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AcronymDefinition
ADAnno Domini (Latin: In the Year of Our Lord; referring to the Gregorian calendar system)
ADAutosomal Dominant (genetics; dominant gene on one of the 23 pairs of autosomes)
ADAn der Donau (German:on the Danube)
ADDestroyer Tender (US Navy ship designation)
ADAviation Machinist Mate (US Navy rating)
ADAndrew Dick (manuscript surcharge mark, British East Africa)
ADAmigos de Dios (Guatemala church support group)
ADAlternativa Demokratika/Alliance for Social Justice (Malta)
ADAllocation Descriptor (OSTA universal disk format)
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Example: Calculate the value at the end of three years of a series of \$1,000 annual deposits made at the beginning of each year to an account paying 8% interest, compounded annually (an annuity due is a series of equal payments made at the beginning of each period).
PRESENT VALUE TABLE The Worth Today Of One Dollar Per Annum, Paid At The End Of Each Year (complete table is located on pages 510-511) Rate 3% 4% 5% 6% Years 1 .9709 .9615 .9524 .9434 2 1.9135 1.8861 1.8594 1.8334 3 2.8286 2.7751 2.7232 2.6730 4 3.7171 3.6299 3.5460 3.4651 5 4.5797 4.4518 4.3295 4.2124 Rate 7% 8% 9% 10% Years 1 .9346 .9259 .9174 .9091 2 1.8080 1.7833 1.7591 1.7355 3 2.6243 2.5771 2.5313 2.4869 4 3.3872 3.3121 3.2397 3.1699 5 4.1002 3.9927 3.8897 3.7908 PRESENT VALUE OF AN ANNUITY DUE
* Will a consumer lose money in their fixed annuity due to an insurer failure?
Go to Appendix E, Future Value of an Annuity Due Table.
The corresponding factor for the present value of an annuity with payments at the beginning of each year can be found in Appendix B, Present Value of an Annuity Due Table.
(18.) To use a financial calculator to compute the InsAmt value, first set the calculator to payments at the beginning of each period (annuity due).
Therefore, the simple formula for the present value of an n-period annuity due is just the simple formula for the present value of an n-period ordinary annuity (equation PV7) multiplied by (1 + r), or:
[Using Valuation Tables--The present value of a level annuity due can also be calculated using the tables for the present value of an annuity due contained in Appendix B.
Thus at an overall growth rate of 7.5% and an after tax interest rate of 6.0% or net growth of approximately 1.4% after discounting, the annuity due value of \$1,235,000 is very close to the total offset value of \$1,260,000.
[PV.sub.AD] = present value of an annuity due i = interest rate (annual) n = number of years A = amount of annual payment
Alternatively, you could compute the amount required today by realizing that the present value of a 4-year annuity due commencing at the end of 5 years is equal to the value of a 9-year annuity due commencing today less the value of a 5-year annuity due commencing today.
A pledge of money over the next five years, given in equal amounts at the beginning of each year is similar in form to an annuity due. The present value factor for an annuity due for five periods (years) beginning today (January 1st, year one) with a constant interest rate of 10% is 4.1699.
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