Posted by **math help plz** on Saturday, April 30, 2011 at 11:38pm.

Suppose an annuity will pay $18,000 at the beginning of each year for the next 8 years. How much money is needed to start this annuity if it earns 6.9%, compounded annually?

- Math -
**drwls**, Sunday, May 1, 2011 at 5:01am
Do annuity payments stop at death? Or is lump sum payment made to a beneficiary? If either case, age and actuarial data on life expectancy are needed.

- Math -
**Mgraph**, Sunday, May 1, 2011 at 6:09am
The present value of the annuity (due)

An=P*(1-v^n)/(1-v) where v=1/(1+i)

P=18000, n=8, i=0.069

A8=115346

## Answer this Question

## Related Questions

- math - find the present value of ordinary annuity payments of 890 each year for ...
- finite math - A $1.2 million state lottery pays $5,000 at the beginning of each ...
- algebra - Suppose a retiree wants to buy an ordinary annuity that pays her $2,...
- business math - If Naomi decides that she will invest $3,000 per year in a 6% ...
- Finite Math - The amount (future value) of an ordinary annuity is given. Find ...
- math - Jeanette wishes to retire in 30 years at age 55 with retirement savings ...
- Finance - Need help finding a formula for: Question: Suppose a bank offers you ...
- finance - Can someone please help me with the following question. I am not sure ...
- Math - A person wants to establish an annuity for retirement purposes. He wants ...
- math,help - what formula do i use for the following problem: which of the ...