value. An annuity is an investment that provides a series of payments in exchange for an initial lump sum. By looking at a present value annuity factor table the annuity factor for 5 years and 5 rate is 43295.

This is the value of the initial deposit. Lets break it down. To find the right buyer for your annuity look for buyers who can give you the terms you desire.

Find out if someone in your family owned an annuity that you didnt know about Many annuity policies go unclaimed and remain at the annuity carrier Stan The Annuity Man. With so many types and companies that offer them its tough to make the right selection. To find the amount of an annuity we need to find the sum of all the payments and the interest earned.

The account paid 6 annual interest compounded monthly. The basic annuity formula in Excel for present value is PV RATENPERPMT. After rearranging the formula to solve for P the formula would become.