"ORDINARY ANNUITY DUE, AMOUNT, PRESENT VALUE vs PAYMENT. 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 beginning of the last payment interval. ORDINARY ANNUITY DUE: one in which payments are made at beginning of intervals. SIMPLE CASE: payment interval and interest period coincide. ANNRATE% is the nominal annual interest rate. NUMYEARS is 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 atterm. PRESVALU is the annuity's value today. ANNURENT is the annual payment. *** Answers to problems *** (c) Copyright PCSCC, Inc., 1993 (a) Set ANNRATE%=6, NUMYEARS=10/12 (=.83333), PAYMNINT=1 (1=monthly), PERPAYMN= 500. The amount in fund just before 10th deposit is VALUANNU=$4614.01. Type any key to exit. || On the 15th of each month, Mr. Butts deposits $500 into a bond mutual fund paying 6% compounded monthly. (a) How much is in the fund just before the 10th deposit (year =10/12)? Type , to see answers. Type (F2) to return to helpfile."
