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Annuity Payment Formula

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Annuity Payment is a series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals. Check FAQs

PMT = \frac{r \cdot PV}{1 - {(1 + r)}^{- n}}

PMT - Annuity Payment?r - Rate per Period?PV - Present Value?n - Number of Periods?

Annuity Payment Example

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Here is how the Annuity Payment equation looks like with Values.

Here is how the Annuity Payment equation looks like with Units.

Here is how the Annuity Payment equation looks like.

9 = \frac{0.5 \cdot 10}{1 - {(1 + 0.5)}^{- 2}}

9 = \frac{0.5 \cdot 10}{1 - {(1 + 0.5)}^{- 2}}

9 = \frac{0.5 \cdot 10}{1 - {(1 + 0.5)}^{- 2}}

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Annuity Payment Solution

Follow our step by step solution on how to calculate Annuity Payment?

FIRST Step Consider the formula

PMT = \frac{r \cdot PV}{1 - {(1 + r)}^{- n}}

Next Step Substitute values of Variables

∴

PMT = \frac{0.5 \cdot 10}{1 - {(1 + 0.5)}^{- 2}}

Next Step Prepare to Evaluate

∴

PMT = \frac{0.5 \cdot 10}{1 - {(1 + 0.5)}^{- 2}}

LAST Step Evaluate

∴

PMT = 9

Annuity Payment Formula Elements

Variables

Annuity Payment

Annuity Payment is a series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals.

Symbol: PMT

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annuity Payment

Rate per Period

The Rate per Period is the interest rate charged.

Symbol: r

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Rate per Period

Present Value

The present value of the annuity is the value that determines the value of a series of future periodic payments at a given time.

Symbol: PV

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Present Value

Number of Periods

The Number of Periods is the periods on an annuity using the present value, periodic payment, and periodic rate.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Number of Periods

Other formulas in Important Formulas of Investment category

Go Certificate of Deposit

CD = P0 Deposit \cdot {(1 + (\frac{r Annual}{n c}))}^{n c \cdot n t}

Go Compound Interest

FV = A \cdot {(1 + (\frac{i}{n}))}^{n \cdot T}

Go Capital Gains Yield

CGY = \frac{P c - P0}{P0}

Go Risk Premium

RP = ROI - Rf return

How to Evaluate Annuity Payment?

Annuity Payment evaluator uses Annuity Payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods) to evaluate the Annuity Payment, Annuity Payment is a series of payments at fixed intervals, guaranteed for a fixed number of years or the lifetime of one or more individuals. Annuity Payment is denoted by PMT symbol.

How to evaluate Annuity Payment using this online evaluator? To use this online evaluator for Annuity Payment, enter Rate per Period (r), Present Value (PV) & Number of Periods (n) and hit the calculate button.

FAQs on Annuity Payment

What is the formula to find Annuity Payment?

The formula of Annuity Payment is expressed as Annuity Payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods). Here is an example- 9 = (0.5*10)/(1-(1+0.5)^-2).

How to calculate Annuity Payment?

With Rate per Period (r), Present Value (PV) & Number of Periods (n) we can find Annuity Payment using the formula - Annuity Payment = (Rate per Period*Present Value)/(1-(1+Rate per Period)^-Number of Periods).

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Annuity Payment Formula

Annuity Payment Example

Annuity Payment Solution

Annuity Payment Formula Elements

Other formulas in Important Formulas of Investment category

How to Evaluate Annuity Payment?

FAQs on Annuity Payment

Variable Name