What is the future value of an annuity if the size of each payment is ₱2,500, payable atthe end of each quarter for 6 years, at an interest rate of 16% compounded quarterly?

Respuesta :

The future value of an annuity A if the size of each payment after each quarter is given by P after n trimesters at an interest rate r is given by:

[tex]A=P\frac{\lbrack(r+1)^n-1\rbrack}{r}[/tex]

For P = ₱2,500, r = 0.16 and n = 6*4 = 24, we have:

[tex]\begin{gathered} A=2500\frac{\lbrack(1.16^{24}-1\rbrack}{0.16} \\ A=\text{ }₱534944.02 \end{gathered}[/tex]