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