Example: Find the FV
of an ordinary annuity that will pay $150 per year at the end of each of the next 15 years,
given the investment is expected to earn a 7% rate of return.
?
N = 15, I/Y = 7%, PMT = $150; CPT FV = $3,769.35 (ignore the sign).
?
Calculate the FV of an annuity due:
?
Example: Find the FV of an annuity due that will pay $100 per year for each of the next three
years, given the cash flows can be invested at an annual rate of 10%.?
Note: When solving for a FV of an annuity due, you MUST put your calculator in the
beginning of year mode (BGN), otherwise you'll end up with the wrong answer.
?
N = 3, I/Y = 10%, PMT = $100; CPT FV = $364.10 (ignore the sign).
?
Calculate the PV of an ordinary annuity:
Example: Find the PV of an annuity that will pay $200 per year at the end of each of the next
13 years, given a 6% rate of return.
?
N = 13, I/Y = 6, PMT = 200; CPT PV = $1,770.54
?
Calculate the PV of an annuity due:
?
Example: Find the PV of a 3-year annuity due that will make a series of $100 beginning of
year payments, given a 10% discount rate.
Note: There are two ways to approach this question. The first is to put your calculator in BGN
mode and then input all the variables as you normally would. The second is to shorten the
annuity by one year (N - 1) and find the PV of that shortened annuity as if it were an ordinary
annuity, then add the first annuity payment (PMT
0
) to it to come up with the PV of this annuity
due. In this second alternative, you will leave your calculator in the END mode.
?
1.
BGN mode: N = 3, I/Y = 10, PMT = 100; CPT PV = $273.55
2.
END mode: N = 2, I/Y = 10, PMT = 100; CPT PV = $173.55 + 100 = PV = $273.55
d: Calculate an unknown variable, given the other relevant variables, in annuity problems.
Example: Find the PMT required to fund a retirement program of $3,000 at the end of 15
years, given a rate of return of 7%.
?
N = 15, I/Y = 7%, FV = 3,000; CPT PMT = $119.38 (ignore the sign).
?
Example: Suppose that you will deposit $100 at the end of each year for 5 years into an
investment account. At the end of 5 years, the account will be worth $600. What is the rate of
return?
?
找金融资料，就到一览金融文库