annuity payment problem i just need formula and answer.?
Posted by MarkSep 6
You have set up an ordinary annuity that will pay you 0.00 a month for the next 25 years. You will earn interest at a rate of 5.5% compounded monthly. What amount did you invest to accomplish this goal?
you need the PVA, present value of an annuity:
PVA = A x 1
1- ————-
(1+i)^n
————————–
i
About $105000
Also saw this response the other day. Is that the same question?
http://answers.yahoo.com/question/index;_ylt=AmU0G.ykJyht1k1Y9yXwHdUjzKIX?qid=20061022204439AAwTl82