Hi,

I'm having a problem comng up with an answer to a certain question regarding a simple annuity. The question says a person wants to accumulate $50,000 by the end of 10 years, making payments at the end of each month for the first six, then doubling the payments for the rermaining four years. The question wants to know what the size of the payments will be if interest is calculated at 12% per year.

I tried adding together the two sections like this:

50000 = PMT{ ((1 + 0.01)^72 - 1) / 0.01 } + 2*PMT{ ((1 + 0.01)^48 - 1) / 0.01 }

which gave me the wrong answer.

Any help is appreciated, thanks in advance.