Asked by Matt

The amount (future value) of an ordinary annuity is given. Find the periodic payments.

A = $2500, and the annuity earns 6.5% compounded annually for 4 years.

Answers

Answered by Reiny
solve for P

P( 1.065^4 - 1)/.065 = 2500
Answered by Matt
didn't get it right, the answer in the book is 567.26
Answered by Reiny
I got 567.26

P( 1.065^4 - 1)/.065 = 2500
P( 1.286466351 - 1)/.065 = 2500
P(.286466...)/.065 = 2500
P(4.40717...) = 2500
P = 2500/4.40717.. = 567.256
Answered by Matt
yeah you are right i just plug it in wrong , thanks soooo much!
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