Find the future value of the annuity.
-There are payments of $1000 at the end of each year for 14 years at 2% interest compounded annually
A) $15,973.94
B) $65,973.94
C) $14,680.33
D) $6468.03

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula $FV = P \times \frac{(1 + r)^n - 1}{r}$, where $P$ is the payment amount, $r$ is the annual interest rate, and $n$ is the number of periods. Plugging in the given values ($P = 1000$, $r = 0.02$, $n = 14$), we get $FV = 1000 \times \frac{(1 + 0.02)^{14} - 1}{0.02}$, which calculates to approximately $15,973.94.

Find the Future Value of the Annuity