3 years ago

Howmet Corporation needs $200,000 in 5 years.

1 answer:

3 0

:)
The formula of the future value of annuity ordinary is
Fv=pmt [(1+r/k)^(kn)-1)÷(r/n)]
So we need to solve for pmt
Pmt=fv÷[(1+r/k)^(kn)-1)÷(r/n)]
Pmt=200,000÷(((1+0.10÷4)^(4×5)
−1)÷(0.10÷4))=7,829.43...answer

Hope it helps

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