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ANNUITY

This function is able to directly compute Computes an annuity for you. An annuity is a terminating "stream" of fixed payments, i.e., a collection of payments to be periodically received over a specified period of time.

It is computed using this formula:

where

• J = monthly payment
• i = rate of interest
• n = number of terms
• T = loan amount

Syntax

 ANNUITY ( loan_amount , interest_rate , number_of_terms )

Inputs

• loan_amount - The total currency amount that should be paid back.

• interest_rate - The interest rate as type percentage that should be paid on a loan (As a fraction, e.g. 5% = 0.05)

• number_of_terms - The number of terms as integer.

Return type

• number - The monthly payment.

Examples