Question

For each of the following annuities, calculate the annuity payment.

Annuity Payment	Future Value	Years	Interest Rate
	$24,450	8	8%
	$990,000	39	10%
	$808,000	25	11%
	$134,000	16	7%

Answer 1

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

24450= Cash Flow*(((1+ 8/100)^8-1)/(8/100))

Cash Flow = 2298.66

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

990000= Cash Flow*(((1+ 10/100)^39-1)/(10/100))

Cash Flow = 2466.07

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

808000= Cash Flow*(((1+ 11/100)^25-1)/(11/100))

Cash Flow = 7062.12

FVOrdinary Annuity = C*(((1 + i )^n -1)/i)

C = Cash flow per period

i = interest rate

n = number of payments

134000= Cash Flow*(((1+ 7/100)^16-1)/(7/100))

Cash Flow = 4804.92