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Find the amount to be paid of a present value of 15,000 payable every three months for 10years, if the money is worth 5% compounded quarterly.
 

 Mar 14, 2022
 #1
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This, I believe is an ordinary annuity

 

PV = C * [  1 - (1+i)-n ] / i

 

PV = present value        C = 15 000       i = interest per period = .05/4         n = periods = 4 x 10 = 40

 

pluggiing in these numbers shows PV = ~  $ 469904

 Mar 14, 2022
 #2
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Hi EP: I think this is an ordinary annuity, with a PV of $15,000, from which you would receive quarterly payments @ 5% comp. quarterly for 10 x 4 ==40 quarters. If that is right, then the quarterly payments I calculate come to ==$478.82 for 10 years, or 40 quarters. However, the question is vey vague!

 Mar 14, 2022
edited by Guest  Mar 14, 2022
 #3
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Yah.... I believe you are correct....   the wording was a bit clumsy, so I included the equation to calulate ( as you did) ...

    Just put in 15000 for PV    and then calculate  'C'

ElectricPavlov  Mar 14, 2022
edited by ElectricPavlov  Mar 14, 2022

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