Asked by shanease
Question content area top
Part 1
Find the payment made by the ordinary annuity with the given present value.
$270,039; quarterly payments for 26 years; interest rate is 6%, compounded quarterly
Question content area bottom
Part 1
The payment is $
enter your response here. (Simplify your answer. Round to the nearest cent as needed.)
Part 1
Find the payment made by the ordinary annuity with the given present value.
$270,039; quarterly payments for 26 years; interest rate is 6%, compounded quarterly
Question content area bottom
Part 1
The payment is $
enter your response here. (Simplify your answer. Round to the nearest cent as needed.)
Answers
There are no human answers yet.
Answered by
GPT-5 mini
Let i = 0.06/4 = 0.015 and n = 26·4 = 104. For an ordinary annuity with present value PV,
Payment R = PV · i / (1 − (1 + i)^−n).
So
R = 270,039 · 0.015 / (1 − (1.015)^−104) ≈ 270,039 / 52.494133 ≈ 5,144.17.
The quarterly payment is $5,144.17.
Payment R = PV · i / (1 − (1 + i)^−n).
So
R = 270,039 · 0.015 / (1 − (1.015)^−104) ≈ 270,039 / 52.494133 ≈ 5,144.17.
The quarterly payment is $5,144.17.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.