Annuity Problems

[sunlight212]

I need help with these two problems.

1.) Find the amount of a $300 annuity deposited every 3 months for a 5 year period if annual interest rate is 12% and interest is compounded quarterly?

I know r=300 and i=.03 and n=20. and I think your supposed to multiply 300 by somthing and I can't figure out what that somthing is. Please help

The second problem I need help with is this.

2.) What is the present value of the following annuity – periodic payments of $1,000 a month for 2 years where the interest rate is 12% compounded monthly?

I know r=1,000, and i=.01 and n=20.

I have some annuity tables but they arn't helping with these problems because the interest or n's won't go that high on my tables. Please help.

 

[sunlight212]

never mind i think i got them correct but tell me if im wrong

#1) 300*26.87037449=$8,061.11


#2) 1,000*21.24338726=$21,243.39

 

[Denis]

BINGO! Good work :wink:

Suggestion:
I see you use "r" to represent payment or deposit;
I suggest you use somrthing else (like "d"):
"r" can be easily confused with rate: rate often used this way: i = r/12 (as example).

Usually these are used:
p = present value
f = future value
d = periodic deposit/payment
i = interest (periodic) rate
n = number of periods

 

[sunlight212]

Thanks.