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. Round your answer to the nearest cent.
S = 280,000, r = 11, t = 26, m = 13

A) R = $183.25
B) R = $138.42
C) R = $122.24
D) R = $145.77

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. Round your answer to the nearest cent. ​
S = 280,000, r = 11, t = 26, m = 13
​
A) R = $183.25
B) R = $138.42
C) R = $122.24
D) R = $145.77

Quizplus · Accepted Answer

The periodic payment R can be calculated using the future value of an annuity formula: $ R = \frac{S \cdot \frac{r/m}{(1 + r/m)^{mt} - 1}}{(1 + r/m)^{mt} - 1} $. Plugging in the values S = 280,000, r = 0.11, t = 26, m = 13, the calculation gives R approximately equal to $145.77.

Find the Periodic Payment R Required to Accumulate a Sum