"ORDINARY ANNUITIES CERTAIN, FINDING TERM vs FINAL AMOUNT. 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 (FINAL AMOUNT) of the annuity at term. PRESVAL is annuity'svalue today. ANNURENT is the annual payment. *** Answers to problems *** (c) PCSCC, Inc., 1993 (a) Set ANNRATE%=7, PAYMNINT=3, PERPAYMN=50,000, VALUANNU=1,000,000. The union must make 17.30 payments for 4.32 years. (b) As in (a). Move cursor to PERPAYMN. Type s. Type (esc) NPERIODS (ent). For value, type (esc) 17 (ent). For range, just type (ent). For NPERIODS=17, PERPAYMN is $51,016.23 and NUMYEARS is now 4.25 (4 years and 3 months). Type any key to exit. ||(a) The XYZ fund of $1M is to be accumulated by union taxes of $50K every 3 months. If funds earn 7% compounded quarterly (every 3 months),find the number of $50K deposits required. (b) Increase the payment to round-down-to-whole-number the number of deposits. Type , to see answers. Type (F2) to return to help file."
