Homework Help: Finite Math

Posted by Matt on Monday, February 18, 2013 at 9:38pm.

The amount (future value) of an ordinary annuity is given. Find the periodic payments.

A = $2500, and the annuity earns 6.5% compounded annually for 4 years.

Finite Math - Reiny, Monday, February 18, 2013 at 10:24pm
solve for P

P( 1.065^4 - 1)/.065 = 2500
Finite Math - Matt, Monday, February 18, 2013 at 10:42pm
didn't get it right, the answer in the book is 567.26
Finite Math - Reiny, Monday, February 18, 2013 at 10:56pm
I got 567.26

P( 1.065^4 - 1)/.065 = 2500
P( 1.286466351 - 1)/.065 = 2500
P(.286466...)/.065 = 2500
P(4.40717...) = 2500
P = 2500/4.40717.. = 567.256
Finite Math - Matt, Monday, February 18, 2013 at 11:07pm
yeah you are right i just plug it in wrong , thanks soooo much!

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