Starting in 6 months, Lily will deposit $1000 into an account every March 1st and and September 1st for 10 years. How much will she have at the time of the last payment if interest is 5.5% per annum, compounded semi-annually?
Math Question - Amount of an ordinary Annuity?
future value annuity
m1=2 semi-annual compounded
m2=2 semi-annual payment
YR=10
%int=5.5 annual interest
n=m2 * YR = 2 * 10 = 20
int=(%int) / 100 / (m1) = 5.5 / 100 / 2 = 0.0275
INT= [1 + int] ^ [ m1 / m2] - 1
INT = [1+ 0.0275] ^ [2 / 2] - 1 = 0.0275
PMT = 1000
FV = PMT * [(1 + INT) ^ (n) - 1] / [INT]
FV = 1000 * [(1 + 0.0275) ^ (20) - 1] / [0.0275]
FV = 26197.40
Reply:how many deposits has she had?
commericial loan
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