Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) \$25,000 in a fund paying 5\% per year, with quarterly payments for 20 years PMT = \$
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To do this, divide the annual interest rate by 4 (since there are 4 quarters in a year). Quarterly interest rate = 5% / 4 = 0.05 / 4 = 0.0125 Show more…
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