ANS85 

The ANNUITY Function

The ANNUITY function (annuity immediate) returns a numeric value that approximates the ratio of an annuity paid at the end of each period for the number of periods specified by argument-2 to an initial investment of one. Interest is earned at the rate specified by argument-1 and is applied at the end of the period, before the payment. The type of this function is numeric.

General Format


*

Arguments

  1. Argument-1 must be class numeric.
  2. The value of argument-1 must be greater than or equal to zero.
  3. Argument-2 must be a positive integer.

Returned Values

  1. When the value of argument-1 is zero, the value of the function is the approximation of:

    1 / argument-2

  2. When the value of argument-1 is not zero, the value of the function is the approximation of:

    argument-1 / (1 - (1 + argument-1) ** (- argument-2))

  3. Floating-point format is used for numeric non-integer results.