SOLUTION: The future value of an annuity is A=$32,000. Periodic payments are made quarterly for four years and the annuity earns 8% compounded quarterly. What are the periodic payments?

Question 108283: The future value of an annuity is A=$32,000. Periodic payments are made quarterly for four years and the annuity earns 8% compounded quarterly. What are the periodic payments?
Answer by Fombitz(32388) (Show Source): You can put this solution on YOUR website!
The future value of an annuity formula is

where P is the periodic payment, n is number of time periods.
4 years quarterly = 4x4=16 time periods
8% compounded quarterly rate is 8%/4=2%

The periodic payments are $1716.80.
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