the
annuity
of
(
rate ,
periods )
annuity
(
rate ,
periods )
Rate and periods yield integer
s, number
s, or complex
es.
put myPayment*annuity(.015,12) into presentValue
put myPayment*annuity(.015,12)*compound(.015,12) ¬ into futureValue
The annuity
function is used to calculate the present or future value of an ordinary annuity. Rate is the interest rate per period, and periods is the number of periods over which the value is calculated.
The formula for the annuity
function is:
annuity
(rate, periods) = (1-((1+rate)^(-periods)))/rate
The annuity
function is faster and more accurate than using the above formula.
You can use complex
arguments to this function, but what this means exactly is up to the accountants and economists to figure out, not me.