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Find the future value for the ordinary annuity with the PMT = $1,600; 1.35% compounded monthly for 6 %3D 0.0135 and n= Substitute the values PMT = 1,600, i= 12

Find the future value for the ordinary annuity with the PMT = $1,600; 1.35% compounded monthly for 6 %3D 0.0135 and n= Substitute the values PMT = 1,600, i= 12

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Find the future value for the ordinary annuity with the given pa PMT = $1,600; 1.35% compounded monthly for 6 years. %3D 0.0135 Substitute the values PMT = 1,600, i= 12 and n= 72 into result. FV = PMT (1 + i)" – 0.0135 ) 72 1+ -1 12 = 1,600 0.0135 12 Simplif Enter your answer in the answer box and then click Check Ar Olear Al 1 part remaining answ showing hp
Transcribed Image Text:Find the future value for the ordinary annuity with the given pa PMT = $1,600; 1.35% compounded monthly for 6 years. %3D 0.0135 Substitute the values PMT = 1,600, i= 12 and n= 72 into result. FV = PMT (1 + i)" – 0.0135 ) 72 1+ -1 12 = 1,600 0.0135 12 Simplif Enter your answer in the answer box and then click Check Ar Olear Al 1 part remaining answ showing hp
Expert Solution
Step 1 Introduction

In order to find the future value be can use this formula as provided or can use excel. Future value is the value one will receive in future. 

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