document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1155918>Question 1155918</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Suppose that a couple plans to set up an ordinary annuity with a R100 000 inheritance they received. What is the amount of the quarterly payments they will receive for the next 6 years (while their children are in university) if the account pays 7% per annum, compounded quarterly? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #778594 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=778594\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> using the financial calculator at <a  rel=nofollow HREF= \"https://arachnoid.com/finance/index.html\" target = \"_blank\">https://arachnoid.com/finance/index.html</a>, i get the following results.\r<BR>\n" );
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document.write( "the first one assumes end of time period payments equal to 5138.57 per quarter.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2020/041301.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "the second one assume beginning of time period payments equal to 5050.19 per quarter.<BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2020/041302.jpg\" alt=\"$$$\" >\r<BR>\n" );
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document.write( "the inputs were:<BR>\n" );
document.write( "present value = 100,000 (negative because it's money going out).<BR>\n" );
document.write( "future value = 0<BR>\n" );
document.write( "number of quarters = 6 years * 4 = 28<BR>\n" );
document.write( "interest rate = 7% per year / 4 = 1.75% per quarter<BR>\n" );
document.write( "payments are made at the end of the quarter in the first analysis.<BR>\n" );
document.write( "payments are made at the beginning of the quarter in the second analysis.<BR>\n" );
document.write( "results were obtained by clicking on PMT after all inputs were made.<BR>\n" );
document.write( "payments are positive because it's money coming in.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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