Find the periodic payment R required to accumulate a sum of S dollars over t years with interest earned at the rate of r %/year compounded m times a year. Please round the answer to the nearest cent.
S = 310,000, r = 5.5, t = 11, m = 12

A) R = $1,519.07
B) R = $1,676.02
C) R = $1,714.64
D) R = $1,714.49
E) R = $1,717.17

Question

Find the periodic payment R required to accumulate a sum of S dollars over t years with interest earned at the rate of r %/year compounded m times a year. Please round the answer to the nearest cent. ​
S = 310,000, r = 5.5, t = 11, m = 12
​
A) R = $1,519.07
B) R = $1,676.02
C) R = $1,714.64
D) R = $1,714.49
E) R = $1,717.17

Quizplus · Accepted Answer

The formula for periodic payment is:

R = S[(r/100)/m]/[1-((1+(r/100)/m)^(-mt))]

Plugging in the given values, we get:

R = 310000[(0.055/12)]/[1-((1+(0.055/12))^(-12*11))]

R = $1,714.49 (rounded to the nearest cent)

Therefore, the correct answer is D.

Find the Periodic Payment R Required to Accumulate a Sum