# Error in converting Annuity to Cashflow

Posted 1 month ago
244 Views
|
0 Replies
|
0 Total Likes
|
 In converting an Annuity to a Cashflow, I believe the initial payment is being handled incorrectly. Here is code that demonstrates that: (* Annuity with an initial payment and then 5 payments *) (* Present value *) TimeValue[Annuity[{pmt, {init}}, 5], 0, 0] (* init+5 pmt *) (* value before the first period *) TimeValue[Annuity[{pmt, {init}}, 0], 0, 0] (* init *) (* value after the first period *) TimeValue[Annuity[{pmt, {init}}, 1], 0, 1] (* init+pmt *) (* convert the annuity to a cashflow *) cf = Cashflow[Annuity[{pmt, {init}}, 5]] (* Cashflow[{{1,init+pmt},{2,pmt},{3,pmt},{4,pmt},{5,pmt}}] *) (* We have lost the fact that the initial payment was made first *) When I went to post this on Mathematica StackExchange I found an earlier post from 6 years ago. If I am correct about this being a bug, it would result in a wrong result.Why hasn't this been fixed?