Question
I am having trouble getting this formula to generate the expected results in blueJ. 7.1) An annuity (sometimes called a reverse mortgage) is an account
I am having trouble getting this formula to generate the expected results in blueJ.
7.1) An annuity (sometimes called a reverse mortgage) is an account that yields a fixed payment every year until it is depleted. The present value of the annuity is the amount that you would need to invest at a given interest rate so that the payments can be made. The present value of an annuity (PVann) at the time of the first deposit can be calculated using the following formula: PVann = PMT ({[(1 + i)n - 1 - 1] / i } / (1 + i)n - 1 + 1) where: PMT: periodic payment i: periodic interest or compound rate n: number of payments What is the present value of an annuity that will pay out $10,000 in each of the next 20 years if the interest rate is 8 percent? (Do this calculation by hand/calculator, then add a println() statement to print this as your expected results). You should get the value: 106035.99. Write a program to calculate the present value of an annuity for these values. Remember that you can use Math.pow(x, y) to calculate xy. Print this value as your actual result. 7.2) Modify the program you created in 7.1 so that the user can provide the values for pmt, i, and n through the console.
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