Use the future value formula to find the indicated value. Round to three decimal places:
-n = 15; i = 0.04; PMT = $1; FV = ?
A) $ 18.292
B) $ 21.825
C) $ 20.024
D) $ 45.024

Question

Quizplus · Accepted Answer

The future value of an annuity can be calculated using the formula FV = PMT * [(1 + i)^n - 1] / i, where PMT is the payment amount per period, i is the interest rate per period, and n is the total number of payments. Substituting the given values, FV = 1 * [(1 + 0.04)^15 - 1] / 0.04 = $20.024, rounded to three decimal places.

Use the Future Value Formula to Find the Indicated Value