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:

Extraversion

A personality trait characterized by high levels of sociability, talkativeness, and energetic behavior.

Arousal Preference

An individual's characteristic level of stimulation or excitement, influencing their engagement with the environment.

Voidable

Refers to a legal agreement or transaction that is valid and enforceable, but can be annulled or terminated by one or more of the parties involved due to certain defects or circumstances.

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.