# Questions tagged [annuity]

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### Future wealth calculation with investment

Task: The student is 25 years old now. He say, that next year his salary will be 15000€ per year. His salary will grow +5% each year until his pension (when he will be 65 years old). Calculate how ...
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### capital recovery factor isolate interest

in the capital recovery factor formula: CRF = i(1+i)^n / ((1+i)^n)-1 If we know CRF and n, is it possible to isolate the i? right now I am using excel to get ...
108 views

### Constant Maturity Swap dates and conventions

Let's note $L(t,T_i,T_{i+1})$ the libor rate observed at $t$, fixing at $T_i$ with delivery at $T_{i+1}$. The natural delivery date for this rate is $T_{i+1}$, so a vanilla swap with no pay lag would ...
115 views

### Calculation of Combined IRR

How to calculate combined IRR for two different cost of funds? The emi (Equated Monthly Installment) amount, whether it is calculated separately or based on the combined IRR should be same. I tried ...
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### Present Value versus. Future Value of an Annuity Due

To determine the present value of an annuity due, 1 is added to the discount factor of the ordinary annuity. However, to determine the future value of an annuity due, 1 is removed from the discount ...
721 views

### Why is the annuity factor proportional to the CV01?

For an asset with par amount of one unit (with a semiannual payment regime) we have $$\frac{C(T)}{2}\sum_{t=1}^{2T}d\Big(\frac{t}{2}\Big) + d(T) = 1$$ $$\implies\frac{C(T)}{2}A(T) + d(T) = 1,$$ ...
1k views

### Put-call parity for cash settled swaptions

The Euro swaption market is changing from cash to physical settlement quotation in July 2018 $-$ see e.g. "Euro swaptions market prepares for pricign revamp (Risk, 2018)". When describing the issues ...
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### Problems with Money Weighted Rate of Return [closed]

The market value of a small pension fund’s assets was 2.7m on 1 January 2000 and 3.1 m on 31 December 2000. During 2000 the only cash flows were: Bank interest and dividends totalling 125,000 ...
243 views

### Is there a formula for present value of a growing annuity with yearly payment growth and monthly payments? [closed]

I have seen formulas that have cracked the future value of growing annuity where there are monthly payments and yearly growth rates. But given a future value, is it possible to derive the present ...
71 views

### NPV of two annuities

For exam preparation we are given some past papers, however there are no solutions and I would like to know if my logic is correct for the following question: Assume you are 25 years old. An ...