--%>
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 : Private closed economy based question

    Normal 0 false false

    		•
  • Q : Examples of high operating leverage

    Give two instances of types of companies likely to contain high operating leverage. Give examples. Long distance telephone companies & electricity generating companies are likely to contain operating leverage. These two kinds of companies

    		•
  • Q : Why is replacement value of assets

    Why is the replacement value of assets method not used generally to value complete businesses?The replacement value of assets method is not frequently applied to complete business valuations since it is frequently very hard to locate similar ass

    		•
  • Q : Describe benefits of collecting early

    Describe benefits of "collecting early" and how do companies effort to do this? Money contains time value. The sooner cash is gathered, the better. Companies employ regional collection centres and lock boxes to facilitate this.

    		•
  • Q : Present value influenced by change in

    Normal 0 false false

  • Q : Problem of time lags in enacting and

    Normal 0 false false

  • Q : Explain primary assumption behind

    Explain primary assumption behind the experience approach to forecasting?The experience approach to forecasting is depending on the supposition that things will happen a certain way in the future since they happened that way in the past. For exa

    		•
  • Q : Describe factors which common

    Describe some factors which common stockholders consider while deciding how much, if any, cash dividends they want from the corporation wherein they have invested? Common stockholders would assume the company's investment opportunity, their requ

    		•
  • Q : Cyclical unemployment Suppose that in a

    Suppose that in a specific year the natural rate of unemployment is 5 percent and the actual rate of unemployment is 9 percent. Employ Okun's law to fin out the size of the GDP gap in percentage-point terms. If the nominal GDP is $500 billion in that year, how much ou

    		•
  • Q : The official unemployment rate Normal 0

    Normal 0 false false

    		•