Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $15,000; quarterly payments for 12 years; interest rate 9.9% The payment should be $ (Round to the nearest cent as needed.)

Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding period is the same as the payment period. $15,000; quarterly payments for 12 years; interest rate 9.9% The payment should be $ (Round to the nearest cent as needed.)

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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Question

Find the payment that should be used for the annuity due whose future value is given. Assume that the compounding
period is the same as the payment period.
$15,000; quarterly payments for 12 years; interest rate 9.9%
The payment should be $
(Round to the nearest cent as needed.)

Expert Solution

Step 1

Given,

The future value of annuity due is $15,000

Quarterly payments are made for 12 years

Interest rate is 9.9%

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