Devised by yours truly, for your enjoyment!

12 annual payments of same amount are deposited (at year-end)

3. ## Re: L'il annuity escapade!

Try again: no months involved (I wouldn't be that cruel!).
Annual payments, rates given = annual rates...
Balance end year 1: A
Balance end of year 2: A + 1.06A

4. ## Re: L'il annuity escapade!

I get \$1389.23 as the annual payment.

5. ## Re: L'il annuity escapade!

Right on, Chipper!

6. ## Re: L'il annuity escapade!

Beer soaked ramblings follow.
To indulge my old friend Sir Denis and for Sir Hallsofivy's enlightenment:

What is R in

R*[(1.12)^3-1]/.12+R*[(1.10)^3-1]/.10*(1.12)^3+R*[(1.08)^3-1]/.08*(1.10)^3*(1.12)^3+R*[(1.06)^3-1]/.06*(1.08)^3*(1.10)^3*(1.12)^3=30,000

7. ## Re: L'il annuity escapade!

NICE Sir Jonah. My approach:

R1 = .06 : a = (1 + R1)^3
R2 = .08 : b = (1 + R2)^3
R3 = .10 : c = (1 + R3)^3
R4 = .12 : d = (1 + R4)^3

u = (a - 1)*b*c*d / R1
v = (b - 1)*c*d / R2
w = (c - 1)*d / R3
x = (d - 1) / R4

P = annual payment

P = 30000 / (u + v + w + x)

HINT: P = ?,???.2318793...