Growing annuity with fixed growth

A growing annuity can also be known as an increasing or graduated annuity. The payments are made at the end of each period for a fixed number of periods, a discount rate is applied, and the formula discounts the value of each payment back to the original value at the start of the first period (the present value).

What is the growing annuity formula?

Quote:
Quote: And then we divide all of that divide our numerator by R minus G so the discount rate minus the growth rate let me show you how to do this with an actual example we'll apply the formula.

How much does a $50000 annuity pay per month?

approximately $219 each month

A $50,000 annuity would pay you approximately $219 each month for the rest of your life if you purchased the annuity at age 60 and began taking payments immediately.

What is the future value of a 5 year ordinary annuity?

$1,000

A 5-year ordinary annuity has a future value of $1,000. If the interest rate is 8 percent, the amount of each annuity payment is closest to which of the following? 4. An 8-year annuity due has a future value of $1,000.

What is the amount of each annuity payment if a 5 year ordinary annuity has a future value of 1000 with an interest rate of 8%?

$ 250.44 $

Here, the total amount accumulated after a time period of 5 years at 0.08 rate of interest is 1000. $ A = \dfrac{P}{r}\left[ {1 – {{(1 + r)}^{ – n}}} \right] $ to determine each annuity amount deposited. Hence, the amount of each annuity payment is $ 250.44 $ . So, the correct answer is “Option A”.

What is the future value of a 5 year ordinary annuity with annual payments of 200?

$1,348.48

What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate? Financial calculator solution: Inputs: N = 5; I = 15; PV = 0; PMT = -200. Output: FV = $1,348.48.