Question

If monthly payments are made for 30 years, find the value for n in the following future value ordinary annuity formula.

a-(360)
b-(12)
c-(30)
d-(30/12)

Answer 1

a.

(360)

Explanation:

Answer 2

Option A is correct, i.e. n = 360.

Explanation:

Given the monthly payments are made for 30 years.

We know 1 year = 12 months. It means they paid 12 installments in a year and they paid it for complete 30 years.

So, total installments = 12 installments in a year x 30 years = 360 installments.

Therefore, the value for n in the following future value ordinary annuity formula would be 360.

Hence, option A is correct, i.e. n = 360.