Question

Annuities Problem.
A man promised to pay $15000 at the end of each year. If money is 6% compounded monthly, what payment at the end of each month would be equally satisfactory?

Answer 1

The future value of an "ordinary annuity" is
\[ FV = payment \cdot \frac{(1+i)^n -1}{i} \]
in your case, i = 0.06
and FV = 15000
I would use that info to solve for the payment

Answer 2

what is n?

Answer 3

i do not know of what is n?

Answer 4

payment at the end of each month
pay $15000 at the end of each year

I would say 12, because after 12 months, 15000 is due

Answer 5

So, by computation what's the final answer?

Answer 6

are you saying you can't interpret the formula (i.e. use it ) ?

Answer 7

I can but I need your answer if I have the right answer.

Answer 8

post your work

Answer 9

Answer $889.16

Answer 10

right?

Answer 11

yes, that looks good