Final answer:
To find the future value annuity factor for an annuity with monthly payments at an 8 and 5/8 % interest rate over 22 years, you need to convert the annual interest to a monthly rate and then use the annuity formula with the total number of monthly payments.
Step-by-step explanation:
To find the future value annuity factor for an ordinary annuity with monthly payments for 22 years and an 8 and 5/8 % interest rate, you can use the future value of an annuity formula:
FV = P * [{((1 + r)^n) - 1} / r]
Where:
In this case, since payments are monthly, the annual interest rate needs to be converted to a monthly rate by dividing by 12, and the number of periods (n) is 22 years times 12 months per year. You didn't provide the periodic payment amount (P), so the calculation will be in terms of P.
First, convert 8 and 5/8 % to a decimal: 8.625% = 0.08625.
Then, find the monthly interest rate: 0.08625 / 12.
Next, calculate the total number of payment periods: 22 * 12.
Finally, you can plug these into the formula to find the annuity factor.