◄Example►                 ◄Contents►  ◄Index►  ◄Back►
──────────────────────────────────────────────────────────────────────────────
'This example uses the PV# function to return the present value of an
'annuity.
 
'Note: To run this example you must use a Quick library that includes the
'procedures contained in the date/time/format and financial function library
'files. The following include files must also be present.
 
'$INCLUDE: 'FINANC.BI'
'$INCLUDE: 'FORMAT.BI'
 
CONST ENDPERIOD = 0
CONST BEGINPERIOD = 1
CONST DOLLARFORMAT$ = "$#,###,##0.00"
 
DEFDBL A-Z
DIM APR AS SINGLE
DIM Status AS INTEGER
 
APR = .102
Period = 20
YearlyIncome = 50000
FutureValue = 1000000
 
'Explain the premise.
CLS
PRINT "It seems you've won a million dollar lottery and you're going to"
PRINT "get $50,000.00 each year for the next 20 years."
PRINT
PRINT "You're curious about how much it's actually costing the people who"
PRINT "run the lottery to pay you that $1,000,000.00 over 20 years."
PRINT
PRINT "Assume that the prevailing interest rate is 10.2% compounded annually."
PRINT
 
'Calculate the present value of an annuity.
PresentValue = PV#(APR, 20, -YearlyIncome, FutureValue, BEGINPERIOD, Status)
 
'Examine Status to determine success or failure of PV#.
IF Status THEN
 
    'If unsuccessful, announce a problem.
    PRINT "There was an error in calculating the present value of an annuity."
 
ELSE
 
    'If successful, display the results.
    PresentValue$ = FormatD$(PresentValue, DOLLARFORMAT$)
    PRINT "Calculations show that the lottery people only have to deposit ";
    PRINT PresentValue$; ""
    PRINT "to ensure that you get your money."
 
END IF