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- ANNUITY COMPUTATION BY DR. PETER SHENKIN
- AN ANNUITY IS ANY SET OF EQUAL PAYMENTS MADE AT
- EQUAL INTERVALS OF TIME. WITH AN ORDINARY ANNUITY
- PAYMENTS ARE MADE AT THE ENDS OF THE PERIODS DE-
- FINED BY THESE TIME INTERVALS. FOR AN ANNUITY DUE
- THE PAYMENTS ARE MADE AT THE BEGINNING OF THE PER-
- IODS IN QUESTION. THE PRESENT VALUE OF AN ANNUITY
- IS THE AMOUNT OF CASH ONE WOULD ACCEPT NOW INSTEAD
- OF THE SEQUENCE OF FUTURE PAYMENTS. BECAUSE MONEY
- HAS TIME VALUE (INTEREST IS CHARGED) THE PRESENT
- VALUE DOES NOT EQUAL THE SUM OF THE PAYMENTS. tHE
- FUTURE VALUE OF AN ANNUITY IS THE AMOUNT OF CASH
- WHICH WOULD ACCUMULATE BY THE END OF THE ANNUITY
- IF THE INDIVIDUAL PAYMENTS ARE INVESTED AT THE
- PREVAILING INTEREST RATE.
- PRESS ENTER TO CONTINUE?
- MANY ANNUITIES ALSO INVOLVE A LAST BALLOON PAY-
- MENT.IN THE ANNUITY PROBLEMS WE EXAMINE,THE VARIABLES
- OF INTEREST ARE NUMBER OF PAYMENTS,INTEREST RATE PER
- PERIOD,PAYMENT PER PERIOD,PRESENT OR FUTURE VALUE,AND
- BALLOON PAYMENT (AT END OF TERM) IF DESIRED.GIVEN ANY
- FOUR VALUES OF THE ABOVE VARIABLES THIS PROGRAM WILL
- FIND THE FIFTH VARIABLE WHEN CONSIDERING THE PRESENT
- VALUE SITUATION. IN THE FUTURE VALUE CASE NO BALLOON
- PAYMENTS ARE CONSIDERED AS IN THIS CASE A BALLOON
- PAYMENT OF A CERTAIN AMOUNT WOULD ADD THAT AMOUNT
- TO FUTURE VALUE.NOTE THAT INTEREST RATES ARE WRITTEN
- AS PER CENTS, NOT AS DECIMALS(E.G. 6%, NOT .06). IN
- ADDITION NOTE THAT INTEREST RATE IS PER PERIOD,I.E.
- PER MONTH,PER YEAR,ETC.
-
- PRESS ENTER TO BEGIN?
- SELECT TYPE OF PROBLEM DESIRED.
- 0.QUIT
- 1.ORDINARY ANNUITY-FUTURE VALUE(SINKING FUND)
- 2.ANNUITY DUE-FUTURE VALUE
- 3.ORDINARY ANNUITY-PRESENT VALUE
- 4.ANNUITY DUE-PRESENT VALUE
-
- MAKE YOUR CHOICE? 1
-
- IS INTEREST RATE QUOTED PER PERIOD(P) OR ANNUALLY(A)? A
-
- NUMBER OF PAYMENTS PER YEAR? 12
- ENTER EACH OF THE FOLLOWING.FOR THE UNKNOWN VALUE
- ENTER 9999.
-
- FUTURE VALUE ? 2345.67
- PAYMENT ? 89.01
- NUMBER OF PAYMENTS ? 12
- ANNUAL INTEREST RATE ? 3.75
- FUTURE VALUE = 2345.67
- NUMBER OF PAYMENTS = 12
- CONSISTING OF 12 PAYMENTS ANNUALLY.
- ANNUAL INTEREST RATE = 3.75
- PAYMENT = 89.01
-
- PRESS ENTER FOR MORE?
