### Yearly Annuities Limited

An yearly annuity for n years can be either due or in arrears. If it is "due", then it has an initial payment of 1 and last payment after (n-1) years. If it is "in arrears", then the first payment is after 1 year and the last is after n years.The annuity due can be calculated using a very similar recursive approach as in the previous post:

1: 2: 3: 4: 5: 6: 7: 8: |
open System.Collections.Generic /// memoized version of annuity due for n years let rec mem_ladxn = memoize (fun x n -> // calculate components let px = book_px x let v = 1.0/1.05 //calculate result if n>1.0 then 1.0 + v*px*(mem_ladxn (x+1.0) (n-1.0)) else 1.0) |

The annuity in arrears for n years can be calculated by subtracting 1 from the annuity in advance for n+1 years.

### Quarterly Annuities Limited

An quarterly annuity for n years can be calculated very similarly to a yearly annuity. It seems simplest also to use a similar approach for the annuity in arrears:1: 2: 3: 4: 5: 6: 7: 8: 9: 10: 11: 12: 13: 14: 15: |
open System.Collections.Generic /// memoized version of annuity due quarterly for n years let rec mem_ladxn4 = memoize (fun x n -> // calculate components let px4 = book_px4 x let v4 = (1.0/1.05)**(1.0/4.0) //calculate result if n>0.25 then 0.25 + v4*px4*(mem_ladxn4 (x+0.25) (n-0.25)) else 0.25) /// memoized version of annuity due quarterly for n years let rec mem_laxn4 = memoize (fun x n -> // calculate components let px4 = book_px4 x let v4 = (1.0/1.05)**(1.0/4.0) //calculate result if n>0.25 then 0.25*v4*px4 + v4*px4*(mem_laxn4 (x+0.25) (n-0.25)) else 0.25*v4*px4) |

We can then use FCell to present the results of these calculations:

These are the same results as on page 123 of the book.

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