Functions

annuity

Supported By

Syntax

[the] annuity of ( rate , periods )

annuity ( rate , periods )

Rate and periods yield integers, numbers, or complexes.

Examples

put myPayment*annuity(.015,12) into presentValue
put myPayment*annuity(.015,12)*compound(.015,12) ¬
    into futureValue

Description

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.

Note

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.

See Also

compound