U U10.0- Juilles | WILVIUUS HISWCIS ITAPHIUTU 4.S.UTU. Find the periodic payment

Question

U U10.0- Juilles | WILVIUUS HISWCIS ITAPHIUTU 4.S.UTU. Find the periodic payment R required to accumulate a sum of S dollars over t yr with interest earned at the rate of r%/year compounded mi times a year. (Round your answer to the nearest cent.) S= 50,000, r= 6, t= 9, m = 12 Need Help? |Read It Talk to a Tutor || O ov0.05 points | Previous Answers TanapMath5 4.3.016. Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 7%/year compounded monthly. If the future value of the annuity after 11 yr is $50,000, what was each payment? (Round your answer to the nearest cent.) $0x

Explanation / Answer

1) Periodic payment can be calculated using PMT function on a financial calculator

Insert N = 9 x 12 = 108, PV = 0, FV = 50,000, I/Y = 6%/12 = 0.5% => Compute PMT = $350.29 is the monthly payment.

2) Similarly, N = 11 x 12 = 132, PV = 0, FV = 50,000, I/Y = 7%/12 => Compute PMT = $252.54

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.