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April 24, 2014

April 24, 2014

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

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

- Finite Math -
**Reiny**, Monday, February 18, 2013 at 10:24pmsolve for P

P( 1.065^4 - 1)/.065 = 2500

- Finite Math -
**Matt**, Monday, February 18, 2013 at 10:42pmdidn't get it right, the answer in the book is 567.26

- Finite Math -
**Reiny**, Monday, February 18, 2013 at 10:56pmI 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 11:07pmyeah you are right i just plug it in wrong , thanks soooo much!

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