Solving for Annuity Payments (PMT) You just bought a $10,000 annuity that provides annual payments at the end of each of the next six years. If the appropriate interest rate is 11%, what annual payment will you receive each year? Enter the data into your calculator: N 6 11 PV - 10,000 FV = 0 Solve for PMT by pressing CPT PMT, PMT Solving for an Annuity I/Y and N Solving for an annuity's N and I/Y is exactly like before; however, be careful of the sign used when entering the PMT. If you contributed money today and in future annual payments with the goal of one day extracting funds, the PV and PMT are the same sign, and the FV will be different. If you pay money today and receive funds each period and a lump sum in the future, PMT and FV are the same sign and different from the PV. Remember, your signs have to agree! Grade It Now Save & Continue Continue without saving Solving for Annuity Payments (PMT) You just bought a $10,000 annuity that provides annual payments at the end of each of the next six years. If the appropriate interest rate is 11%, what annual payment will you receive each year? Enter the data into your calculator: N 6 1/1.931.53 P 9,000 2,087.10 F 2,214.87 2,138.14 Solved 2,363.77 ssing CPT PMT PMT Solving for an Annuity I/Y and N Solving for an annuity's N and I/Y is exactly like before; however, be careful of the sign used when entering the PMT. If you contributed money today and in future annual payments with the goal of one day extracting funds, the PV and PMT are the same sign, and the FV will be different. If you pay money today and receive funds each period and a lump sum in the future, PMT and FV are the same sign and different from the PV. Remember, your signs have to agree! Grade It Now Save & Continue Continue without saving