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.

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> 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.       Log On


   

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) About Me  (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

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