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Simple intrest:
Interest on the princiole only.
So on $1000, 5% simple intrest
after year= 1000 (.05)= so intrest total = $1050
after 2 years..... 1000(.05)= $50 total..= $1100
Compound Interest:
1 : FV = Pv (1+i)^n
Fv: Future Value
Pv: Present Value
i: intrest rate
...So for 1 period , $1000 at 5%=
1000 (1050)^1= $50 total= 1050
In Year 2
1050(1.05)^1 = 1102 ^50 -1050 =52 intrest
OR
1000 (1.05)^2 =1102^50
Pv 1000
Fv ...............1102
Pmt 0
N 2
i 0.5
What in the futur value $ 103,583 ^25, 9 1/2 year from now at 4 3/4% ?
http://www.calculator.net/finance-calculator.html?ctype=endamount&ctargetamountv=1000000&cyearsv=9.5&cstartingprinciplev=103583&cinterestratev=4.75&ccontributeamountv=0&ciadditionat1=end&printit=0
Annuity : A regular series of payments.
An Ordinary or regular annuity has the 1st payment ,at the of the 1st peried.
2: FVA = PMT [ (1+i)^n-1/i]
FVA: Future Value Annuity
...so if I got
$1000 per year for 10 years at 5% at the end of that time I 'll have ...
1000[(1.05)^10-1/0.05]= $ 12,577.89
http://www.calculator.net/annuity-calculator.html?cstartingprinciple=0&cannualaddition=1000&cmonthlyaddition=0&cadditionat1=end&cinterestrate=5&cyears=10&printit=0&x=74&y=9
* Table Value
...so what is the future Value of an annuity of 1,612^19, for 13 5/8 years and 4 3/8%?
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