Question

Emma decides to invest $990,000 in a period annuity that earns a 2.2% APR,

Answer 1

The correct answer is D. 3759.04



Explain

The formula is

PMT= amount {APR/n/(1+APR/n)^ny-1

APR is rate per year

N - is number of month

Y- number of year

Now let me begin ...

amount = 990,000
APR= 2.2%
N=12
Y= 20 yrs


Now let’s put all this in the formula and simplify


Pmt = 990000{2.2/12/(1+2.2/12)^12x20-1

Now simply


Pmt= 990000{0.18333/(1+0.18333)^240 -1

990000{0.18333/(1.18333)^240 -1}


1.00183333^240 -1= 0.55208

Pmt = 990000x 0.00183333/0.55208

1814.9967/0.55208

= 3759.04







Sorry for taking long , I have to check my work twice before sending , so I can give you correct answer


I hope this help you :D

Answer 2

Answer: B) 6462.32

Step-by-step explanation:

Compound interest can be calculated via the attachment.

Hope it helps <3