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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.

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Solution Summary

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

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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 ...

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