Al asked in Science & MathematicsMathematics · 12 months ago

Can anyone help with this annuity problem?

Juan purchases an annuity for 3610 dollars that will make 22 annual payments, the first to come in one year. If the effective rate of interest is 7.3 percent, how much is each annual payment.

I tried using the regular compound interest formula and divided it by 22 to get the annual payment but i'm not sure if I'm doing it right. 

1 Answer

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  • ?
    Lv 7
    12 months ago
    Favorite Answer

    3610= Pmt[1 - (1 + 0.073)^-21]/0.073

    Pmt= $341.24

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