What is the value of an ordinary annuity that has 600 payments made quarterly for 9 years at 12% interest?

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What is the value of an ordinary annuity that has 600 payments made quarterly for 9 years at 12% interest?

compounded quarterly?

2007-04-26 07:07:22 · 3 answers · asked by LaVa D 1 in Science & Mathematics ➔ Mathematics

3 answers

Present value of annuity with payment P made
for n periods, compounded at rate i =

PV = P* [ (1 - v^n) / i ]
where v = 1/(1 + i)

n = 9*4 = 36
i = =.12/4 = 0.03
v = 0.97087

P = 600

PV = 600 * [ (1 - 0.97087^36) / 0.030 ] =
13100

2007-04-26 07:21:40 · answer #1 · answered by fcas80 7 · 0⤊ 0⤋

600 payments of how much money?
Suppose I assume d dollars of money per payment.
Then
S = (R/i)( (1+i)^n -1) = 600d/.03 * (1.03)^36 -1).

2007-04-26 07:25:45 · answer #2 · answered by steiner1745 7 · 0⤊ 0⤋

Get free rates

2015-02-11 08:54:55 · answer #3 · answered by Maryellen 1 · 0⤊ 0⤋