Finite Math

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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 -

    solve for P

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

  • Finite Math -

    didn't get it right, the answer in the book is 567.26

  • Finite Math -

    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 -

    yeah you are right i just plug it in wrong , thanks soooo much!

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