annuityAdded by IBM on October 10, 2012 | Version 1 (Original)
|Returns the present valueannuity factor for an ordinary annuity, at a periodic interest rate indicated by rate over a number of periods specified in periods. Present value is the lump sum to invest at rate to produce a set payment over periods. An ordinary annuity provides the payment at the end of each period specified in periods.
This function might be used to figure out either:
- P, the present value of the lump sum to invest.
- R, the periodic payment amount that will be received.
An error occurs if periods is not a valid integer, or if rate is 0.
- P = R * annuity_factor
- R = P / annuity_factor
Table 1. annuity parameters
|rate||Decimal number||The rate of interest in decimal form compounded for each period.|
|periods||Integer||The number of periods.|
Returns A string containing the present value annuity factor, or null if an error occurs.
Example In this example, annuity returns "5.786373" and, if the desired payment entered into "paymentField" were $1, then the value of "presentValueInv" would be $5.78. That is, a person would have to invest $5.78 at 5% for seven payments.
<label>The present value to invest is:</label>
<value compute="paymentField.value *