ANNUITY DUE AND ORDINARY ANNUITY USING LINEAR DIFFERENCE EQUATIONS AND CAS

摘要

The contribution presents the way how to apply linear difference equations in the field of financial mathematics. We focus on calculating the future value and the present value of annuities when we distinguish two basic types of annuities - an annuity due and an ordinary annuity. We also demonstrate derivations of formulas and computations of corresponding examples with using two computer algebra systems (online service Wolfram|Alpha and Maple software).