Solving for unknowns; annuities
Response to the following problem:
For each of the following situations involving annuities, solve for the unknown (?). Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. ( i = interest rate, and n = number of years)
|
|
Present Value
|
Annuity Amount
|
i
|
n
|
|
1.
|
?
|
$ 3,000
|
8%
|
5
|
|
2.
|
$242,980
|
75,000
|
?
|
4
|
|
3.
|
161,214
|
20,000
|
9
|
?
|
|
4.
|
500,000
|
80,518
|
?
|
8
|
|
5.
|
250,000
|
?
|
10
|
4
|