In the following ordinary annuity, the interest is compounded with each payment

Question

In the following ordinary annuity, the interest is compounded with each payment and the payment is made at the end of the compounding period. Calculate the required payment for the Sinking Fund. Monthly deposits earning 4% to accumulate $5000 after 10 years.

and

In this ordinary annuity, the interest is compounded with each payment and the payment is made at the end of the compounding period. Calculate the accumulated amount of the annuity. $2500 annually at 6% for 10 years

and

Since 2007, a particular fund returned 13.6% compounded monthly. How much would a $4000 investment in this fund have been worth after 3 years?

Many Thanks for your assistance.

Explanation / Answer

In the following ordinary annuity, the interest is compounded with each payment and the payment is made at the end of the compounding period. Calculate the required payment for the Sinking Fund. Monthly deposits earning 4% to accumulate $5000 after 10 years.

The required payment for the Sinking Fund = pmt(4/1200,120,0,5000) = $ 33.96

and

In this ordinary annuity, the interest is compounded with each payment and the payment is made at the end of the compounding period. Calculate the accumulated amount of the annuity. $2500 annually at 6% for 10 years

the accumulated amount of the annuity = fv(6%,10,2500,0) = $ 32951.99

and

Since 2007, a particular fund returned 13.6% compounded monthly. How much would a $4000 investment in this fund have been worth after 3 years?

investment in this fund have been worth after 3 years = 4000*(1+13.6/1200)^36 = $ 6001.44

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