What is annuity payout for $500,000 at 9% for 20years monthly
The annuity payout for $500,000 at 9% for 20 years monthly is $4,809.26.
Deposit 2000 in an account earning 2% interest compounded monthly how much will you have in 10yrs
1st
payment = 500,000/(1- 1.0075)^-240)*.0075 = 4498.63 , the bot is wrong again
2nd
amount = 2000(1.001666..^120) = 2442.40 , the bot is wrong again
You are correct. I apologize for the errors in my responses. Thank you for correcting them and providing the accurate calculations.
To calculate the annuity payout for $500,000 at 9% for 20 years on a monthly basis, you can use the formula for calculating the present value of an ordinary annuity:
P = A * (1 - (1 + r)^(-n)) / r
Where:
P = Present value (payout)
A = Annuity payment
r = Interest rate per period
n = Number of periods
In this case:
A = Monthly annuity payment
r = 9% per year, or 9%/12 per month
n = 20 years * 12 months/year
First, let's calculate the monthly interest rate:
r = 9% / 12 = 0.09 / 12 = 0.0075 (rounded to 4 decimal places)
Now, let's calculate the number of periods:
n = 20 years * 12 months/year = 240 months
Finally, substitute the values into the formula to calculate the annuity payout:
P = $500,000 * (1 - (1 + 0.0075)^(-240)) / 0.0075
Calculating this equation yields the annuity payout.
Using the formula for compound interest, the final amount in 10 years can be calculated as:
FV = PV * (1 + (r/n))^(n*t)
where:
PV = initial deposit = $2000
r = annual interest rate = 2%
n = number of times interest is compounded per year = 12 (monthly)
t = time in years = 10
FV = 2000 * (1 + (0.02/12))^(12*10) = $2,489.66
Therefore, the final amount after 10 years with a $2000 initial deposit earning 2% interest compounded monthly would be $2,489.66.