Explore BrainMass

Explore BrainMass

    Annuity payments

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Determine the amount of the periodic payments needed to pay off the following purchases. Payments are made at the end of the period.
    1. Purchase of a waterbed for $1,205. Monthly payments are to be made for one year with interest at 24% per annum, compounded monthly.
    2. Purchase of a motor boat for $26,565. Quarterly payments are to be made for four year with interest at 8% per annum, compounded quarterly.
    3. Purchase of a condominium for $65,500. Semiannual payments are to be made for 10 years with interest at 10% per annum, compounded semiannually.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:50 pm ad1c9bdddf
    https://brainmass.com/business/annuity/302120

    Solution Preview

    Annuity payments
    Determine the amount of the periodic payments needed to pay off the following purchases.  Payments are made at the end of the period.
    1.  Purchase of a waterbed for $1,205.  Monthly payments are to be made for one year with interest at 24% per annum, compounded monthly.
    2.  Purchase of a motor boat for $26,565.  Quarterly payments are to be made for four year with interest at 8% per annum, compounded quarterly.
    3.  Purchase of a condominium for $65,500.  Semi annual payments are to be made for 10 years with interest at 10% per annum, compounded ...

    Solution Summary

    Determines the amount of the periodic payments (annuity) needed to pay off the purchases.

    $2.19

    ADVERTISEMENT