For an Annuity Immediate:
Payment = 150000
n = 25
Interest Rate = 7
Calculate Present Value, Accumulated Value
PV annuity immediate formula:
| an|i = | Payment * (1 - vn) |
| i |
Calculate v:
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.07 |
| v = | 1 |
| 1.07 |
v = 0.93457943925234
| an|i = | Payment * (1 - vn) |
| i |
| v = | 1 |
| 1 + i |
| v = | 1 |
| 1 + 0.07 |
| v = | 1 |
| 1.07 |