Question

Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume...

Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.)

$40,000 in a fund paying 5% per year, with quarterly payments for 20 years

PMT = $  

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Homework Answers

Answer #1

Amount = $ 40,000

Interest = 5% per year = (5/4)% per quarter

Time = 20 years = 80 quarters

Assume a quarterly payment of $ A will accumulate $ 40,000 in 20 years.

The value of A can be determined as follows

I have also verified it using the excel function refer the attached screenshot of excel the function can be seen in the formula bar

Please contact if having any query will be obliged to you for your generous support. Your help mean a lot to me, please help. Thank you.

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