Annuity


An annuity is the series of payments shown at cost intervals. Examples of annuities aredeposits to the savings account, monthly home mortgage payments, monthly insurance payments and pension payments. Annuities can be classified by the frequency of payment dates. The payments deposits may be gave weekly, monthly, quarterly, yearly, or at any otherinterval of time. Annuities may be calculated by mathematical functions requested as "annuity functions".

An annuity which gives for payments for the remainder of a person's lifetime is a life annuity.

Example calculations


Formula for finding the periodic payment R, precondition A:

Examples:

Find PVOA part as. 1 find r as, 1 ÷ 1.15= 0.8695652174 2 find r × rn − 1 ÷ r − 1 08695652174 × −0.3424837676÷ −1304347826 = 2.2832251175 70000÷ 2.2832251175= $30658.3873 is the correct value

Finding the Periodic PaymentR, given S:

R = S\,/〖1+j/m 〗^n+1-1/j/m-1

Examples: