Understanding Deferred Annuities and Calculations
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ScribdTranslationsUnderstanding Deferred Annuities and Calculations
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ScribdTranslationsWhen in a credit contract, by express agreement of the parties, the
payment of the rents starts after the expiration of one or several periods of
rental, or it can be said that some circumstances compel that the first
payment period starts on a future date. That is to say, the Initial date of the
the annuity does not match the date of the first payment, at that time between the start of
a liability and the payment date is known as deferred time or time of
thank you.
Definition: A deferred annuity is one whose term begins after
elapsed or a period of time. (Final value plus it works with the value
actual)
Calculation of the present value of a deferred annuity
Example 28: The Gómez family has a daughter, Jenny, who will enter in 3 years.
Jenny University is an extraordinary student who, by vocation, wants to
to study Engineering when I leave school. The Gómez family has liked the idea
to save a certain amount of money that guarantees professional training of
her daughter. How much will she have to deposit today in an account that earns interest of
10% if it is assumed that Jenny will not fail any course in the school or in the
University opting for an annual income of $6500 rounding the answer to
immediate superior.
Response: The Gómez family would have to deposit $20,364 today into an account of
savings at an interest rate of 10%.
Calculation of the interest rate of a deferred annuity
Example 34: An artifact costs $8,343.30 and is sold under the following
Conditions during one year $1,000 starting after 3 months.
What is the agreed interest rate?
Response: The interest rate that will be charged for this operation will be 4%
monthly
Calculation of the time of a deferred annuity
Example 32: A father deposits $12,500 today in a bank that pays the
8% annual interest so that your child receives an annuity of $3,000 and to cover
his studies, receiving the first annual payment within 10 years. How many withdrawals
Will the son be able to do annual and complete (ones)?
Calculation of the income of a deferred annuity
Example 29: Mrs. Adela inherits $50,000. Instead of withdrawing the money, she invests it.
At 3% capitalize it semiannually agreeing that 20 payments will be received
equal semester payments requiring the initial payment to be received within 5 years. Find the
amount of the payments.
Calculation of the interest rate of an annuity due
We will only use the corresponding formulas to isolate the variable of
the interest rate, although the most correct thing is to interpolate using tables, in order to have
a correct result, in this case we will only approximate the result.
Example 26: What annual interest rate with monthly compounding, of 10
monthly advance payments of $400 will accumulate an amount of $4,723.12?
Annuities in advance
Another of the most common annuities is the prepaid ones, which are the installments or payments.
newspapers at the beginning of each period like the rents that are paid at the start
of each month and others depending on the contract between parties.
Final value of an annuity due - Establishing a financial equation
taking as the focal date the end of the time horizon, the amount S of a
an early annuity can be obtained in the following way.
Calculation of the interest rate in a due annuity
As the clearing of the interest rate variable is difficult, we will then use
the trial and error method to approximate the corresponding result, making
an estimate of the percentage closest to the value of the quotient.
Example 17: You must pay $4,000 today. Since you do not have that amount
Available agrees with his creditor to pay in 6 installments of $714.10 at the end.
What interest rate is applied to this operation each month.
Calculation of the time for an ordinary annuity
Example 12: How many semiannual payments of $800 need to be made to settle
a debt of $4200 at 8% compounded semi-annually (round to the number
upper intestine.