# CONSUMER MATH

You are offered \$12,000 for an annuity at 3.9% compounded monthly
for 6 yrs what would the monthly payments be?

1. 👍 0
2. 👎 0
3. 👁 53
1. I assume the \$12,000 is the present value

i = .039/12 = .00325
n = 6(12) = 72
Payment = p

p( 1 - 1.00325^-72)/.00325 = 12000

solve for p

1. 👍 0
2. 👎 0
posted by Reiny

## Similar Questions

1. ### Finance

Sandy is offered an annuity at 3.9% compounded monthly to save the \$12000 she need over the next 6 yrs what would the monthly payments be

asked by JAnice on April 13, 2016
2. ### math

Mr. Hobbs was just about to take out a home mortage of \$120,000 for 20 yrs at the rate of 10.0% compounded monthly. The monthly payments would have been \$1158.03. But a competitive bank offered him a 30 yr mortgage at 9,5% which

asked by Blaire on September 29, 2011
3. ### math URGENT HELP

Mr. Hobbs was just about to take out a home mortage of \$120,000 for 20 yrs at the rate of 10.0% compounded monthly. The monthly payments would have been \$1158.03. But a competitive bank offered him a 30 yr mortgage at 9,5% which

asked by Blaire on September 29, 2011
4. ### algebra

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?

asked by beech on October 11, 2011
5. ### math

James has set up an ordinary annuity to save for his retirement in 18 years. If his monthly payments are \$225 and the annuity has an annual interest rate of 8% compounded monthly, what will be the value of the annuity when he

asked by Jennifer on June 24, 2014
6. ### math

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 6%/year compounded monthly. If the future value of the annuity after 10 yr is \$55,000, what was the size of each payment?

asked by Nicole E on February 7, 2011
7. ### Business Math 205

Calculate the PRESENT VALUE of the following ORDINARY ANNUITIES. Round to the nearest cent when necessary. Annuity Payment:(\$3,000) Payment Frequency: (Every Year) Time Period YRS:(15)Nominal Rate%:(10)Interest

asked by James on June 25, 2011
8. ### Finite math

Consider the following annuity scheme: regular payments of \$200 are made every two months at the end of the month (in other words, there are six equally spaced payments over the year) into an account with a nominal rate of 6%

asked by Johnny on November 10, 2016
9. ### Corporate Finance

A 15-year annuity pays \$1,750 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the

asked by Angela on September 16, 2014
10. ### math

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 8%/year compounded monthly. If the future value of the annuity after 14 yr is \$70,000, what was the size of each payment?

asked by Kristen on May 9, 2012

More Similar Questions