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18 July, 07:45

Fiona deposits $4,000 at the end of each year in an account earning 2.15% interest, compounded annually. What is the future value of this annuity after 5 years of investing

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  1. 18 July, 08:03
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    The formula of the future value of annuity ordinary

    Fv=pmt [ (1+r) ^ (n) - 1) : r]

    Fv future value

    Pmt payment per year 4000

    R interest rate 0.0215

    N time 5 years

    Fv=4,000 * (((1+0.0215) ^ (5) - 1) : (0.0215))

    fv=20,878.69
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