SOLUTION: (ST - 2) Time Value of Money Assume that 4 years from now you will need $1,000. Your bank compounds interest at an 8% annual rate. 164 Part 2: Fixed Income Securities b.

Question 1177249: (ST - 2)
Time Value of
Money
Assume that 4 years from now you will need $1,000. Your bank compounds interest
at an 8% annual rate.
164 Part 2: Fixed Income Securities
b. If you want to make equal payments at the end of Years 1 through 4 to
accumulate the $1,000, how large must each of the 4 payments be?

Answer by Solver92311(821) (Show Source): You can put this solution on YOUR website!

Where A is the annual annuity payment, FVOA is the Future Value of an Ordinary Annuity, r is the interest rate per compounding period (expressed as a decimal), and n is the number of payments. Plugin your numbers and do the arithmetic.

John

My calculator said it, I believe it, that settles it

From
I > Ø

RELATED QUESTIONS
Need help answering this question please. Have to have it done by tonight. 3) The... (answered by Nate)

Help!! I know once you get a) you keep uping the power? The formula for calculating... (answered by jim_thompson5910)

Ok, I've got a real big problem here and i'm thoroughly overwhelmed and confused. Can... (answered by stanbon)

Maybe it is because the problem is so long it is overwhelming or maybe it is just going... (answered by stanbon)

0) 3)The formula for calculating the amount of money returned for an initial deposit (answered by Fermat)

I just want to know if someone could check this and see if it is right and help me on... (answered by jim_thompson5910)

The formula for calculating the amount of money returned for deposit money into a bank... (answered by stanbon)

3) The formula for calculating the amount of money returned for an initial deposit money... (answered by stanbon)

Please help I am stuck on this problem :( 3) The formula for calculating the amount of (answered by stanbon)