Generating Future and Present Values of Annuity Using Interest Rate Theory

Autores/as

  • Clement Adeyeye Awogbemi Statistics Programme, National Mathematical Centre, Abuja, Nigeria https://orcid.org/0000-0002-0942-7954
  • Alagbe Samson Adekola Mathematics Department, Morgan State University, Baltimore, Maryland, USA
  • Ajao Isaac Oluwaseyi Statistics Department, Federal Polytechnic, Ado-Ekiti, Nigeria

Palabras clave:

Annuity future value, Annuity present value, Continuous compounding, Compounding periods, Periodic payments

Resumen

In this study, the future and present values of annuity were generated on the basis of interest rate theory. This was anchored on the fact that every compound interest problem involves the annual rate and the rate per compounding period.  It was also shown that as the frequency of compounding periods increases, the compound amount behaviour (1+r/n)n tends to exponential growth rate (er). It was deduced that effective rate of interest is a function of nominal rates and compounding periods.

KEPES Journal Coverpage

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Publicado

2023-06-30

Cómo citar

Awogbemi, C. A., Adekola, A. S., & Oluwaseyi, A. I. (2023). Generating Future and Present Values of Annuity Using Interest Rate Theory. KEPES, 21(2), 269–276. Recuperado a partir de https://scholopress.com/kepes-journal/article/view/81

Número

Vol. 21 Núm. 2 (2023)

Sección

Articles

Licencia

Derechos de autor 2023 Kepes

Creative Commons License

Esta obra está bajo una licencia internacional Creative Commons Atribución-NoComercial-CompartirIgual 4.0.

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