please help
thank you
Consider an ordinary annuity that pays out over 6 as well as an annuity due that also pays out over 6 periods. Assume that each of these annuities has the same interest rate. The annuity due will have the ordinary annuity, because the annuty due has periods of eaming interest when compared to the ordinary annuity. Read the following text and answer the questions that follow An annuity is a series of payments of fixed amounts that occur at regular intervals for a specific period of time. Recall from the previous stage of the problem that if these payments happen at the beginning of each period, the annuity is an annuity due. If the payments happen at the end of each period the annuity is an ordinary annuity. In practice, ordinary annuities are more commonly ased. The future value of an annuity is the amount of cash you will have at the end of the life of the annuity. In other words, it is the amount to which the annuity payments will grow over a given period of time, if those payments can be compounded with an given interest rate, Given the interest rate I,theamountperfoxedpaymentPMT,andthenumberofperiodsN,thefuturevalueofanordinaryannuity(FVAN ) can be calculated as: FVAN=PMT(1+I)(N1)+PMTT(1+I)(N1)+PMT(1+I)(N3)++PMT(1+I)0 Which simplifies to: FAN=PHN(1(1+nN1) Which simplifies to: FVAN=PMTT(t(1+I)N1) While in practice this calculation is typically done on a financial calculator or spreadsheet application, this equation can be useful when solving annuity problems without those resources. When using a financial calculator to solve for the future value of an ordinary annuity, it is important to keep in mind the following: - The PV (present value) is the amount of funds at the start. For an ordinary annuity in isolation, this will be 0. - The PMT is entered as a negative number when it is a cash outflow. - The I/YR is entered as a number, such as 10 for 10 percent, not as a decimal such as 0.10 for 10 percent. Note that financial calculators typically calculate the future value of an ordinary annuity by default, but can easily be adjusted to calculate the future value of an annuity due as well. A financial calculator can also be used to calculate the other components of an annuity, given all the values of the other components, For example, given the PV, T/YR, N, and FV, a financial calculator can solve for the period payment PMT. A financal calculator can also be used to calculate the other components of an annuity, given all the values of the other components. For example, given the PV, IYR,N, and FV, a financial calculator can solve for the period payment PMT. True or False: PMT is always entered as a positive number on a financial calculator when solving annuity problems. True False Suppose you know want to solve for the FV of an ordinary annuity using a financial calculator. In order to solve for the PV of an ordinary annuity, which of the following components will you need to know the value of? Check all that apply. PMT N PV I/YR Step 2: Learnt Future Value of an Annuity Using a financial calculator is a common way of finding the future value of an ordinary annuity. Suppose that Kenji is 40 years old and has no retarement savings. He wants to begin saving for retirement, with the first payment coming ene year from now, He can save 970,000 per year and will invest that amount in the stock market, where it is expected to yield af average annual feturn of 5,00% return. Assume that this rate will be constant for the rest of his's life, In short, this scenario fits all the criteria of an ordinary annuity, Kenji would like to calcidate how much moriey he will have at age 65 . Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the valuet of I for N, use the selection list above N in the rable to select that value. Using a financial calculator vicids a future value of this ordinary annuity to be approximately at aqe 65 Kenji would now like to cakculate haw much money he will have at age 70 . Use the following table to indicate which values you should enter on your financial calculator, For example, if you are using the value of 1 for N, use the selection list ahove N in the table to select that value. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70 . Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent retum on irivestments in the stock market. He would like to calculate how much he can withdraw at the end of each year after retirement. USe the following table to indicate which values you should enter on your financial calculator in order to solve for P.MT in this scenario. For example, if you are using the value of 1 for N, use the selection hst above N in the table to select that value. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after tetirement (assuming retirement at age 65 ), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Kenji expects to Iive for another 20 years if he retires at age 70 , with the same expected percent return on investments in the stock market. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are usang the value of t for N, use the selection list above N in the table to select that value. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after retirement at age 70 , assuming a fixed withdrawal each year and $0 remaining at the end of his life. Now it's time for you to practice what you've learned. Suppose that Kenji is 40 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an avetage annual retum of 15.00% return. Assume that this rate will be constant for the rest of his's life. Kenji would like to calculate how much money he will have at age 65 . Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 Using a financial calculator yields a future value of this ordinary annuity to be approximately ot age 70. Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after retirement (assumany retirement at age 65), assumung a fixed withdrawal each year and so remaining at the end of his life. Kenji expects to live for another 20 years if he retires at age 70 , with the same expected percent retuin on investments in the stock mathot: Using a financial calculator, you can calculate that Kenji can withidraw at the end of each year atter retirenent at age 70 , assuming a fixed withdrawal each year and 50 remaining at the end of his life. The future value of an annuity is a fundamental concept in finance, However, there are some details and distinctions that can make a big difference in the future value of an annuity. Watch the video and answer the question that follows: Consider an ordinary annuity that pays out over 6 as well as an annuity due that also pays out over 6 periods. Assume that each of these annuities has the same interest rate. The annuity due will have the ordinary annuity, because the annuity due has periods of eaming interest when compared to the ordinary annuity. Read the following text and answer the questions that follow. An unnuity is a series of payments of fixed amounts that occut at regular intervals for a specific period of time, Recall from the previous stage of the problem that if these payments happen at the beginning of each period, the annaity is an annaty due. If the payments happen at thet end of each period the annuity is an ordinary asnuity. If practice, ordinary annuities are more commonly used. The future value of at annuity is the amount of cash you will have at the end of the life of the annuity. In other words, it is the amoant to which the annuty payments will grow over a given period of time, if those payments can be compounded with an given interest rate. Given the interest FFAN=PMP(1+I)(N1)+PMP(1+I)(N1)+PPN(1+I)(N1)++P(NT(1+I)3 Which simplifies to: Which simplifies to: FVAN=PMT(1(1+n)1) While in practioe this caloulation is typically done on a financial caloulator or spreadsheet application, this equation can be useful when solving annuity problems without those resources. When using a financial calculator to solve for the future value of an ordinary annuity, it is important to keep in mind the following: - The PV (present value) is the amount of funds at the start. For an ordinary annuity in isolation, this will be 0. - The PMT is entered as a negative number when it is a cash outflow. - The 1/rre is entered as a number, such as 10 for 10 percent, not as a decimal such as 0.10 for 10 percent. Note that financial calculators typically calculate the future value of an ordinary annuity by default, but can easily be adjusted to calculate the future value of an annuity due as well. A financial calculator can also be used to calculate the other components of an annuity, given all the values of the other components. For example, given the PV,IYR,N, and FV, a financial calculator can solve for the period payment PMT. givent the PN, IIYR, N, and FV, a financial calculator can solve for the period payment PMI. True or False: PMI is always entered as a positive number on a financial calculator when solving annuity problerris. True False Suppose you know want to solve for the FV of an ordinary annuity using a financial calculator. In order to solve for the FV of an ordinary annuity, which of the following components will you need to know the walue of? Check all that apply. PMI N PN I/YR Step 7t Learn: Future Value of an Annuity Using a financal calculator is a common way of findeng the future value of an ordinary annuty. Watch the video and then ariswer the questions that follow. Seppose that Kenji is 40 years old and has to retirement savings. He wants to begin saving for retirement, with the first payment coming onet yeat from now. He can save $20,000 per year and will invest that amount in the stock market, where it is expected to yiekd an average annual return of 5.00% return. Assume that this rate will be constant for the rest of his's life, In stort, this scenario fits all the citeria of an ordinary annuitye Kenji would like to caiculate how much money he will have at age 65 . Use the rollowing rable to mdicate which values you should enter on your financial calculator. For example, if you are using the value of I for N, use the selection list above N in the table to select that value. Useng a financial calculator yields a future value of this ordinary annuty to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 . Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70. Kenjl expects to live for another 25 years if he retires at age 65 , wath the same expected percent return on investments in the stock market. He would like to calculate how much he can withdraw at the end of each year after retirement. Use the folfowing table to indicate which values you should enter on your financial calculator in order co solve for pMTh in this scenario. For exampic, if you are using the value of 1 for N, use the selection lust above N in the table to select that valiue. Using a financial calculater, you can calculate that Kenji can withdraw at the end of each year after retirement (assuming retirement at age 65), assuming a fixed withdrawal each year and so remaining at the end of his life: Kenji expects to live for another 20 years it he retires at age 70, with the same expected percent retum on envestments in the stock market. Use the following table to indicate which values you should enter on your financial calculator, For examole, df you are asing the vatie of t for 1 , use the selection list above N in the table to select that value. Using a financial calculator, you can calculate that Kerji can withidraw at the end of each yesr after retirement at age 70 , assuming a fixed withidrawal each vear and 50 remaining at the end of his Me. Now it's time for you to practice what you've learned. Suppose that Kenji is 40 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 15.00% return. Assume that this rate will be constant for the rest of his's life. Kenji would like to calculate how much money he will have at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 . Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70. Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year atter retirement (assuming retirement at age 65 ), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Kenji expects to live for another 20 years if he retires at age 70 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Keryi can withdraw at the end of each year after retirement at ape 70, assuming a foxed withdrawal each year and 50 remaining at the end of his life. Consider an ordinary annuity that pays out over 6 as well as an annuity due that also pays out over 6 periods. Assume that each of these annuities has the same interest rate. The annuity due will have the ordinary annuity, because the annuty due has periods of eaming interest when compared to the ordinary annuity. Read the following text and answer the questions that follow An annuity is a series of payments of fixed amounts that occur at regular intervals for a specific period of time. Recall from the previous stage of the problem that if these payments happen at the beginning of each period, the annuity is an annuity due. If the payments happen at the end of each period the annuity is an ordinary annuity. In practice, ordinary annuities are more commonly ased. The future value of an annuity is the amount of cash you will have at the end of the life of the annuity. In other words, it is the amount to which the annuity payments will grow over a given period of time, if those payments can be compounded with an given interest rate, Given the interest rate I,theamountperfoxedpaymentPMT,andthenumberofperiodsN,thefuturevalueofanordinaryannuity(FVAN ) can be calculated as: FVAN=PMT(1+I)(N1)+PMTT(1+I)(N1)+PMT(1+I)(N3)++PMT(1+I)0 Which simplifies to: FAN=PHN(1(1+nN1) Which simplifies to: FVAN=PMTT(t(1+I)N1) While in practice this calculation is typically done on a financial calculator or spreadsheet application, this equation can be useful when solving annuity problems without those resources. When using a financial calculator to solve for the future value of an ordinary annuity, it is important to keep in mind the following: - The PV (present value) is the amount of funds at the start. For an ordinary annuity in isolation, this will be 0. - The PMT is entered as a negative number when it is a cash outflow. - The I/YR is entered as a number, such as 10 for 10 percent, not as a decimal such as 0.10 for 10 percent. Note that financial calculators typically calculate the future value of an ordinary annuity by default, but can easily be adjusted to calculate the future value of an annuity due as well. A financial calculator can also be used to calculate the other components of an annuity, given all the values of the other components, For example, given the PV, T/YR, N, and FV, a financial calculator can solve for the period payment PMT. A financal calculator can also be used to calculate the other components of an annuity, given all the values of the other components. For example, given the PV, IYR,N, and FV, a financial calculator can solve for the period payment PMT. True or False: PMT is always entered as a positive number on a financial calculator when solving annuity problems. True False Suppose you know want to solve for the FV of an ordinary annuity using a financial calculator. In order to solve for the PV of an ordinary annuity, which of the following components will you need to know the value of? Check all that apply. PMT N PV I/YR Step 2: Learnt Future Value of an Annuity Using a financial calculator is a common way of finding the future value of an ordinary annuity. Suppose that Kenji is 40 years old and has no retarement savings. He wants to begin saving for retirement, with the first payment coming ene year from now, He can save 970,000 per year and will invest that amount in the stock market, where it is expected to yield af average annual feturn of 5,00% return. Assume that this rate will be constant for the rest of his's life, In short, this scenario fits all the criteria of an ordinary annuity, Kenji would like to calcidate how much moriey he will have at age 65 . Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the valuet of I for N, use the selection list above N in the rable to select that value. Using a financial calculator vicids a future value of this ordinary annuity to be approximately at aqe 65 Kenji would now like to cakculate haw much money he will have at age 70 . Use the following table to indicate which values you should enter on your financial calculator, For example, if you are using the value of 1 for N, use the selection list ahove N in the table to select that value. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70 . Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent retum on irivestments in the stock market. He would like to calculate how much he can withdraw at the end of each year after retirement. USe the following table to indicate which values you should enter on your financial calculator in order to solve for P.MT in this scenario. For example, if you are using the value of 1 for N, use the selection hst above N in the table to select that value. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after tetirement (assuming retirement at age 65 ), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Kenji expects to Iive for another 20 years if he retires at age 70 , with the same expected percent return on investments in the stock market. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are usang the value of t for N, use the selection list above N in the table to select that value. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after retirement at age 70 , assuming a fixed withdrawal each year and $0 remaining at the end of his life. Now it's time for you to practice what you've learned. Suppose that Kenji is 40 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an avetage annual retum of 15.00% return. Assume that this rate will be constant for the rest of his's life. Kenji would like to calculate how much money he will have at age 65 . Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 Using a financial calculator yields a future value of this ordinary annuity to be approximately ot age 70. Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year after retirement (assumany retirement at age 65), assumung a fixed withdrawal each year and so remaining at the end of his life. Kenji expects to live for another 20 years if he retires at age 70 , with the same expected percent retuin on investments in the stock mathot: Using a financial calculator, you can calculate that Kenji can withidraw at the end of each year atter retirenent at age 70 , assuming a fixed withdrawal each year and 50 remaining at the end of his life. The future value of an annuity is a fundamental concept in finance, However, there are some details and distinctions that can make a big difference in the future value of an annuity. Watch the video and answer the question that follows: Consider an ordinary annuity that pays out over 6 as well as an annuity due that also pays out over 6 periods. Assume that each of these annuities has the same interest rate. The annuity due will have the ordinary annuity, because the annuity due has periods of eaming interest when compared to the ordinary annuity. Read the following text and answer the questions that follow. An unnuity is a series of payments of fixed amounts that occut at regular intervals for a specific period of time, Recall from the previous stage of the problem that if these payments happen at the beginning of each period, the annaity is an annaty due. If the payments happen at thet end of each period the annuity is an ordinary asnuity. If practice, ordinary annuities are more commonly used. The future value of at annuity is the amount of cash you will have at the end of the life of the annuity. In other words, it is the amoant to which the annuty payments will grow over a given period of time, if those payments can be compounded with an given interest rate. Given the interest FFAN=PMP(1+I)(N1)+PMP(1+I)(N1)+PPN(1+I)(N1)++P(NT(1+I)3 Which simplifies to: Which simplifies to: FVAN=PMT(1(1+n)1) While in practioe this caloulation is typically done on a financial caloulator or spreadsheet application, this equation can be useful when solving annuity problems without those resources. When using a financial calculator to solve for the future value of an ordinary annuity, it is important to keep in mind the following: - The PV (present value) is the amount of funds at the start. For an ordinary annuity in isolation, this will be 0. - The PMT is entered as a negative number when it is a cash outflow. - The 1/rre is entered as a number, such as 10 for 10 percent, not as a decimal such as 0.10 for 10 percent. Note that financial calculators typically calculate the future value of an ordinary annuity by default, but can easily be adjusted to calculate the future value of an annuity due as well. A financial calculator can also be used to calculate the other components of an annuity, given all the values of the other components. For example, given the PV,IYR,N, and FV, a financial calculator can solve for the period payment PMT. givent the PN, IIYR, N, and FV, a financial calculator can solve for the period payment PMI. True or False: PMI is always entered as a positive number on a financial calculator when solving annuity problerris. True False Suppose you know want to solve for the FV of an ordinary annuity using a financial calculator. In order to solve for the FV of an ordinary annuity, which of the following components will you need to know the walue of? Check all that apply. PMI N PN I/YR Step 7t Learn: Future Value of an Annuity Using a financal calculator is a common way of findeng the future value of an ordinary annuty. Watch the video and then ariswer the questions that follow. Seppose that Kenji is 40 years old and has to retirement savings. He wants to begin saving for retirement, with the first payment coming onet yeat from now. He can save $20,000 per year and will invest that amount in the stock market, where it is expected to yiekd an average annual return of 5.00% return. Assume that this rate will be constant for the rest of his's life, In stort, this scenario fits all the citeria of an ordinary annuitye Kenji would like to caiculate how much money he will have at age 65 . Use the rollowing rable to mdicate which values you should enter on your financial calculator. For example, if you are using the value of I for N, use the selection list above N in the table to select that value. Useng a financial calculator yields a future value of this ordinary annuty to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 . Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70. Kenjl expects to live for another 25 years if he retires at age 65 , wath the same expected percent return on investments in the stock market. He would like to calculate how much he can withdraw at the end of each year after retirement. Use the folfowing table to indicate which values you should enter on your financial calculator in order co solve for pMTh in this scenario. For exampic, if you are using the value of 1 for N, use the selection lust above N in the table to select that valiue. Using a financial calculater, you can calculate that Kenji can withdraw at the end of each year after retirement (assuming retirement at age 65), assuming a fixed withdrawal each year and so remaining at the end of his life: Kenji expects to live for another 20 years it he retires at age 70, with the same expected percent retum on envestments in the stock market. Use the following table to indicate which values you should enter on your financial calculator, For examole, df you are asing the vatie of t for 1 , use the selection list above N in the table to select that value. Using a financial calculator, you can calculate that Kerji can withidraw at the end of each yesr after retirement at age 70 , assuming a fixed withidrawal each vear and 50 remaining at the end of his Me. Now it's time for you to practice what you've learned. Suppose that Kenji is 40 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $12,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 15.00% return. Assume that this rate will be constant for the rest of his's life. Kenji would like to calculate how much money he will have at age 65. Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 65. Kenji would now like to calculate how much money he will have at age 70 . Using a financial calculator yields a future value of this ordinary annuity to be approximately at age 70. Kenji expects to live for another 25 years if he retires at age 65 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Kenji can withdraw at the end of each year atter retirement (assuming retirement at age 65 ), assuming a fixed withdrawal each year and $0 remaining at the end of his life. Kenji expects to live for another 20 years if he retires at age 70 , with the same expected percent return on investments in the stock market. Using a financial calculator, you can calculate that Keryi can withdraw at the end of each year after retirement at ape 70, assuming a foxed withdrawal each year and 50 remaining at the end of his life
