"GENERAL ANNUITIES CERTAIN, NEW PAYMENT, COMBINING FACTOR. An ANNUITY is a series of equal payments made at equal intervals. INTEREST INTERVAL is the time between successive payments. ANNUAL RENT is the sum of allpayments made in one year. ORDINARY ANNUITY CERTAIN is one in which payments are made at ends of intervals. GENERAL CASE: payment interval and interest period do not coincide. ANNRATE% is the nominal annual interest rate. NUMYEARS is the term in years. PAYMNINT is the payment interval in months and INTINTER isthe interest interval in months. PERPAYMN is the periodic payment at PAYMNINT and INTPAYMN is the periodic payment at INTERINT. FREQCONV is number of interestintervals in one year. VALUANNU is accumulated value of annuity at term. PRESVALU is the annuity's value today. ANNURENT is the annual payment. In the GENERAL CASE, the current periodic payment PERPAYMN is converted into a new periodic payment INTPAYMN at the interest interval INTERINT. If SPLITFAC > 1 then it is called COMBINING FACTOR. *** Answer to Problem *** (c) Copyright PCSCC, Inc., 1993 (a) Set ANNRATE%=7, INTERINT=6, NUMYEARS=1, PAYMNINT=1, PERPAYMN=100. The new periodic payment is INTPAYMN= $608.69 Type any key to exit. ||(a) If interest is at 7% compounded semiannually, replace payments of $100 at the end of each month by equivalent payments (INTPAYMN) at the end of 6 months. Type comma key to see answer. Type (F2) to return to helpfile."
