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What happens to the future value of an annuity if you increase the rate?
Wiki User
∙ 13y ago
The future value will go up.
Wiki User
∙ 13y ago
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What happens to the present value of an annuity if the future value of an annuity is increased?
It increases
What happens to the present value of an annuity when the interest rate raises?
decreases towards the future value faster
Would an annuity value calculator show you the present value of an annuity?
Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.
What happens to the present value of an annuity when the interest rate decreases?
it increases
What is the future value of a growing annuity with a present value?
The present value is what it is worth today minus any surrender charges. The future value is what it will be worth in the future at a given interest rate and again minus any surrender charges if applicable.
What happens to the present value of an annuity if the future value of an annuity is increased?
It increases
What happens to the present value of an annuity when the interest rate raises?
decreases towards the future value faster
What is the Difference between the future value of annuity and sinking fund?
future value of an annuity is a reciprocal of a sinking fund
How do you define the value of value?
I need a answer how do you know when to use future value or present value and future value of a annuity and present value of annuity Please help
The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity True or false?
true
How is present value annuity factor calculated?
The present value annuity formula is used to simplify the calculation of the current value of an annuity. A table is used where you find the actual dollar amount of the annuity and then this amount is multiplied by a value to get the future value of that same annuity.
Would an annuity value calculator show you the present value of an annuity?
Yes, an annuity value calculator can show you the present value of an annuity. As you may know, the present value of an annuity is the current value of a set of cash flows in the future, based on a specified rate of return.
What is FVIFA useful for?
Future value interest factor annuity
What happens to the future value of money when the inflation exceeds the interest rate?
it will increase
What is the difference between ordinary annuity and annuity due?
In an ordinary annuity, the payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
Exactly what values are calculated by a annuity value calculator?
An annuity value calculator calculates past value, present value, and estimated future value of an item or stock. It can also tell you what your current payout would be.
Differentiate between ordinary annuity and annuity due?
In an ordinary annuity, the annuity payments are fed into the investment at the END of the year. In an annuity due, the payments are made at the BEGINNING of the year. Therefore, with an annuity due, each annuity payment accumulates an extra year of interest. This means that the future value of an annuity due is always greater than the future value of an ordinary annuity.When computing present value, each payment in an annuity due is discounted for one less year (because one of the payments is not made in the future- it is made at the beginning of this year and is already in terms of present dollars). This will result in a larger present value for an annuity due than for an ordinary annuity, as well.
