Find the Mean given Normal Curve Values
1 answer:
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Answer:
at the end of 1st year we pay $ 11756
at the end of 2nd year we pay $ 24217
at the end of 3rd year we pay $ 37426
at the end of 4th year we pay $ 51427
at the end of 5th year we pay $ 66269
at the end of 6th year we pay $ 82001
Step-by-step explanation:
Given data
rate ( i ) = 6%
Future payment = $82000
no of time period ( n ) = 6
to find out
size of all of 6 payments
solution
we know future payment formula i.e.
future payment = payment per period ( - 1 ) / rate
put all these value and get payment per period
payment per period = future payment × rate / ( - 1 ) / rate
payment per period = 82000 × 0.06 / ( - 1 ) / rate
payment per period = 82000 × 0.06 / 0.4185
payment per period = $ 11756.27
at the end of 1st year we pay $ 11756
and at the end of 2nd year we pay $ 11756 × ( 1 + 0.06) + 11756
and at the end of 2nd year we pay $ 24217
and at the end of 3rd year we pay $ 24217 × ( 1 + 0.06) + 11756
and at the end of 3rd year we pay $ 37426
and at the end of 4th year we pay $ 37426 × ( 1 + 0.06) + 11756
and at the end of 4th year we pay $ 51427
and at the end of 5th year we pay $ 51427 × ( 1 + 0.06) + 11756
and at the end of 5th year we pay $ 66269
and at the end of 6th year we pay $ 66269 × ( 1 + 0.06) + 11756
and at the end of 6th year we pay $ 82001
You most likely only need the first 3 digits after the decimal point but if you needed more i added them! hope this helps
