The future value of an annuity is A=$32,000. Periodic payments are made quarterly for four years and the annuity earns 8% compounded quarterly. Find the periodic payments.
If the nominal interest rate is 8%, the quarterly interest rate is 8/4 % = 2%. Recall, the future ...
Periodic payments are calculated given compound interest. The solution is detailed and well presented. The response received a rating of "5/5" from the student who originally posted the question.