"ORDINARY ANNUITIES CERTAIN,AMOUNT and PRESENT VALUE vs PAYMENT.An ANNUITY is a series of equal payments made at equal intervals. PAYMENT INTERVAL is the time between successive payments. TERM is time from beginning of first payment interval to the end of the last payment interval. ANNUAL RENT is the sum of all payments made in one year. SIMPLE CASE: payment interval and interest period coincide. ANNRATE% is the nominal annual interest rate. NUMYEARSis the term in years. PAYMNINT is the payment interval in months. PERPAYMN is the periodic payment. FREQCONV is the number of intervals in one year. VALUANNU is accumulated value of the annuity at term. PRESVALU is annuity's value today. ANNURENT is the annual payment. *** Answers to problems *** (c) PCSCC, Inc., 1993 (a) Set ANNRATE%=7.5, NUMYEARS=16.5 (16+6/12), PAYMNINT=6, PERPAYM=5000. The amount of annuity (VALUANNU) is $315,976.80 and the present value (PRESVALU)is $93,766.50. Type any key to exit. ||(a) Find the amount and present value of an ordinary annuity of$5000 every 6 months for 16 years, 6 months if money is worth 7.5% compounded semiannually. Type , to see answers. Type (F2) to return to help file."
