"ORDINARY ANNUITIES CERTAIN, PERIODIC PAYMENT vs 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 of the annuity at term. PRESVAL is annuity's value today. ANNURENT is the annual payment. (c) PCSCC, Inc., 1993 *** Answers to problems *** (c) PCSCC, Inc., 1993 (a) Set ANNRATE%=7.0, NUMYEARS=10.0 PAYMNINT=3, VALUANNU=50,000. The periodic payment (PERPAYMN) is $873.60. Type any key to exit. ||(a) What equal quarterly deposits in a savings account paying 7% annual interest compounded quarterly will amount to $50,000 in 10 years just after the last deposit? Type comma key to see answers. Type (F2) to return to help file."
