Immediate / Ordinary Annuity Interest Rate Calculator

[insert_php]

if(isset($_POST[‘submit’])){

$P = $_POST[‘value1’];
$N = $_POST[‘value2’];
$I1 = $_POST[‘value3’];
$I=$I1/100;
$A=(1+$I);
$A1=pow($A,-$N);

$ImmediateAnnuity = $P*$I/ ( 1 – $A1);
//forrmula Immediate Annuity = pi / ( 1 – ( 1 + i )-n )
//p = Sum to invest,
//n = Time period(in years),
//i = Annual rate of return.

echo”Result is : $ImmediateAnnuity”;
}

[/insert_php]

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

   

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