Annuities

This program calculates the present value and future value of an annuity (or any other asset) that pays either a constant amount each period or an amount that grows at a constant rate, beginning at the end of the current period; for example, beginning one year from today either $1,000 a year or $1,000 the first year and 5% more each year thereafter.

The Amortized Loan program can be used to analyze some other features of constant annuities; the Stocks (constant-dividend-growth) program can also be used to analyze growing annuities. (The Amortized Loan program gives slightly different answers because the interest rate in the Annuity program is the effective annual effective rate, while the interest rate in the Amortized Loan program is an annual percentage rate (APR) that is compounded periodically--for example, monthly so that the annual effective rate is larger than the APR.)

Size of first payment (if $1,000/month, enter 1000):
Annual growth rate of payment (if 5% a year, enter 5):
Number of payments per year (if monthly, enter 12):
Total number of payments (if 60 monthly payments, enter 60):
Effective annual interest rate (if 7.25%, enter 7.25):
Present value of this cash flow:
Future value of this cash flow:
Duration of this cash flow:

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