Deferred Annuities
$begingroup$
A debt of 8000 is to be amortized by equal monthly payments starting at the end of one year and ending at the end of 2 years if money is worth 9% every month, find each payment.
So I was thinking this is a deferred annuity but instead of find the future value we are finding the annuity.
Plugging in my equation
n+d = 2 years which is 24 payments
Future value = 8000
AM i doing it right?
$Annuity$ = $frac{8000}{frac{1+left(frac{0.09}{12}right)^{24}}{frac{0.09}{12}}-{frac{1+left(frac{0.09}{12}right)^{12}}{frac{0.09}{12}}}}$
finance
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
$endgroup$
add a comment |
$begingroup$
A debt of 8000 is to be amortized by equal monthly payments starting at the end of one year and ending at the end of 2 years if money is worth 9% every month, find each payment.
So I was thinking this is a deferred annuity but instead of find the future value we are finding the annuity.
Plugging in my equation
n+d = 2 years which is 24 payments
Future value = 8000
AM i doing it right?
$Annuity$ = $frac{8000}{frac{1+left(frac{0.09}{12}right)^{24}}{frac{0.09}{12}}-{frac{1+left(frac{0.09}{12}right)^{12}}{frac{0.09}{12}}}}$
finance
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
$endgroup$
$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22
add a comment |
$begingroup$
A debt of 8000 is to be amortized by equal monthly payments starting at the end of one year and ending at the end of 2 years if money is worth 9% every month, find each payment.
So I was thinking this is a deferred annuity but instead of find the future value we are finding the annuity.
Plugging in my equation
n+d = 2 years which is 24 payments
Future value = 8000
AM i doing it right?
$Annuity$ = $frac{8000}{frac{1+left(frac{0.09}{12}right)^{24}}{frac{0.09}{12}}-{frac{1+left(frac{0.09}{12}right)^{12}}{frac{0.09}{12}}}}$
finance
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
$endgroup$
A debt of 8000 is to be amortized by equal monthly payments starting at the end of one year and ending at the end of 2 years if money is worth 9% every month, find each payment.
So I was thinking this is a deferred annuity but instead of find the future value we are finding the annuity.
Plugging in my equation
n+d = 2 years which is 24 payments
Future value = 8000
AM i doing it right?
$Annuity$ = $frac{8000}{frac{1+left(frac{0.09}{12}right)^{24}}{frac{0.09}{12}}-{frac{1+left(frac{0.09}{12}right)^{12}}{frac{0.09}{12}}}}$
finance
finance
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
edited Nov 26 '18 at 13:19
saulspatz
14.3k21329
14.3k21329
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
asked Nov 26 '18 at 13:08
SuperMage1SuperMage1
897210
897210
$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22
add a comment |
$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22
$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22
add a comment |
1 Answer
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$begingroup$
$i=0.09/12$, $v=frac{1}{1 +i} $, $L=8000$
$$
A=frac{L}{v^{12}timesfrac{1-v^{12}}{i} }
$$
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
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add a comment |
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1 Answer
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1 Answer
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$begingroup$
$i=0.09/12$, $v=frac{1}{1 +i} $, $L=8000$
$$
A=frac{L}{v^{12}timesfrac{1-v^{12}}{i} }
$$
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
$endgroup$
add a comment |
$begingroup$
$i=0.09/12$, $v=frac{1}{1 +i} $, $L=8000$
$$
A=frac{L}{v^{12}timesfrac{1-v^{12}}{i} }
$$
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
$endgroup$
add a comment |
$begingroup$
$i=0.09/12$, $v=frac{1}{1 +i} $, $L=8000$
$$
A=frac{L}{v^{12}timesfrac{1-v^{12}}{i} }
$$
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
$endgroup$
$i=0.09/12$, $v=frac{1}{1 +i} $, $L=8000$
$$
A=frac{L}{v^{12}timesfrac{1-v^{12}}{i} }
$$
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
answered Nov 27 '18 at 22:28
alexjoalexjo
12.3k1430
12.3k1430
add a comment |
add a comment |
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$begingroup$
You want $left(1+{.09over12}right)^{24}$ for example. You've got the left parentheses in the wrong place.
$endgroup$
– saulspatz
Nov 26 '18 at 13:22
$begingroup$
Are you still interested in an answer?
$endgroup$
– callculus
Nov 26 '18 at 19:22