Annuity Value

An annuity is an amount of loan repayment of an equal amount paid out over a period of time, and consists of the interest and the installment.

Formula of Annuity Value

Information :
A = Annuity
C = First capital
i = Percentage of interest per period
n = Period

Example Question of Formula of Annuity Value

Determine the annuity value of a loan of $ 5,000,000 over 2years with a 2%/month interest rate!

Answer :
C = $ 5,000,000
n = 2 years = 24 months
i = 2% / month = 0.02 / month

So the annuity value of a loan of $ 5,000,000 over 2 years with a 2%/month interest rate is $ 264,355.49.

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Referensi :

• To'Ali's book math group accounting and sales

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