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annuity.arith

Arithmetic Annuity


Description

Solves for the present value, future value, number of payments/periods, amount of the first payment, the payment increment amount per period, and/or the interest rate for an arithmetically growing annuity. It can also plot a time diagram of the payments.

Usage

annuity.arith(pv=NA,fv=NA,n=NA,p=NA,q=NA,i=NA,ic=1,pf=1,imm=TRUE,plot=FALSE)

Arguments

pv

present value of the annuity

fv

future value of the annuity

n

number of payments/periods

p

amount of the first payment

q

payment increment amount per period

i

nominal interest frequency convertible ic times per year

ic

interest conversion frequency per year

pf

the payment frequency- number of payments per year

imm

option for annuity immediate or annuity due, default is immediate (TRUE)

plot

option to display a time diagram of the payments

Details

Effective Rate of Interest: eff.i=(1+\frac{i}{ic})^{ic}-1

j=(1+eff.i)^{\frac{1}{pf}}-1

fv=pv*(1+j)^n

Annuity Immediate:

pv=p*{a_{≤ft. {\overline {\, n \,}}\! \right |j}}+q* \frac{{a_{≤ft. {\overline {\, n \,}}\! \right |j}}-n*(1+j)^{-n}}{j}

Annuity Due:

pv=(p*{a_{≤ft. {\overline {\, n \,}}\! \right |j}}+q* \frac{{a_{≤ft. {\overline {\, n \,}}\! \right |j}}-n*(1+j)^{-n}}{j})*(1+i)

Value

Returns a matrix of the input variables, and calculated unknown variables.

Note

At least one of pv, fv, n, p, q, or i must be NA (unknown).

pv and fv cannot both be specified, at least one must be NA (unknown).

Author(s)

Kameron Penn and Jack Schmidt

See Also

Examples

annuity.arith(pv=NA,fv=NA,n=20,p=100,q=4,i=.03,ic=1,pf=2,imm=TRUE)

annuity.arith(pv=NA,fv=3000,n=20,p=100,q=NA,i=.05,ic=3,pf=2,imm=FALSE)

FinancialMath

Financial Mathematics for Actuaries

v0.1.1
GPL-2
Authors
Kameron Penn [aut, cre], Jack Schmidt [aut]
Initial release

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