topic Present Value of an Annuity in SAS Programming

Present Value of an Annuity

dowian2 — Wed, 16 Jun 2010 20:15:32 GMT

I'm trying to calculate the interest rate of an annuity with a final payment. I have the present value, the payment amount, the final payment amount, and the number of payments. I've discovered the "MORT" and "COMPOUND" functions, but is there anything that combines these?

Thanks!

Re: Present Value of an Annuity

ArtC — Thu, 17 Jun 2010 15:33:53 GMT

I am not much of a finance guy and these simple functions have always been sufficient for me. What is it thay they do not do for you? Have you examined the other functions in the Financial category? There are close to two dozen, perhaps one of those would be closer to your needs.

Re: Present Value of an Annuity

dowian2 — Thu, 17 Jun 2010 16:44:23 GMT

Basically, I'm trying to combine the "RATE" and "PV" features of the FINANCE function.

According to what I've found,

r = finance('pv', rate, nper, pmt, fv, type);

will solve for the present value of a stream of payments with a future value "fv".
I've also found this:

r = finance('rate', nper, pmt, pv);

which solves for the interest rate of a stream of payments, but it doesn't have a spot for "fv".

All of that said, I'm using SAS 9.1, which doesn't have the FINANCE function, so this may all be a moot point.

Thanks!