Q3 calculation q31 an annuity sometimes called a

Q3. Calculation
Q3.1 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 (PV
ann
) at the time of the first deposit can be calculated
using the following formula:
PV
ann
= 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?
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 x
y
.

What is your program?