MATH

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Find the monthly payments for an ordinary annuity that will yield a future value of $122000 at % interest for 22 years.

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  • MATH -

    Use the same formula as the other post:

    For an annual payment P for n years at interest rate r, the value of the investment is
    A=Pr^n+Pr^(n-1)+....Pr
    =Pr(1+r+r²+...+rn-1)
    =Pr(rn-1)/(r-1)

    Here A=122000
    n=22
    r has not been supplied.
    Solve for P.

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