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%.

Answer 1

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)