document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=954209>Question 954209</A>: <I><SPAN STYLE=\"word-break: break-all;\"> PLEASE HELP ME !! <BR>\n" );
document.write( "Find the periodic payment which will amount to a future value of 25,000 with an interest rate of 4% compounded semi-annually at the end of five consecutive years. <BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #582768 by </B><A HREF=/tutors/aboutme.mpl?userid=rothauserc><B>rothauserc(4718)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=rothauserc><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=rothauserc><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=582768\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> We use the following formula<BR>\n" );
document.write( "P = PMT[((1 + r)^n - 1) / r], where P is the future value, r is interest rate, n is number of periods over which payments are made and PMT is amount of each payment, therefore<BR>\n" );
document.write( "25000 = PMT[((1 + .04)^10 - 1) / .04], note that n = 5*2<BR>\n" );
document.write( "25000 = PMT(12.006107125)<BR>\n" );
document.write( "PMT = 25000 / (12.006107125) = 2082.273607899 approx $2082.27<BR>\n" );
document.write( "each payment is $2082.27<BR>\n" );
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