Question

Brief Exercise G-7 Sara I just graduated from college. She has determined that to purchase a home in 15 years she needs to accumulate $22,700 for a down payment. If Sarah can earn 9% per year on her savings, what is the amount of the annual annuity payment that Sarah must make at the end of each year for 15 years.

CALCULATOR PRINTER VERSION BACK NEXT Brief Exercise 6-7 Sara has just graduated from college. She has determined that to purchase a home in 15 years she needs to accumulate $22,700 for a down payment. If Sara can earn 9% per year on her savings, what is the amount of the annual annuity payment that Sara must make at the end of each year for 15 years? Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, c.9. 25.25) Amount of the annual annuity payment Click if you would like to show Work for this question: Open Show work T ANSWER SAVE FOR LATES Question Attempts: 0 of 3 used 100 t tagli om de Type here to search

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer The correct answer is - annual annuity payment = $ 773.14 Annual Payment = amount to be accumulated / Future value annuity (9%, 15) = 22700/(((1+9%)^15-1)/9%) = 22700/29.36092 = $773.14 2 For any help please comment in the comment box 3 Thank You ti