Friday

November 28, 2014

November 28, 2014

Posted by **Abbey** on Monday, December 18, 2006 at 12:12pm.

I am using a present value of annuity eguation but don't know how to solve for time.

Can you use logs?

Remember that log a^n= n*log a and you can solve for n in that.

thats what i forgot.

thanks for the help

The value of an annuity usually depends upon the expected remaining years of life of the beneficiary. If the annuity pays out a fixed monthly amount for a specified period, then the formula to use would be the same as amortization. You need an amortization calculator.

The formula is:

A = P*i*(1+i)^n/[(1+i)^n - 1)]

Where:

A = periodic payment amount

P = amount of principal

i = periodic interest rate

n = total number of monthly payments

In your case you want to solve for n, so an interative technique or spreadsheet approach may be required.

Using a mortgage calculatorm at this website,

http://mortgages.interest.com/content/calculators/monthly-payment.asp

I get a payoff period of 12.5 years if the monthly payment is 1101.66 and the interest rate is 9%. It will be a month longer if you pay $1100.

**Answer this Question**

**Related Questions**

Finance - You take out a 30-year $100,000 mortgage loan with an APR of 6 percent...

finance - You take out a 25-year $210,000 mortgage loan with an APR of 12% and ...

Finance - You take out a 30-year $100,000 mortgage loan with an APR of 6 percent...

Maths - Mortgage company lets you pay a point (1% of total amount of loan)to ...

Finance - You take out a 30 year $100000 mortgage loan with an apr of 6% and ...

Math - Suppose that you want to purchase a home for $450,000 with a 30 year ...

math - Suppose that you want to purchase a home for $450,000 with a 30 year ...

math - paying off 100,000 mortgage at 7.5% interest in 5 years! what are the ...

algebra with application - Suppose that you want to purchase a home for $450,000...

cis - 1. Find a mortgage loan calculator to determine what your monthly payments...