This function evaluates non - stochastic increasing annuities.
Usage
increasingAnnuity(i, n, type = "immediate")
Value
The value of the annuity.
Arguments
i
A numeric value representing the interest rate.
n
The number of periods.
type
The Payment type, either "advance" for the annuity due (default)
or "arrears" for the annuity immediate.
Alternatively, one can use "due" or "immediate"
respectively (can be abbreviated).
Author
Giorgio A. Spedicato
Warning
The function is provided as is, without any guarantee regarding the accuracy of calculation. We disclaim any liability for eventual
losses arising from direct or indirect use of this software.
Details
An increasing annuity shows the following flow of payments: \(1,2,\ldots,n-1,n\)
References
Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition),
2008, ACTEX Publications.
#the present value of 1,2,...,n-1, n sequence of payments, #payable at the end of the period#for 10 periods is increasingAnnuity(i=0.03, n=10)
#assuming a 3% interest rate