- SELECT TYPE OF PROBLEM DESIRED.
- 0.QUIT
- 1.ORDINARY ANNUITY-FUTURE VALUE(SINKING FUND)
- 2.ANNUITY DUE-FUTURE VALUE
- 3.ORDINARY ANNUITY-PRESENT VALUE
- 4.ANNUITY DUE-PRESENT VALUE
-
- MAKE YOUR CHOICE? 2
-
- IS INTEREST RATE QUOTED PER PERIOD(P) OR ANNUALLY(A)? P
- ENTER EACH OF THE FOLLOWING.FOR THE UNKNOWN VALUE
- ENTER 9999.
-
- FUTURE VALUE ? 1234.56
- PAYMENT ? 89.01
- NUMBER OF PAYMENTS ? 36
- INTEREST RATE PER PERIOD(%)? 0.175
- FUTURE VALUE = 1234.56
- NUMBER OF PAYMENTS = 36
- INT. RATE PER PERIOD= .175
- PAYMENT = 89.01
-
- PRESS ENTER FOR MORE?
- SELECT TYPE OF PROBLEM DESIRED.
- 0.QUIT
- 1.ORDINARY ANNUITY-FUTURE VALUE(SINKING FUND)
- 2.ANNUITY DUE-FUTURE VALUE
- 3.ORDINARY ANNUITY-PRESENT VALUE
- 4.ANNUITY DUE-PRESENT VALUE
-
- MAKE YOUR CHOICE? 3
-
- IS INTEREST RATE QUOTED PER PERIOD(P) OR ANNUALLY(A)? A
-
- NUMBER OF PAYMENTS PER YEAR? 24
- ENTER EACH OF THE FOLLOWING.FOR THE UNKNOWN VALUE
- ENTER 9999.
-
- PRESENT VALUE ? 1234.56
- PAYMENT ? 89.01
- NUMBER OF PAYMENTS ? 52
- ANNUAL INTEREST RATE ? 3.25
- BALLOON PAYMENT ? 9999
- PRESENT VALUE = 1234.56
- NUMBER OF PAYMENTS = 52
- CONSISTING OF 24 PAYMENTS ANNUALLY.
- ANNUAL INTEREST RATE = 3.25
- PAYMENT = 89.01
- BALLOON PAYMENT =-3467.45
-
- PRESS ENTER FOR MORE?
- SELECT TYPE OF PROBLEM DESIRED.
- 0.QUIT
- 1.ORDINARY ANNUITY-FUTURE VALUE(SINKING FUND)
- 2.ANNUITY DUE-FUTURE VALUE
- 3.ORDINARY ANNUITY-PRESENT VALUE
- 4.ANNUITY DUE-PRESENT VALUE
-
- MAKE YOUR CHOICE? 4
-
- IS INTEREST RATE QUOTED PER PERIOD(P) OR ANNUALLY(A)? P
- ENTER EACH OF THE FOLLOWING.FOR THE UNKNOWN VALUE
- ENTER 9999.
-
- PRESENT VALUE ? 1234.56
- PAYMENT ? 9999
- NUMBER OF PAYMENTS ? 36
- INTEREST RATE PER PERIOD(%)? 5
- BALLOON PAYMENT ? 55.55
- PRESENT VALUE = 1234.56
- NUMBER OF PAYMENTS = 36
- INT. RATE PER PERIOD= 5
- PAYMENT = 70.5051
- BALLOON PAYMENT = 55.55
-
- PRESS ENTER FOR MORE?
- SELECT TYPE OF PROBLEM DESIRED.
- 0.QUIT
- 1.ORDINARY ANNUITY-FUTURE VALUE(SINKING FUND)
- 2.ANNUITY DUE-FUTURE VALUE
- 3.ORDINARY ANNUITY-PRESENT VALUE
- 4.ANNUITY DUE-PRESENT VALUE
-
- MAKE YOUR CHOICE? 0
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