Suppose Payments Were Made at the End of Each Month

question 178

Short Answer

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 12%/year compounded monthly. If the future value of the annuity after 10 years is $40,000, what was the size of each payment? Round your answer to the nearest cent.
R = $__________

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Definitions:

Success-Disengagement

The concept of an individual or entity achieving their predetermined goals and subsequently stepping back or reducing their active involvement.

Resource Maturity

A metric or stage indicating the level of development and readiness for use of a particular resource within an organization or project.

Existence

The fact of being, presence, or reality of something, often used in various contexts to refer to the presence or occurrence of life, entities, or objects.

Survival

The ability of an entity, such as a business or organism, to continue existing or operating despite challenges or adverse conditions.