Calculate annuity payments, from the interest rate and the number of years for a fixed initial principal value.
The annuity can be calculated either to reduce the principal value to zero at the end of the term, or to reduce the principal to a user defined value at the end of the term. The annuity payments are assumed to be constant for each period. The principal is assumed to compound each period. The total number of periods equals the number of years times the number of periods per year. For monthly compounding interest the number of periods per year equals 12. For annual compounding interest the number of periods per year equals 1. The total number of annuity payments equals the number of periods. The first annuity payment is assumed to be made at the end of the first period, with additional annuity payments at the end of each period. The final payment is assumed to be made at the end of the final period.
The calculation can be used to calculate either the final principal, the required initial principal, the number of years, or the value of the annuity payment.
Tool Input
- intype : Compound Interest Type
- Piu : User Defined Initial Principal Value
- Iu : User Defined Compound Interest Rate
- Yu : User Defined Number Of Years
- Mu : User Defined Annuity Per Period
- motype : Annuity Type
- Pfu : User Defined Final Principal Value
- c : Number Of Periods Per Year
Tool Output
- Σa : Total Annuity Received
- Σi : Total Interest Received
- Σp : Total Principal Received
- A : Annuity Per Period
- I : Compound Interest Rate (Per Year)
- Pf : Final Principal Value
- Pi : Initial Principal Value
- Y : Number Of Years
- n : Total Number Of Periods (y * c)