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math

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What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays 6.6%, compounded semiannually, so that the account will have a future value of $140,000 at the end of 17 years?

  • math -

    Accumulation value of an annuity (due)
    Sn=P*((1+i)^n-1)/d
    where P-the size of payments, n=17*2=34,
    i=0.066/2=0.033, d=i/(i+1)=0.032

    140000=P*63.1024733
    P=2218.61

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