Search results
Results from the WOW.Com Content Network
Here’s how to calculate the future value of an annuity. The formula is: (FV) = A x [((1+i) n -1)/i] ... the investor deposits either a lump sum of money or makes periodic payments to the annuity ...
For example, a lottery winner may opt to receive a series of payments over time instead of a single lump sum distribution. This can also be called an annuity. ... To calculate the future value of ...
A lump sum is a one-time payment representing the total value of your accrued pension benefits, discounted to reflect the time value of money. ... based on your lump sum, use an annuity calculator ...
The future value of an annuity is the accumulated amount, including payments and interest, of a stream of payments made to an interest-bearing account. For an annuity-immediate, it is the value immediately after the n-th payment. The future value is given by: ¯ | = (+),
Future value is the value of an asset at a specific date. [1] It measures the nominal future sum of money that a given sum of money is "worth" at a specified time in the future assuming a certain interest rate, or more generally, rate of return; it is the present value multiplied by the accumulation function. [2]
Present value calculations, and similarly future value calculations, are used to value loans, mortgages, annuities, sinking funds, perpetuities, bonds, and more. These calculations are used to make comparisons between cash flows that don’t occur at simultaneous times, [ 1 ] since time and dates must be consistent in order to make comparisons ...
The actuarial present value (APV) is the expected value of the present value of a contingent cash flow stream (i.e. a series of payments which may or may not be made). Actuarial present values are typically calculated for the benefit-payment or series of payments associated with life insurance and life annuities .
There are a lot of factors that would come into play such as your health and life expectancy, family situation, other retirement income, and taxes.