Problema Solution
Solve the following problem.
FV = $4091; n=30 i=0.09
What is the PMT=?
Answer provided by our tutors
WE HAVE,
FUTURE VALUE,FV=PMT((1+i)n-1)/i
where pmt--periodic payment amount
i--interest rate
n-no of compound periods
from formula
$4091=pmt((1+0.09)30-1)/0.09
=> $4091=pmt(13.26-1)/0.09
=> pmt=$4091*0.09/12.26
PMT=$30.03