To find the future value of an ordinary annuity of $6,500 paid quarterly for 9 years, if the interest rate is 5% compounded quarterly, we use the future value of annuity formula. S = R (1 + i)n − 1 i In this problem, the amount paid in per period is R = $ . The number of periods is n = (9) = . The rate per period is i = 0.05/ = .
To find the future value of an ordinary annuity of $6,500 paid quarterly for 9 years, if the interest rate is 5% compounded quarterly, we use the future value of annuity formula. S = R (1 + i)n − 1 i In this problem, the amount paid in per period is R = $ . The number of periods is n = (9) = . The rate per period is i = 0.05/ = .
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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To find the future value of an ordinary annuity of $6,500 paid quarterly for 9 years, if the interest rate is 5% compounded quarterly, we use the future value of annuity formula.
S = R
| (1 + i)n − 1 |
| i |
In this problem, the amount paid in per period is R = $ .
The number of periods is
n =
(9) = .
The rate per period is i = 0.05/ = .
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