Modern Finance AnnuityFutureValueFactor

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AnnuityFutureValueFactor

Returns what one unit paid each period grows to by the end of the term.

Syntax

AnnuityFutureValueFactor( ratePerPeriod, periods, timing )

Examples

#import "std/money"
using money

'' ( (1+i)^n - 1 ) / i -- what one unit per period grows to by the end.
dim as Decimal i = DecimalParse( "0.10" ).Value( )

'' This one terminates, so it is exact.
print AnnuityFutureValueFactor( i, 10, PAY_END_OF_PERIOD ).Value( ).ToStringFixed( 9 )   '' 15.937424601

'' The two factors are related by the growth factor, which is what keeps
'' PresentValue and FutureValue consistent with each other.
dim as Decimal a = AnnuityPresentValueFactor( i, 10, PAY_END_OF_PERIOD ).Value( )
dim as Decimal g = GrowthFactor( i, 10 ).Value( )
print ( a * g ).Round( 18 ).ToStringFixed( 6 )                                    '' 15.937425

'' Same zero-rate limit.
print AnnuityFutureValueFactor( DecimalZero( ), 10, PAY_END_OF_PERIOD ).Value( ).ToString( )   '' 10

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Library: Finance
Category: Finance
Documented under: Nothing Becomes A Keyword
Source: pkg/std/money/fintvm.tiko in the tiko repository.