Posted by ughh help 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  MathMate, 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/(11/(1.013)^14)
=$86000*(0.0785876)
=$6758.54