# annuity Definition and Topics - 41 Discussions

An annuity is a series of payments made at equal intervals. Examples of annuities are regular deposits to a savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments (deposits) may be made weekly, monthly, quarterly, yearly, or at any other regular interval of time. Annuities may be calculated by mathematical functions known as "annuity functions".
An annuity which provides for payments for the remainder of a person's lifetime is a life annuity.

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1. ### Formula for annuity payments

So, unless you've been living under a rock, you should know the jackpot for the powerball is at 1.5 billion dollars. I was looking up the distribution of annuity payments and the website said that the payments are not equally distributed. They are incremented by 5% each year. Like the nerd I...
2. ### Annunity Equation Derivation

Homework Statement Solve the annuity problem: \frac{dS}{dt} = rS + d S(0) = S_0 Homework Equations Integrating factor method equation Future value of an annuity equation (this should be the final answer): S(t) = S_0e^{rt} + \frac{d}{r}(e^{rt} - 1) The Attempt at a Solution Ok, I am...

19. ### Financial Assignment involving annuities

The Question is as follows; An individual age 30 is planning to start investing in a personal pension. Her aim is to have sufficient funds to provide a monthly pension of £1000 when she retires at the age of 65, payable for 30 years. She is able to make bi-annual contributions to the fund...
20. ### News What is the Asset Value of a College/University Degree?

I'll try to put some numbers to this later. There has been a lot of discussion about the current cost of education and about changes in wealth for each age group over time. If we considered education as asset which yields about 19.5 thousand per year for about 40 years we can put a dollar value...
21. ### Electricity economics

Hi, Here's my problem statement, followed by some calculations I consider and then from som questions I'll like to be answered. Homework Statement The household assumes that 60% of its consumption of electricity (both energy and power) is used for heating. Calculate the relative...
22. ### Math Modeling - Dynamical Systems -

***Ugh, I'm so sorry. I think I put this in the wrong thread. It probably should be in Calculus and Beyond... I tried to delete it but didn't see that option. So my professor gave us this problem to work on but no one could figure it out. I don't know where to even start and there's nothing at...
23. ### Weekly Annuity Calculation Method

Homework Statement Consider a new Loan as below: InterestRate = 56.558% annual in arrear Amount = 1.000.000 Principal Payment Period = weekly (7 Days) Term = 25 weeks Homework Equations How to calculate the weekly installment amount? How's this "weekly principal payment" term has affect to the...
24. ### Theory of interest question.

[b]1. 5. A twenty year annuity has end of month payments. The first year the payments are each $100. In subsequent years each payment increases by$10 over what it was the previous year. Find the present value of the annuity if i = 4% is the effective annual interest rate. Thank you

27. ### Sum / Annuities question

Find the final value of a plan in which payments of $800 are made every 6 months for 3 years, earning 10% interest compounded semi-annually. The first payment is made in 6 months. My Answer: R = 800, n = 6 , i = 5% A = R[(1-i)^n - 1] / i A = 800(1.05^6 - 1) / 0.05 A =$5441.53 So I...
28. ### Annuity Equation isolating n value HELP!

Annuity Equation "isolating n value" HELP! R =\frac{Pi(1+i)^n}{(1+i)^n-1} 1. I need to solve for n. n = number of years P = Investment R = Yearly Savings i = interest rate 3. My Attempt: R =\frac{Pi(1+i)^n}{(1+i)^n-1}\rightarrow -1 \cdot R = \frac{Pi(1+i)^n}{(1+i)^n} \cdot...
29. ### TVM Problem solving the end amount.

[SOLVED] TVM Problem solving the end amount. Homework Statement 2. A spreadsheet software or TVM solver on a calculator can be used to determine the equal monthly payments that can be paid from an annuity for a set length of time. You can enter different payments until you find the one that...
30. ### Annuity differential equation

I'm trying to figure out the solution to a differential equation that describes the accrued interest on an annuity - rather than a lump sum at the beginning, we're dealing with multiple and regular deposits. The prof implied that we would have to solve for the dif eq'n S' = k + rS where k is...