fvYearlyAnnuityCompAnnually {tvmComp}

Calculates Future Value of Yearly Paid Ordinary Annuity or Annuity Due that is Compounded Annually.

Description

Calculates Future Value of Yearly Paid Ordinary Annuity or Annuity Due that is Compounded Annually.

Usage

fvYearlyAnnuityCompAnnually(r, n, pmt, bgn)

Arguments

r

A number.

n

A number.

pmt

A number.

bgn

A number.

Details

According to Hummelbrunner,S.A. et al. (2020), classification of Annuities is done by the date of payment. In an Ordinary Annuity, the function processes the payments as an end-of-period payment. Whereas, in an Annuity Due, the function processes the payments as a beginning-of-period payment. Further Brooks,R. (2018) explains that he future value of an annuity can be determined by multiplying the payment or deposit with the Future Value Interest Factor of an annuity. The method, fvYearlyAnnuityCompAnnually() is developed to calculate Future Value of Yearly-Paid Ordinary Annuity or Annuity Due that is Compounded Annually.The method gives Future Value when values are passed to its four arguments. Here r is annual rate, n is number of years, pmt is amount of one annuity and bgn is the computational mode (Enter 1 when annuity payment occurs at the beginning of the period; 0 for end of period payments).

Value

Input values to four arguments r , n , pmt and bgn.

Author(s)

MaheshP Kumar, [e-mail]

References

Brooks,R. (2018). Financial Management (4th Edition). Pearson Education (US). ISBN 9780134730417, https://bookshelf.vitalsource.com/books/9780134731070.

Hummelbrunner,S.A., Halliday,K., Hassanlou,A.R. (2020). Contemporary Business Mathematics with Canadian Applications (12th Edition). Pearson Education Canada. ISBN 9780135285015, https://bookshelf.vitalsource.com/books/9780135406380.

Examples

fvYearlyAnnuityCompAnnually(0.11,4,-300,0)
fvYearlyAnnuityCompAnnually(0.11,4,-300,1)
fvYearlyAnnuityCompAnnually(0.11,4,300,0)
fvYearlyAnnuityCompAnnually(0.11,4,300,1)