Posted by beech on Tuesday, October 11, 2011 at 11:06am.
Suppose a retiree wants to buy an ordinary annuity that pays her $2,000 per month for 20 years. If the annuity earns interest at 3.5% interest compounded monthly, what is the present value of this annuity?

algebra  Steve, Tuesday, October 11, 2011 at 11:43am
This is the same old problem. Just using different data.
r = 1 + .035/12 = 1.0029166666
2000 (r^240  1)/(r1)
= 2000 * 1.011702/0.00291666
= $693,738.70
Before posting another of these, try using the formula.

algebra  ED, Sunday, December 13, 2015 at 1:11pm
Suppose a retiree wants to buy an ordinary annuity that pays her $2,000 per month for 20 years. If the annuity earns interest at 3.5% interest compounded monthly, what is the present value of this annuity?
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