Future value of an annuity?
352721
Hi there again - just answered your other annuity question.\n\nI'm assuming you are accumulating it up to the END of year 5. \n\nI'm also assuming that by an ordinary annuity you mean one where the payments are made at the END of each year (so at times 1, 2, 3, 4, 5 in this case).\n\nFrom scratch you could calculate it as follows:\n\n300×1.07^4 + 300×1.07^3 + 300×1.07^2 + 300×1.07 + 300\n\nAs the first $300 is paid at time 1 (end of year 1) and accumulated 4 years to time 5. The 2nd $300 is paid at time 2 (end of year 2) and so is accumulated 3 years to time 5. And so on.\n\nThis gives a value of $1,725.22 (to the nearest cent).\n\nThe quicker way is to use the accumulated value of an annuity formula which (for $1 a year) is:\n\n[(1 + i)^n - 1]/ i\n\nSo (1.07^5 - 1)/ 0.07 = 5.750739...\n\nSo for $300 a year it is $300 × 5.750739... = $1,725.22\n\nThis formula is found in Actuarial Science courses. \n\nNote that it is less than your annuity due question as the payments are received later and so are invested later - hence less interest is received.
131061
After one year the value x will x+x*i=x(1+i) where i the profit and x is the initial value\nAfter 2 year will be x(1+i)^2\nAfter 7 years (2004-1997) will be x(1+i)^7\n\nThe final future value is 1311\nThe initial present value is 309\n(309)(1+i)^7 = 1311\n(1+i)^7 = 1311/309 = 4.2427\n(1+i) = 4.2427^(1/7)\n1+i = 1.22921\ni=0.2292=22.92% annualy\n\nAt 1997- 309*(1+0.229)^0= 309.000000\nAt 1998- 309*(1+0.229)^1= 379.858644\nAt 1999- 309*(1+0.229)^2= 466.9663088\nAt 2000- 309*(1+0.229)^3= 574.0491549\nAt 2001- 309*(1+0.229)^4= 705.6878109\nAt 2002- 309*(1+0.229)^5= 867.5133169\nAt 2003- 309*(1+0.229)^6= 1066.448001\nAt 2004- 309*(1+0.229)^7= 1311.00159
819834
if interest is compounded daily, don't forget to...\n\n1.  divide 5.16% by 365 to get the daily rate\n2.  use 30 days as your period "n"\n3.  don't use the avg daily balance.  you must use the initial principal balance at the beginning of the 30 day period.\n\ni haven't worked it out, but if your formula is correct, the future value will work.\n\nif you have a business calculator (preferrably from HP)\n\nPV = initial principal balance\ni = 5.16% divided by 365 days\nn = 30 days\n\nsolve for FV
436743
You should invest your life savings. Truly, you should. Just send it to me and I will handle that for you.
165716
Check with a local financial planner, but my thought would be to look at the non-qualified variable annuities offered by global insurers like ING or Allianz.
274827
Assuming that you will get a 10% return annualy during the 30 year accumulation and also in the 20 year distribution, not taking into account taxes or inflation, the annual contribution is $2,458 per year for 30 years.  If you want to play with some numbers yourself, go to http://dinkytown.com and play with the retirement and savings calculators.
1110697
Who is handling the transfer of all the other property if there were any such as the home, furnishing, bank accounts and any other savings, stocks or bonds?\n\nIf there is no probate you should call the insurance company that has the annuity  and find out from them when you will be able to receive our funds.\n\nYou might also check and see if the amount you received has any tax consequences, with a trusted tax advisers that your family or you know.\n\nI hope this has been of some use to you, good luck.\n\n"FIGHT ON"
785943
A very difficult question to answer. I see that you have a previous response that said yes and one that said no.   The problem is that no one knows for sure what the future might hold.  Here is what I suggest that you consider doing.  Take the amount that you considered investing in mutual funds and split it into 4 equal parts.  Invest one part now into a mutual fund that you think is good.  The other 3 parts place into a guarnteed account, bank account or short term government bonds.  Six months from now, invest the 2nd part in the mutual fund if the fund has increased in value.  If it has not, do not do anything.  Six months later go through the same exercise.  That way you are not risking more than 1/4 of your funds initiially.    And always keep 1/4 in reserve in case there is a terrible stock market crash.  That is the time that you can invest and make a lot of money so save for that event.  Crashes come more often than most people want.
318123
You can find a lot of past performance of mutual funds on this web site.     http://www.micropal.com/\nalthough past return is no guarantee of future results - still, it could be used as an estimate.\n\nIf you want to calculate what an investment of $37,940 would add up to if it grew at 5% per year, just type this formula into an excel sheet:\n  =FV(0.05,30,,-37940)\nA whopping $163,974!
54823
plant it in the ground like a seed. not really, i'm just kidding you.  You should put it into an Annuity, you can't touch it or you will be penalized, it will grow, slowly, but not too slowly and it will mature i think whenever you want it to.
430179
Assuming no growth do to interest earned then $200,000 in 1954 $$ would be worth only $26,560 in 2006 $$. The factor from 1954 to 2006 is 7.53 Another way to look at it would be to say it would take $1,506,000 of todays $$ to buy the same thing you could buy in 1954 for $200,000.\n\nNow if it had been invested in 1954 at 5% interest rate it would be worth $2,500,000 in 2006 dollars with the buying power of about $336,000 1954 $$.
477328
I suggest you to stay away from annuities.\n\nIf you need help with your finances drop me a line.
714945
I believe the annuity disbursement you receive is the retirement benefit and will not change.  You can contact the Army personnel office at any base and they should be able to tell you.
1164552
Do you mean the present value of annuity of 1 per year, for 48 years, at 8% per year compounded annually?\n\n\n(1-(1/1.08^48))/0.08 = 12.19
653896
There are pros and cons of variable annuities as an investment.  I think the key here is whether your employer has a matching program (like you contribute 5%, and they match 5%).  If yes, you should still join, variable annuities or not, you are getting free money from them.  If there is no matching, you should forget about them and open your own 401K account else where and invest in regular mutual funds yourself.
95129
i have no idea. this should be planned considering the projected costs and the level of standard you want to retire, perhaps a million
104033
Not only does it depend on the rate of interest offered, it depends upon your personal rate of time preference. The other answers ... spend it now, you don't know the future, are essentially correct. If, in real terms, $1000 of spending today provides more "utility" than $1200 a year from now, take the money now.