http://www.google.com/search?source=ig&hl=en&rlz=1G1GGLQ_ENUS374&q=annuities+present+value
http://www.google.com/search?source=ig&hl=en&rlz=1G1GGLQ_ENUS374&q=frequency+of+interest+compounding
I need an understanding of a few matters in my accounting class:
1) what are annuities and why is it necessary to calculate there present value?
2) How does the frequency of interest compounding, regardless of the rate of interest or period of accumulation affect the future value of any given amount?
3) How might you use the principles of time value of money to your financial benefit?
I am doing a paper on financial management. I have all other research done, but the instructor wants these included. Can you help me find some good websites that would answer these questions?
Thank you very much.
3 answers
Ms. Sue,
Thank you for the websites. I will look into them. I do have another question for you: I do understand the formulas for future value and present value, but I want to make sure that I am on the right track with this one.
Future value:
$5,000 compounded quarterly at 6% for 5 years. Is my forumula correct?
5000(1.06/4)^5*4= $6,734,23
Thank you for the websites. I will look into them. I do have another question for you: I do understand the formulas for future value and present value, but I want to make sure that I am on the right track with this one.
Future value:
$5,000 compounded quarterly at 6% for 5 years. Is my forumula correct?
5000(1.06/4)^5*4= $6,734,23
5,000(103)^10
0 answers