pvYearlyPaidAnnuityCompYearly {tvmComp}

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

Description

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

Usage

pvYearlyPaidAnnuityCompYearly(r, n, pmt, bgn)

Arguments

r

A number.

n

A number.

pmt

A number.

bgn

A number.

Details

Classification of annuities is done by Hummelbrunner,S.A. et al. (2020), using the date of payment. In an Ordinary Annuity, payments are made at the end of each payment period. In an Annuity Due, payments are made at the beginning of each payment period. Loan payments, mortgage payments, and interest payments on bonds are all examples of Ordinary Annuities. The method pvYearlyPaidAnnuityCompYearly()is developed to compute Present Value(pv) of Yearly-Paid Ordinary Annuity or Annuity Due that is compounded Annually and 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

pvYearlyPaidAnnuityCompYearly(0.06,12, -200, 1)
pvYearlyPaidAnnuityCompYearly(0.06,12, -200, 0)
pvYearlyPaidAnnuityCompYearly(0.06,12, 200, 1)
pvYearlyPaidAnnuityCompYearly(0.06,12, 200, 0)