Question

Use the future value formula to find the indicated value.FV = $3648, n = 22; i = 0.08; PMT = ?PMT =?(Round to the nearest cent.)

Answer 1

To calculate the periodic payment (PMT) we use the following formula:

`\text{PMT}=(FV* i)/((1+i)^n-1)`

Where "FV" is the Future Value, "i" is the interest rate, and "n" is the number of periods. Replacing the known values we get:

`\text{PMT}=(3648*0.08)/((1+0.08)^(22)-1)`

Solving the operations:

`\text{PMT}=52.68`