What is the future value of an $800 annuity payment over 15 years if the interest rates are 6 percent?
A) $1,917.25
B) $7,002.99
C) $12,720.00
D) $18,620.78

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 interest rate per period, and n is the number of periods. Plugging in $800 for P, 0.06 for r, and 15 for n gives a future value of approximately $18,620.78.

What Is the Future Value of an $800 Annuity Payment