How To Calculate The Present Value of an Annuity

This finance video tutorial explains how to calculate the present value of an annuity. It explains how to calculate the amount of money you need to invest now to generate a stream of monthly cash flow payments for a specified number of years given a fixed interest rate.
Liquidity Ratios:
• Liquidity Ratios - Cur...
Assets, Liabilities, & Equity:
• Personal Finance - Ass...
The Short Ratio:
• How To Calculate The S...
Debt to Equity Ratio:
• Long Term Debt to Equi...
Time Value of Money:
• Time Value of Money - ...
_____________________________
Future Value of Annuity:
• How To Calculate The F...
More Examples on Annuities:
• Annuities - How To Cal...
How To Calculate The Monthly Mortgage Payment:
• How To Calculate Your ...
The Present Value of an Annuity:
• How To Calculate The P...
Net Present Value & Internal Rate of Return:
• Net Present Value - NP...
____________________________
Annual Percentage Yield:
• Annual Percentage Rate...
Amortization Loan Formula:
• Amortization Loan Formula
Amortization Table:
• How To Create an Amort...
Rule of 72:
• Rule of 72
Bond Yields:
• Intro to Investing In ...

[@TheOrganicChemistryTutor]

Final Exams and Video Playlists: www.video-tutor.net/

[@leonelmessi4391]

Today😂😂

[@lourediemurillo6126]

who's here because they have exams tomorrow :))

[@junclaireang5584]

MEEEE

[@lilyjanineentila7703]

✨👉🏻🙋🏻‍♀️👈🏻✨

[@lourediemurillo6126]

@@junclaireang5584 ti may pulos? HAHHA

[@lourediemurillo6126]

@@lilyjanineentila7703 napuslan man? HAHAHA

[@junclaireang5584]

@@lourediemurillo6126 wala kay wala ko gin lantaw HAHAHHA nag comment lang gid kodi ya

[@miss2190ed]

Your voice calms my nervous system when interacting with math. Bless you!

[@gabe7996]

This guy really does it all

[@lubanzikhanyile5898]

it took me 3hrs to find this. i have been scrolling over the videos but i only got math formulas. i wanted this for financial accounting. got bless your content. thank you so much

[@sadamadan4268]

Thank you alot man. You did easily what my Prof didn't for more then 3hrs

[@radi0bezel825]

Looks like he should’ve taken four hours because it’s ‘than’….

[@zehra3454]

@@radi0bezel825 prof should also do the fifth hour for your bullying

[@bto5881]

Thank you so much ! the explanations and the examples are so clear.

[@tadiwachipunza8074]

Thank u so much, ur videos ar really helpful. Could u do one on source transformations, i would be grateful

[@leewithey2014]

Excellent explanation!!! Thank you. 🐕

[@davionholland7670]

you helped me pass statistics last semester, lets see if we can save the semester and pass my financial management finals later today :)

[@IlIlIllllllI]

How’d it go? 😅

[@bshaps9465]

thanks a lot i needed this

[@buhleallentutorials3746]

Great job.

[@CR-so5qk]

Who's here because they can't understand what was in their modules?😭

[@randomyoutubeaccount6906]

DUDE!!! after like 50 hours 2 minutes into this video you made the thing that I could not understand click. The top part of the formulas order

[@nicoleipancompilations4470]

Thank you so much ☺️

[@Harshana1]

Thank you so much 😊❤

[@thomaschen3943]

Thank you so much. I know how to write English now

[@sherezamohammed5276]

God Bless You, Thank you so so much

[@MissAura_]

Thank you so much!!!!

[@dria7387]

Excellent ahahaha 😍🧐

[@arinaitweann2992]

Thank you so much🙏🙏

[@AngelaMaeHAlbor]

ah, this saved my life. May God bless ur soul I SWEAR IM CLOSE TO GIVING UP BUSINESS MATH T__T

[@rayanthonytalisay2469]

thank you Sir!!! luvuuu

[@profderek8111]

Last year, I made a property sale and had over $1 million in proceeds. I allocated $400k to index annuities and put the rest in the trending High Frequency Trading style. So far I've more than doubled the annuity premium from the stock market and sure enough will not need an annuity for the rest of my life. However I won't discredit annuities in any way, they buy you peace of mind but then a lot of people buy them out of fear of what's yet unknown even when it's not the best decision for them. If you need growth, try other stuffs. Annuities should be a backup plan, just like an insurance. Concepts like HFT/ algo trading and diversification of assets can be of great help for growth oriented individuals while still retaining control of your money. My two cents

[@ramseyb1573]

I agree with the idea of considering annuities as an insurance rather than an investment. Nice portfolio you have going on though. kudos!

