Thread: Amount of an Ordinary Annuity

Hi there.

I've been trying a few questions for quite sometime and haven't been able to get to the correct answer.

I would apperciate it if you could show me how to derive to the answer.

Find the amount of each ordinary annuity.
a. a payment of $1500 at the end of every 3 months at 8% per annum, compounded quarterly.

b. a payment of $700 at the end of every month, into an account that pays 10% per annum, compounded monthly.

c. a payment of $2800 at the end of every 6 months for 5 years with an interest rate of 9% per annum, compounded semi-annually.

Thanks so much in advance

Hello, asiankatt!

There is a formula for these problems . . .

. . .

where: .

I'll do the third one for you.
For the others, we need to be told the number of years.

Find the amount of each ordinary annuity.

c. A payment of $2800 at the end of every 6 months for 5 years
with an interest rate of 9% per annum, compounded semi-annually.

We are given: .

Therefore: .