Find the future value of an annuity of $ 1300 paid at the end of each year for 10 years, if interest is earned at a rate of 7%, compounded annually. (Round your answer to the nearest cent.)

ruigE

ruigE

Answered question

2020-11-08

Find the future value of an annuity of $ 1300 paid at the end of each year for 10 years, if interest is earned at a rate of 7%, compounded annually. (Round your answer to the nearest cent.)

Answer & Explanation

averes8

averes8

Skilled2020-11-09Added 92 answers

Step 1 
Use the formula: 
F=P((l + i)n  1)i 
Where P is the regular payment amount and I the annual interest rate, and n, the repayment period length.
Step 2 
Apply the formula: 
F=1300((1 + 0.07)10  1)0.07 
=1761.3823 
The future value of annuity, rounded to the nearest cent, is $ 17961.38.

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