[@George-hl7jf]

How does algo trading work? Might just be what I need now. I still need growth as much as the downside protection that annuities provide

[@profderek8111]

@@George-hl7jf It's when your account mirrors someone else's trades. Trick is knowing who to copy. I managed to work my way into Josephine Guevara Laporte's popular algo trading program. She's a renowned CFA, you should check her out. There are other similar options out there but consistency and smart diversification skills were the clincher for me with Josephine.

[@theexpendables3152]

@@profderek8111 hi I'm already in retirement and have like $700,000 in a CD account with a very low interest. I only need $30,000 for liquidity purposes(emergency fund) and plan on growing the bulk to over a million. I found Josephine Laporte's official website after looking up her name. Quite impressed at her portfolio and will schedule a call with her right away. What's the fee structure?

[@profderek8111]

@@theexpendables3152 Since it's an algo trading based model, it's very much transparent because you can actually see what assets you have and how much growth your portfolio has achieved. She takes 10% of the profits, no hidden fees.

[@kyo1221]

I don know what is about but I click on notifications

[@pkmath12345]

Another interesting series of financial mathematics! Which is my favorite haha

[@matthewhardcastle2781]

Turrete ur n hi pool

[@expoow]

Thanks Sir❤!

[@sherwinmarlin2782]

What formula would I use to solve this? How did they get 119.1616? [Annuity PV factor I=0.09/12; N=25*12] = 119.1616

[@supergirl1554]

Thank you so much for helping me

[@amanialbert3912]

Hahahah. I have exams tomorrow for financial management in the afternoon. Am here catching up. Thanks for the video

[@wtaii4102]

i love your work you've been helpful can i ask a question though is the answer for your second method suppose to be 943.39?

[@wtaii4102]

okay you got it lol

[@fitogaona1142]

yep he made a mistake

[@user-iy4my7op7b]

I love you reallly❤️❤️❤️❤️❤️

[@michellesangabriel7694]

Easwest college brought me here. am a subscriber now.

[@duyanhtran4723]

thank you.

[@aslcanturk4231]

thank you so much for everything.

[@leosp3597]

Jesus Christ loves you. John 3:16

[@thomas_teboho]

Great video. Do you mind showing how we can find r (the interest rate), if we know PV, C, n and t ?

[@Theoretically00]

Multiply both sides by r/c, then subtract1, divide both side by a negative. Then multiply both side by n, boom you'll get I

[@teagan1636]

Bro knows everything

[@thatomofolo452]

Got it 💪💪💪

[@jasserlabiadh]

i was shocked when i red THE ORGANIC CHEMISTRY TUTOR

[@vanzypubg8469]

*Approximately* the same answer. If you run an If function, you'll realize they aren't equal. They deviate at 11dp

[@shiyuru9943]

Exam in less than 2 hours😂

[@ronaldosithole6329]

Me right now. 🤣

[@jezreelamil8957]

can u make a video wherein there's no given C but only the overall ammount in 9 years for example

[@lordlopikong6940]

Could you make one about a missing rate?

[@shameethamaharaj4127]

Hi , how can i work out the PMT if i have the NPV 43 460, n 5years, i% 20%. Formula please

[@asmaiqbal402]

What if we have a compound interest??? Does the same formula work??

[@kodarkma7444]

Hello can you do a video on pthly annuities plz

[@emilianimwaliga8474]

Please help us LUMO and UMO tutorial

[@user-qk9re5yl7x]

I’m literally learning about this right now wtf???

[@euaemil5995]

inclined plane and rod and B vertical. explain us 11 times the sense of the F-L

[@richmmdt6970]

A STABLE INCOME IS MORE IMPORTANT THAN ANNUITY FOR RETIREMENT PLANNING. Big ups to everyone working effortlessly trying to earn a living while building wealth. I'm 40 and my wife 34. We are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income.

[@vicvic1595]

Can I get any investment advice from you?

[@SilverShadow-ve5vh]

can i have some $$$ pls? I am broke.

[@csibesz07]

Should have explained how the equation is derived. Present value of perpetual annuity of the investment - present value of perpetual annuity of last month's cash flow (cause it ends you need to subtract the value of perpetual annuity).

[@smlazara9159]

what if ur looking for the time?

[@lazy5272]

Boom 💥

[@hannahgracedangojangad8733]

How to solve present value with missing terms? such as T-time

[@Anonymous-mz4fn]

7:52 wow this one is great formula for present value as no formula to remember as such😂

[@patrickdelosreyes8771]

Is this what they call general annuity ?

[@AmesAsylum]

Hoping you were going to go over how to solve manually. Non programmable calculators aren’t going to do this math

[@Eeriefee]

Highly recommend getting a financial calculator if you need to be doing this. They have them available online for free as well as for sale under $30. Hope you found something that helps you!

