+89 How much is an annuity of monthly payments of e 200 over 10 years worth, if it earns 5% interest compounded monthly?
Pv= C * (1-(1+i)^-n)/i
PV = 200 ( 1 -( 1+0.05/12)^120/0.05/12)
PV =18856.27007
Find the annual percentage rate (APR) for the following interest rates
(i) 5.39% compounded annually
(ii) 5.3% compounded semi-annually,
(iii) 5.2% compounded quarterly, (iv) 5.18% compounded monthly .
i) (1+0.0539/1)^1-1
apr = 5.39%
ii)5.4%
iii)5.3% (0.05302)
iv)5.3% (0.05304)
cheapest is (iii)
Use this formula to find the amount of the annuity:
PV=P{[1 + R]^N - 1.[1 + R]^-N} R^-1
PV=200 {[1 + .05/12]^120-1 x [1+.05/12]^-120 x (.05/12)^-1
PV=200 x 94.281350
PV=18,856.27
Find the annual percentage rate (APR) for the following interest rates
(i) 5.39% compounded annually
(ii) 5.3% compounded semi-annually,
(iii) 5.2% compounded quarterly, (iv) 5.18% compounded monthly .
i) (1+0.0539/1)^1-1
apr = 5.39%....................CORRECT.
ii)5.4%............................5.370225%
iii)5.3% (0.05302)..........5.302282%
iv)5.3% (0.05304)..........5.304769%
cheapest is (iii)...............CORRECT.
