Present Value of an Ordinary Annuity Calculation Examples, Illustrations, Concepts, Sample Help Online
Looking for Present Value of an Ordinary Annuity Calculation Examples, Illustrations, Concepts and Calculations to do your assignments, homework or project then you are at the correct place.
Services We Offer
Services Provided for Accounting
Accounting always put student on worries and stress. But with Assignment Consultancy for your help, you can remove all your worries by going through our various services:-
- Financial Accounting Homework Help
- Accounting Assignment Help Online
- Financial Accounting Assignment Help
- Managerial Accounting Homework Help
- Do my accounting Homework
- Accounting Case Study Assignment Help
- Finance accounting case studies assignment help
- Taxation homework help
- US tax codes homework help
- Advance Accounting homework help
- Cost Management Homework Help
- Australian Taxation Assignment help
- Ratio analysis assignment help
- Accountancy online exam help
- Accounts online exam help
Features for Accounting Assignment Help Services
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Best Customer Service
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to email@example.com or chat with our representative using live chat shown in bottom right corner.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Most of our clients are from UK, USA, Australia, Canada , UAE, New Zealand, Doha, Qatar, Muscat, Netherlands, France, Italy, Great Britain, Singapore, Malaysia looking for quality and accurate solutions.
Yash Batra, Student , UK University
“Great Experts to provide real time Accounts help services. They are just best in their approach”
Reham Fayad, Student MBA, USA
“They have some of the best USA experts to provide Accounts help online and also help me in my online exams.”
Graham Golith, Lancashire University, UK
“Best place to get all help in Accounts Essay and Exams. Will definitely recommend to all”
Understanding the concept of Present Value of an Ordinary Annuity Calculation Examples
An ordinary annuity is a series of equal payments, with all payments being made at the end of each successive period.We calculate present value for an ordinary annuity to determine the total cost of an annuity if the payment is to be made right now.
The present value of an ordinary annuity can be calculated using following formula
P = PMT [(1 – (1 / (1 + r)n)) / r]
P = The present value of the annuity stream to be paid in the future
PMT = The amount of each annuity payment
r = The interest rate
n = The number of periods over which payments are to be made
Present Value of an Ordinary Annuity Calculation Examples Explanation
Let’s understand the concept with the help of following illustration.
Example 1: Calculate the present value on Jan 1, 2011 of an annuity of $500 paid at the end of each month of the calendar year 2011. The annual interest rate is 12%.
Solution: We have,
Periodic Payment R = $500
Number of Periods n = 12
Interest Rate i = 12%/12 = 1%
Present Value PV = $500 × (1-(1+1%)^(-12))/1%
= $500 × (1-1.01^-12)/1%
= $500 × (1-0.88745)/1%
= $500 × 0.11255/1%
= $500 × 11.255
If you are looking for similar Present Value of an Ordinary Annuity Calculation Examples type assignment, click here . You can visit us for more examples here.