CALCULATION ANNUITY USING FORMULA

PMT=FV(r)(1+r)n-

For example an individual who would like to calculate the amount they would need to save per

year to have the balance of RM5,000 after 5 years. Assumed that the effective rate per year 

would be 3%.

PMT=RM 5000(0.03)(1+0.03)5-1

PMT=RM 1500.1593

PMT=RM 941.77