A=M [(1=r/n with an upper nt at right hand corner -1] than under that there is a r/n
for m,r,and t assume monthly payments round to the nearest cent
$150;8%; 40 years
A=$
5 answers
your formula lacks. It makes no sense
are we doing amount of an annuity here? here?
If so:
A = payment [ (1+r)^n -1 ]/r
r is interest PER PERIOD = .08/12 = .006667
n is number of periods = 40*12 = 480 months
payment = 150
A = 150 [1.006667^480 -1 ] / .006667
A = 150(23.27339)/.006667
A = $ 523,624.99
If so:
A = payment [ (1+r)^n -1 ]/r
r is interest PER PERIOD = .08/12 = .006667
n is number of periods = 40*12 = 480 months
payment = 150
A = 150 [1.006667^480 -1 ] / .006667
A = 150(23.27339)/.006667
A = $ 523,624.99
Evaluate an ordinary annuity formula
A= m [(1+r over n)^nt -1]
_______
r over n
for m, r, t respectively. Assume monthly payments. Round to the nearest cent. $150; 8%; 40 yr
A= m [(1+r over n)^nt -1]
_______
r over n
for m, r, t respectively. Assume monthly payments. Round to the nearest cent. $150; 8%; 40 yr
thank you very much you made my day
That is what I did Mary Ann
I use r = interest rate/number of payments in a year
so your n t is my n
and your r/n is my r
and my n is 40 *12, your n t
I use r = interest rate/number of payments in a year
so your n t is my n
and your r/n is my r
and my n is 40 *12, your n t
2 answers