Home » Further Maths Unit 3 & 4 » A2 - Recursion and Financial Modelling » 5.3 Modelling Annuity Investments using Technology

5.3 Modelling Annuity Investments using Technology

Note: if you cannot remember how to model reducing balance relations with regular repayments, revise notes for 5.1 Modelling Annuity Investments.

Guide to Analysing Annuity Investments using Technology (Casio Graphics Calculator)

Note: if you cannot remember how to use the Casio Financial Calculator, revise notes for 3.3 Modelling Reducing Balance Systems with Regular Repayments using Technology.

  • The annual interest rate should be entered/calculated as a positive value.
  • The initial value (PV) should be entered/calculated as a negative value (remember we justify this by saying we must lose this amount to create the investment).
  • The payment (PMT) (i.e. the amount withdrawn) should be entered/calculated as negative (we can justify this by saying we lose this amount per compounding period to the investment)
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