I need to find the payment that should be used for the annuity due whose future value is given. assume that the compounding period is the same as the payment period. $16,000; quarterly payments for 11 years; interest rate 4.5%
+2498 i think:
quarterly-4 times in a year
11x4=44
interest rate 4.5 mean: x*1.045
16000*1.045^44 = 110977.9663856094585171
Answer:110978
I want to make sure that I understand your problem: you want to know what quarterly payment are required to accumulate to $16,000 in 11 years @ 4.5% compounded quartrely for an annuity DUE?.
If that is so, then your quartely payments would be=$279.88 per quarter.
The formula you would use for this is this one:
FV=P{[1 + R]^N - 1/ R}=FV OF $1 PER PERIOD.
Where R=Interest rate per period, N=number of periods, P=periodic payment, FV=Future value
