pvYearlyAnnuityCompMonthly {tvmComp}

Computing Present Value of Yearly Paid Ordinary Annuity or Annuity Due that is Compounded Monthly.

Description

Computing Present Value of Yearly Paid Ordinary Annuity or Annuity Due that is Compounded Monthly.

Usage

pvYearlyAnnuityCompMonthly(r, n, pmt, bgn)

Arguments

r

A number.

n

A number.

pmt

A number.

bgn

A number.

Details

As explained by Hummelbrunner,S.A. et al. (2020), the description of the Compounding Frequency is usually contained within the phrase that describes the nominal interest rate. An example would be 24 percent compounded monthly. This means that the nominal, or annual, interest rate of 24 percent is compounded 12 times each year at 24/12 that is 2 percent, each period. The method pvYearlyAnnuityCompMonthly() is developed to compute Present Value of Yearly-Paid Ordinary Annuity or Annuity Due that is Compounded Monthly.The method gives Present 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

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

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