Question

Which of the following is the monthly payment for the future value of an annuity worth $510
with 15
total payments and an interest rate of 2%
?(1 point)

$30.45


$33.61


$37.10


$35.20

Answer 1

Use the future value of an ordinary annuity:
PMT = FV * (i_per_period) / [(1 + i_per_period)^n − 1].

Assuming 2% is annual interest with monthly payments: i_per_period = 0.02/12 = 0.0016666667, n = 15.

PMT = 510*(0.0016666667)/[(1.0016666667)^15 − 1] ≈ 510*0.001666667/0.025294 ≈ $33.61.

Answer: $33.61