Thursday
March 23, 2017

Post a New Question

Posted by on Saturday, April 30, 2011 at 11:37pm.

If $86,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it provide at the end of each quarter for the next 3½ years?

  • math - , Sunday, May 1, 2011 at 6:38am

    Principal, P = $86000
    Compounding period : quarterly
    interest, i = 5.2%/4 = 1.3% = 0.013
    Number of periods, n = 3.5*4 = 14
    R = payment per quarter

    P = R(1-(1+i)^(-n))/i, or

    R = Pi/(1-(1+i)^(-n))
    =$86000*0.013/(1-1/(1.013)^14)
    =$86000*(0.0785876)
    =$6758.54

Answer This Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Post a New Question