Annuity

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Posted by Orio's on September 26, 2002 at 23:57:18:

Here is a little question here i need advice on to see if i'm correct:

Each tuesday from tuesday 11 May 1999 until tuesday 16 November 1999 inclusive, Mr Hancox deposited $70 in a Xmas savings account. The interest rate was 8% per annum, compounding daily. What should have been the balance of the account on Tuesday 7 Dec 1999, i.e. 3 weeks after the last payment? (there were 28 deposits altogether).

here is what I did, but I don't know if I'm correct or not.
1) 0.08/365=0.0002191780822
2) 70*((1+0.0002191780822)^28-1)/0.0002191780822
=1965.810462
3) FV=1965.810462*1.0002191780822^3
=1967.103333

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Re: Annuity Denis Borris 03:09:07 09/27/02 (0)

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: Here is a little question here i need advice on to see if i'm correct: : Each tuesday from tuesday 11 May 1999 until tuesday 16 November 1999 inclusive, Mr Hancox deposited $70 in a Xmas savings account. The interest rate was 8% per annum, compounding daily. What should have been the balance of the account on Tuesday 7 Dec 1999, i.e. 3 weeks after the last payment? (there were 28 deposits altogether). : here is what I did, but I don't know if I'm correct or not. : 1) 0.08/365=0.0002191780822 : 2) 70*((1+0.0002191780822)^28-1)/0.0002191780822 : =1965.810462 : 3) FV=1965.810462*1.0002191780822^3 : =1967.103333

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