[@helger.mogusu8897]

in the second question I didn't understand where the 12000 is coming from????

[@mintesinotnigussie4502]

I appreciate u! but the value of C is not the amount of money we earned but it is the amount of installment to earn in retirement!

[@chuonghuynh3005]

When I divided 1000 by 1.06 I did not get 949.3962, I got 943.3962. Am I crazy? Because I cannot continue the problem if I am unable to get the same answer as you. Please help, thank you!

[@nickoemmanuelvillacruz3090]

He changed it watched the whole video

[@jimmy4pf__]

what if the question has no interest rate?

[@Eagle-Eye009]

Same after year . Same situation. Tomorrow i have paper . If again i fail 😬

[@martik778]

For a 20 year guaranteed annuity at 6600 per year per 100k what is the value after 10 years? =PV(0.066,10,6600) 47,225?

[@itsyogurt5113]

For no.2 annual credit, shouldnt C be 60k per year and r 0.07? I hope its a mistake

[@jcomandante6629]

The fourth step. How and where did it came from?

[@Matt-eq4xu]

at 4:00 its supposed to be 1000 / 1.06 = $943 .3962

[@MxtJanice2004]

What I Don't Understand I Wish somebody would Explain In The 10 Videos I've Seen Is In Which Order Are We Calculating. Nothing Seems To Work

[@ehsanbaloch9816]

Sir why number of year Is taken negative

[@JayvenRubion-gl6on]

I am here for my report tomorrow 😭

[@amineanime2756]

Why we didn't made the Calcul with this formular "P=A/r(1+r)(1-(1+r)^-n"

[@AshenafiDemissie-fh3cx]

8.Alex has won a scholarship for master’s degree and will leave for Canada eight months from now. He wants to provide his mother a monthly income of Br 125 during his two years stay in Canada, the first income to be earned a month after his departure. How much money should Alex deposit at the end of every month for eight months he will be in Ethiopia in an account which pays 12% interest compounded monthly to have money which is just enough to enable his mother withdraw the above-mentioned monthly income during the two years of his stay in outside Ethiopia? please help me as much as you can

[@extremumone]

This formula is correct only if the flow is annuity, and all inflows are reinvested with the very same rate of return. (!!) You can't wastee these 1000's obtained on spending (!) The example since that is incorrect: there can be no transfer of payments, all these 5000's have to be reinvested, not consumed.

[@osamadupe1018]

The second problem, the cash flow was per month, why didn't you multiply by 12

[@lani5647]

I can't sleep

[@sunvequiano3740]

Why do I keep getting negative?

[@MumiMumi-hw5yr]

Exam in 2 hours.😭

[@ledelynterencio6355]

Who's here because of their exams tomorrow ?

[@dollarbill3935]

Check your PV, step one is incorrect, it's 943.39 not 949.39

[@mr.traspassing9524]

he fixed that after he wrote it

[@user-ow1yg3gn4t]

Malcolm

[@minimino9878]

Bruh the solution is similar but we just have different values

[@Nefablaq]

My exam is in 30 mins

[@laux3263]

G11 mag ingay:>

[@nanadasal02]

Here to calculate how much i would earn 😂

[@rafaelquinones222]

Thanks Mark Wahlberg.

[@eugenewithbrit]

Understood 10℅ out of everything only huhuhu

[@user-jh6bi9hn4f]

test in 2 days @ ul

[@clintivanorsolino9518]

Lets Be Honest. We Came Here Coz The Formula And Solutuon For This Topic Doesnt Make Sense In The Friggin Books.

[@ZAIRGAS_HAVEN]

😅Is there any topic you dont know?

[@katzumi3245]

Hi BKNHS students HAHAHAHAHHA

[@rithevikaravind815]

1st comment, first view

[@akbaer60]

WHAT THE FUCK IS ANNUITY

[@obeserat7978]

PLEASE DADDY DO A FACE REVEAL LIKE IM BEGGING YOU

[@vex4131]

Tf is wrong with u

[@obeserat7978]

mozdan alaziz girl don’t act like you don’t want him to do a face reveal. He’s a damn legend. “tF iS wRoNg WiTh U” headass

[@GarrettPollock]

when you do the formula pv= 1000 (1-(1.06)^-5 divided by 0.06 and you get 1000(4.212363786) What is the order of operations for the (1-(1.06)^-5 divided by 0.06 part in order to get the answer 4.212363786

[@emilianimwaliga8474]

Please help us LUMO and UMO tutorial

[@itsyogurt5113]

For no.2 annual credit, shouldnt C be 60k per year and r 0.07? I hope its a mistake

[@CR-so5qk]

Who's here because they can't understand what was in their modules?😭

[@Pjkopunpikini]

We know you are naturally talented myob