Yahoo Answers: Answers and Comments for Present and Future Value? [Mathematics]
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From DesiKuri
enUS
Mon, 12 Oct 2009 16:31:04 +0000
3
Yahoo Answers: Answers and Comments for Present and Future Value? [Mathematics]
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https://answers.yahoo.com/question/index?qid=20091012163104AAtohAe
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From M3: hi , desi curie !
q1
this is an example of...
https://answers.yahoo.com/question/index?qid=20091012163104AAtohAe
https://answers.yahoo.com/question/index?qid=20091012163104AAtohAe
Tue, 13 Oct 2009 04:21:14 +0000
hi , desi curie !
q1
this is an example of an annuity due,
with payments at the BEGINNING of a period
i = 12% = 0.12
n = 25
the formula is
A = P[(1+i)^n 1][1+i] / i
plugging in,
500,000 = P*(1.12^25  1)(1.12 / 0.12)
which yields
P = $3348 to the nearest dollar
  
q2
P = 19,553
A = 27,600
n = 4
the formula is A = P(1+i)^n
plugging in,
(1+i)^4 = 27600/19553
(1+i) = (27600/19553)^(1/4) = 1.09
i = 0.09 = 9% p.a.
