lifecontingencies (version 0.0.6)

decreasingAnnuity: Function to evaluate a decreasing annuity.

Description

This function evalutates decreasing annuities.

Usage

decreasingAnnuity(i, n)

Arguments

i

A numeric value representing the interest rate.

n

The number of periods.

Value

• A numeric value reporting the present value of the decreasing cash flows.

Warning

The function is provided as is, without any guarantee regarding the accuracy of calculation. The author disclaims any liability for eventual losses arising from direct or indirect use of this software.

Details

A decreasing annuity has the following flows of payments: n, n-1, n-2,...

References

Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

See Also

annuity,increasingAnnuity,DAxn

Examples

#the present value of 10, 9, 8,....,0 payable at the end of the period
	#for 10 periods is
	decreasingAnnuity(i=0.03, n=10)
	#assuming a 3% interest rate