> I have the student version of mathematica and the book"Mathematica by > Example" which shows compoud interest etc. But I don't think any of the > packages has functions for future of present value. Does anyone know > anything about this?
The formula to compute the future value of an investment say, consisting of n equal payments of D dollars, paying an interest rate r per payment interval, is given by:
So for example, the value of an annuity after 20 years (or 20*12 = 240 months), in which you invest $100 per month (the investment interval) in an account that pays 10% per year (or 10%/12 = .8333% per month), you get:
In:= FutureValue[100, 20*12 , .10/12]
If your compounding and payments were at some other interval (quarterly say), you would have to adjust accordingly. Or you could do a bit of math to include that into your formula also.
To find the present value of an investment say, consisting of n equal payments of D dollars, paying an interest rate of r per payment interval, you would use: