For an Annuity Immediate:Payment = 150000
n = 25
Interest Rate = 7
Calculate Present Value, Accumulated Value
PV annuity immediate formula:
| an|i = | Payment * (1 - vn) |
| i |
Calculate v:
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.07 |
| v = | 1 |
| 1.07 |
v = 0.93457943925234
Calculate PV given i = 0.07, n = 25, and v = 0.93457943925234
| a25|0.07 = | 150000 * (1 - 0.9345794392523425) |
| 0.07 |
| a25|0.07 = | 150000 * (1 - 0.18424917752224) |
| 0.07 |
| a25|0.07 = | 150000 * 0.81575082247776 |
| 0.07 |
| a25|0.07 = | 122362.62337166 |
| 0.07 |
a25|0.07 = 1748037.4767
AV annuity immediate formula:
| sn|i = | Payment * ((1 + i)n - 1) |
| i |
Calculate AV given i = 0.07, n = 25
| s25|0.07 = | 150000 * ((1 + 0.07)25 - 1) |
| 0.07 |
| s25|0.07 = | 150000 * (1.0725 - 1) |
| 0.07 |
| s25|0.07 = | 150000 * (5.4274326401229 - 1) |
| 0.07 |
| s25|0.07 = | 150000 * 4.4274326401229 |
| 0.07 |
| s25|0.07 = | 664114.89601843 |
| 0.07 |
s25|0.07 = 9487355.6574
How much of AV is principal?:
Principal = Payment Amount * nPrincipal = 150000 * 25
Principal = 3750000
Calculate Interest Paid:
Interest Paid = Accumulated Value - PrincipalInterest Paid = 9487355.6574 - 3750000
Interest Paid = 5737355.66
You have 1 free calculations remaining
What is the Answer?
Interest Paid = 5737355.66
How does the Annuities Calculator work?
Free Annuities Calculator - Solves for Present Value, Accumulated Value (Future Value or Savings), Payment, or N of an Annuity Immediate or Annuity Due.
This calculator has 5 inputs.
What 4 formulas are used for the Annuities Calculator?
PV Annuity Immediate = Pmt * (1 - vn)/iPV Annuity Immediate = Pmt * (1 - vn)/d
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/i
Accumulated Value of Annuity Immediate = Pmt * ((1 + i)n - 1)/d
For more math formulas, check out our Formula Dossier
What 8 concepts are covered in the Annuities Calculator?
accumulated valueThe total value of an investment, including principal and interest accruedannuitiesannuityA stream of paymentsfuture valuethe value of a current asset at a future date based on an assumed rate of growthinterestpayment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rateinterest ratethe proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositorpresent valuethe value in the present of a sum of money, in contrast to some future value it will have when it has been invested at compound interest.PV = FV/(1 + i)n
where I is the interest rate per period, PV = Present Value, and FV = Future ValueprincipalThe amount borrowed on a loan, before interest is charged
Example calculations for the Annuities Calculator
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