Franklyn set up an investment program using an annuity due with payments of $1,2

Reggie

Reggie

Answered question

2021-09-17

Franklyn set up an investment program using an annuity due with payments of $1,200 at the start of each quarter. Suggesting he makes payments for 5 years into an account expected to pay 8% compounded quarterly, calculate the annuity.

Answer & Explanation

coffentw

coffentw

Skilled2021-09-18Added 103 answers

A=C(1+i)n1i
n=5×4=20
i=8%=0.08
A=$1200(1+0.08)2010.08
=$54,914.35

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