Find the future value of the annuity.
-There are payments of $100 at the end of each year for 10 years at 2% interest compounded annually
A) $6094.97
B) $975.46
C) $1094.97
D) $597.55

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = P * [(1 + r)^n - 1] / r, where P is the payment amount, r is the annual interest rate, and n is the number of periods. Plugging in the values (P = $100, r = 0.02, n = 10), we get FV = $100 * [(1 + 0.02)^10 - 1] / 0.02 = $1094.97.

Find the Future Value of the Annuity