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Homework answers / question archive / Find the periodic payment for the following annuity due
Find the periodic payment for the following annuity due.
Future Present Payment Interest Conversion Value Value Period Term Rate Period $19,900 1 month 14 years 11% annually
The periodic payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Computation of Periodic Payment using PMT Function in Excel:
=pmt(rate,nper,-pv,fv)
Here,
PMT = Periodic Payment = ?
Rate = Interest Rate = 11%
Nper = Term = 14 years
PV = Present Value = $19,900
FV = Future Value = 0
Substituting the values in formula:
=pmt(11%,14,-19900,0)
PMT or Periodic Payment = $2,850.24
