How to calculate Immediate / Ordinary Annuity Interest Rate – Physics Calculator

Immediate / Ordinary Annuity Interest Rate Calculator

Sum to invest(dollars)
Time period(years)
Annual rate of return(%)Frequency of payment

   

Formula of Immediate / Ordinary Annuity Interest Rate Calculator

Immediate Annuity = pi / ( 1 – ( 1 + i )-n )
Where,
p = Sum to invest
i = Annual rate of return
n = Time period(in years)

Example of of Immediate / Ordinary Annuity Interest Rate Calculator

Suppose that p is 5, i is 8 and n is 3, then

Immediate Annuity = pi / ( 1 – ( 1 + i )-n ) = 5 / (1 – (1 + i) – n) = 1.940