Deferred Annuities

Question

A debt of 8000 is to be amortized by equal monthly payments starting at the end of one year and ending at the end of 2 years if money is worth 9% every month, find each payment.

So I was thinking this is a deferred annuity but instead of find the future value we are finding the annuity.

Plugging in my equation n+d = 2 years which is 24 payments Future value = 8000 AM i doing it right?

$Annuity$ = $\frac{8000}{\frac{1+\left(\frac{0.09}{12}\right)^{24}}{\frac{0.09}{12}}-{\frac{1+\left(\frac{0.09}{12}\right)^{12}}{\frac{0.09}{12}}}}$

You want $\left(1+{.09\over12}\right)^{24}$ for example. You've got the left parentheses in the wrong place. — saulspatz, Nov 26 '18 at 13:22

score 0 · Answer 1 · answered Nov 27 '18 at 22:28

0

$i=0.09/12$, $v=\frac{1}{1 +i} $, $L=8000$

$$ A=\frac{L}{v^{12}\times\frac{1-v^{12}}{i} } $$

answered Nov 27 '18 at 22:28

alexjo

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Deferred Annuities

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