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Mathematics 23 Online
OpenStudy (anonymous):

after 5 annual deposits of $1000 at 10% compounded annually. find the amount of annuity

OpenStudy (anonymous):

i got 605016.695

OpenStudy (anonymous):

Nop its 1610.51...

OpenStudy (anonymous):

why?

OpenStudy (anonymous):

because m=P(1+i)^n where M is the annunity and i is the interest rate and n is the period...so solve for m...

OpenStudy (anonymous):

i set it up like A=P{(1+i)^n-1/i}

OpenStudy (anonymous):

so it would be 1000{1+.10/60)^5/.10/60}

OpenStudy (anonymous):

but obviously i got some numbers wrong

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