"ORDINARY ANNUITIES CERTAIN, FINDING TERM, vs PRESENT VALUE. 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. PRESVAL is annuity's value today. ANNURENT is the annual payment. *** Answers to problems *** (c) Copyright PCSCC, Inc., 1993 (a) Set ANNRATE%=6, PAYMNINT=6, PERPAYM=446, PRESVAL=7750. He must make 24.9 or approx. 25 payments to satisfy his obligations. (b) As in (a). He is under obligation for 12.46 or approx. 12 years/ 6 months. Type any key to exit. ||(a) Mr. Zellmann borrows $7750 agreeing to repay the principal and interest at 6% compounded semiannually by making semiannual payments of $446 each, the first one due in 6 months. How many payments must he make? (b) For how many years is he under obligation? Type comma key to see answers. Type (F2) to return to help file."
