Question 1078069
To answer this question, we use the formula P=payout[(1+r)^n -1]/r(1+r)^n, where P is the principal, r is the periodic interest rate, and n is the total number of periods. So, for this example, we have:
P=2200[(1+.06/4)^16 -1]/.06/4*(1+.06/4)^16
P=591.76820483920722046352555284907
P=$31088.7808997 as the amount needed to fund the annuity properly. &#9786;&#9786;&#9786;&#9786;