Annuity - or Future Value of Regular Deposits
article we create a script to calculate
annuity or to find out the
of a regular deposit.
||You must provide the amount of each
of deposits per year, the number of years and the nominal interest rate.
that interest is compounded with each deposit, the calculation is based
T = total value after Y
years (future value)
R = amount of regular deposits
N = number of deposits per year
Y = number of years
i = nominal interest rate
presentation shows you what we want to accomplish with an example.
Below the presentation, I give you the full code to implement in Matlab.
This is a suggested Matlab function or script to calculate the future-value formula above. You have four inputs and one output:
function t =
annuity(r, it, n, y)
t = r *
((1 + it)^(n * y) - 1)/it;
We can create another
script to test and run the above m-file:
clear; format bank
amount of regular deposits: ');
nominal interest rate: ');
number of deposits per year: ');
number of years: ');
= annuity(r, it, n, y)
transferred each month from Monique’s checking account to a Math
savings account with 5% interest. How much will Monique receive at the
our test code and get:
amount of regular deposits: 50
nominal interest rate: 5
number of deposits per year: 12
number of years: 1
George makes annuity payments of $175. The interest is 5.5%. What
George have accumulated in 15 years?
we run our ‘Calculate Annuity’ code, and get:
amount of regular deposits: 175
nominal interest rate: 5.5
number of deposits per year: 1
number of years: 15
'Calculate Annuity' to home
'Calculate Annuity' to 'Finance Formulas'