--%>
Assignment Help - homework help

Describe formula to figure out investments

Assume you are planning to make regular contributions in equivalent payments to an investment fund for your retirement. Which formula would you employ to figure out how much your investments will be worth at retirement time, specified an assumed rate of return on your investments?

To figure out how several your investments will be worth at retirement time, specified an assumed rate of return on your investments, you would employ the future value of an annuity formula:

Future Value of an Annuity Formula

12_sv.png

 

 

 

 

Here:    FVA  = Future Value of an Annuity

           PMT = Amount of each annuity payment

            k    = Interest rate per time period

            n    = Number of annuity payments

 

 

   Related Questions in Finance Basics

  • Q : Financial Account & International fund

    Question: The Financial Account captures international fund flows due to i._____. ii. Briefly Explain? Answer: (i)    Purchase and selling of assets (ii)   The Financial Account captures th

    		•
  • Q : Why coefficient of variation is better

    Why is the coefficient of variation frequently a better risk measure while comparing different projects than the standard deviation?Whenever we desire to compare the risk of investments which have different means, we employ the coefficient of va

    		•
  • Q : What is Detail of Appropriations and

    Detail of Appropriations and Adjustments: A budget display, for each association, that replicates appropriations and adjustments by fund source for each of the character of expenditure, (that is, State Operations, Local Assistance, and Capital Outlay)

    		•
  • Q : Describe annuity Normal 0 false false

    Normal 0 false false

  • Q : Demand for small automobiles Normal 0

    Normal 0 false false

  • Q : What is Cash Flow Statement What is

    What is Cash Flow Statement: It is a statement of cash receipts and disbursements for a particular time period.

    		•
  • Q : International Business and Finance

    Alpha and Beta Companies can borrow at the described rates. Alpha Beta Moody's credit rating Aa Baa Fixed-rate borrowing cost 10.5% 12.0% Floating-rate borrow

    		•
  • Q : Multiplier effect Normal 0 false false

    Normal 0 false false

    		•
  • Q : Role of depreciation in estimating

    What kind of role does depreciation play in estimating incremental cash flows? Depreciation expense is a tax deductible expense and therefore affects cash flow through its effect on taxes. Depreciation expense which is incremental to a proposed

    		•
  • Q : Explain Continuously Vacant Positions

    Continuously Vacant Positions: On July 1, the positions which were continuously vacant for six successive monthly pay periods throughout the prior fiscal year are abolished by the State Controller's Office. The six successive monthly

    		•