# Math of Finance annuities

• Nov 22nd 2009, 07:41 PM
hebby
Math of Finance annuities
We had deposited V \$ quarterly in a savings account first deposit at April 15
2000 to earn \$ 20 000 at January 15, 2006, at interest rates of 10 (4)%.
(i) Calculate V.
(ii) Aprμes payment of the January 15, 2004 the interest rate is now 8 (4)%. Calculate
the new quarterly installments W \$ to be deposited in the account during the next 2 years
first payment April 15, 2004, a new interest rate to ensure the balance
requires \$ 20 000 in the account on January 15, 2006.
• Nov 22nd 2009, 08:17 PM
Wilmer
Was the problem in French, and you translated it?
your translation is quite difficult to follow.
What does 10(4)% and 8(4)% mean?
What does "to earn \$20,000" mean: earn in interest, or end up with?
• Nov 22nd 2009, 08:25 PM
hebby
10(4)% and 8(4)% means 10% every 3 months...and 8% means every 3 months

I meant to accumulate 20000 USD
• Nov 22nd 2009, 08:37 PM
Wilmer
Quote:

Originally Posted by hebby
10(4)% means 10% every 3 months...

10% every 3 months?!! Don't you mean 10/4 = 2.5% every 3 months?

AGAIN, this is an English site: please post accordingly.
10(4)% should be: 10% annual compounded quarterly.