The future value of an annuity is A=$32,000. Periodic payments are made quarterly got four years?
Posted by MarkApr 3
and the annuity earns 8 % compounded quarterly. Find the periodic payments.
a. 2.40
b. ,716.80
c. , 000 .00
d. $ 2, 160.00
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A = F[i/((1 +i)^n - 1)], Where
i = 0.08/4 = 0.02
n = 4 x 4 = 16 payments
A = 32000[0.02/((1.02)^16 - 1)] = 1716.80